SAMSUNG CASE

STUDY
GENERAL MANAGEMENT
By:-
Shilpa Kher (43)
Reema Kotak (44)
Krithika .S (45)
Siji Kumar (46)
Bhuvan Lalka (47)
Malavika M (48)
Heena M (49)
AGENDA OF THE PRESENTATION
 Background of the Samsung case
 Strategy process at Samsung
 Mission statement (aim & goal)
 Objective
 Environmental analysis
 Strategy (generic, alternative)
 Swot analysis
 Challenges faced by Samsung
 BACKGROUND OF THE CASE
 Samsung’s Turnover Target and its Aim
 Philosophy at Samsung
 How Samsung catches up with LG
 Samsung’s move from being a Class product to a
Mass product
 Innovative Strategies( Samsung Marketing Academy)
adopted to tap potential buyers
 SAMSUNG ELECTRONICS…
 Global leader in semiconductors and digital
technologies
 Samsung India commenced its operations in India in
December 1995
 Sales turnover of over US $ 1Bn in just a decade of
operations in the country
 Core competency in the field of semiconductors which
is backed by it’s R&D capabilities and manufacturing
scale
 Emerge as one of the most unique brands creating
innovative and superior digital products every year
SAMSUNG ELECTRONICS (Ctd…)
 From being a virtually unknown entity in the Year
1995, brand Samsung today enjoys an awareness of
over 95% and a positive opinion of around 80% in the
country today (source: BAS 2004)
 Samsung has very successfully leveraged its
association with Cricket and Cinema in the form of
‘Team Samsung’ and ‘Samsung IIFA Award’
 In 2003, LG was the market leader with a share of
17.6% followed by Samsung at 15.8% in Consumer
Electronic Products
STRATEGY PROCESS AT
SAMSUNG
 SAMSUNGS PRODUCT LINE
Consumer Electronic Products like :
 Colour Television (CTV’s)
 Refrigerators (Frost Free)
 Air Conditioners
 GSM Handsets
 Front Loading Washing Machines
 LCD TV, Plasma TV
 MISSION STATEMENT
AIM :
 Samsung aims to become India’s leading volume
retailer in the consumer electronics segment
 Achieving its aim by focusing on its Core Strategy
 Work on strengthening its unique Brand Image
 Gaining Customer Satisfaction
GOAL :
 Achieving $2 billion turnover by 2008
 ENVIRONMENTAL ANALYSIS
(Where are we now??)
 In 2004 and 2005 sales turnover was 4,900 crore and
6,300 crore respectively
 Trying to Close on to the Market Leader LG
 Trying to come Clean on its IT Business Mess
 Making a mark in the High end category Segment –
LCD TV, Plasma TV, Frost free Refrigerators and
Split AC’s
RAPIDLY INCREASING
ITS MARKET SHARE
 CTV
30
27.1 26
25

20
Market 14.4 14
15
share 11.3
10 9.1 8.7 8.3

0
LG Samsung Onida Videocon

5-May 6-May
 WASHING MACHINE
35 34.5
30.5
30
25

Market 20 18.1
Share 15 14.7 13.7
12.9 13.2 13.4
10
5
0
LG Samsung Videocon Whirlpool

5-May 6-May
 AIR CONDITIONERS
45
40.6
40
35 32.8
30
Market 25
Share 20 19.9
15.9
15
10 9.5 10.3
7.5 7.8
5
0
LG Samsung Voltas Videocon

5-May 6-May
 REFRIGERATOR
30 29.1 29.4

25 23 24
20
16.8
Market 15.7
15 13.4
Share 11.4
10

0
LG Whirlpool Samsung Godrej

5-May 6-May
 OBJECTIVE
(Where do they want to be ???)
 Cross Rs7,500 Crore in Turnover in 2006
 Strengthen Exports
 Reorientation of Marketing activities
 Expansion of its Sales Infrastructure
 Move to the Tier-II and Tier-III Cities
 Become a Mass product and still retain its leading
edge technology
 STRATEGY AT SAMSUNG

(A) GENERIC STRATEGY:

Generic strategy includes Product diversification
and focus of the company

PRODUCT DIVERSIFICATION
 Product Range is from contemporary to hi-tech
 Diversifying products so that each and every segment
is covered
 FOCUS OF THE COMPANY
 Product Innovation through usage of leading edge
technology
 Customer Satisfaction
 Continuously Upgrading with technology
 Tapping the ever growing High-end Consumer
 Tweaked its focus to concentrate on middle class
segment also
 Spending a good amount of its revenue on R&D
(B) ALTERNATIVE STRATEGY

PRODUCT DEVELOPMENT
 Research and development centre at Noida.
 Centre recently helped customize two high end frost
free refrigerators models, RT 25 and RT 28.
 Features offered by these are Cool Pack, toughened
glass shelves and high versatility compressor
 MARKET PENETRATION
 Working towards reaching out to smaller cities.
 Planning Dream Home road shows.
 Expanding its sales network.
 Revamping sales infrastructure.
 Samsung Marketing Academy – set up to train

frontline sales force and shop demonstrators.

 SWOT ANALYSIS
STRENGHTS
 Clear target: $ 2 billion by 2008.
 Core value: Approach market through technology and
design leadership.
 Launching hi-tech and contemporary products with
zeal and speed.
 Target is not only number driven but also about
acquiring and retaining customers.
 Created a Unique Brand Image for itself as a high end
value driven brand.
 The Samsung Marketing Academy
WEAKNESS
 Approach market through technology and design
leadership: a slow process.
 Not targeting the mass market
 Not spreading the brand all over india
OPPORTUNITIES
 LG: its slowing down and has not had any product
innovation in the last 6-8 months.
 The Indian Mass Market.
 The high end value driven proposition helps increase
the Market Share.
 Samsung is well known for it product differentiation
 THREATS
 Indian Mass Market may be captured by a rival
company, LG, Onida, Videocon;etc.
 The consumer durable industry is not in the best
of health.
 Due to increased price of inputs and continuing
price erosion there is downtrend in the consumer
durables market.
 Increased emergence of modern retail chains- a
problem as Samsung is investing in building a
retail network across the country
THANK YOU