Samsung's Marketing Strategy in India

Product Innovation Samsung's product range in India included CTVs, audio and video products,information technology products, mobile phones and home appliances (Refer ExhibitI). Its product range covered all the categories in the consumer electronics and homeappliances. Analysts felt that the wide product range of Samsung was one of mainreasons for its success in the Indian market. Samsung positioned itself on thetechnology platform... Pricing Pricing also seemed to have played a significant role in Samsung's success... Distribution Along with the launch of new products, Samsung also consolidated its distributionsystem. Samsung had 18 state-level distribution offices and a direct dealer interface.The direct dealer interface helped the company get quick feedback from dealers, andenabled it to launch products according to consumer needs... Advertising and Sales Promotion In 1995, when Samsung entered India, it realized that Indian consumers were notfamiliar with the company. So, in order to establish itself in the Indian consumers'mind, Samsung launched corporate advertisements highlighting its technologicallysuperior goods..

The "Team Samsung India First" CampaignIn August 2002, India's leading consumer electronics player, Samsung IndiaElectronics Ltd. (Samsung) announced the signing on of seven celebrity cricketers -'Team Samsung', as its brand ambassadors.In doing this, it aimed to cash in on the popularity of cricket in India. However, thecompany's hopes of celebrity endorsement received a setback due to anti-ambushmarketing clauses , arising from ICC's agreement with some other companies.In place of the ads featuring the cricketers, Samsung launched its - 'Team Samsung.India First' campaign all over the country in December 2002.Said Arun Mahajan of Mudra, Samsung's ad agency, "The focus has been to evolveconcepts to do with the players, to promote the cause of cricket and patriotism.'' Thecopy of the print ad read, 'With Team Samsung, It's India First.''

Samsung - The Making of a Global Brand

The Making of a Global Brand In 1993, as a first step in its globalization drive, Samsung acquired a new corporateidentity. It changed its logo and that of the group. In the new logo, the wordsSamsung Electronics were written in white color on a blue color background torepresent stability, reliability and warmth.The words Samsung Electronics were written in English so that they would be easy toread and remember worldwide. The logo was shaped elliptical representing a movingworld - symbolizing advancement and change... Product Initiatives

Samsung realized that to become a global brand, it had to change the perceptions of consumers who felt that it was an OEM player and associated its products with lowtechnology. Generally, consumers in developed markets (such as the US) opted for Samsung when they could not afford brands such as Sony and Panasonic. To changeconsumer perceptions, Samsung decided to focus on product design and launchinnovative products..

Consolidating Presence in Different Markets To change its brand image, Samsung decided to associate itself with global sportevents. In 1998, when Seoul hosted the Olympics, Samsung became the officialsponsor of the wireless technology to the games. This move helped it boost its imageworldwide. In 1999, Erick Kim (Kim), a Korean American working with IBM, took over as the marketing head of Samsung.He focused on capturing the US retail market for consumer electronic goods, such asTVs, washing machines and microwave ovens, through partnerships with US retailinggiants. Samsung entered into a partnership with Best Buy one of the top US retailers.Best Buy executives conducted customer research to analyze consumerbuying behavior... Advertising and Promotional Strategies In 1997, Samsung launched its first corporate advertising campaign - Nobel PrizeSeries. This ad was aired in nine languages across Europe, the Middle East, SouthAmerica and CIS countries. The advertisement showed a man (representing a NobelPrize Laureate) passing from one scene to another. As the man passes throughdifferent scenes, Samsung products transform into more advanced models. Accordingto company sources, the idea was to convey the message that Samsung uses NobelPrize Laureates' ideas for making its products... Beating Sony?

In 2001, Samsung declared that it would beat Sony in the consumer electronicsmarket by 2005. Kim said, "We want to beat Sony. Sony has the strongest brandawareness; we want to be stronger than Sony by 2005." However, analysts felt that itwould be difficult for Samsung to beat Sony so soon as Samsung was regarded as anOEM player till the mid-1990s.In 2002, while Samsung was ranked 34th with a brand value of $8.1 billion, Sony wasranked 21st with an estimated brand value of $13.90 billion. However, whileSamsung's rank had moved up from 42 in 2001, Sony's had slipped down from 20
th

in2001. In the third quarter of 2002, Samsung emerged as the world's number three player in the mobile market, beating Siemens and Ericsson, with a marketshare of 36.4%... ------------------------------------------xxxxx-------------------------------------

Samsung Group
From Wikipedia, the free encyclopedia Jump to:navigation, search Not to be confused withSamseong Station.
This article contains Korean text.

Without proper rendering support, you may see questionmarks, boxes, or other symbols instead of Hangul or hanja. Samsung Group Founded - 1938 Founder(s) - Lee Byung-chul Headquarters - Samsung Town, Seoul, South Korea Area served - Worldwide Key people

Lee Kun Hee (Former Chairman and CEO) Lee Soo-bin (Acting president, CEOof Samsung LifeInsurance) Industry Conglomerate Electronics Shipbuilder

Products

Financial ChemicalRetail Entertainment Flash memory Aviation Optical storage Mobile phonesSmartphones Hard disk drive US$173.4 billion(2008) US$10.7 billion(2008) US$252.5 billion(2008) US$90.5 billion(2008) 276,000(2008) Samsung Electronics Samsung Heavy Industries Samsung C&T etc. Samsung.com

Revenue Net income Total assets Total equity Employees Subsidiaries Website

TheSamsungGroup(Korean )isamultinational conglomerate cor poration headquartered in Samsung Town, Seoul,South Korea.It is the world'slargestconglomerate by revenuewith an annual revenue of US$173.4 billion in2008and is South Korea's largest chaebol. The meaning of the KoreanwordSamsung is "tristar" or "three stars". The Samsung Group is composed of numerous international affiliated businesses,most of them united under theSamsung brand includingSamsung Electronics,theworld'slargestelectronicscompany,SamsungHeavyIndustries,the world'ssecond largestshipbuilder andSamsung C&T, a major global constructioncompany. Samsung has been the world's most popular consumer electronics brand since 2005and is the best known South Korean brand in the world.Samsung Group accountsfor more than 20% of South Korea's total exportsand is the leader in many

domesticindustries,suchas the financial, chemical,retailandentertainment ind ustries. The company's strong influence in South Korea is visible throughout thenation, which has been referred to as the "Republic of Samsung". Contents 1 Background 2 History 3 Market share 4 Sports sponsorship o4.1 Samsung sponsor of the Olympics 5 See also 6 Notes and references 7 External links Background Samsung is the world's leadingconsumer electronicsbrand and one of the top twentyglobal brands.View of the Samsung logo inside theTime Warner Center in New York City.Currently helmed byLee Soo-bin,CEO of Samsung Life Insurance, it has been run by generations of one of the world's wealthiest families, formerly by chairmanLeeKun-Hee, the third son of the founder,Lee Byung-Chull.Many major South Korean corporations such asCJ Corporation,Hansol Group,Shinsegae Group andJoong-Ang Ilbo daily newspaper were previously part of theSamsung Group. Though they are still controlled by ex-Chairman Lee Kun-hee'srelatives, they are no longer officially Samsung affiliates. Some leading companies inSouth Korea, notablyMP3 player manufacturer iriver andsearch engineportal Naver ,were established by ex-Samsung employees. A large number of South Korean firms, particularly those in theelectronicsindustry, are dependent on Samsung for thesupply of vital components or raw materials such as semiconductor chips or LCD panels. This has led to continued allegations of price fixingand monopolistic practices. Samsung Group also owns the Sungkyunkwan University, a major privateuniversity in South Korea. Samsung Group accounts for more than 20% of South Korea's total exports and inmany domestic industries, Samsung Group is the sole monopoly dominating a singlemarket, its revenue as large as some countries' total GDP. In 2006, Samsung Groupwould have been the 34th largest economy in the world if ranked, larger than that of Argentina.

The company has a powerful influence on the country's economicdevelopment, politics, media and culture, being a major driving force behind theMiracle on the Han River ; many businesses today use its international success as arole model.

History
Samsung Group headquarters atSamsung Town,Seoul. In 1938,Lee Byung-Chullfounded Samsung, a small trading company with fortyemployees located inDaegu. The company prospered until the Communist invasion in1950 when he was forced to leave Seoul and start over inBusan.During the war,Samsung's businesses flourished and its assets grew twenty-fold. In 1953, Lee starteda sugar refinerySouth Koreas first manufacturing facility after theKorean War . The company diversified into many areas and Lee sought to establish Samsung as anindustry leader in a wide range of enterprises. The company started moving into businesses such as insurance, securities, and retail. In the early 1970s, Lee borrowedheavily from foreign interests and launched a radio and television station.South Korean PresidentPark Chung-hees regime during the 1960s and 1970s would prove a boon for Samsung. Park placed great importance on industrialization, andfocused his economic development strategy on a handful of large domesticconglomerates, protecting them from competition and assisting them financially. Samsung was one of these companies. Park banned several foreign companies fromselling consumer electronics in South Korea in order to protect Samsung from foreigncompetition and nurture an electronics manufacturing sector that was in its infancy.To make up for a lack of technological expertise in South Korea, the South Koreangovernment effectively required foreign telecommunications equipmentmanufacturers to hand over advanced semiconductor technology in return for accessto the Korean market. Such policies eventually lead to Samsung manufacturing thefirst Korean dynamic random access memory chips. Samsung Group later formed several electronics-related divisions, such as SamsungElectronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., andSamsung Semiconductor & Telecommunications

Co., and grouped them together under Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-and-whitetelevision set. In the late 1980s and early 1990s, Samsung Electronics invested heavily in researchand development, investments that were pivotal in pushing the company to theforefront of the global electronics industry. By the 1980s Samsung wasmanufacturing, shipping, and selling a wide range of appliances and electronic products throughout the world. In 1982, it built a television assembly plant inPortugal; in 1984, it built a $25 million plant in New York; and in 1987, it builtanother $25 million facility inEngland. The 1990s saw Samsung rise as an international corporation. Not only did it acquire anumber of businesses abroad, but also began leading the way in certain electroniccomponents.Samsung's construction branchwas awarded a contract to build one of the twoPetronas TowersinMalaysia, Taipei 101inTaiwan and theBurj KhalifainUnited Arab Emirates (founded by Callum Cuirtis), which is the tallest structure ever constructed.In 1993 and in order to change the strategy from the imitating cost-leader to the role of a differentiator, Lee Kun-hee,Lee Byung-chulls successor, soldoff ten of Samsung Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering, and chemicals.In 1996, the Samsung Group reacquired the Sungkyunkwan Universityfoundation. Compared to other major Korean companies, Samsung survived the Asian financialcrisisof 1997-98 relatively unharmed. However,Samsung Motor , a $5 billion venturewas sold toRenault at a significant loss. Additionally, Samsung manufactured a rangeof aircraftfrom 1980 to 1990s. The company was founded in 1999 as KoreaAerospace Industries(KAI), the result of merger between then three domestic major Aerospacedivisions of Samsung Aerospace, Daewoo Heavy Industries and HyundaiSpace and Aircraft Company (HYSA).Korea Aerospace Industries(KAI) - largestshareholders as of 2009 (Korea Development Bank 30.53%,Samsung Techwin 20.54%,Doosan(formerly known as Daewoo Heavy Industries) 20.54%,HyundaiMotor 20.54%). Most importantly,Samsung Electronics(SEC) has since come to dominate the groupand the worldwide semiconductor business, even surpassing worldwide leader Intelininvestments for the 2005 fiscal year. Samsung's brand strength has greatly improvedin the last few years.

Samsung became the largest producer of memory chips in the world in 1992, and isthe world's second-largest chipmaker after Intel(seeWorldwide Top 20Semiconductor Market Share Ranking Year by Year ). From 1999 to 2002,Samsung conspired withHynix Semiconductor ,Infineon Technologies,ElpidaMemory(Hitachiand NEC) andMicron Technologyto fix the prices of DRAMchipssold to American computer makers. In 2005 Samsung agreed to plead guilty and to pay a $300 million fine, the secondlargest criminal antitrust fine in the US history. In 1995, it built its firstliquid-crystal displayscreen. Ten years later, Samsung grewto be the world's largest manufacturer of liquid-crystal display panels. Sony, whichhad not invested in LCDs, contacted Samsung to cooperate. In 2006, S-LCD wasestablished as a joint venture between Samsung and Sony in order to provide a stablesupply of LCD panels for both manufacturers. S-LCD is owned by Samsung andSony 51% to 49% respectively and operates its factories and facilities in Tangjung,South Korea. Considered a strong competitor by its rivals, Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAMchips,flash memory, optical storagedrives and it aims to double sales and become the topmanufacturer of 20 products globally by 2010. It is now the world's leadingmanufacturer of liquid crystal displays. Samsung Electronics, which saw record profits and revenue in 2004 and 2005,overtook Sonyas one of the world's most popular consumer electronics brands, and isnow ranked #19 in the world overall. Behind, Nokia, Samsung is the world's secondlargest by volume producer of cell phones with a leading market share in the NorthAmerica and Western Europe.

Market share
Products Year DRAM Q12009 Samsung'sglobalm/s 34.3% Competitors Hynix M/S 21.6%

NAND Flash 2008 Large-size LCD Panel 2009 bruary PDP panel Q1 2008 Active-Matrix OLED Q2 2008 Lithium-ion battery Q2, 2009 LCD Monitor 2008 Hard disk drive 2007 Multifunction printers Q1 2009 Television sets
(LCD, PDP, CRT)
Q3'09Revenue

40.4%

Toshiba

28.1%

26.2%

LG Display

25.8% Fe

30.5%

LG

34.8%

90.0%

LG

19% 16.1% 9.5%

Sanyo Dell Seagate Technology HP

20% 14.6%

34.9% 19.2%

16.4%

23%

LG

13.7 %

Samsung sponsor of the Olympics

Samsung first became a full sponsor of the Olympic Games during the NaganoOlympic Winter Games in 1998. According to the new contract, Samsung willofficially sponsor the Olympic Games and the Olympic Movement for the next

eightyears,adealthatcoversthe VancouverWinterOlympics in2010,theLondon Olympic Games in 2012, the 2014 Olympic Winter Games, and the Rio de Janeiro Olympic Games in 2016. According to guidelines set forth by Samsung Chairman, Lee Kun-hee in 1996 Devise strategies that can raise brand value, which is a leading intangible asset andthe source of corporate competitiveness, to the global level Samsung decided tosponsor the Olympic Movement to strengthen its global corporate image and brandvalue and has been carrying out a global marketing campaign with the OlympicGames and the Olympic Movement as the single theme. Accordingly, Samsung concluded a TOP (The Olympic Partner) sponsorship contractwith theIOCin 1997. Since then, the company has been an official sponsor in thewireless telecommunications equipment category, including the 1998 Nagano Winter Olympic Games,the 2000Sydney Olympic Games,the 2002Salt Lake City OlympicGames,the2004 Athens Olympic Games,the2006 Winter Olympic Games, theBeijing 2008 Olympic Gamesand the 2010Vancouver Winter Olympics.Bysponsoring the Olympic Games and the Olympic Movement for the last ten years,Samsung has made great strides towards becoming a cutting-edge global brand thatleads the mobile phone industry. The Beijing Olympic Games in 2008 are expected to be the climax of the companys efforts for the last ten years .-------------------------------xxxxxxxxxxx-----------------------------------------