SAMSUNG INDIAS STRATEGY TO REGAIN NO.

1 SPOT

PRESENTED BY: Manoj panjwani Nitesh khanna Priya khanna Raghav Sanjeev jha Swapnil karn

OBJECTIVE OF OUR STUDY

To understand the strategy adopted by Samsung in India To Identify the Strategy shift according to change in Indian scenario

INTRODUCTION
Samsung India Electronics Private LimitedIndian subsidiary of the US $55.2 billion Samsung Electronics Corporation Headquartered in Seoul, Korea Commenced operations in India in December, 1995 Enjoys a sales turnover of over $ US 1 billion in a just a decade of operations in India

PRODUCT LINE
SAMSUNG

Mobile Phones

Camera / Camcorder

Home Appliances

TV / Audio / Video

PC / Peripherals / Printer

Memory Card

MISSION & VISION

VISION -Inspire the World, Create the Future MISSION -To become one of the world s top five brands by 2020

INITIAL STRATEGY
Focused on creating a premium brand image Emphasized on the design and technology aspects of its higher-priced products Market leader in LCD televisions and superpremium, side-by-side refrigerators "Customers would buy an LG [product] for their bedrooms but pick a Samsung for their living rooms"

REASONS FOR CHANGE IN STRATEGY

Severe price competition from its arch rival LG India is still a market powered by volumegrowth Suspicion regarding achievement of growth targets based on premium products rather than on India's voluminous price sensitive mass market

REVITALIZED STRATEGY
Focus on expansion and deeper market penetration making a big effort to reach out to the masses Providing superior technology and differentiated products not only for the premium segment but also for the mass market "When you want to expand the market, it is easier to reach out to a segment where you don't have a presence than to eke out more value from an existing category."

HOW THEY ARE DOING IT

Product innovation is the key focus of the current round of innovation on making mass, volume-driven products more appealing Expansion of Indian R&D operations considerably, employing over 2,000 people across all divisions of the company

MASS REACH
Aiming to broaden its presence across nonmetro and semi-urban towns Close association with Indian cricket - team and tournament sponsorships regularly conducting road shows and live demos of products in class B and C towns Rebranding of existing Samsung Digitall Homes as Samsung Plaza

WHAT LIES AHEAD

India is the growth market of future having huge potential Samsung s technological strength can be a huge advantage Reduction of product lifecycle in consumer electronics from two to one year Modern trade can be a good opportunity for reaching out to new customer groups

SOME FINANCIAL FACTS

AMOUNTS IN BILLIONS Net Sales* Total Assets Total Liabilities Total Stockholder's Equity Net Income*

WON 220,120.40 343,811.60 212,512.90 131,298.60 17,663.80

DOLLARS 172.5 294.5 182 112.5 13.8

EUROS 124.1 205.3 126.9 78.4 10

ISSUES TO BE ADRESSED
Margins in the consumer electronics business are not very high Extensive distribution network developed by arch rival LG Need to respond quickly to the advent of new technology Modern trade may threaten established brands when stores launch private labels