PRESENCE OF SAMSUNG PRODUCT IN APPLIANCES MARKET WITH REFERENCE

TO MUMBAI MARKET
A PROJECT REPORT
SUBMITTED TO THE UNIVERSITY OF
MUMBAI IN PARTIAL FULFILLMENT
OF THE
REQUIREMENTS FOR THE AWARD OF
DEGREE OF
BACHELOR OF MANAGEMENT
STUDIES
(V SEMESTER)
RESEARCHERS NAME
GHANSHYAM .D. GUPTA.
SEAT NO.:
YEAR: 2016-17
K.V.PENDHARKAR COLLEGE OF
ARTS, SCIENCE AND COMMERCE
DOMBIVALI (EAST).
UNDER THE GUIDANCE OF
MR. DEVANG NANDOLA

DECLARATION
I, MR. GHANSHYAM .D. GUPTA the student of
BACHELOR IN MANAGEMENT STUDIES
Semester V (2016-17) hereby declare that I
have completed this project on PRESENCE OF SAMSUNG PRODUCT IN APPLIANCES MARKET WITH
REFERENCE TO MUMBAI MARKET
I have completed the project in person under the
Supervision of Prof. DEVANG NANDOLA
The information submitted is true and original to
the best of my knowledge and that the contents of the project are not copied from any other
source
Such as internet, earlier projects, textbooks, etc.

NAME OF THE STUDENT

SEAT NO.

ACKNOWLEDGEMENT
A BMS project is a golden opportunity for learning and self-development. I
consider myself lucky and honored to have so many wonderful people lead me
through in completion of this project.
I thank our Principal Dr. Anuradha Ranade for her efforts and help
provided to me to get such an excellent opportunity.
My Grateful thanks to my Internal Guide Prof. Devang K. Nandola , who
in spite of being extraordinarily busy with his duties, took time out to hear,
guide and keep me on the correct path. CA. Jayshree Karve our Coordinator
Maam monitored my progress and arranged all facilities to make life easier. I
choose this moment to acknowledge her contribution gratefully. A humble
Thank you Madam.
Last but not the least my parents and friends who shared valuable
information that helped in the successful completion of this project.

Sr.No
Pg no
1 Chapter1 : Introduction
2 Chapter2:Meaning and role of advertising
3 Chapter3:Role of advertising in marketing
4 Chapter4:Advertising agencies(meaning,role and types of agencies
5 Chapter5: Role of advertising in marketing mix
6 Chapter6:Role of advertisement in business
7 Chapter7:The social role of advertising via creating aspiration
8 Chapter8:The changing role portrayed by women in Indian advertisment
9 Chapter9: The role of graphic artist in advertisement
10 Chapter10:Importance of advertising in our modern society
11 Chapter11: Questionnaire
12 Chapter12: Anexxure
13 Chapter13: Finding and analysis
14 Chapter14:Conclusion and recommendation
4

15 Chapter15:Bibilography

EXEXUTIVE SUMMARY

This report is an analysis of the Marketing Strategies of LG.

SAMSUNG is a Multinational Company having its presence all over the world. A thorough
study of SAMSUNG Electronics, how it came into existence & operations of SAMSUNG
Electronics India, has been presented along with an Indian industry analysis.
Analyzing the company in the backdrop of the Indian Home Electronics was considered to be
important because it is a highly competitive market and it is very important to know where a
company stands in this industry.
There after an intense study has been done into SAMSUNG corporate history, its origin,
developments, expansions, strategies etc. A discussion about SAMSUNG operations in India
follows, and thereby the two chosen areas i.e. Marketing is discussed in the subsequent
sections.
The four Ps of marketing have been discussed in detail individually along with the products
brand awareness under the marketing section.

Product: Highlights the addition and change in the product range of the company and the
significance of each of its product lines.

Pricing: The basis used for pricing and how the products have been priced.
Place: The kind of distribution network used to market its products.
Promotion: All the promotion activities to promote the companys brand and its products
in order its increase its market share.
Findings and recommendations have been drawn keeping the industry and company analysis
in mind. Graphs & Tables have been included in the data analysis chapter.

CHAPTER-1
INTRODUCTION

Meaning of Marketing
The term Marketing includes all the resources and activities necessary to direct and
facilitate the flow of goods and services (from producer to consumer) .
In common language, marketing means the process of distribution of goods and services.

There are two broad concepts of marketing.

1. Product oriented marketing (Traditional marketing concept) and

2. Consumer oriented marketing (New / Modern marketing concept).

Defination
PHILIP KOTLER AND GARRY ARMSTRONGMarketing is a social and managerial process by which individuals and groups obtain what
they need and want through creating and exchanging products and value with others.

ADVANTAGES OF MARKETING

SATISFACTION OF CUSTOMERS WANTS

Marketing involves production and distribution of goods and services to consumers.
Marketing starts with identifying the needs/wants of the consumers and producing and

supplying only those goods which are required by consumers. Marketing starts with the
consumers, by knowing their needs and ends with consumers, by satisfying their needs.

CREATES UTILITY
Marketing creates form utility through production, time utility through warehousing, place
utility through transport and possession utility by transferring the goods from seller to buyer.

WIDENS MARKET
Due to marketing, market gets widened from local to regional to national and even at
international/global level.

GENERATES EMPLOYMENT
Marketing helps in generating employment opportunities, directly or indirectly in production,
advertising, personal selling, transportation, warehousing and other marketing areas.

IMPROVES STANDARD OF LIVING

Marketing provides new and better varieties of useful and quality goods to consumers, at a
reasonable price. This helps to increase the standard of living of the people.

HELPS TO INTRODUCE NEW PRODUCTS

Marketing functions like marketing research, product development, advertising etc, helps to
introduce new products. Every organization in order to stay ahead in competition, has to
frequently develop new products.

 FACE COMPETITION
There is severe competition in the market . This stiff competition can be faced effectively
through marketing research, by adopting effective marketing strategies etc.

GOODWILL / REPUTATION

Effective marketing helps an organization to increase its market reputation / goodwill. A good
image of the organization can be developed by providing quality products at reasonable
prices.

Four Ps of Marketing

PRODUCT
A product is seen as an item that satisfies what a consumer demands. It is a tangible good or
an intangible service. Tangible products are those that have an independent physical
existence. Typical examples of mass-produced, tangible objects are the motor car and the
disposable razor. A less obvious but ubiquitous mass-produced service is a computer
operating system.

PRICE

10

The amount a customer pays for the product. The price is very important as it determines the
company's profit and hence, survival. Adjusting the price has a profound impact on the
marketing strategy and, depending on the price elasticity of the product, often it will affect
the demand and sales as well. The marketer should set a price that complements the other
elements of the marketing mix.

PROMOTION
All of the methods of communication that a marketer may use to provide information to
different parties about the product. Promotion comprises elements such as: advertising, public
relations, sales organisation and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and
Internet advertisements through to print media and billboards. Public relations is where the
communication is not directly paid for and includes press releases, sponsorship deals,
exhibitions, conferences, seminars or trade fairs and events.

PLACE
Refers to providing the product at a place which is convenient for consumers to access.
Various strategies such as intensive distribution, selective distribution, exclusive distribution
and franchising can be used by the marketer to complement the other aspects of the
marketing mix. The last P is place, the distribution channel which is the location where the
delivery the value. The role of the marketing channels is not only focus on the participate in
demand satisfaction by offering goods, but also need to stimulate demand through
information, creating proximity and promotion by customer.

11

Four Cs of Marketing

CONSUMER
The principle of four Cs of marketing states that your customer should be your prime focus.
Unlike the traditional marketing mix where the primary focus is on Products, in the 4 Cs
model, the primary focus is on the customer. Thus the companies which follow this model
believe in making products which satisfy their customers. They are generally ready to offer
customizable products and because they have a general set of target customers, this principle
is only applicable for smaller market segments and not for mass markets. For mass markets,
the traditional marketing mix can be used.

12

 COST
Cost is equivalent to Pricing in the traditional marketing mix. Cost is a very important
consideration during consumer decision making and hence in the 4 Cs principle, the cost
variable is given special attention. The 4 Cs model generally plans on the basis of Customers
and not products. And hence they have to plan the cost of the product on the basis of their
customer. If you are targeting a SEC A segment, then the costing of the product needs to be
premium to have proper psychological positioning.

COMMUNICATION
The concept of communication remains same for both, the traditional marketing mix as well
as for the 4 Cs of marketing. Off course, the marketing communications for a company
following the 4 Cs of marketing is completely different as it needs a completely different
Segmentation, targeting and positioning. As said before, the 4 Cs of marketing are generally
used for Niche products. The media vehicles used for marketing communications for a mass
product and that for a niche product are different. A niche marketing company might use
more of BTL rather than ATL whereas in a mass marketing company, ATL communications
are very important.

CONVENIENCE
Convenience is equivalent of distribution or placement of the traditional marketing mix.
When you have a niche customer base, the convenience of the customer in acquiring your
product plays a critical role. Take a niche product like Heavy machinery as an example or
13

even products like television and air conditioners. What if the companies who sell these
products do not give you delivery and installation. You will not buy the product as you wont
be ready to pick up the machine and install it yourself. You will be looking out for your own
convenience. Thus convenience, like distribution, plays a critical role. The customer will not
buy your product if it is not convenient to him.

14

PROMOTIONAL TOOL

ADVERTISING
15

Advertising is defined as any form of paid communication or promotion for product, service
and idea. Advertisement is not only used by companies but in many cases by museum,
government and charitable organizations. However, the treatment meted out to advertisement
defers from an organization to an organization.

SALES PROMOTION
Promotion is an incentive tool used to drive up short term sales. Promotion can be launched
directed at consumer or trade. The focus of advertising to create reason for purchase the focus
of promotion is to create an incentive to buy. Consumer incentives could be samples,
coupons, free trial and demonstration. Trade incentive could be price off, free goods and
allowances. Sales force incentive could be convention, trade shows, competition among sales
people.

PUBLIC RELATIONS
Companies cannot survive in isolation they need to have a constant interaction with
customers, employees and different stakeholders. This servicing of relation is done by the
public relation office. The major function of the public relation office is to handle press
releases, support product publicity, create and maintain the corporate image, handle matters
with lawmakers, guide management with respect to public issues.

16

 DIRECT MARKETING
The communication establishes through a direct channel without using any intermediaries is
referred to as direct marketing. Direct marketing can be used to deliver message or service.
Direct marketing has shown tremendous growth in recent years. The internet has played
major part in this growth story. Direct marketing saves time, makes an experience personal
and pleasant. Direct marketing reduces cost for companies. Face to face selling, direct mail,
catalog marketing, telemarketing, TV and kiosks are media for direct marketing.

PERSONAL SELLING
According to American Marketing Association (1995) Personal Selling is a face to face
interaction with one or more prospective purchasers for the purpose of making presentations,
answering questions and procuring order .
Personal selling is the most effective tool at later stages of the buying process, particularly in
building up buyer preference, conviction, and action.

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Types of Marketing Channels

Consumer Goods
Industry Goods
Consumer Goods
1. Manufacturer Consumer (0 level channel)
1) Zero Level channel / Direct Marketing Channel :Consists of a manufacturer directly selling to the end consumer. This might
mean door to door sales, direct mails or telemarketing. Dell online sales is a perfect example
of a zero level channel marketing.

2) One Level channel:-

18

As the name suggests, the one level channel has an intermediary in between
the producer and the consumer. An example of this can be insurance in which there is an
insurance agent between the insurance company and the customer. Even E-commerce is an
excellent one channel level example wherein the companies tie up directly with Ecommerce portals and then sell in the market.

3) Two level Channel:Two level channel involves the movement of goods from the company to an
intermediary, from from the intermediary to another and then to customer. This is also
commonly known as breaking the bulk in FMCG market. A widely used two
level marketing channel especially in the FMCG and the consumer durables industry which
consists of a wholesaler and a retailer. So the goods go from company to distributor,
distributor to retailer and retailer to consumer.

4) Three level channel:Again observed in both the FMCG and the consumer durables industry, the
three level channel can combine the roles of a distributor on top of a dealer and a retailer. The
distributor stocks the most and spreads it to dealers who in turn give it to retailers.
In the three level channel, the example can be taken of Ice cream market. Because of the
manufacturing levels required, Ice cream markets have C&F agents who stock the ice cream
in refrigerated cold rooms. These ice creams are then transported to local distributors who
also have refrigerated cold rooms. The distributors then transport to local dealers who will
have 10-12 small freezers. And finally it is transported to the retailer who will have 1-2
freezer of each company.

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 Industrial Goods

1. Manufacturer Industrial Customers

It is a direct channel where manufacturers sell large installations like
generators, heating plants etc. to the industrial customers.

2. Manufacturer Industrial Distributor Industrial Customer

In this one level channel the manufacturer appoints industrial
distributors to have contact with industrial customer. This channel is used to sell operating
supplies and small accessory equipment , such as building materials, construction equipment,
and air conditioning equipment.

3. Manufacturer Agent - Industrial Customer

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This channel is often used when a new product is introduced or a new

market is entered. The manufacturer may use this channel when he finds it cheaper to use an
agent to sell goods to industrial customers.

4. Manufacturer Agent - Industrial Distributor - Industrial Customer

In this channel the manufacturer appoint agent on regional basis. The
agent supply the goods to industrial distributor in their region (area). The industrial
distributors in turn sell it to industrial customers.

Samsung Electronics
Samsung Electronics Co., Ltd. is a South Korean multinational electronics company
headquartered in Suwon, South Korea. Through extremely complicated ownership structure
with some circular ownership it is the flagship division of the Samsung Group, accounting for
70% of the group's revenue in 2012. It is the world's second largest information technology
company by revenue, after Apple. Samsung Electronics has assembly plants and sales
networks in 80 countries and employs around 370,000 people. Since 2012, Kwon Oh-hyun
has served as the company's CEO. Samsung has long been a major manufacturer of electronic
components such as lithium-ion batteries, semiconductors, chips, flash memory and hard
drive devices for clients such as Apple, Sony, HTC and Nokia.[9][10]In recent years, the
21

company has diversified into consumer electronics. It is the world's largest manufacturer of
mobile phones and smartphones fueled by the popularity of its Samsung Galaxy line of
devices.[12] The company is also a major vendor of tablet computers, particularly its Androidpowered Samsung Galaxy Tab collection, and is generally regarded as pioneering
the phablet market through the Samsung Galaxy Note family of devices. Samsung has been
the world's largest television manufacturer since 2006,and world's largest manufacturer of
mobile phones since 2011.[15] Samsung Electronics displaced Apple Inc. as the world's largest
technology company in 2011 and is a major part of the South Korean economy. In June 2014,
Samsung published the Tizen OS with the new Samsung Z.

22

History

19691987: Early years

Samsung Electric Industries was established as an industry Samsung Group in 1969
in Suwon, South Korea.[16] Its early products were electronic and electrical appliances
including televisions, calculators, refrigerators, air conditioners and washing machines. In
1970, Samsung Group established another subsidiary, Samsung-NEC, jointly with
Japan's NEC Corporation to manufacture home appliances and audiovisual devices. In 1974,
the group expanded into the semiconductor business by acquiring Korea Semiconductor, one
of the first chip-making facilities in the country at the time. The acquisition of Korea
Telecommunications, an electronic switching system producer, was completed at the start of
the next decade in 1980.

By 1981, Samsung Electric Industries had manufactured over 10 million black-and-white

televisions. In February 1983, Samsung's founder, Lee Byung-chull, along with the board of
the samsung industry and corporation agreement and help by sponsoring the event, made an
announcement later dubbed the "Tokyo declaration", in which he declared that Samsung
intended to become a DRAM (dynamic random access memory) vendor. One year later,
Samsung became the third company in the world to develop a 64 kb DRAM.In 1988,
Samsung Electric Industries merged with Samsung Semiconductor & Communications to
form Samsung Electronics, as before that, they had not been one company and had not been a
leading corporation together, but they were not rivals, as they had been in talks for a time,
until they finally merged.

23

 19881995: Consumer struggles

Samsung Electronics launched its first mobile phone in 1988, in the South Korean
market.Sales were initially poor and by the early 1990s, Motorola held a market share of over
60 percent in the country's mobile phone market compared to just 10 percent for Samsung.
Samsung's mobile phone division also struggled with poor quality and inferior products until
the mid-1990s and exit from the sector was a frequent topic of discussion within the
company.[

19952008: Component manufacturing

Lee Kun-Hee decided that Samsung needed to change strategy. The company shelved the
production of many under-selling product lines and instead pursued a process of designing
and manufacturing components and investing in new technologies for other companies. In
addition, Samsung outlined a 10-year plan to shrug off its image as a "budget brand" and to
challenge Sony as the world's largest consumer electronics manufacturer. It was hoped in this
way Samsung would gain an understanding of how products are made and give a
technological lead sometime in the future. This patient vertical integration strategy of
manufacturing components has borne fruit for Samsung in the late-2000s. As Samsung
shifted away from consumer markets, the company devised a plan to sponsor major sporting
events. One such sponsorship was for the 1998 Winter Olympics held in Nagano, Japan.
As a chaebol, Samsung Group wielded wealth that allowed the company to invest and
develop new technology rather than build products at a level which would not have a
detrimental impact on Samsung's finances.
Samsung had a number of technological breakthroughs, particularly in the field of memory
which are commonplace in most electrical products today. This includes the world's first
64Mb DRAM in 1992, 256 Mb DRAM in 1994, 1Gb DRAM in 1996. In 2004, Samsung
developed the world's first 8Gb NAND Memory chip and a manufacturing deal was struck
with Apple in 2005. A deal to supply Apple with memory chips was sealed in 2005 and, as of
October 2013, Samsung remains a key supplier of Apple components, manufacturing the A7
processors that are inside the iPhone 5s model.

2008 to present: Consumer products

For four consecutive years, from 2000 to 2003, Samsung posted net earnings higher than
five-percent; this was at a time when 16 out of the 30 top South Korean companies ceased
operating in the wake of the unprecedented crisis.

24

In 2005, Samsung Electronics surpassed its Japanese rival, Sony, for the first time to become
the world's twentieth-largest and most popular consumer brand, as measured byInterbrand.[27]
In 2007, Samsung Electronics became the world's second-largest mobile-phone maker,
overtaking Motorola for the first time.In 2009, Samsung achieved total revenues of
US$117.4 billion, overtaking Hewlett-Packard to become the world's largest technology
company measured by sales.[29]
In 2009 and 2010, the US and EU fined the company, together with eight other memory chip
makers, for its part in a price-fixing scheme that occurred between 1999 and 2002. Other
companies fined included Infineon Technologies, Elpida Memory and Micron Technology.[30]
[31][32][33][34]
In December 2010, the EU granted immunity to Samsung Electronics for acting as
an informant during the investigation (LG Display, AU Optronics, Chimei InnoLux,
Chunghwa Picture Tubes and HannStar Display were implicated as result of the company's
intelligence).[35][36]
Despite its consistent expansion, Samsung, along with its chairman Lee Kun-hee, has
developed a reputation for insecurity regarding its financial stability and the potential for
future crises to arise. After returning from a temporary retirement period in March 2010,
Kun-hee stated that "Samsung Electronics' future is not guaranteed because most of our
flagship products will be obsolete in 10 years from now."[37]
The company has set an ambitious goal of reaching $400 billion in annual revenues within
ten years. The company has 24 research-and-development centers around the world, and
since the early 2000s and in the Vision 2020, Samsung has emphasized technical research and
development. However, the large number of online complaints indicate that the company is
weak at listening to customer feedback regarding the design of its technology and software.
In April 2011, Samsung Electronics sold its HDD commercial operations to Seagate
Technology for approximately US$1.4 billion. The payment was composed of 45.2 million
Seagate shares (9.6 percent of shares), worth US$687.5 million, and a cash sum for the
remainder.
In May 2013, Samsung announced that it had finally managed to test speed-enhanced fifth
generation (5G) technology successfully.
In April 2013, Samsung Electronics' new entry into its Galaxy S series smartphone range,
the Galaxy S4 was made available for retail. Released as the upgrade of the bestselling Galaxy S III, the S4 was sold in some international markets with the company's
Exynos processor.

25

In July 2013, Samsung Electronics forecasted weaker than expected profits for its April to
June quarter. While analysts expected around 10.1 trillion won, Samsung Electronics
estimated an operating profit of 9.5 trillion (US$8.3 billion). During the same month,
Samsung acquired the media streaming device manufacturer Boxee for a reported
$30 million.
Samsung's mobile business chief Shin Jong-kyun stated to the Korea Times on 11 September
2013 that Samsung Electronics will further develop its presence in China to strengthen its
market position in relation to Apple. The Samsung executive also confirmed that a 64-bit
smartphone handset will be released to match the ARM-based A7 processor of Apple's iPhone
5s model that was released in September 2013.
Due to smartphone salesespecially sales of lower-priced handsets in markets such as India
and ChinaSamsung achieved record earnings in the third quarter of 2013. The operating
profit for this period rose to about 10.1 trillion won (US$9.4 billion), a figure that was
boosted by memory chip sales to customers such as Apple, Inc. On 14 October 2013,
Samsung Electronics publicly apologized for using refurbished components from cheaper
desktop computers to fix higher-end products, after the corporation's unethical business
practices were exposed on the previous day by MBC TV's current affairs magazine, 2580.
Samsung provided sponsorship for the 86th Academy Awards ceremony (held 2 March 2014)
and, due to the use of the Samsung Galaxy Note smartphone product by host Ellen
DeGeneres in a group selfiephotograph that became an online viral phenomenon, the
corporation donated US$3 million to two charitable organizations selected by DeGeneres.
The official Samsung statement explained: "... we wanted to make a donation to Ellen's
charities of choice: St Jude's and the Humane Society. Samsung will donate 1.5 million
dollars to each charity.

On 17 April 2014, Samsung had announced it was discontinuing its ebook store effective 1
July 2014 and had partnered with Amazon to introduce the Kindle for Samsung app, that will
permit Galaxy device users using Android 4.0 and up to buy and read content from Amazon's
catalog of periodicals and ebooks, and a free book service, Samsung Book Deals, that will
allow users of the co-branded app to choose one free ebook monthly from a selection
provided by Amazon.

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In February 2014, Barnes & Noble announced a new Nook color tablet would be released in
2014.[47] In June 2014, Barnes & Noble announced it would be teaming up with Samsung
one of the leaders in Android-based tablets to develop co-branded color tablets titled the
Samsung Galaxy Tab 4 Nook; the devices will feature Samsung's hardware, including a 7inch display, and customized Nook software from Barnes & Noble. The first Galaxy Tab 4
Nook will begin selling in the US in August 2014 with Nook focusing on the software and
content, and Samsung focusing on the hardware.The product specs posted by Samsung
indicate that, in contrast to the premium quality enhanced ereaders launched in 2012 (the
NOOK HD and HD+, which "had screens and CPUs comparable to the best mid-level and
premium tablets), the more budget-like features of the Samsung Galaxy Tab 4 Nook will be
designed for a lower market tier (Android 4.4.2 KitKat on a 1.2 GHz quad-core Snapdragon
CPU with 1.5GB RAM, Wifi, and Bluetooth, in addition to a 1.2MP front-facing camera and
a 3MP rear camera, screen resolution of 1280 x 800, and a $199 retail price; roughly $80
more than comparable tablets that don't carry a Samsung brand).
In reporting on Barnes & Noble's 5 June 2014 announcement that the bookseller would be
teaming up with Samsung to develop Nook tablets, the Associated Press noted:
"Barnes & Noble says it will continue to make and sell its $99 Nook Glowlight[sic] e-readers
and provide customer support."
"The company also says it is moving its Nook employees out of its Palo Alto, Calif., offices
to save money. Employees are expected to move to a smaller space in nearby Santa Clara,
Calif., by July."
In Q1 2015, Samsung's profit dropped 39% to USD4.35 billion due to heavier smartphone
competition from Apple's iPhone 6 and 6 Plus, as well as a slew of Android competitors.
In June 2015, Samsung established a dedicated LFD business, Samsung Display
Solutions, catering to the company's SMART range of LED products. The company's
SMART range of LED displays include Signage, Hospitality Display, TV, LED,
Cloud Display, and Accessories. The company provides the following all-in-one customer
software solutions: MagicInfo, MagicIWB, LYNK SINC, LYNK HMS, and LYNK REACH.
The company caters to the following industries: Retail, Corporate, Corporate, Hospitality, and
Transportation.
On 16 June 2016, Samsung Electronics announced that it has agreed to acquire cloudcomputing company Joyent. It will allow it to grow its cloud-based services for its
smartphones and Internet-connected.

27

Operations
The company focuses on four areas: digital media, semiconductor, telecommunication
network and LCD digital appliances.
The digital-media business area covers computer devices such as laptop computers and laser
printers; digital displays such as televisions and computer monitors; andconsumer
entertainment devices such as DVD players, MP3 players and digital camcorders; and home
appliances such as refrigerators, air conditioners, air purifiers, washers,microwave ovens,
and vacuum cleaners.
The
semiconductor-business
area
includes
semiconductor
chips
such
as SDRAM, SRAM, NAND flash
memory; smart
cards; mobile
application
processors; mobile TVreceivers; RF transceivers; CMOS Image sensors, Smart Card IC, MP3
IC, DVD/Blu-ray Disc/HD DVD Player SOC and multi-chip package (MCP); and storage
devices such asoptical disc drives and formerly hard disk drives.
The
telecommunication-network-business
area
includes
multiservice DSLAMs and fax machines; cellular devices such as mobile phones, PDA phones,
and hybrid devices called mobile intelligent terminals (MITs); and satellite receivers.
The LCD business area focuses on producing TFT-LCD and organic light-emitting
diode (OLED) panels for laptops, desktop monitors, and televisions.
Samsung Print was established in 2009 as a separate entity to focus on B2B sales and has
released a broad range of multifunctional devices and printers and more.

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PRODUCTS

LCD and LED panels

By 2004 Samsung was the world's-largest manufacturer of OLEDs, with a 40 percent market
share worldwide and as of 2010 has a 98% share of the global AMOLEDmarket.The
company generated $100.2 million out of the total $475 million revenues in the global OLED
market in 2006.] As of 2006, it held more than 600 American patents and more than 2,800
international patents, making it the largest owner of AMOLED technology patents.
Samsung's current AMOLED smartphones use its Super AMOLED trademark, with
the Samsung Wave S8500 and Samsung i9000 Galaxy S being launched in June 2010. In
January 2011, it announced its Super AMOLED Plus displays which offer several advances
over the older Super AMOLED displays real stripe matrix (50 percent more sub pixels),
thinner form factor, brighter image and an 18 percent reduction in energy consumption.
In October 2007, Samsung introducing a ten-millimeter thick, 40-inch LCD television panel,
followed in October 2008 by the world's first 7.9-mm panel.Samsung developed panels for
24-inch LCD monitors (3.5 mm) and 12.1-inch laptops (1.64 mm).In 2009, Samsung
succeeded in developing a panel for forty-inch LED televisions, with a thickness of 3.9
millimeters (0.15 inch). Dubbed the "Needle Slim", the panel is as thick (or thin) as two coins
put together. This is about a twelfth of the conventional LCD panel whose thickness is
approximately 50 millimeters (1.97 inches).
While reducing the thickness substantially, the company maintained the performance of
previous models, including full HD resolution, 120 Hz refresh rate, and 5000:1 contrast
ratio.] On 6 September 2013, Samsung launched its 55-inch curved OLED TV (model
KE55S9C) in the United Kingdom with John Lewis.
In October 2013, the Samsung corporation disseminated a press release for its curved display
technology with the Galaxy Round smartphone model. The press release described the
product as the "world's first commercialized full HD Super AMOLED flexible display." The
manufacturer explains that users can check information such as time and battery life when the
home screen is off, and can receive information from the screen by tilting the device.

29

 MOBILE PHONES
Samsung's flagship mobile handset line is the Samsung Galaxy S, which many consider a
direct competitor of the Apple iPhone. It was initially launched in Singapore, Malaysia and
South Korea in June 2010, followed by the United States in July. It sold more than one
million units within the first 45 days on sale in the United States.
While many other handset makers focused on one or two operating systems, Samsung for a
time used several of them: Symbian, Windows Phone, Linux-based LiMo, and Samsung's
proprietary Bada.
By 2013 Samsung had dropped all operating systems except Android and Windows Phone.
That year Samsung released at least 43 Android phones or tablets and two Windows Phones.
At the end of the third quarter of 2010, the company had surpassed the 70 million unit mark
in shipped phones, giving it a global market share of 22 percent, trailing Nokiaby 12
percent.]Overall, the company sold 280 million mobile phones in 2010, corresponding to a
market share of 20.2 percent. The company overtook Apple in worldwide smartphone sales
during the third quarter 2011, with a total market share of 23.8 percent, compared to Apple's
14.6 percent share. Samsung became the world's largest cellphone maker in 2012, with the
sales of 95 million smart phones in the first quarter.
During the third quarter of 2013, Samsung's smartphone sales improved in emerging markets
such as India and the Middle East, where cheaper handsets were popular. As of October 2013,
the company offers 40 smartphone models on its US website.

SEMICONDUCTORS
Samsung Electronics has been the world's largest memory chip maker since 1993. In 2009, it
started mass-producing 30 nm-class NAND flash memories. It succeeded in 2010 in massproducing 30 nm-class DRAMs and 20 nm-class NAND flashes, both of which were the first
time in the world.
According to market-research firm Gartner, during the second quarter of 2010 Samsung
Electronics took the top position in the DRAM segment due to brisk sales of the item on the
world market. Gartner analysts said in their report, "Samsung cemented its leading position
by taking a 35-percent market share. All the other suppliers had minimal change in their
shares." The company took the top slot in the ranking, followed by Hynix, Elpida, and
Micron, said Gartner
Another area where the company had significant business in for years is the foundry segment.
It had begun investment in the foundry business since 2006 and now positioned it as one of
the strategic pillars for semiconductor growth.

30

In 2010, market researcher IC Insights predicted that Samsung would become the world'sbiggest semiconductor chip supplier by 2014, surpassing Intel. For the ten-year period from
1999 to 2009, Samsung's compound annual growth rate in semiconductor revenues has been
13.5 percent, compared with 3.4 percent for Intel.
For 2015, IC Insights and Gartner announced that Samsung was the fourth largest chip
manufacturer in the world.

TELEVISIONS
In 2009, Samsung sold around 31 million flat-panel televisions, enabling to it to maintain the
world's largest market share for a fourth consecutive year.
Samsung launched its first full HD 3D LED television in March 2010. ]Samsung had
showcased the product at the 2010 International Consumer Electronics Show (CES 2010)
held in Las Vegas.
Samsung sold more than one million 3D televisions within six months of its launch. This is
the figure close to what many market researchers forecast for the year's worldwide 3D
television sales (1.23 million units). It also debuted the 3D Home Theater (HT-C6950W) that
allows the user to enjoy 3D image and surround sound at the same time. With the launch of
3D Home Theater, Samsung became the first company in the industry to have the full line of
3D offerings, including 3D television, 3D Blu-ray player, 3D content, and 3D glasses.
In 2007, Samsung introduced the Internet TV, enabling the viewer to receive information
from the Internet while at the same time watching conventional television programming.
Samsung later developed "Smart LED TV" (now renamed to "Samsung Smart TV"), which
additionally supports downloaded apps. In 2008, the company launched the Power Infolink
service, followed in 2009 by a whole new Internet@TV. In 2010, it started marketing the 3D
television while unveiling the upgraded Internet@TV 2010, which offers free (or for-fee)
download of applications from its Samsung Apps App Store, in addition to existing services
such as news, weather, stock market, YouTube videos, and movies.
Samsung Apps offers for-fee premium services in a few countries including Korea and the
United States. The services will be custom-tailored for each region. Samsung plans to offer
family-oriented applications such as health care programs and digital picture frames as well
as games. Samsung's range of smart TVs include the apps ITV Player and motion
controlled Angry Birds.

31

 OTHER
Samsung produces printers for both consumers and business use, including mono-laser
printers, color laser printers, multifunction printers, and enterprise-use high-speed digital
multi-function printer models.
In 2010, the company introduced some more energy efficient products, including the laptop
R580, netbook N210, the world's-smallest mono-laser printer ML-1660, and color laser
multifunction printer CLX-3185.
Samsung has introduced several models of digital cameras and camcorders including the
WB550 camera, the ST550 dual-LCD-mounted camera, and the HMX-H106 (64GB SSDmounted full HD camcorder). In 2009, the company took the third place in the compact
camera segment. Since then, the company has focused more on higher-priced items. In 2010,
the company launched the NX10, the next-generation interchangeable lens camera.
In the area of storage media, in 2009 Samsung achieved a ten percent world market share,
driven by the introduction of a new hard disk drive capable of storing 250Gb per 2.5-inch
disk.In 2010, the company started marketing the 320Gb-per-disk HDD, the largest in the
industry. In addition, it was focusing more on selling external hard disk drives. Following
financial losses, the hard disk division was sold to Seagate in 2011.
In the MP3 player segment, Samsung has launched products including the M1 MP3 player,
and the world's-smallest DivX MP3 player R1.
In 2014, the company announced that it was exiting the laptop market in Europe.
In 2015, Samsung announced a proposal for a constellation of 4600 satellites orbiting Earth at
1,400 kilometers (900 mi) altitude that could bring 200 gigabytes per month of internet data
to "each of the world's 5 billion people"The proposal has not yet advanced to
full development. If built, such a constellation would compete with previously-announced
satellite constellations currently under development by OneWeband SpaceX.

32

Management and board of directors

In December 2010, Samsung switched its management system from a single CEO system
under Choi Gee-Sung to a two-person management team with Choi Gee-Sung, CEO and Vice
chairman, and Lee Jae-Yong, Chief Operating officer and President. In June 2012, Samsung
appointed Kwon Oh-hyun as the new CEO of the company.The team was credited as being
younger both in age and outlook, and some executives dyed their hair black. ] Samsung also
reorganized its overseas marketing bases in line with changes in the market, including a
combined Britain/Continental Europe regional subsidiary, and a combined China/Taiwan
regional subsidiary.
In 2012, Samsung appointed Director of Mobile Products, JK Shin to President/CEO of
Samsung Electronics for Mobile Consumer Products.
The company added a new digital imaging business division in 2010, and now consists of
eight divisions, including the existing display, IT solutions, consumer electronics, wireless,
networking, semiconductor, and LCD divisions.
It also reorganized its business organization to strengthen business synergies, by merging its
Digital Air Solutions Team and Samsung Electronics Gwangju (consumer electronics and air
conditioners, merged in 2010) under the consumer electronics business division. The set-top
boxes business was merged with the Visual Display Business division.
The company's December 2010 reorganization was as follows: Among the eight divisions, the
network division and the digital imaging division experienced new appointments, while the
remaining divisions were maintained in accordance with their results.
Chief executive officer, Vice chairman: Choi Gee-Sung
Chief financial officer: President Yoon Ju-hwa
Chief operating officer, President: Lee Jae-Yong
Chief executive officer, President: JK Shin.

33

RELATIONSHIP WITH OTHER COMPANY

Relationship with Apple Inc.

Despite recent litigation activity, Samsung and Apple have been described as frenemies who
share a love-hate relationship. Samsung is a major supplier for Apple first providing
memory for the early iPod devices in 2005, and Apple is a key customer for Samsung in
2012 its component sales were thought to be worth in the region of $8 billion revenue to
Samsung to the point where Apple CEO Tim Cook originally opposed litigation against
Samsung wary of the company's critical component supply chain for Apple.[114]
In April 2011, Apple Inc. announced that it was suing Samsung over the design of its Galaxy
range of mobile phones. The lawsuit was filed on 15 April 2011 and alleges that Samsung
infringed on Apple's trademarks and patents of the iPhone and iPad. Samsung issued
a counterclaim against Apple of patent infringement.[116] In August 2011, at The Regional
Court of Dsseldorf, Apple was granted a preliminary injunctionagainst the sale and
marketing of the Samsung Galaxy Tab 10.1 across the whole of Europe excluding the
Netherlands. The ban has been temporarily lifted in the European Union, with the exclusion
of Germany, whilst it is investigated whether or not the original injunction was appropriate.
On 31 August 2012, the Tokyo District Court ruled Samsung Electronics' mobile devices did
not violate an Apple patent. The case only addressed Apple's patent that allows mobile
devices and personal computers to synchronize or share data with each other and is not
comparable with the U.S. court case ruled on 24 August. On 18 October 2012, U.K. High
Court ruled that Samsung did not infringe Apple's design patents. Apple was forced to issue a
court-ordered apology to Samsung on its official U.K. website.

Relationship with Best Buy Co., Inc.

Best Buy and Samsung joined together to create the Samsung Experience Shop, a store-in-astore which allows customers to test the company's newest products, as well as get training in
mobile products they already own. In summer 2013, more than 1,400 Best Buy and Best Buy
Mobile stores have established the Samsung Experience Shop. About 460 square feet of space
are dedicated for the SES, with the company's placement at Best Buy's entrance, as well as its
sign visible in any part of the store.The purpose of the Samsung Experience Shop is to make
Samsung's products, i.e. the Galaxy, more accessible to customers.
The SES is a place for customers who already purchased Samsung devices, as well as
potential customers. Samsung claims to employ experts that could tackle any issue that
customers are experiencing, either about the device or the service. These experts could help
with "advice, product selection, tips and trick.

34

Samsung and Best Buy have been long time partners. The one difference the experience store
adds to the relationship is that "Samsung products are going to be located in a single central
area instead of being scattered around the store" said Chen, a New York Times reporter. In the
experience store, Samsung employees would handle their products and Best Buy employees
would handle the rest.
Samsung Electronics Canada first experimented with the idea of a standalone retail center
with its Olympic Rendezvous @ Samsung stores in Vancouver, BC, Canada that operated
during the 2010 Winter Olympics. The electronics company went on to open its first official
standalone retail store in Burnaby, BC in July 2012.The conceptualization of an individual,
specialized retail location for Samsung has been largely influenced by the success of these
two projects.
The first Samsung Experience Shops began rolling out across Best Buy locations in the
United States in May 2013. In May 2014, Best Buy announced its plans to add 500 new
Samsung Entertainment Experience Shops. While the previous Samsung Experience
locations focus primarily on showcasing and providing support for Samsung's Galaxy
smartphones, cameras, and tablets, these new locations will showcase and support the
company's home theater products.
Unlike the Samsung Experience Shop, the Samsung Entertainment Experience will be run by
Samsung trained Best Buy associates. The new centers are expected to finish rolling out
across Best Buys in the US by January 2015.

35

Design
In the early 1990s, the firm began considering the importance of physical design in its
products. Located in the company's high-rise headquarters in Gangnam (south of Seoul) the
corporate design center includes more than 900 full-time designers. In 1971 there were only
two designers in the whole company, whose number rose to 510 in 2005.
The company overhauls its design over a two-year cycle. For the first year, it scrutinizes
design trends of the world, followed by product strategies. It then maps out new design plans
during the second year.
Since 2006, it has won as many as 210 awards from international design institutions. It
received the iF (International Forum) and IDEA design awards. Samsung was the winner in
eight categories in the 2009 IDEA awards, the company that received the most awards.
In the 2010 iF Material Awards, the company won the Gold Award for five of its products
including the external hard disk drive. The iF Material Awards are given by the International
Forum Design GmbH of Hannover, a design award for design materials and process
technologies. In 2010, the German company selected a total of 42 products in the areas of
home appliance, furniture, and industrial design. Samsung won the awards in five categories
including external hard disk, full-touch screen phone, "side-by-side" refrigerator, compact
digital camera, and laser printer toner.

Environmental record
All Samsung mobile phones and MP3 players introduced on the market after April 2010 are
free from polyvinyl chloride (PVC) and brominated flame retardants (BFRs).The company is
listed in Greenpeace's Guide to Greener Electronics, which rates electronics companies on
policies and practices to reduce their impact on the climate, produce greener products, and
make their operations more sustainable. In November 2011 Samsung was ranked 7th out of
15 leading electronics makers with a score of 4.1/10. In the newly re-launched guide
Samsung moved down two places (occupying 5th position in October 2010) but scored
maximum points for providing verified data and its greenhouse gas emissions and also scored
well for its Sustainable Operations with the guide praising its relatively good e-waste takeback programme and information. However, the company was criticized for not setting an
ambitious target to increase its use of renewable energy and for belonging to a trade
association which has commented against energy efficiency standards.
In June 2004, Samsung was one of the first major electronics companies to publicly commit
to eliminate PVC and BFRs from new models of all their products. The company however
failed to meet its deadlines to be PVC- and BFRs-free, and has published new phase out
dates. Greenpeace activists protested at the company's Benelux headquarters in March 2010
for what Greenpeace calls Samsung's broken promises.

36

The company has been awarded as one of global top-ten companies in the Carbon Disclosure
Leadership Index (CDLI). It was the only Asian company among top ten companies. In
addition, the company is listed inDow Jones Sustainability Index (DJSI)
The company's achievement ratio of products approaching the Global Ecolabel level ("Good
Eco-Products" within the company) is 11 percentage points above the 2010 goal (80 percent).
As of the first half of 2010, Samsung earned the Global Ecolabel for its 2,134 models,
thereby becoming the world's number-one company in terms of the number of products
meeting Global Ecolabel standards
The company is also improving its effort to recover and recycle electronic wastes. The
amount of wastes salvaged throughout 60 countries during 2009 was as much as 240,000
tons. The "Samsung Recycling Direct" program, the company's voluntary recycling program
under way in the United States, was expanded to Canada.
In 2008, the company was praised for its recycling effort by the U.S. advocacy group
Electronics Take Back Coalition as the "best eco-friendly recycling program".

37

Litigation and legal issue

Worker safety
In Samsung's Gi-Heung and On-Yang semiconductor plants, at least 26 employees were
diagnosed with blood cancer, a total 193 person got sick with cancers or rare terminal
diseases. Initially Samsung denied being responsible for the illnesses. Although Samsung is
known to disfavor trade unions these sick workers organized in the group SHARPS
(Supporters for the Health And Rights of People in the Semiconductor Industry. A crowd
funded movie named Another Promise was produced in 2013 in order to depict the fight for
compensation of the victims, as well as a documentary named The Empire of Shame. In May
2014, Samsung offered an apology and compensation to workers who got ill. The quarrel is
still ongoing, as the number of sick and dead employees is still rising.

DRAM price fixing

In December 2010, the European Commission fined six LCD panel producers, including
Samsung, a total of 648,925 million for operating as a cartel. The company received a full
reduction of the potential fine for being the first firm to assist EU anti-trust authorities.
On 19 October 2011, Samsung was fined 145,727 million for being part of a price cartel of
ten companies for DRAMs which lasted from 1 July 1998 to 15 June 2002. The company
received, like most of the other members of the cartel, a 10% reduction for acknowledging
the facts to investigators. Samsung had to pay 90% of their share of the settlement, but
Micron avoided payment as a result of having initially revealed the case to investigators.
In Canada, the price fix was investigated in 2002. A recession started to occur that year, and
the price fix ended, however in 2014, the Canadian government reopened the case and
investigated silently after the EU's success. Sufficient evidence was found and presented to
Samsung and two other manufacturers during a class action lawsuit hearing. The companies
agreed upon a $120 million agreement, with $40 million as a fine, and $80 million to be paid
back to Canadians who purchased a computer, printer, MP3 player, gaming console or camera
from April 1999 to June 2002.

38

 PRODUCT SAFETY
Despite their phones' popularity, numerous explosions of them have been reported.A Swiss
teenager was left with second and third degree burns in her thigh due to her Galaxy S3's
explosion followed by two more Galaxy S3 explosions in Switzerland and Ireland. A South
Korean student's Galaxy S2 battery exploded in 2012.
Samsung's Galaxy S4 also led to several accidents. A house in Hong Kong was allegedly set
on fire by an S4 in July 2013followed by minor S4 burn incidents in Pakistan and Russia.A
minor fire was also reported in Newbury, United Kingdom in October 2013.
Some users of the phone have also reported swelling batteries and overheating; Samsung has
offered customers affected new batteries free of charge. In December 2013, a Canadian
uploaded a YouTube video describing his S4 combusting. Samsung then asked the uploader
to sign a legal document requiring him to remove the video, remain silent about the
agreement, and surrender any future claims against the company in order to receive a
replacement. No further response from Samsung was received afterwards. There were a few
more reported Galaxy S4 explosions in Indiaand the UAE.

Galaxy Note 7 voluntary recall

On 31 August 2016, it was reported that Samsung was delaying shipments of the Galaxy Note
7 in some regions in order to perform "additional tests being conducted for product quality";
this came alongside user reports of batteries exploding while charging. On 2 September 2016,
Samsung suspended sales of the Note 7 and announced a worldwide "product exchange
program", in which customers will be able to exchange their Note 7 for another Note 7,
a Galaxy S7, or an S7 Edge (the price difference being refunded). They would also receive a
gift card from a participating carrier.On September 1, 2016, the company released a statement
saying that it had received 35 reports of battery failure, which according to an unnamed
Samsung official "account for less than 0.1 percent of the entire volume sold" Although it has
been referred to as a product recall by the media, it is not an official government-issued recall
by an organization such as the U.S. Consumer Product Safety Commission, and only a
voluntary measure. An official recall notice was issued on September 15, 2016 by the U.S.
Consumer Product Safety Commission, and states that Samsung has received at least 92
reports of the batteries overheating in the U.S., including 26 reports of burns and 55 reports
of property damage.

39

 ADVERTISEMENTS ON SMART TELEVISIONS

In 2015, users on the website Reddit began reporting that some Samsung smart TV would
display advertisements for Pepsi products during movies when viewed through
the Plex application. Plex denied responsibility for the ads and Samsung told
blog Gigaom that they were investigating the matter.
In March 2016, soccer star Pel filed a lawsuit against Samsung in the United States District
Court for the Northern District of Illinois seeking $30 million in damages claiming violations
under the Lanham Act for false endorsement and a state law claim for violation of his right of
publicity. The suit alleges, that at one point Samsung and Pel came close to entering into a
licensing agreement for Pel to appear in a Samsung advertising campaign. Samsung abruptly
pulled out of the negotiations. The October 2015 Samsung ad in question, includes a partial
face shot of a man who allegedly "very closely resembles" Pel and also a superimposed
ultra-high-definition television screen next to the image of the man featuring a "modified
bicycle or scissors-kick", perfected and famously used by Pel.

VIRAL MARKETING
On 1 April 2013, several documents were shown on TaiwanSamsungLeaks.org that the
advertising company OpenTide (Taiwan) and its parent company Samsung are hiring students
to attack its competitors by spreading harmful words and biased opinions/reviews about other
phone manufacturers' products such as Sony and HTC in several famous forums and websites
in Taiwan in order to improve its brand image. The uploader of the documents, hacker "0xb"
said that the documents were intercepted from an email between OpenTide and
Samsung.Taiwan Samsung Electronics announced 4 days later, guaranteeing the company
will "stop all online marketing strategies which involves publishing and replying in online
forums.It was widely reported by the Taiwanese media.Taiwan later fined Samsung
Electronics for the smear campaign.

40

VISION & MISSION

VISION:-

Samsung is guided by a singular vision: to lead the digital convergence movement.

We believe that through technology innovation today, we will find the solutions we need to
address the challenges of tomorrow. From technology comes opportunity for businesses to
grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for
people to invent new possibilities.
Its our aim to develop innovative technologies and efficient processes that create new
markets, enrich peoples lives and continue to make Samsung a trusted market leader

Mission:-

41

Everything we do at Samsung is guided by our mission: to be the best digitalCompany.Samsung grew into a global corporation by facing challenges directly. In the years
ahead, our dedicated people will continue to embrace many challenges and come up with
creative ideas to develop products and services that lead in their markets. Their ingenuity will
continue to chart Samsungs course as a profitable, responsible global corporation.

42

MARKETING STRATEGY OF SAMSUNG COMPANY

1. Marketing Strategy of SAMSUNG in IndiaA report towards the partial fulfilment of the
requirements of the two year full time Post Graduate Diploma in Management Submitted by:
Vikas Chauhan Post Graduate Diploma in Management (General) Roll No: 2k11a38 20112013 ASIA PACIFIC INSTITUTE OF MANAGEMENT 3&4, Institunal Area, Jasola, New
Delhi-110025

2. DECLARATION I do hereby declare that the project entitled Marketing Strategy of

SAMSUNG in Indiasubmitted by me to the Asia Pacific Institute of Management , is in
partial fulfilment to therequirement for the award of Post Graduate Diploma in
Management.To the best of my knowledge and beliefs, the information contained in this
report are true as on thedate of this report & observation recommendations set out in this
report are my own views.However, the report should be considered as a general guide only &
appropriate professional adviceshould be taken before acting on the basis of the
information.New Delhi Vikas chauhanDate-Project GuideProf. Ashutosh Kumar

3. Table of contents: 1. EXECUTIVE SUMMARY. 2. SAMSUNG HISTORY 3. COMPANY HISTORY IN

INDIA 4. SAMSUNG PRODUCTS 5. THE SAMSUNG PHILOSOPHY 6. ACHIEVEMENTS OF THE
COMPANY 7. RESEARCH METHODOLOGY 8. SWOT ANALYSIS OF SAMSUNG 9. STRATEGIES OF
SAMSUNG IN INDIA 10. PRODUCT STRATEGY 11. PRICING STRATEGY 12. ADVERTISING AND
SALES PROMOTION 13. DIRECT MAIL 14. TARGET MARKETS 15. POSITIONING STRATEGIES 16.
PRODUCT INNOVATION 17. BRANDING STRATEGY 18. BRAND ASSOCIATION

4. 19. SAMSUNGS STRATEGY TO GAIN MARKET SHARE IN THE INDIAN MOBILE PHONE
MARKET20. SAMSUNG BADA TO RIVAL ANDROID, LINUX21. DISTRIBUTION
CHANNELS22. CONSUMER ELECTRONICS DISTRIBUTION23. MARKETING STRATEGY24.
STRATEGY TO EXPAND MARKET SHARE25. SOCIAL CONTRIBUTION26. RURAL
PENETRATION STRATEGIES27. PORTERS FIVE FORCES28. SAMSUNG VS. APPLE29.
CONCLUSION30. QUSENTIONNAIRE31. BIBLIOGRAPHY

43

5. EXECUTIVE SUMMERYSAMSUNG is a company that has been steadily growing throughout

the past decade. The followingreport will help SAMSUNG maintain the growth that has been
enjoyed in the past, with a strongemphasis on the growth of the all consumer durables and
mobile divisions. By analyzing customersand what they want, strategies can be devised as to
how SAMSUNG can increase their share of themarket. Furthermore, by comparing
SAMSUNGs strengths and weaknesses to that of thecompetition, opportunities can be
identified and capitalised on.SAMSUNG entered into Indian market with its technologically
advanced home appliances. Butwhen it entered in an Indian market, it had to face very tough
competition and still its facing toughcompetition, but now it has gained the top position
among different companies in India. Not onlySAMSUNG 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 penetrateinto Indian market. SAMSUNG aims to have
more market share in Indian market. India is a countryhaving its major consumers in high and
medium income, as the poverty level is declining the majorgroup is turning into medium
income group with some purchasing ability. SAMSUNG India is nowavailable with a big
target market. Already in the Market major companies are available which ishaving a trust
among the consumer with respect to the quality, durability & price. The majorcompetitors in
Electronic consumer goods market are LG, Sony, and Panasonic etc. and inSmartphone
market Apple, LG, Nokia, Blackberry, HTC etc. are the major competitors ofSAMSUNG. In
this project we try to find out some important things; the different kind of marketingstrategies
of SAMSUNG in Indian market. Market strategy, positioning strategy, Marketing
Mix(Product Strategy, Price Strategy, Promotion Strategy), Financial, Innovation, Branding
strategy etc,Competitive advantage of SAMSUNG, SWOT analysis of SAMSUNG.

44

6. SAMSUNG HistoryUnlike other electronic companies SAMSUNG origins were not

involving electronics but otherproducts. In 1938 the SAMSUNGs founder Byung-Chull Lee
set up a trade export company inKorea, selling fish, vegetables, and fruit to China. Within a
decade SAMSUNG had flour mills andconfectionary 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 establishedproducing 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 soldbusinesses to
relieve debt and cut employees down lowering personnel by 50,000. But thanks to
theelectronic 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 wasavailable on CDMA
networks. Then they developed smart phones and a phone combined mp3player towards the
end of the 20th century. To this date SAMSUNG are dedicated to the 3Gindustry. Making
video, camera phones at a speed to keep up with consumer demand.Employing approximately
138,000 people in 124 offices in 56 countries.The Making of a Global Brand -In 1993, as a
first step in its globalization drive, SAMSUNG acquired a new corporate identity. Itchanged
its logo and that of the group. In the new logo, the words SAMSUNG Electronics
werewritten in white color on blue color background to represent stability, reliability and
warmth. Thewords SAMSUNG Electronics were written in English so that they would be
easy to read andremember worldwide. The logo was shaped elliptical representing a moving
world - symbolizingadvancement and change.

45

7. Company History in IndiaSAMSUNG Electronics commenced its operations in India in

December 1995 and is today a leadingprovider of Consumer Electronics, IT and Telecom
products in the Indian market. SAMSUNG Indiais the Regional Headquarters for
SAMSUNGs South West Asia operations, which providesemployment to over 8,000
employees with around 6,000 employees being involved in R&D. In2010, SAMSUNG India
achieved a sales turnover of US$3.5 billion.SAMSUNG began operations in India through its
manufacturing complex located at Noida (UP),which today houses facilities for Colour
Televisions (including 3D, LED and LCD Televisions),Mobile Phones, Refrigerators,
Washing Machines and Split Air Conditioners categories.SAMSUNG commenced operations
of its second stateof-the-art manufacturing complex atSriperumbudur, Tamil Nadu in
November 2007. Today, the Sriperumbudur facility manufacturesColor televisions, Fully
Automatic
Front
Loading
Washing
Machines,
Refrigerators
and
Split
AirConditioners.SAMSUNG India has two R&D Centers in India at Delhi and Bangalore.
While the Delhi R&DCentre develops software solutions for hi-end televisions such as
Plasma TVs, LCD TVs and DigitalMedia Products, the Bangalore R&D Centre works on
major projects for SAMSUNG Electronics inthe area of telecom, wireless terminals and
infrastructure, Networking, SoC (System on Chip)Digital Printing and other
multimedia/digital media as well as application software.SAMSUNG India is a market leader
in product categories like LED TVs, LCD TVs, Slim TVs andSide by Side Refrigerators.
While it is the largest mobile handset brand in India, it leads in the smartphone segment in
India.SAMSUNG India has won several awards and recognitions for both its corporate
initiatives as wellas its product innovations in audio visual, home appliance, IT and telecom
product categories.Apart from development of innovative technology, SAMSUNG places
great importance on acting asa responsible corporate citizen in the communities where it
operates. Its CSR programs respond tothe social and environmental needs and seek to give
back to communities that support the company.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
emphasizing on innovations for development of the communityincluding education,
technology, engineering and IT technical training.Company consists of five main business
units: o Digital media Business o LCD Business o Semiconductor Business o
Telecommunications o Digital Appliance Business

8. SAMSUNG India Mobile:- SAMSUNG India Mobile a telecom equipment manufacturer,

head office in New Delhi and countryhead Mr. Ranjit yadav. SAMSUNG has divided the
mobile business in to areas: CDMA Mobile Business GSM Mobile Business

9. SAMSUNG ProductsSAMSUNG mobile phonesTablet Smartphone GALAXY TAB2 510

GALAXY TAB 2Smartphone GALAXY GRAND GALAXY MUSIC GALAXY NOTE 2
GALAXY S DUOS GALAXY ACE GALAXY S3
46

10. GALAXY Y DUOS GALAXY Y PRO GALAXY Y GALAXY NOTEDual Sim Phone
SAMSUNG E1282T SAMSUNG EI2O7T METRO 2252 SAMSUNG PRIMO DUOS HERO
E2232 METRO DUOS C3322

47

Samsung Marketing Mix Pricing Strategy

Samsung marketing strategy involves two pricing strategies and lets see for what goals are
they used.

SKIMMING PRICE:-

Smartphones of Samsung are leading the market with Apples iPhone. As Apple, Samsung
also uses skimming price to gain the upper hand over their competitors. For instance, Galaxy
S6 and S6 Edge are the brands new products of Samsung carrying the slogan Next is Now
and claiming that they are the most beautiful smartphones ever created. Without a doubt, S6
Edge (64 GB) that costs 1 180$ will brilliantly/smoothly sell around the globe. But, what will
happen when other competitors will launch a smartphone with identical features? Simple.
Samsung will lower the price and easily steal customers from the competitor.

COMPETITIVE PRICING:-

One of my favorite parts of Samsung marketing strategy. Due to the fact, that unlike
smartphones, Samsung has difficulties in gaining an edge over its competitors with other
products. Surely, Samsung is an authentic brand, but in terms of home appliance, it cant
possibly surpass LG. Furthermore, in Cameras Cannon and Nikon are leading the market. So,
for Samsung to withstand this fierce competition, its vital to use competitive pricing. Also,
Samsung never is a late comer in production and non-innovative, but they are mostly the first
ones to introduce a change.
PLACING IN SAMSUNG MARKETING STRATEGY:-

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Samsung uses channel marketing in its industry. And from this strategy, only service dealers
are taken into account for corporate sales.
Retailers who present the technology chain are bound to include Samsung in their list,
because of the firm being a world-famous brand and Samsung can also serve as an alternative
for the consumers.
The distribution is a compelling part of the Samsung marketing strategy.
In certain cities, Samsung has a contract with a single distribution company that distributes
the product throughout the city.
For instance, Mumbai is a great example of a city, where Samsung distributes its product
through a single company.
These reasons may vary, but some of them might be like less concentration required for
monitoring distribution channels or paying less to distribution companies because while
placing a large order, discounts are always present.
PROMOTION IN THE 4PS OF SAMSUNG:Samsung marketing strategy uses diverse forms of promotion. As Coca-Cola and Nike,
Samsung is convinced that advertising is one of the best forms of promotion to engage
potential consumers.Besides advertising, Samsung approaches different promotional tactics
to make customers buy the product.
For instance, quite often, Samsung introduces discounts, sponsors events, engages with
national and worldwide festivals, etc.Hence, the Samsung marketing strategy simultaneously
helps the organization progress in different aspects.

PRICE IN THE MARKETING MIX OF SAMSUNG:Because of its presence in different product categories, Samsung uses various pricing
strategies. We can divide the pricing strategies and match it with the products that it is used
for.
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 SKIMMING PRICE:Samsungs smart phones are one of the best in the market and are the market leader in terms
of the features and USPs that they provide. The recent Samsung Note 3 + Gear is another
entrant in the market which is catching peoples eyes. Thus Samsung uses Skimming price for
these products wherein it tries to get a high value in the start before competitors catch up.
Once the model is old or any competitor has launched a similar product, Samsung
immediately drops the price.

COMPETITIVE PRICING:-

For products other than smart phones, Samsung uses competitive pricing. Televisions, air
conditioners, refrigerators and other products have competition in the form of Panasonic or
LG. Samsung is known to be a great brand but it is not greater than LG for home appliances.
In fact LG beats Samsung where home appliances are concerned. Similarly in Washing
machines Whirlpool, and in Cameras Cannon, are the brands which are to be beaten. Thus
in various categories, Samsung keeps competitive pricing so as to beat the competitor.
Samsung as a brand hardly uses penetrative pricing because it doesnt enter late in the
market. In fact, it is present in most consumer durable segments in the market.

SPONSORSHIP:Samsung is one of the largest companies in the world. Today, they have 150,00 employees
worldwide.

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Samsung is mostly famous for its product quality, but besides the gadgets, Samsung is known
for being a sponsor giant. Current sponsorship of Samsung is Sydney Opera
House, Australian Olympic Team, NSWIS Awards, Oceania Foundation, etc.
ADVERTISING:- Samsung doesnt concentrate on commercials like Coca-Cola or Pepsi,
but they always promote their most important products.
To get the hang of Samsungs advertising system, lets review some of their famous and most
successful advertisements.

Chapter 4
Objectives of the Study

The objective of the study is to do the following:

To understand the various issues & challenges faced by SMEs Sector.

To understand the nature & the type of business.

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To understand about the challenges faced by Businessman.

To understand the relevant schemes and about the various subsidies needed to the
Businessman.

To study the impact & GST on the small business.

Chapter 5
Hypothesis
Following hypothesis is developed;
H01: Majority of exporters perceive that APMC are not performing the role of a
catalyst in promoting export.

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H11: Majority of exporters perceive that APMC are performing the role of a catalyst in
promoting export.
H02: Majority of members perceive that APMC are not promoting the Brand image of
Indian Products abroad.
H12: Majority of members perceive that APMC are promoting the Brand image of
Indian Products abroad.
H03: Majority of the exporters perceive that setting up product focused SME by the
Government had no added advantage for the Exporters in increasing exports.
H13: Majority of the exporters perceive that setting up product focused SME by the
Government had an added advantage to Exporters in increasing exports.

Chapter 6
Research Methodology
a

Secondary Data Collection / Descriptive Survey

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Detailed data of the activities including set up, role, services and facilities offered by the
APMC from libraries, annual reports, economic survey and journals and other public domain
avenues are gathered.
b Primary Data Collection / Field Survey
The primary data has been collected by preparing one questionnaire and group discussion as
per the details below:
1. To evaluate the various services and facilities provided by the Exporters of APMC Market,
Vashi NaviMumbai.
2. Suggestions received were further filtered with qualitative research by attending open
house meets and one to one discussion with the experts.
Research Instruments for Primary data collection are;
1. Direct mailing and hand outs of above Questionnaires to the focused groups
2. Enablers Members Directory of the APMC Market, Exporters, Office of the Micro, Small
and Medium Enterprises and other professional networking forum.
The questionnaire comprised of questions pertaining to;
Questionnaire

Brief profile and services provided by APMC Market, Vashi NaviMumbai.

Brief profile of the exporter of APMC Market, Vashi NaviMumbai.

Evaluation of the following services of APMC Market, Vashi NaviMumbai.

Export Support Services

Facility & Infrastructure

Administration and professional approach

Sample Size
There are around 2000 exporters and only 50 % of them are in regular export business, which
includes Status holders, multi product merchant exporters and manufacturer exporters. Hence
from the population of 1000 active exporters sample sizes of 10% (i.e. 100 exporters) have
been selected on random on APMC Market, Vashi NaviMumbai basis covering all product
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groups. More than 60% of the sample size was from SMEs the rationale behind selecting
more SMEs in the sample size was they contribute more than 50% to total exports.
Type of Sampling Stratified Random Sampling
Statistical Analysis of Data
The responses observed from each item in the questionnaire were scored and tabulated into a
master sheet. Data was analysed with the help of statistical package SPSS. Techniques used
were Two-way Cross-tables and Chi- square to draw logical conclusions.
Interpretation and Report Writing
The analyzed data were finally interpreted to draw the conclusions and reported with the
objective of the study in view.
Limitations of the Study
The research is confined to multi-product groups and markets; hence the findings will be
generic in nature.

Expected benefits of the findings of Research

Findings of the Research will be beneficial to:
APMC Market, Vashi NaviMumbai to upgrade their services and improve their
competitiveness.
Exporters will gain knowledge and information for better performance.
State Governments to prepare the export strategy for the State.
Ministry of Commerce to take corrective policy measures.

Chapter 7

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Probable outcomes of the study

The study will focus on how to enhance the various subsidies provided or currently needed to
them and on various schemes that are provided and currently needed to them by conducting
primary research using a coded questionnaire targeted at APMC Market, Vashi NaviMumbai
Businessmans to get a view point. In addition, secondary research into innovative learning
approaches will help create a well-rounded recommendation of actions to be taken in order to
enhance various subsidies provided or currently needed to them and on various schemes that
are provided and currently needed to them.

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Chapter 8
Usefulness of the study
The study will be of great use to Exporter of APMC Kirana Market Vashi NaviMumbai. The
following aspects will add value to relevant schemes and about the various subsidies needed
to the Businessman.

Focusing on the various Schemes provided to the Exporters of APMC Market, Vashi
NaviMumbai.

Focusing on the various Subsidies provided to the APMC Market, Vashi

NaviMumbai.

Focusing on the various Schemes needed to the Exporters of APMC Market, Vashi
NaviMumbai.

Focusing on the various Subsidies needed to the APMC Market, Vashi NaviMumbai.

Provided dedicate pathway that enables exporters to increase their business

domestically and internationally.

The study is nutshell will enable all exporters to assimilate new approaches and benefits to
better resources utilization and higher success rates.

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Research design
Research design is important primarily because of the increased complexity in the market as
well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers. It is an important tool to study
buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research
design specifies the methods and procedures for conducting a particular study. According to
Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation
conceived as to obtain answers to research questions and to control variance.
Research design specifies methods and procedures for study. In this study the company was
interested to know the demand of different consumer durable product, about competitors, and
potential for SAMSUNG procedures to be used for the study among retailers/dealer and.
However it was exclusively personal interview.

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Scope of the study

This project gives us great exposure to marketing strategy of Samsung because it includes
product knowledge and field survey job in which we visited Samsung stores in Mumbai
district.

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Theoretical Background of the study

Scope of market research in view of modern global business.

Research methods provide you with the knowledge and skills you need to solve the
problems and meet the challenges of a fast-paced decision-making environment. Business
research courses are a recognition that students in business, not-for-profit, and public
organizations in all functional areas need training in the scientific method and its
application to decision making. Two factors stimulate an interest in more scientific decision
making: (1) the managers increased need for more and better information and (2) the
availability of improved techniques and tools to meet this need.
During the last two decades, we have witnessed dramatic changes in the business
environment. Emerging from a historically economic role, the business organization has
evolved in response to the social and political mandates of national public policy, explosive
technology growth, and continuing innovations in global communications. These changes
have created new knowledge needs for the manager. Other knowledge demands have arisen
from problems with mergers, trade policies, protected markets, technology transfers, and
macroeconomic savings investment issues.
The trend toward complexity has increased the risks associated with business decisions,
making it more important to have a sound information base. Increased complexity means
there are more variables to consider. The competition is more vigorous, with many business
downsizing to make competitive gains. Workers, shareholders, customers, and the public are
better informed and more sensitive to their self-interest. Government continues to show
concern with all aspects of society. Each of these factors demands that managers have more
and better information upon which to base decisions.
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To do well in such an environment, you will need to be equipped with an understanding of

scientific methods and a means of incorporating them into decision making. You will need to
know how to identify good research and how to conduct it. This book addresses these needs.
As the complexity of the business environment has increased, there has been a
commensurate, increase in the number and power of the tools to conduct research. There is
vastly more knowledge in all fields of management. We have begun to build better theories.
The computer has given us a quantum leap in the ability to deal with problems. New
techniques of quantitative analysis take advantage of this power. Communication and
measurement techniques have also been enhanced.

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INTERNAL SOURCES
Internal sources of organizational data are so varied that it is difficult to provide
generalizations about their use. Accounting and management information systems create and
store much of the internal data. Research and development, planning, and marketing
functions also contribute. Examples are departmental reports, production summaries,
financial and accounting reports, and marketing and sales studies. The collection methods
used are unique to the specific situation, and collection success depends on knowing just
where and how to look. Sometimes the information may exist in central files (i.e., at
headquarters), in computer database, or in departmental chronological files.
In other organizations, a central library keeps all relevant information. Systematic searches
should be made through exploratory interviews with everyone who handles the information.
Often company librarians, MIS. PR/communications, or departmental secretaries can help in
pinpointing critical data sources. Internal data sources may be the only source of information
for many studies.

EXTERNAL SOURCES
External sources are created outside the organization and are more varied than internal
sources. There are also better defined methods for finding them. This discussion is restricted
to published sources, although other sources of information may be useful.
Published sources of data can be classified into five categories. The newest and fastest
growing one is computerized database. They are composed of interrelated data files. The files
are sets of records grouped together for storage on some medium. Access may be through
online search or CD-ROM. Online databases are often specialized and focus on information
about a particular field.
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Major source of published information consists of diverse materials from special collections.
Within this category there are many reference books, each a compendium of a range of
information. A second group includes university publications, of which there are masters
theses, doctoral dissertations, and research records. A third group includes company
publications such as financial reports, company policy statements, speeches by prominent
executives, sales literature, product specifications, and many others.

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SWOT ANALYSIS OF SAMSUNG

STRENGTHS
Customers are loyal and appreciating the brand. SAMSUNG is enjoying very good position
against its competitors. The company is maintaining very good relationship with its suppliers.
The company is also maintaining with laborers. SAMSUNG is a financial strong and Stable.
The production processes and procedures of inventory management are consistent with
industrial standards. SAMSUNG enjoys the widest range of product portfolio which includes
Mobile phone, Tablet, TV/Audio/Video, Camera, camcorder, Home appliance, pc, printer,
memory cards and other accessories. SAMSUNG holds significant market share in most of
the product categories. SAMSUNG .

WEAKNESSES
SAMSUNG is facing hard competition. South Koreas labor unions are strategically linked
for collective bargaining and negotiation. SAMSUNG need improvements in defining the
vision, mission and strategic corporate objectives. Marketing management needs
improvement in all the facts of marketing. HRM also needs improvement in all the facts of
human resources management.

OPPORTUNITIES

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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.

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 electronics and home appliance in
lowcost strategy which is procured in bulks from foreign market

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DATA INTERPRETATION AND ANALYSIS

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CONCLUSION

Although Samsung has captured the highest market share in Indian market, but the company
had to face so many problem. For example conflict with the viedocon lg panasonic blamed
the Samsung that company is copying some of its features and design. This blame damaged
the reputation of the Samsung all over the world. But still Samsung is a favourite brand of
Indian consumers whether we talk about Electronic consumer goods or Smartphone. It means
despite of problems and blames, Samsung has positioned itself in consumr mind as a quality
brand.

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BIBILOGRAPHY

BOOKS
Marketing Management - Philip Kotler
Human Resource Management - Ashwathapa
Human Resource Management - T.N. Chhabra

INTERNET
www.lgeil.com
www.google.com

NEWS PAPERS
Economic Times
Financial Express
Times of India
Indian Express
Business World
Business Standard

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ANNEXURE

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