SWOT Analysis Of SamsunG

Strengths:
• new bogus appurtenances abstraction to rollout in 5 months.
• communicable the beating of the buyer, present acceptable designs & accepting
emotions.
• Heavy asset in technology, artefact architecture and staff.
• Focus on new articles for the high-end marketplace.

Weaknesses:
• Lack in artefact separation.
• Different models at assorted amount points.
• centermost on accumulation bazaar instead of alcove markets.
• Not actual user affable design.
Opportunities:
• differentiate its account from competitors.
• Offer artefact variation
• crave for corpuscle phones apprenticed by the account provider or carriers.
• Tie up with account providers. lower the amount of a buzz by just $20 in
abounding countries could increase
• Affordability by 43%.
Threats:
• Motorola's babyminding in the U.S market, Nokia's acceptance in the Pakistani
market, artful added than bisected of the apple market.
• Agitated competitor, including Sony Ericsson and Siemens bistro into its share.
• Not befitting clue of the new trend in the market.
• Not an appearance accent and appearance statement
MARKET SHARE OF
SAMSUNG IN
CONSUMER
ELECTRONICS sh

SAMSUNGS
PRODUCT LINE
Consumer Electronic Products
like :
 Colour Television (CTV’s)
 Refrigerators (Frost Free)
 Air Conditioners
 GSM & CDMA Handsets
 Front Loading Washing
Machines
 LCD TV, Plasma TV

Advertising and
Promotional
Strategies
 Initially, Samsung’s advertising
activities was
decentralized.
 In 1999, Samsung unveiled a new
slogan –
“Samsung DIGITall: Everyone’s
invited”
 Expressed the company’s aim
“FOR ALL
GENERATIONS, FOR ALL
CUSTOMERS AND
FOR ALL PRODUCTS
In zzIn 2001, Samsung added the
word ‘WOW’ to its
marketing campaigns to show the
admiration of
consumer for its innovative but
affordable products
 In May 2002, Samsung announced
its plan to extend its
‘DigitAll’ campaign, by launching new
global campaigns
with different tag lines – ‘DigitAll
Passion,’ DigitAll
Escape,’ and DigitAll Wow.”
New, spunky, tagline - 'Next is
What ?'. It is being used in all
of 'Samsung Mobiles' communication
material
Porter five forces
Porter five forces model, developed by Michael E.Porter of Harvard University in 1979, holds
the purpose to analyze the industry in order to determine the level of intensity regarding the
competition and attractiveness of the industry. The attractiveness of an industry is measured in
terms of profit; more profitability means a more attractive industry and low profitability means a
low attractive industry.
Porter referred to these forces as micro environment rather than macro environment because
these forces are nearest in the sense of affecting the organization. Organizations have to re-assess
the market if any of the forces change, it does not necessary that the organization should leave
the industry if the profitability is low, because most of the organization are making good profits
by applying their core competencies to gain competitive edge over their rivals and increase their
profits.
The word “Strategy” is very common in this advanced era of the business and technological
world, it is used even in our daily life routine, you may have heard at times that lots of people
discuss about strategies (plans) to achieve something. You must be thinking that strategies are
developed in dreams or common sense by higher management of the company but that is not the
case, even the best of the strategies always comes after proper evaluation of internal and
external environment of the company.
The strategies are made by strategists to achieve objective or goals to allow the business to
compete in industry. Porter five forces model of competitive analysis is a widely used approach
for developing strategies in many industries. The intensity of competition varies across the
industries. The intensity of competition is higher in low return industry as compared to high
return industry due to less requirement for capital and common products that require minimum R
& D (Research & Development) and efforts for production.
According to Porter, the nature of competitiveness in a given industry can be viewed as a
composite of the following five forces:
1. Rivalry among competitive firms
2. Potential entry of new competitors
3. Potential development of substitute products
4. Bargaining power of suppliers
5. Bargaining power of consumers
Rivalry Among Competitive Firms
Rivalry among competing firms is the most powerful of the five competitive forces i-e the
ongoing war between the firms competing in the same industry for gaining customer share in
order to increase their revenues and profits. The competition is more intense if the firm pursues
strategies that gives it a competitive advantage over the strategies pursued by its rivals.
Developing new strategies is easier than retaining the uniqueness of the strategies so as to gain a
competitive edge over the rivals in the industry. Changes in strategy by one firm may be met
with retaliatory countermoves, such as lowering the prices, enhancing quality, adding features,
providing services, extending warranties and increasing advertising.
Examples,
- In the telecommunication industry, firms are lowering their prices in order to increase their
consumer call ratio by minimizing their per minute profit margin but this strategy is increasing
the overall company revenues.
- In the past few years a number of new features were added in the mobiles, now it not only gives
the functionality of cell phone but we are also able to take pictures, make videos, watch
streaming and use Internet. The firms like Nokia, Siemens, Samsung and other are following
each other’s strategies to minimize the differentiation in the product so customer can easily
switch brands.
- In the past television companies offered maximum one year warranty but now due to the tough
competition in the media market, players as Samsung, LG, Haier, Philips and others enter in the
market with their high quality products in order to compete with Sony, that’s the reason
customers are getting more services in the form of extended warranty periods.
- Pepsi and Coca Cola are competing by increasing their advertising and offering new beverages
in the market.

We discussed about the offline business, when it comes to online business on the Internet, the
competition is more fierce, consumer get more control over its purchasing by sitting at home on
computer and comparing the similar and substitute products on bases of features and prices.
Amazon.com is the best online book selling site, offering a huge library containing millions of
books on a variety of subjects. People visit to amazon because they enjoy user friendly design,
products, books and search capability of the site but when it come to purchase the product
customer move to other site such as buy.com for purchase on discounts. Buy.com CEO says, ”
The Internet is going to shrink retailers margins to the point where they will not survive.”
Examples:
- Dell.com offers computers and laptops of high quality at low prices as compared to its
competitors.
- EBay.com is a site where people like to go to purchase products online at low price.
The rivalry among competing firms increases as the number of competitors increases, as
competitors grow more equal in size and capability, as demand for the company products
decline, products are undifferentiated, product prices decline, consumer brand switching cost is
less, number of supplier available for raw material, low price substitute products are available
and entry into market is easy due to less constraints. As rivalry among competing firms
intensifies, industry profits decline, in some cases to the point where an industry becomes
inherently unattractive.

Potential Entry of New Competitors

Potential entry for new competitors is also the factor to intense the competition in the industry. A
larger pool of new entrants results in more changes of intense competition. Barriers to entry,
however can restrict the firms from entering the market, more number of entry barriers will make
it difficult for the new entrants to exploit the opportunity of new market.
Barrier to entry, however, can include the need to gain economies of scale quickly, strong
customer loyalty, strong brand preferences, large capital requirements, lack of adequate
distribution channels, government regulatory policies, tariffs, lack of access to raw material,
possession of patents, undesirable locations, counterattack by entrenched firms and potential
saturation of the market.
If existing firms are producing at economies of scale then the new entrants must ensure to make
its entry into the market with a large production scale capability to lower its fixed and variable
cost per unit in order to compete with the competitors product, otherwise new entrants will face
exceeding cost problems. Government policy creates hurdles for new entrants by heavy taxes and
interest rates. New firms must get to know the Government regulations and policies before
making a entry decision into the country.
Despite the numerous barriers to entry, new firms sometimes enter industries with higher-quality
products, lower prices and substantial marketing resources. The strategist’s job, therefore, is to
identify potential new firms entering the market, to monitor the new rival firms’ strategies to
counterattack as per need and to capitalize on existing strengths and opportunities.

Potential Development of Substitute Products

Firms mostly monitoring the trends within the industry to track the strategies but competition not
only arise within the similar industry but also in different industry. Companies in other industry
offer products with similar features and functionality or even better act as substitute for the
products. For Instance, the producers of spectacles and contact lenses are facing mounting
competitive pressures from growing consumer interest in laser surgery. Newspaper firms are
feeling competitive force of the general public turning to cable news channels for late-breaking
news and using Internet sources to get information about sports results, stock quotes, and job
opportunities.
A firm faces intense competition from substitute product producing firms, when the customer
cost of switching is lower, substitute products are better in quality and functionality , end users
grow more comfortable when using the substitutes. The competitive strength can be determined
by market share, sales pattern, producers adding capacity for more production, and rise in profits.

Bargaining Power of Suppliers

Supplier and producer relation always matters specially in manufacturing industries. Suppliers
play an important role in the production of goods and services, making the raw material better
and till the final product is made. Bargaining power of suppliers affect the intensity of
competition especially if there are huge number of suppliers, less availability of raw material and
the cost of switching between suppliers or raw material is high. These attributes in the industry
give power to the supplier to enforce terms and conditions on manufacturers and charge high
cost on raw materials.
For Examples,
The bargaining power of Microsoft and Intel in more because they are the huge suppliers of
software and hardware. Microsoft enforce computer manufacturers to load Windows in their
computers and place their logo on laptops, desktops and server machines. Intel on the other hand
also demands computer manufacturers to place their logo on machines using Intel processor.
Intel and Microsoft enforcing their terms and conditions also charging high cost from the
computer manufacturing companies.
Manufacturer needs to build relationship with the supplier in order to improve the quality and
reduce the prices of the product by working together for improvement in processes and reduce
time to market by implementing just-in-time inventory.
For Example,
Dell computer known for low cost and best quality computer, laptop and server manufacturer in
the industry. The key behind dell’s success is maintaining good relationship and collaboration
with the supplier of computer hardware and software.

To gain control or ownership over its suppler, backward integration strategy is adopted by most
of the companies. This strategy will help both suppliers and companies to work together for
improvement in product quality, reduce cost, reduce time to market and earn good reputation in
the industry.

Bargaining Power of Consumers

Consumers are the final users of the product; performance of the companies totally depend upon
the consumers. Bargaining power of consumers is more especially when they are huge in number
and consumers purchase in large quantity. Rival firms offer discounts, warranty and services to
switch the consumer from one brand to another in the same industry.
The bargaining power of consumers is also more when products are undifferentiated and widely
available. In this case consumer can ask for more discounts, extended warranty and services. As
the satisfaction level of consumer goes up more the intensity level of competition increases.
Firms should monitor the competitors strategies and also take care of the consumer’s likes and
dislikes by maintaining good relationship with the consumer by implementing CRM processes in
the company.
For Example,
P & G has an online portal to ask the customer about their views, opinions and new ideas about
the products of their desire.
Criticism on Porter Five Forces Model
In the previous few years, other forces like globalization, technology and deregulation are
introduced; these factors have a deep impact on the organization as well. The strategists should
consider all the internal and external environmental variables into consideration in order to
formulate fine-tuned strategies

PORTER’S FIVE FORCES

In this section, I analyze Samsung using Porter’s Five Forces model. As stated in

the instructions, the model is not explained but the model is applied to Samsung. The five forces

are analyzed with an additional element “The impact of Stakeholders” on the business

prospects of the company. Each of the forces is analyzed in detail and presented with respect to

the company’s macro and micro environment.

Samsung

Industry Rivarly
100
Stakeholders 50 Market Entry

Power of Suppliers Power of Buyers

Threat of Substitutes

Suppliers: The bargaining power of suppliers is relatively limited as there are a number of

suppliers in the market for consumer electronics. For instance, there are well over a thousand
suppliers in South Korea and across the world for the kinds of parts that Samsung needs for

making its electronic appliances. However, the fact that the suppliers make parts that are unique

for each appliance maker gives the suppliers an advantage that is hard to ignore. The point here

is that like in any other industry, the consumer electronics industry needs a wide network of

suppliers for the vendors to function effectively. Hence, Samsung depends on its suppliers for

timely delivery of the components and hence any disruption to the supply chain can be

troublesome.

Market Entry: The impact of Market Entry is high as Samsung has found it easy to enter

markets where it desires to do business. For instance, Samsung has entered Chin and India,

two emerging markets that provide the much needed volumes for its expanding business. The

fact that Samsung has entered these markets with relative ease makes this a force that can be

harnessed for the company’s good. However, it might not be easy for Samsung to capture

markets with ease as it has done previously because of the rise of protectionist tendencies in

the wake of the global financial crisis. The rivalry from existing players is a factor that needs to

be considered when deciding upon the market entry into foreign companies. This is something

that Samsung needs to take into account when deciding upon its foreign market entry strategy.

Power of Buyers: The power of buyers is indeed an element that is something of a mixed bag.

This is because of the fact that the buyers have a wide variety of choices and a range of

products to choose from. There are many models of mobile phones and other consumer

electronics gadgets in the market and the buyers can easily switch to alternatives. Hence, the

impact of this element on the company is a bit high. The bargaining powers of buyers are high

since the market for consumer electronics is essentially a buyer’s market with so many players

in the fray to sell consumer electronics to the consumers. This is reflected in the endless price

wars that Samsung is engaged in with respect to the mobile phones and other electronic goods.

However, the factor that is to Samsung’s advantage is because buyers cannot switch brands

immediately and they take their time to adjust and adapt and only when they are completely
dissatisfied with the company do they switch brands. This is the decline of the so-called “repeat

customers” when they lose faith in the brand’s ability to deliver the goods.

Threat of Substitutes: The threat of substitutes is indeed high for a company like Samsung.

Given the fact that the consumer durables market is characterized by intense competition with

competitors introducing products similar to those of Samsung’s with regular frequency, it is no

wonder that the company needs to be on its toes to keep pace with the blistering pace of new

products entry. Further, there are many “me-too” products that are introduced that are the

clones of the products that established brands like Samsung introduce in the market and this

leads to a situation where the company constantly needs to innovate to be ahead of the pack.

The threat of substitutes is indeed high for Samsung given these facts and this is one element

of the Five Forces that pose a significant threat to the company. However, the buyers who

switch to the substitutes are the price conscious segment and those who prefer price over

quality. Hence, this puts Samsung at an advantage over other competitors as the quality

conscious customers stay loyal to the company.

Industry Rivalry: The impact of this element is certainly high because of the presence of other

competitors like LG, Ben Q, Motorola and Nokia. The competition is so fierce and intense,

particularly in the emerging markets like India, where the wars between these competitors are

akin to the equivalent of “cola wars” between Coke and Pepsi. To give an example, both LG and

Samsung spend huge amounts of money in India on sponsorship of sports events (cricket

championships) and teams. Though the advent of these companies has certainly altered the

landscape of sports partnerships, sometimes the rivalry is taken too far resulting in lot of bad

blood between the rivals.

Stakeholders: The impact of this element has been evident in recent times because of the rise

of the environmentally conscious movement and the drive towards CSR (Corporate Social

Responsibility) that has seen the likes of Samsung receptive towards the concerns of these
groups. The fact that the shareholders are increasingly demanding more accountability and

transparency following the recent scandals is proof of their growing power in making the

management of Samsung accountable and responsible.

PESTEL ANALYSIS

In this section, I analyze the company’s strategy by the PESTEL analysis. Each

of the elements of this framework is analyzed in detail.

Political: Samsung faces significant political risks in the countries where it operates though in

the majority of the countries, the political situation is conducive for the operation of the country.

In recent times, the political climate in South Korea has become a worrying factor for Samsung

and the country faces political instability at home as well. However, the situation is not that

serious as compared to some of the other countries where it operates. This is particularly the

case in countries in the African continent and the South East Asian countries where Samsung is

at a distinct disadvantage because of the hostile business environment. In countries like China

and India, the company has a conducive political environment which allows it to concentrate on

the markets in a better way. (Yu, 1998, 57-60)

Socio-Cultural: Despite being a South Korean based company, Samsung has managed to

integrate itself well in the emerging markets where it does business. This has resulted in a think

global, act local mindset that has effectively bridged the cultural and social gap between its

home country’s business landscape and the markets where it operates. One troubling aspect

has been the company’s attitude towards local officials in the matters concerning bribing them to

get its business done. The company tries to strike a balance between the aspiration values of

the consumer classes and the levels of income that they possess.
Technological: As has been mentioned elsewhere in this paper, the company prides itself on

its innovative approach to technology and harnessing the same for rolling out products that use

cutting edge technologies in their design and features. The technological capabilities of

Samsung are well known and the company is especially strong on this element. The company’s

innovation drive is its biggest strength and the company can take pride in the fact that it is a

pioneer for many of the technological innovations that it has introduced through its products in

the global marketplace.

Economic: Samsung certainly follows good strategies in the markets it operates based on the

economic size and the strength of the consumers in terms of variables like disposable income.

Given the fact that the company needs high levels of disposable income from its consumers to

buy the products that it makes, the company has followed a targeted marketing strategy aimed

at the middle classes in the countries in which it operates. Further, the company enters markets

where the business cycle for the products that it sells is in the initial stages unlike the developed

countries where the product lifecycle for its range of products is in the decline or the maturation

phase. This strategy of entering countries where the products find a readymade market has

indeed paid off.

Environmental: The Company has started to be conscious of its environmental and social

obligations as evidenced in its approach to CSR and “green policies”. Many of the

manufacturing facilities of the company are built on environmentally sustainable designs and the

company is adopting other practices as well in this regard.

Growth of Consumer Durable Market
 Comparative Analysis
A comparative Analysis of Samsung Electronics vis-à-vis competitor’s (LG, Haier,
Videocon, Sony, Bluestar) in Amritsar, Batala & Surroundings

What is comparative Analysis?

In comparative Analysis we take our competitor’s products and make comparison

through consumer with our own products. Why Comparative Analysis? Comparative
Analysis comprises one of the most important tasks of marketing. It provides
information for marketing decisions. Problems are identified and investigated
further by using problem solving techniques with the objective of arriving at
solution. The most important innovation in the new approach is to study
simultaneously different organizational forms of business interest representation.
The aim of the study is to point out the best among the Variables that are being
studied.

The study will also include the survey which will be targeting about 100 dealers in
the area of Amritsar, Batala & Surroundings. The main emphasis in the survey will
be given on the sales of Samsung in comparison to its competitors in CTV & AC
segment, the consumer perception about the brand will also be taken into
consideration while conducting this survey.

The analysis of the buying behavior in respect to AC& CTV will be another important
component of my study. Buying behavior of the consumer is a study of how
individuals make decisions to spend their available resources (time, money & effort)
on consumption related items (what they buy, why they buy, where they buy, how
often they buy and use a product or service). The heterogeneity among people
across the world makes understanding consumer buying behavior an intricate and
challenging task. The consumers’ identity, his beliefs, specific needs, attitudes and
the kind of product and brand available in that product category influence his
buying behavior. The marketing efforts of a firm have a profound impact on the
buying decisions of customers. Therefore the attempt of my survey will be to obtain
an in- depth knowledge of the customers buying behavior.

The effect of external variables on purchasing pattern of customer will also be

considered here the external variables refer to all those factors which will be
affecting the consumer purchasing decisions, these can be price of the goods and
on its attitude to respond to functional needs. The critical variable under this
approach is the availability of adequate information about purchase alternatives
(price, product functionalities) to support the decisional process.

• The external conditioning approach, according to which the purchase

decision is a response to external stimuli. The critical variable under this
approach is which kind of external stimuli can influence purchase decision.

• The experience and the social interaction - based approach, according to

which the present consumer decision aims at the construction of personal
identity.

Another component of my study will be the analysis of the brand (Samsung) on four
P’s i.e.

• Product

• Pricing

• Promotion

• Placement.

These are the four factors which help an organization to understand the market
and help in taking future decisions relating to the launch & the strengthening of the
market for the brand.

Benefit to company:

1. Display Share Tracking: Display share tracking will help us to find out these
information

I. It will be used to revealed potential demand of each product.

II. With the help of display tracking we will find out the highest
selling product and lowest selling product in the market.

III. It will help in taking decision during the line expansion and line
pruning.

2. Consumer perception: This is done with the aim of capturing the true words
and emotions of consumer, and in turn using this information to improve or
developed products or to determine people attitude toward the products.
 I. It will help company to get feedback from consumer.

II. It will prevent the undervaluation of competitor and we can find

the strength and Weakness of our product.

III. This will help us to stay ahead in competition

IV. It will encourage value creating investment.

V. It will help in maximizing the consistency of value creation

VI. Measuring performance

VII. It will help us for market share analysis.

So I can say this study is more suitable for Samsung to compete and survive in
lobal market.
 Consumer perception

As it is well known proverb of marketing that “Consumer is the king” it is mandatory

for any researcher to know the opinion of the consumer regarding the products on
which he is going to conduct the study. This research work will include a consumer
questionnaire on the consumer goods which has been taken as the part of the study
the questionnaire mainly aims at .

• Awareness of the consumer about the brand

• His decisions whether dependent or independent

• Purchase pattern

• Brand loyalty level

 • Current consumer durables in home

• What is the impression of consumer about Samsung

This questionnaire will mainly help out in reaching at the actual consumer
perception of the consumers about the brand. This is done with the aim of
capturing the true words and emotions of consumer, and in turn using this
information to improve or developed products or to determine people attitude
toward the products.

2.1 It will help company to get feedback from consumer.

2.2 It will prevent the undervaluation of competitor and we can find the
strength and Weakness of our products

2.3 This will help us to stay ahead in competition.

2.4 It will encourage value creating investment.

2.5 It will help in maximizing the consistency of value creation.

2.6. Measuring performance

2.7 It will help us for market share analysis.

So I can interpret, this study is more suitable for Samsung to compete and
survive in global market.

Positioning:-

Many multinational companies adopt a “less developed countries” mindset,

assuming that these markets are at an earlier stage of the same development path
followed by the developed countries. To take the example of the automobile
industry, Ford and GM launched their outdated models like Ford Ikon and Opel Astra
in the Indian market. When these models did not sell well, the companies changed
course and decided to launch newer models in India. In the case of Samsung, the
company from the very beginning launched its whole range of high technology
products, which included CTVs, audio and video products, information technology
products, mobile phones and home appliances in India. It introduced products such
as the ‘Bio’ range in CTVs, high-powered Woofer series of colour televisions in 21-
inch and 29-inch conventional and 21-inch flat TV segments. And not to forget the
lateset DNie television.

By positioning itself on the technology platform, Samsung was able to differentiate

itself from its competitors. Differentiation today is the key for a brand to be
preferred by the consumers, when there are so many other brands within the same
product category. Without differentiation, its loyal customer base cannot be created
or sustained. But to be a true differentiator, a company must provide features that
are meaningful to customers. Which is what exactly Samsung has been doing

Marketing mix

Products: -

Samsung’s product range in India includes CTVs, video products, information

technology products, mobile phones and home appliances. Its product range covers
all the categories in the consumer’s electronics and home appliances. According, to
the analyst’s wide product range of Samsung is one of the main reasons for its
success in the Indian market. The wide range products are as follows: -

• Home appliances

• Microwave Oven

• Refrigerator

• Air Conditioner

• Washing Machine

• TV, video & audio

• TV

• DVD Player

• Camcorder

• Audio

• Home Theater

• Digital Audio Player

• Digital Still Camera

• Mobile Phones

• GSM

• CDMA

• Information technology products

• Note PC

• HDD

• CD Rom & DVD Rom Drive

• CD & DVD Read & Write Solution

• Monitors

• Laser Printers & Laser Based MFPs

• Fax
Samsung by launching innovative products and using proprietory technology was
able to gain market share. Samsung has therefore set up Samsung India Software
Centre (SISC) and Samsung India Software operations unit (SISO) for software
development at Noida and Bangalore respectively. While the Samsung India
Software Centre in developing software solutions in Samsung’s global software
requirements for hi-end television like Plasma and LCD TVs. SISO is working on
major projects for Samsung Electronics in the area of telecom: wireless terminals
and infrastructure, Networking, SoC (System on Chip) Digital Printing and other
multimedia/digital media as well as application software. In addition to working on
global R&D projects, SISO is also helping Samung India’s CDMA business by
focusing on product customization for the Indian market.

Market Share: -

Products

Brand 2004 2005

Refrigerator LG

Whirlpool

Godrej 25.16

21.6

19.8 29.4

23.2

16.3

Washing Machine LG

Samsung

Videocon 31.9

14.6

14.8 35.1

13.4
13.9

TV LG

Samsung

Videocon 24.2

16.4

10.1 26.7

15.4

11.00

Product features:

To sell a consumer durable product a company has to provide unique features i.e.
features which other companies are not able to provide. Samsung has been using
the same strategy to boost their sales. Samsung provides its consumers with wide
range of products with unique features.

For example, Samsung was the only company offering a 1000 watts PMPO sound
output in the 21-inch flat TV segment. It also introduced a new 5.5 kg, top loading
fully automatic washing machine with features like ‘saree course’ keeping in mind
that the majority of the Indian women wear sarees.

Refrigerator:-

• Bio Ceramic Technology(Bio Fresh Refrigerators)

BIO FRESH prevents evaporation of moisture, cell activation; supports antibacterial

function and also prevent the alteration of proteins. This keeps the food fresher for
a longer time. At the heart of Bio-Fresh refrigerators is Bio Ceramic technology.
Ceramics form a part of the raw materials used in the manufacturing of the
Vegetable compartment. Ceramics have the unique property of emitting 'Far
Infrared Rays' (FIR). The FIR helps retain the moisture content in the vegetables,
fruits and other natural products as they are in the natural resonant frequency of
water molecules. The 'FIR', in combination with technologies like the Bio-Deodorizer,
Dynamic Super X Flow cooling system with i-cool and Humidity Controller makes the
Samsung Bio-Fresh refrigerator one of the most unique products in the Indian
market today.

Bio-Vegetable Box is made of the newest Bio-Ceramic material. Bio-Ceramic

material radiates far-infrared rays, which help retain the moisture content in
vegetables, fruits and other natural products, keeping them rich in nutrients and
essential vitamins for a longer period of time.

• Super X Flow technology

The Samsung 250 NMB incorporates the Dynamic Super X Flow technology. This
technology sets up a smart cold air distribution system to maintain an even
temperature throughout the refrigerator! This effectively achieves three clear
benefits: Even Temperature, Quick Cooling and Energy Savings.

• Samsung's Twin Cooling System

Samsung's Twin Cooling System controls and generates cooling air for the
refrigerator and freezer independently with two separate evaporators and precise
electronic control, thus maintaining each compartment at their optimal cooling
conditions.

This results in a more efficient refrigerator with powerful performance!

Electricity Consumption Comparison

These features reduce energy consumption by 30%, compared to previous models,

with a high efficiency compressor and better insulation (A class: ISO standard)

Another Freezer in Refrigerator Compartment

The Twin Cooling System allows the CoolSelect Zone to maintain -5ºC (Soft Freeze
mode) in the refrigerator compartment. While food stored in the freezer is not easy
to handle, the Soft Freeze mode sets the temperature low enough for easy slicing
and allows medium-term storage. This is only possible by the Twin Cooling System.

• i-cool TM

The i-cool system is an intelligent cooling system with three cold air outlets-at the
back, on the right and left sides of the refrigerator interior. Cold air is evenly
distributed with multiple outlets on every shelf level. I-cool multi-flow has more air
outlets than the general multi flow technologies. This further ensures that as
compared to conventional frost-free refrigerators the Samsung i-cool is more
efficient both in terms of cooling and power consumption. With cold air flowing from
three sources, the i-cool system cools 40% faster and 50% more improved even
cooling than a conventional cooling system.

Washing Machine:-
• TORNADO PULSATOR:-

SUPER DRY: -Samsung introduced India's first Semi Automatic Washing machine
with a SUPER DRY Feature. The SUPER DRY Feature provides a 10 minute Spin Dry
Timer, which gives you the power to ensure that your clothes get the BEST
POSSIBLE DRYING. SUPER DRY is great value; especially for the Monsoon and winter
months, when clothes don't dry easily. This powerful feature is available on the
latest models launched recently - WT9300, WT9200, and WT7800. While all other
brands will provide the standard 5 minutes Spin Dry Timer, these models give you
EXTRA DRYING for full 10 minutes.

I-CONTROL SYSTEM:- The Samsung Washing technology is designed to put you

in control of the washing process, and the machine action. Samsung Washing
Machines are packed with an array of incredible features that come together to
make the I - control system. These include the ‘ECO Wash - that saves water and
detergent’, ‘Child Lock - To limit small children with tampering settings and getting
hurt’, ‘Auto Restart - that saves you the bother of restarting the washing machine
each time the power fails’, ‘Memory backup- enables the washing machine to
remember programmed wash cycles and settings’, ‘Delay Start- To enable you to
time the washing machine with your water supply and other chores’ and ‘Fuzzy
Logic - that makes the washing machine intelligent to adjust automatically to wash
loads, water and detergent levels’ etc. These 6 amazing technologies come
together to put you in total control and command of the washing machine and the
wash process

HYDROJET WASHING TECHNOLOYG: Samsung Hydrojet gives you a combination

of three powerful washing actions:

Waterfall Flow: Strong flow of water that streams down from the top. Pushing heavy
and light clothes towards the pulsator.

CentreJet: A strong gush of water formed right at the center of the washing
machine, forcing the dirt out of clothes. This also ensures that the clothes do not
get entangled at the center.

Water Pores:- Saves water and detergent and washes clothes from all sides.

BIO WASH TECHNOLOYG: Clothes washed in Samsung Washing machines are

not only dirt free, they are also 'germ free'. Samsung has developed this unique Bio-
Wash Technology to ensure just that. The Bio-Pulsator is made from some
percentage of Bio - Resin, which destroys germs and keeps the environment inside
the washing machines, pure and germ free, wash after wash.

Air conditioners:-
• Turbo power: {BRINGS INSTANT RELIEF FROM HEAT}

The Turbo function makes the AC operate under full power for 30 minutes,
irrespective of the set temperature, which leads to quick change of the room
temperature, instantly bringing the air-conditioning comfort in the room. Turbo
operates faster than the conventional system. The new compact range of Samsung
Window ACs not only occupies lesser window space but also are more aesthetically
appealing.

• Quick power optimizer: {ENSURES LOW ELECTRICITY BILLS}

The Samsung Split Air conditioner’s 5-Step Heat Exchangers have 122% larger
surface area. Samsung Window Air conditioners are equipped with a 3-row cooling
coil and L bent condenser coil that provide a larger surface area helping the
refrigerant to dissipate heat faster. This results in faster chilling and lesser strain on
the compressor resulting in lower electricity bills.

Micro Oven:-

Bio Ceramic Technology: Only Samsung Microwave Ovens come with a unique Bio
Ceramic Enamel coating. Bio ceramic enamel produces less oxidation, which helps
retain essential vitamins while cooking. The ceramic enamel retains 2.5 times more
heat than stainless steel, leading to faster cooking.

High scratch resistance: Bio Ceramic Enamel’s durability and protective qualities
make it far more scratch resistant than other microwave interiors. When scratched
with equal force, the roughness of the ceramic enamel surface increases only 7.5%
compared to 106% for the stainless steel.

Higher nutrient retention: Food cooked in Bio Ceramic enamel cavity microwave
ovens retains significantly greater amounts of vitamin C and F (an essential fatty
acid that helps reduce cholesterol and blood pressure) than food cooked in
conventional stainless steel cavity microwave ovens.

Exclusive Feature: 3D Showerwave

Unlike other Microwave Ovens, only Samsung Microwave Ovens come with the
unique 3D Showerwave System, which helps to distribute heat evenly, enabling
uniform cooking horizontally and vertically.

Television:-
 The Samsung 70-inch PDP TV (Plasma Display Panel) and at 54 inches is the world's
largest thin film transistor liquid crystal display (TFT-LCD) television and offers the
highest picture resolution available anywhere in the world.

The 70-inch PDP delivers high-definition imaging from over two million pixels - a
resolution twice the clarity of other models on the market today. Samsung has also
applied its proprietary Digital Natural Image engine image-enhancement technology
to ensure the highest quality possible image in terms of picture brightness and
contrast.

Samsung's 54-inch TFT-LCD TV features a crisp, high-resolution image and excels in

performance that ensures a smooth playback of the most action-packed visual
content. The 1920 x 1080 resolution and 16:9 aspect ratios can accommodate
future changes in high definition broadcasting. These advanced features and
unprecedented screen size, combined with inherent crisp display characteristics of
TFT-LCD, make this 54-inch TFT-LCD TV one of the most advanced display products
available today.

India’s first wireless home theater (Bluetooth technology):

Samsung India Electronics Ltd. has introduced India’ s first wireless home theater,
Model No. HTDB390 in the Indian market. The wireless Home Theater in Box (HTiB)
uses bluetooth technology to provide a wireless connection to the rear speakers of
the 5.1 channel speaker setup - eliminating the need for rear wires, and giving the
user total freedom to setup the rear speakers.

Wireless HTiB - rear speakers totally remove the hassles of wiring up the home
theater. Extremely convenient they embody the concept of HTiB (Home Theater In
Box) - since a user can literally take the system out of the box and place the
speakers around his/her room to create a Home Theater. Add to the feature of "no-
wires", the Samsung exclusive sDSM feature that calibrates sound from each
speaker at the touch of a button to give the best sweet spot - and this Home
Theater provides a never-heard-before audio experience.

DVD:-

The highlight of the Samsung DVD Range is the Hypervision DVD, HD 938, which is
the world’s first and only HDTV compliant DVD Player. The Hypervision DVD utilizes
the world’s first digital visual interface (DVI) output to transmit uncompressed
digital video signals without any analogue conversion, preventing image quality
loss. This results in viewers being able to enjoy high definition quality picture quality
even for standard DVDs.

Bio Colour Televisions:-

Samsung India Electronics Ltd. has launched a new, advanced Bio Range of colour
televisions in the Indian Market. Termed as the Only Healthy TV, the Samsung Bio
TV has Samsung's internationally patented Bio Ceramic Coating on the Picture tube
that emits Far Infra Red rays when switched on. The FIR rays are known as "Light of
Life", since they have been used for centuries by medical practitioners for their
therapeutic and curative properties. The FIR Rays penetrate the skin of the viewer
and get absorbed by the human body, leading to the release of body toxins,
enhanced metabolization and increased micro blood circulation. Thereby, improving
the immunity and protecting the entire body.

The Bio TV has also been physiologically tested to increase alpha ray emission from
the brain, which indicates a state of relaxation. The Health benefits of the Samsung
Bio TVs have been certified by the Indian Board of Alternative Medicine.

Silver Nano Technology:-:

Silver Nano has been developed by Samsung Electronics researchers who worked
for three years to perfect the technology. With over US$10 million invested in R&D,
Silver Nano is the first technology that combines the disinfectant and antibiotic
properties of electrolytic silver nano-particles (Ag+) in washing machines to remove
99.9% of bacteria.

Set on "Silver Wash", the washer's sterilization system generates silver particles
that kill off bacteria and mold in the laundry load without bringing the water to a
boil. Thus, less electricity is needed to achieve a hygienic effect. This process also
treats the inside of the washing machine tub to kill bacteria and mold, suppressing
the odor and contamination that accompanies their formation.

When the machine is set on "Silver Sterilization" mode, the laundry load is covered
with Silver Nano particles during the rinse cycle. After the washing is complete, the
clothes have been found to be totally devoid of bacteria and will remain so for up to
30 days, earning the "Sterilization Mark" from the Korea Testing & Research
Institute for the Chemical Industry.

Silver Nano is incorporated into refrigerators by coating the inner surface to keep
germs from growing. By keeping the cooling environment germ-free, food stays
fresher for up to 15 days longer and a Silver Nano deodorizer keeps bad odors from
affecting food taste.

Air conditioners have a Silver Nano filter that keeps germs from growing inside the
machine and prevents allergy-causing bacteria from being blown into the air. Silver
Nano coatings greatly reduce the presence of fungi and bacteria within five minutes
of operation.

DNIe Technology:-

Digital technology leader, Samsung India Electronics Ltd. today announced the
launch of its revolutionary ‘Samsung DNIe Vision’ range of Flat colour televisions on
7th April, 2005. The Samsung ‘DNIe Vision’ range comprises of 15 new models in
15’’, 21’’ and 29’’ size categories. The DNIe Vision Range from Samsung delivers
performance that is much superior to conventional televisions on account of the
DNIe technology. The new technology produces complete image quality; any signal
input comes out cleaner and more natural. DNIe can completely eliminate blurring
from movement or image prolongation. A deep contrast can also be achieved. What
is more, the finest detail appears sharp, while the vivid natural color is most
pleasing to the eye.

DNIe Technology in a Nutshell

Samsung’s unique DNIe technology encompasses four functions that analyze all

signal input, from analog to high definition, in stages. The volume of noise in the

signal is detected and the signal level is classified according into analog, SD or HD

and then optimized accordingly.

Motion Optimizer: Processes Noise More Completely than Ever Before

This noise processing technology integrates temporal and spatial concepts to

ensure

clear images even when the motion is very fast.

Contrast Enhancer: For a Deeper Contrast

This technology employs a contrast ratio of one million or more and a new algorithm
that can reproduce the optimal contrast to provide a deep and rich image quality.

Detail Enhancer: Complete Images, True to the Finest Detail

A vastly improved technology for automatically analyzing the picture signal

reproduces images in amazing detail, resulting in more lifelike video.

Color Optimizer: Vivid, Natural Colors

The video signals being generated are analyzed and the quantities of reds, greens

and blues are calculated to provide the colors most natural to the human eye.

After Sales Service :-

Offering advanced technology products and positioning itself on the technology

platform will not help a company sell its products if it fails to give proper after-sales-
serfvice. With a focus on strengthening the satisfaction level of the consumer,
Samsung India Electronics Ltd (SIEL) has launched its 3S — Speed, Smile and Sure
— campaign.

As part of this customer service program, the company is working on a two-pronged

strategy. This involves: one, improving the service infrastructure by setting up
customer service plazas in key metro locations; and two, improving the skill levels
of technicians by setting up a training school with a technical evaluation system for
after sales service engineers.

Till now, most of the players in the sector have been professing that it's the
relationship with the customer that matters. However, with the competition
increasing, customer satisfaction is fast becoming a core issue,'' an industry analyst
pointed out. He further stated that Samsung's current effort ``will also strengthen
its customer base as most of the players claim that 60 per cent of their sales is
repeat purchase.''
Promotion:-

Offering advanced technology products and positioning itself on the technology

platform will not help a company sell its products if it fails to communicate properly
with the potential customers. To raise brand awareness and create strong, favorable
and unique brand associations, Samsung adopted various marketing strategies like
celebrity endorsements, corporate advertisements, highlighting its technological
superior goods and many promotional schemes.

Advertising: -

Samsung is involved in aggressive marketing and advertising of its product to

develop attitudes, create awareness, and transmit information in order to gain a
response from the target market. Their main advertising channels include 'media'
such as newspapers (local, national, free, trade), magazines and journals, television
(local and national) cinema, outdoors advertising (such as posters, bus sides). The
initial advertisements communicated presence of Samsung in worldwide markets
and its dominance in those markets. To increase its brand awareness, Samsung
went in for celebrity endorsements. Initially, the company signed Hindi film actress,
Tabu, to endorse its brand. Till 2002, Samsung’s ads focused on the technological
supremacy of its products. But by late 2002, in addition to the technology plank, the
company started advertising on the plank of ‘passion for country’ and sports
(cricket and football). Its latest ambassador is John Abraham for its mobile phone
and Rahul Dravid for its Television range.

Sales Promotion:

Along with advertisements, Samsung also focuses on promotional schemes to

increase its sales. In October 2001, Samsung launched its highly successful
promotional scheme, the Samsung Phod ke Dekho Offer. This offer instantly boosted
the sales of the company generating sales of Rs. 2.75 bn from this offer. The
campaign was launched on an all India basis during the festival season. Under the
scheme, consumers who bought any Samsung product were given a tamper proof
plastic coconut with three coins in it. One out of every 10 coconuts had a lucky coin
with a gift printed on it. As a part of the campaign, Samsung’s brand ambassador,
Tabu interacted with the customers and dealers of Samsung in Bangalore and
Chennai and handed over the lucky coconuts to select Samsung customers. The
prizes included products from the Samsung range.

The Phod ke Dekho offer was followed by another promotion scheme in May 2002,
Dabake Jeeto offer coinciding with the football World Cup. During the promotion
every customer who purchased company’s electronics or home appliances product
got plastic football with an alarm clock in it. The customer had to press the football
from the top, and was given the free etched on the tamper-proof anodized sticker.
Under this campaign, Samsung gave out gifts worth Rs. 100 mn, which included
Samsung digital flat TVs, frost free refrigerators, microwave ovens, Karisma
washing machines, mobile phones, cameras and Soccer 2002 official licensed T-
shirts from Adidas. This campaign notched up sales worth Rs.310 Crores during the
period of the Promotion.

The next major promotional campaign was the Phir Se Phod Ke Dekho offer. The
offer was launched during October-November 2002 generating a sales of Rs. 380
crores. It was a repeat of the earlier ‘Phod Ke Dekho’ campaign.

On March 20, 2003 Samsung Launched 'Samsung Rang De Kismat Offer' for Frost
Free Refrigerators which entitled a customer to Lucky Gifts worth Rs 4 Crores, with
the purchase of any Samsung Frost free Refrigerator. This Promotion derives its
name from the 'Rang de Kismat' glass, which was handed over to a customer with
the purchase of any Samsung Frost Free Refrigerator. The Customer needed to pour
chilled water into the glass and wait for the 'Bio' logo on the Glass to change colour
to find out the gift won by him/her. There were Colour Codes for types of Gifts won
by the Customer - For example, a Green 'Bio' entitled a customer to a Samsung
Microwave oven while a Red 'Bio' gets the Lucky winner a Gift Voucher from Tanishq
worth Rs 30,000. This offer was launched to capitalize on the sales of its Frost free
refrigerators in the summer months. The Company’s market share went up to 21%
in the Frost free refrigerator market after the offer.

Following its success with its 'Samsung Rang De Kismat Offer' Samsung India come
up with another innovative Consumer Offer “Samsung's Bundling Offer with
Reliance IndiaMobile” for the buyers of its Consumer Electronics and Home
Appliance Products in the Delhi and NCR Region on 25 July, 2003. A buyer of any
Samsung Consumer Electronics or Home Appliance products gets the option of
walking away with a sleek, advanced Samsung Mobile Phone N191 model along with
a Reliance IndiaMobile connection, without having to pay any activation charges.
Furthermore, the user gets free talk time worth Rs.600 over a 6-month period. All
other payment terms are the standard billing terms and conditions offered by
Reliance IndiaMobile depending on the package taken up by the customer.

On 6 October 2003 Samsung India Electronics Ltd launched its mega festival
promotion called ‘Samsung Pinning Toh Winning Offer’ on an all India basis. In this
Promotion, where the consumer stood to win an assured gift on the purchase of any
Samsung product, have gifts worth Rs. 100 crores to offer as prizes. The offer
entitled the buyer of a Samsung product, a card with a unique 16 digit alpha-
numeric code. All the consumer had to do is SMS “SAM” followed by the 16
character code to 8888 and s/he would immediately get a message showing what
gift has been won. The Gifts won in the Promotion include; Samsung Projection TVs,
Samsung Mobile Phones, Samsung Yepp Disc Players, Samsung DVD players, Titan
Fast Track Glares, Touch Screen Landline Phone, Trendy Portable Travel Iron and
Britannica Encyclopedia 3 pack CDs.This offer was basically launched to maximize
its sales during the festival season.

Following its success with its ‘Samsung Pinning Toh Winning Offer’ Samsung India
Electronics Ltd launched ‘The $-DOLLAR Program’ for its IT Reseller and System
Integrator fraternity on June9, 2004. The program meant for the System Integrators
(SI) was applicable on Samsung monitors, Hard Disk Drives (HDD) and Optical Media
Storage (OMS) products. Each time a SI/reseller purchases Samsung products from
a Samsung Star Elite or Samsung Storage Preferred Partner (SSPP), the SI was
issued a cheque. The cheque was of one of the four colors – White, Blue, Silver, Gold
– depending upon the products bought.

Samsung believes that its SIs and re-sellers play a pivotal role in business growth.
They are the ones who provide them the edge that they need in today’s competitive
marketplace. This is why they have spearheaded revolutionary programs for them
ensuring healthy growth in revenues and profitability.

The last sales promotion offer was launched on Feb 3, 2005 called “Fastest Finger
First” which was a nation wide contest to find India’s fastest SMSer. The message to
be typed reads as follows: “The razor-toothed piranhas of the genera Serrasalmus
and Pygocentrus are the most ferocious freshwater fish in the world. In reality they
seldom attack a human". This SMS had to be typed on the cellphone keypad,
complete with punctuation marks and lower & upper case. No predictive text (T9
Dictionary), QWERTY keyboards/ any keyboard was allowed.

Sponsorship:-

Samsung used sponsorship of events like Olympic series to boost its sales. Samsung
was the global wireless communications sponsors at the Athens Olympics. Samsung
used the strategy of relating itself directly with the values of the Olympic games,
which included attributes like world class, global, excellence, fair competition and
peace. The Olympic series of August5, 2004 was Samsung’s salute to the Olympic
values.

Samsung was the sponsor of Lakme India Fashion Week held on April21, 2005.
Team Samsung cricketers - Irfan Pathan, Mohd. Kaif and Virendra Sehwag launched
the World’s Best Handset, Samsung D500 during the Samsung Show at the Lakme
India Fashion Week. The theme for the Samsung Show was ‘The Best Thing Says
Everything’ in keeping with the positioning of Samsung D500 - Samsung’s latest
and path-breaking mobile phone which has been rated as the ‘World’s Best Mobile
phone’ by the 3GSM Association World Congress held at Cannes in February 2005.

Samsung sponsored Samsung & MTV Youth Icon 2005 on June10, 2005. The idea
behind the sponsorship was that the Samsung Mobiles were targeted at the fun
loving, lifestyle oriented and trendy youth of today. By associating with the
Samsung & MTV Youth Icon, they are seeking to further strengthen their
relationship with the youth. Samsung mobiles make a style statement and by
partnering with the Youth Icon, this positioning is further re-inforced.

Samsung was even the sponsor of Samsung IIFA Awards held on June 13, 2005.
Popular film actress, Preity Zinta was awarded the ‘Samsung Diva’ award while
Hrithik Roshan was conferred the prestigious ‘Samsung Style Icon’ award at the
Samsung IIFA Awards 2005. Samsung India had carried out an online voting process
on the Samsung India website between May 20th - June 5th 2005 for selecting the
recipient of the ‘Samsung Style Icon’ and ‘Samsung Diva’ awards. The same was
also promoted extensively on other sites like indya.com and msn.com as well. The
Company received a phenomenal response to this online voting contest. “The
‘Samsung Style Icon’ and ‘Samsung Diva’ awards which have been growing in
popularity year on year, the company uses the response level received every year
as its popularity indicator.

Direct Mail:-

Samsung even uses Direct Mail concept for its product promotion. Samsung sends
mail to target consumers depending on the database i.e. the frequency of site visit
and on their purchases. Samsung is very actively involved in e- commerce.

Distribution Channels:-

Samsung uses supply chain to enhance differentiation, increase sales and penetrate
new markets and channels. Its supply chain is beneficial in several ways. It helps
the company to deliver products to the customer faster. It efficient supply chain is
transparent, so that all the players in the supply chain have the right information at
the right time about the movement of the products within the chain. This means
lower inventories, elimination of waste, and reductions of costs. In addition to the
intangible benefits like quick feedback from customers help in launching new
products.

Samsung has 24 state-level distribution offices and a direct dealer interface. The
direct dealer interface helps the company to get quick feedback from dealers, and
enables it to launch products according to consumer needs. To minimize time
overruns, Samsung delivered its products directly from its factories to its Regional
Dispatch Centers (RDCs), and from there to dealers. Samsung has sales and service
networks all over India and 650 service points.

Samsung has implemented an innovative logistics system – Global Logistics

Network Systems (GLONETS). GLONET application is used on the B2B i.e. Business
to Business front for the vendors. This involved linking the key vendors, which form
the bulk of Samsung’s sourcing (26 domestic and 30 international) through
Samsung’s GLONET. This system enables Samsung to connect its purchase
department with the Samsung headquarters and international procurement offices
through integrated ERP systems. The integrated ERP system enables Samsung to
purchase its requirements from its international procurement offices and also from
its Indian vendors. This application is also extended to order placement, production
plan sharing and invoicing, resulting in shorter business cycles and reduced
inventory levels and low waste.

In addition to GLONETS, Samsung also believes in JIT (Just-in-Time) concept to its

dealers. To make delivery of products within 48 hours of the expected date of
delivery, the company has setup four RDCs, one at each regional location of the
country.

The distribution channel is structured very systematically wherein all the

transactions and business conducted is documented. The program is based on
incentives so that dealer payments can be made on time. The Company supplies its
goods to the Star Elite who supplies goods to the distributor who in turn sell the
goods via their own channel of retailers and distributors. The Samsung Brand shop
network complements the over 8500 retail points for Samsung products located
across the length and breadth of the country. Samsung plans to continue enhancing
its penetration levels in the country to reach out to more and more Indian
consumers. They consider the Star Elite partner as their actual product champion as
their link with the end customer. As, they have been adding value to the sale to the
customer and guiding him to the right purchase decision at a fair price.

Shop-in-shop: Samsung is ensuring a presence in most big malls and multiplexes;

even in the multi-brand outlets, as the focus there is to create a shop-in-shop
atmosphere.

The exclusive showrooms: Keeping its target customer to display Samsung products
in a more lifestyle ambience and to communicate the product benefits in a more
interactive manner, Samsung India has set up a widespread network of over 80
exclusive showrooms comprising Samsung Digital Zone (focusing on high-end
digital audio-video products such as MP3 players, camcorders and LCD/plasma TVs).
The Samsung DigitAllhome goes beyond the concept of a Digital Plaza or a Brand
Shop because in the DigitalAllhome, they are trying to create a more interactive
environment and providing a more lifestyle orientation to the display, so that the
customer can visualize the products in his/her own home settings. The Company
plans to supplement its existing Samsung Digital Plazas' (Brand Shops) by setting
up 'Samsung DigitAllhomes' in select cities. The Company will also be creating
exclusive Samsung corners in multibrand outlets this year.
The demands and needs within the distribution channel lead to the establishment of
MyMemoryStore.com. The site is more than an ordinary selling site, infact it is an
industry portal that allows the business partner to come in and track the relevant
industry information within the channel, meaning minimizing the inventory
overhead.

Samsung is also planning to invest over $1 million in setting up a chain of exclusive

outlets called `Samsung Talkies'. The entire Samsung mobile range including the
latest handsets will be displayed at the outlets, which will be set up in more than 10
cities across India, including Bangalore, Mumbai and Hyderabad.

Distribution Channel in 2005:

Post VAT they have modified in their policies a bit.

The most important step was to bring down channel inventory post the Budget
impact and the VAT impact. They made a conscious decision to bring down channel
inventory, which was at that point of time 60 days, today it is reduced to 11 days,
which entails total inventory among dealers, distributors, star elite and SI. This has
been done to ensure that the channel stays profitable.

Samsung India tied up with PlanetM for displaying its new audio range at the
PlanetM Outlets in Delhi, Mumbai, Kolkata, Pune, Chandigarh and Bangalore.

Pricing:

Pricing also seemed to have played a significant role in Samsung’s success.

Differentiation is the key for a brand to be preferred by consumers, when there are
so many brands within the same product category. Samsung believes in providing
good products at reasonable prices to its customers. Samsung’s technology plank
communications helped the company to gain market share, even though it did not
offers any discounts or exchange scheme when it entered India. Samsung focuses
on cost-cutting measures to keep its price low which helps to combat the discount
schemes of the local companies.
For e.g.- In 2001, due to high competition in the 20”CTV segment, Samsung had to
resort to price cuts. The company said that value engineering, new product lines
and new chassis development had contributing in combating price erosion.
Samsung negotiated with its vendors to reduce costs on cabinets, plastics,
speakers, harness coils, remote controls, etc. Samsung’s Brand image seemed to
have helped it survive the price erosion. Dealers also agreed to lower margins
owing to company’s brand image.

Samsung in the year 2002, drastically reduced its operational costs which enabled
the company to keep low prices for certain products and extract higher profit
margin from premium products. This helped Samsung to post a turnover of Rs.30bn,
a 2 growth from the year 2001.

Samsung is very transparent in functioning. It has a fixed MoP (Marketing Operating

Price) whereby the goods are sold to the distributors and to the customer’s at a
fixed market price only.

The focus of its competitors is to penetrate in the rural and semi-urban mass
markets. But Samsung insists that it's a high end technology driven player. That's
why the urban areas are still a focus area for it and only 30 per cent of revenue
comes from rural and semi-urban India. They have always been a hi-end technology
driven player and want to keep that equity.

Not surprisingly, the target customer for Samsung products won’t be found in the
price-sensitive mass market. Adopting the lifestyle product platform, Samsung’s
aiming for the high-end premium market. Hence Samsung has always been keeping
premium prices. Samsung claims it’s never been a price warrior — its focus has
always been on the premium market, which is why it has remained a steady No. 2
or No. 3 player in most product categories.

It is difficult to achieve the ambitious targets keeping in mind the pricing strategy of
Samsung. But, they believe that it takes time to ensure your supremacy in market
share. Once you get your brand perception right in the minds of the consumers as a
brand that delivers the best technology and gives you value for money, then
ultimately market share goes up.

Later on Samsung changed its policy a bit and instead of just remaining a high-end
technology driven brand it tried to change its image to sell products to the huge
number of middle income families in India. It started pricing its products on the
“value for money” concept, keeping in mind the price sensitivity of Indian
consumers.

But still Samsung has the repute of being a premium brand, aggressive in launching
newer models with the latest technology and at economic costs throughout the
world

Pricing Strategy Post VAT

Post Budget, they have ensured that there is no discounting in the market and also
the prices of OMS had to be increased by 4 percent since price stability is of
fundamental importance in channel business. This is the biggest marketing stand
that the brand could have taken as the brand stands above individuals and the
transactions that happen.

Price range: -

SAMSUNG LG

• Mobile Phones:-
GSM – 3,649-21,399 4,800-28,000

• TV, video & audio:-

TV:-

Projection TV

LCD Projection TV - 69,000- 109,000 89,990-99,990

 Flat Panel

Plasma 265,000- 9,0,000 2,95,000-

7,50,000

LCD TV- 59,990- 265,000 75,000-

1,69,900

Flat TV

29 inches- 19,990- 31,990 20,290-

37,990

21 inches- 8,990- 17,690 9,190-

11,990

15 inches- 6,890- 8190 7,990-

10,500

Conventional TV

21 inches- 13490 7,990-8,990

20 inches- 7690- 8990 7,890-8,890

DVD Player:- 3,990 – 5,000 3,990-4,990

Audio:-

VCD System - 9,900- 26,990 8,500-

26,990

DVD System - 16,200- 25,990 13,990-

29,990
Home Theater: - 12,990- 68,000 15,990-19,990

• Information technology products:-

Note PC - 69,990- 159,990 79,500-1,70,000

CD Rom & DVD Rom Drive

CD Rom Drives- 750 1,600

DVD Rom Drives- 1,600- 1,900 3,300

CD & DVD Read & Write Solution

CD Writers- 1,600 4,250

Combo Drives- 3,000-5,000 6,500

DVD Writers- 4,600 7,800

Monitors

CRT Monitors

17” magic Bright Range- 8,000 13,750

15” Entry Level Range- 5,450 5,750

LCD Monitors - 15,000- 34,000 19,500-

46,800
• Home appliances

Microwave Oven

Solo - 4,990-6,990 5,490-7,990

Grill - 5,990- 10,590 6,990-

13,990

Convection - 12,990- 15,590 12,990-

18,990

Refrigerator:-

Direct Cool - 7,500- 10,200 9,950-

11,400

Frost Free

Side by side system- 68,000- 1,20,000 69,000-

1,25,000

Air Conditioner:-

Insta Chill Window - 14,990- 23,990 15,490-20,990

Insta Chill Split - 24,790- 41,990 26,750-42,500

Washing Machine:-

Front Loading - 6,690- 34,900 12,990-

40,500

Top Loading - 11490- 25,900 12,790-

18990

Semi Automatic - 6,990- 8,990 7,090-

9,490

Future Prospects:-

We have done a survey at retail outlets selling Samsung products and one thing
that we found out common is that Samsung lacks in after sales service. The
drawback in their after sales service strategy is that they have only one customer
service centre throughout India which is situated in Delhi. When a customer has a
complaint he approaches his retailer who in turn registers the complaint in the Delhi
service centre from where the complaints are processed and replacements are
made.

The presence of only one service centre makes it very difficult to give timely
response as the complaints come throughout India. The complaints are not
entertained for a period of 10 -15 days. Hence the customer is not satisfied with the
after sales service of Samsung.

Marketing Strategy:-

Samsung has to improve its after sales service inorder to retain customer and
create brand loyalty. The current policy adopted by Samsung is aggressive
spending more on advertising and marketing and less on retaining customers that is
after sales service.
So the corrective strategy to be adopted by Samsung must be to spend more on
retaining customer rather than acquiring them as it costs 5 times more to the
company to get to a new customer rather than pleasing existing ones. Moreover it
costs 16 times to take the new customer to the loyalty stage.

They should have regional service centres in North, South, East, West where the
complaints can be received and processed quickly. Moreover they should employ
and train the technicians to provide quality and timely sales service.

Strategy To Expand Market Share:-

Currently Samsung ranks second in the Indian consumer durable market whereas
LG ranks first.

The problem with Samsung is that it is a premium brand and focuses only on urban
and semi-urban markets whereas the rural market is neglected to a great extent
which is why LG is dominating in that market.

Samsung earns a revenue of only 30% from rural areas.

India being a country of villages, Samsung should focus more in the rural market in
order to increase its market share.

Samsung should come out with new economic products like LG had taken out
“Sampurna” television range aimed only for the rural market.

Hence Samsung could have come up with a conventional range of television models
which although are no very technologically advanced but fulfills the basic needs.

All these strategies are very practical promising higher gains with less cost pains.
Strengths
o New product concept to rollout in five months.
o Catching the pulse of the consumer, offering good designs & understanding
Emotions.
o Heavy investments in technology, product design, and human resources.
o Focus on innovative products for the high-end market.
Weaknesses
o Not proactively coming out with newer models.
o Lack in product differentiation.
o Different models at different price points.
o Focus on mass market instead of niche market.
o Not very user friendly designs.
Opportunities
o Distinguish its service from competitors.
o Of

Samsung Strategies in India

 Aggressively hawking flip-tops and clamshells with polyphonic ring tones and color
screens.
 Nationwide distributor and retail presence in the domestic consumer durables market.
 Samsung has been associated with the Lakme India Fashion Week (LIFW) for its mobile
phones. The company used the LIFW-2005 as a platform to launch its D-500, World’s
Best Mobile Phone in Indian market.
 Set up a handset manufacturing facility in India