1

CHAPTER 1
CONCEPT OF PROMOTION MIX
1.1 PROMOTION
Promotion is one of the market mix elements or features, and a term used frequently
in marketing. The marketing mix includes the four P's: price, product, promotion, and
place. Promotion refers to raising customer awareness of a product or brand, generating sales,
and creating brand loyalty. Promotion is also found in the specification of five promotional
mix or promotional plan. These elements are personal selling, advertising, sales
promotion, direct marketing, and publicity. A promotional mix specifies how much attention
to pay to each of the five subcategories, and how much money to budget for each. A
promotional plan can have a wide range of objectives, including: sales increases, new product
acceptance, creation of brand equity, positioning, competitive retaliations, or creation of
a corporate image. Fundamentally, there are three basic objectives of promotion. These are:
1. To present information to consumers as well as others.
2. To increase demand.
3. To differentiate a product.

(Figure 1 )

2

1.2 INTRODUCTION TO PROMOTION MIX
In the current era of modern marketing, it is not enough for a business to have good products
sold at attractive prices. Inorder to generate sales and profits, the benefits of products have to
be communicated to the present and potential stakeholders, and the general public. In
marketing, this is commonly known as promotion.
Promotion is all about companies communicating with the customers.
A business total marketing communication programme is called the Promotion Mix. The
different elements of this mix are:

(Figure 2)
Advertising
Sales Promotion
Publicity
Personal Selling
Public Relations
Direct Marketing

3

Not each element is helpful or effective in all product market situations. For example, while
advertising is known to deliver results in the soft drinks industry, personal selling is found to
be effective in selling personal computers and software. Thus, while in consumer non-
durables, advertising has a bigger role to play, personal selling is of significant importance in
consumer durables, industrial products and services marketing. Sales promotion and publicity
have an equal significance in all types of products.
The following figure illustrates the importance of each of these elements of the promotion
mix in different product groups.











(Figure 3)

The factors that guide a marketers decision in selecting a promotion mix are:
a) Nature of the product market: That is whether it is a consumer or industrial product.

Consumer goods Industrial goods
Advertising
Sales promotion
Personal selling
Public relations

4

b) Overall marketing strategy: That is, whether the firm wishes to push the product or
create a pull for the product. The push refers to selling the product through the
marketing network and hence involves the critical function of managing distribution
channels. In this strategy the emphasis is on personal selling and trade promotion. But
in the pull strategy the firm creates consumer demand for its product or brand such
that the consumer demands the brand at the retail outlet. Advertising and consumer
promotion go a long way in creating the desired pull for the brand.
c) Buyer readiness stage: The choice of different elements of the promotion mix is also
dependent on the buyers readiness and awareness of the brand. The promotion mix
can be assembled depending on where the buyer is in the hierarchy of response
models. Like advertising will play a major role in creating awareness, demonstration
and samples will help bring about a change at the affective and behavioural levels.
d) Product life cycle stage: This will also play a role in deciding on the promotion mix.
For example, in the introduction stage, advertising and publicity are found to have a
significant role, and are cost effective, in creating awareness, desire and finally the
trial. Even samples play a key promotional role in industrial products. But in the
maturity stage, sales promotion and personal selling help make the product steer
through the competition maze. Thus it is important to know where the product is in its
life cycle.





5

CHAPTER 02
PROMOTION MIX STATEGIES
Promotion mix strategies to get your product or service to market can be roughly divided into
two separate camps:
PULL Strategy
PUSH Strategy
2.1 PULL STRATEGY:
A pull strategy involves motivating customers to seek out your brand in an active process.
"Getting the customer to come to you"
'Pull strategy' refers to the customer actively seeking out the product and retailers placing
orders for stock due to direct consumer demand. A pull strategy requires a highly visible
brand which can be developed through mass media advertising or similar tactics. If customers
want a product, the retailers will stock it - supply and demand in its purest form, and this is
the basis of a pull strategy. Create the demand, and the supply channels will almost look after
themselves.
EXAMPLES OF PULL TACTICS
Advertising and mass media promotion
Word of mouth referrals
Customer relationship management
Sales promotions and discounts

6

2.2 PUSH STRATEGY:
A push promotional strategy involves taking the product directly to the customer via
whatever means, ensuring the customer is aware of your brand at the point of purchase.
"Taking the product to the customer"
The term 'push strategy' describes the work a manufacturer of a product needs to perform to
get the product to the customer. This may involve setting up distribution channels and
persuading middle men and retailers to stock your product. The push technique can work
particularly well for lower value items such as fast moving consumer goods (FMCGs), when
customers are standing at the shelf ready to drop an item into their baskets and are ready to
make their decision on the spot. This term now broadly encompasses most direct promotional
techniques such as encouraging retailers to stock your product, designing point of sale
materials or even selling face to face. New businesses often adopt a push strategy for their
products in order to generate exposure and a retail channel. Once the brand has been
established, this can be integrated with a pull strategy.
EXAMPLES OF PUSH TACTICS
Trade show promotions to encourage retailer demand
Direct selling to customers in showrooms or face to face
Negotiation with retailers to stock your product
Efficient supply chain allowing retailers an efficient supply
Packaging design to encourage purchase
Point of sale displays


7

working of pull and push strategy
(Figure 4)
A successful strategy will usually have elements of both the push and pull promotional
methods. If one is starting a new business and intends to sell a product through retailers, he
will almost certainly need to persuade outlets to purchase and stock your product. He will
also need to raise brand awareness and start building valuable word of mouth referrals. If he
has designed a product around the customer and has considered all elements of the marketing
mix, both of these aspects should be achievable.






8


CHAPTER 03
ELEMENTS OF PROMOTION MIX
There are sixmain elements in a promotional mix. They are:
Advertising
Personal selling
Sales promotion
Publicity
Direct marketing
Public Relations

(Figure 5)
Integration of all the elements of promotion mix is necessary to meet the information
requirements of all target customers. This simply means that the promotion mix is not
designed to satisfy only the prospective buyer or only the regular buyer. Some elements of
the mix may be aimed at the target customer who is unaware of the product, while others may

9

be aimed at potential customers who are fully aware of the product and are likely to purchase
it. Suppose a customer is interested in buying a personal computer. Because of his interest in
the product, he starts paying attention to computer advertisements in newspapers and
magazines. He may even read the media reports on personal computers by experts. He also
may participate in training programmes or demonstrations. He may also contact the sales
persons of different computers and find out the features and relative merits. Based on all this
information he may then purchase a specific brand.
Therefore, to get better response from the target customers, one has to adopt all the different
components of the promotion mix. However, one should note that the elements of the
promotion mix must be coordinated and integrated so that they reinforce and complement
each other to create a blend that helps in achieving the promotional objectives of the
organization.
3.1 ADVERTISING:

(Figure 6)
Any paid form of non-personal communication through mass media about a service or
product or an idea by a sponsor is called advertising. It is done through non personal
channels or media. Print advertisements, advertisements in Television, Radio, Billboard,
Brochures and Catalogues, Direct mails, In-store display, motion pictures, emails, banner

10

ads, web pages and posters are some of the examples of advertising. Paid promotion and
presentation of goods, services, ideas by a sponsor comes under the advertisement.
Advertising plays a significant role in awareness creation and attitude formation. It can
even generate a trial and purchase response as long as all other elements of marketing mix
play a contributory role.
Advertisers include not only business firms but also museums, charitable organisations
and government agencies that direct messages to target public. Advertisements are a cost-
effective way to disseminate messages, whether to build brand preference or to educate
people. Organisations handle their advertising in different ways. In small companies,
advertising is handled by someone in the sales or marketing department, who works with
an advertising agency. A large company will often set-up its own advertising department.
Most companies use an outside agency to help create advertising campaigns and to select
and purchase media.
Advertising objectives are as follows:
Informative advertising figures heavily in the pioneering stage of a product
category, where the objective is to build primary demand. Thus the yogurt
industry initially had to inform consumers of yogurts nutritional benefits.
Persuasive advertising becomes important in the competitive stage, where a
companys objective is to build selective demand for a particular brand. For
example, Chivas Regal attempts to persuade customers that it delivers more taste
and status than other brands of scotch whiskey.
Reminder advertising is important with mature products. Expensive four-colour
Coca-Cola ads in magazines are intended to remind people to purchase Coca-
Cola. A related form of advertising is reinforcement advertising, which seeks to

11

assure current purchasers that they have made the right choice. Automobile ads
often depict satisfied customers enjoying special features of their new car.

(Source: The Economic Times for the year 2013)
(Figure 7)

12

3.2 PERSONAL SELLING




(Figure 8)
This is a process by which a person persuades the buyer to accept a product or a point of view
or convince the buyer to take specific course of action through face to face contact. It is an
act of helping and persuading through the use of oral presentation of products or services.
Target audience may vary from product to product and situation to situation. In other words
personal selling is a person to person process by which the seller learns about the prospective
buyer's wants and seeks to satisfy them by making a sale. Examples: Sales Meetings, sales
presentations, sales training and incentive programs for intermediary sales people, samples
and telemarketing etc. It can be of face-to-face or through telephone contact.
Personal selling has three distinctive qualities:
Personal confrontation: Personal selling involves an immediate and interactive
relationship between two or more persons. Each party is able to observe the others
reaction at close hand.
Cultivation: Personal selling permits all kinds of relationships to spring up, ranging
from a matter-of-fact selling relationship to a deep personal friendship. Sales
representatives will normally have customers best interests at heart
Response: Personal selling makes the buyer feel under some obligation for having
listened to the sales talk.

13

PROCESS OF PERSONAL SELLING:
1. Pre-sale preparation: The first step in personal selling is the selection, training and
motivation of salespersons. The salespersons must be fully familiar with the product, the
firm, the market and the selling techniques. They should be well-informed about the
competitor's products and the degree of competition. They should also be acquainted with
the motives and behaviour of prospective buyers.
2. Prospecting: It refers to locating or searching out prospective buyers who have the
need for the product and the ability to buy it. Potential customers may be spotted through
observation, enquiry and analysis of records of existing customers. Social contacts,
business associations and dealers can be helpful in the identification of potential buyers.
3. Approaching: Before calling on the prospects, the salesperson should fully learn their
number, needs, habits, spending capacity, motives, etc. Such knowledge helps in selecting
the right sales appeal. After such learning, the salesperson should approach the customer
in a polite and dignified way. He should introduce himself and his product to the
customer. He should greet the customer with a smile and make him feel at home. He
should introduce himself and his product to the customer. In case he is busy with some
other customer, he should assure the new customer that he would be attended very soon.
The salesperson has to be very careful in his approach as the first impression is the last
impression.
4. Presentation: For this purpose, the salesperson has to present the product and describe
its features in brief. The presentation should be matched with the attitude of the prospect
so that the salesman can continuously hold his attention and create interest in the product.

14

5. Demonstration: In order to maintain customer's interest and to arouse his desire, the
sales-person must display and demonstrate the product. He has to explain the utility and
distinctive qualities of the product so that the prospect realizes the need for the product to
satisfy his wants. He should not be in a hurry to impress the customer and should avoid
controversy. He may suggest uses of the product and may create an impulsive urge to
possess the article by appealing to human instincts.
6. Handling objections: A sale cannot be achieved simply by creating interest and desire.
Every customer wants to make the best bargain for the money he is spending.
Presentation and demonstration of the product are likely to create doubts and questions in
his mind. The salesman should clear all doubts and objections without entering into a
controversy and without losing his temper. Testimonials, money-back guarantee, tact and
patience are popular means of winning over s hesitant buyers. The salesman should
convince the customer that he is making the best use of his money by purchasing the
product. For this purpose, the salesman should prove the superiority of his product over
the competitive products. He should not lose patience if the customer puts too many
queries and takes time in arriving at any decision. If the customer does not buy even after
meeting rejections, the salesman should let him go without showing temper. He must
believe in the universal rule that the customer is always right.
7. Closing the sale: This is the climax or critical point in the personal selling process.
Completing the sale seems to be an easy task but inappropriate handling of the customer
can result in loss of sale. The salesman should not force the deal but let the customer feel
that he has made the final decision. He should guide the customer in making the choice
without imposing his own view. Some adjustment in price or other concession may
sometimes be necessary for a successful closing. The salesman should show the same
interest in the customer which he exhibited during approach stage. Sales should be closed

15

in a cordial manner so that the customer feels inclined to visit the shop again. In closing
the sale, the article should be packed properly and handed over to the customer with
speed and accuracy. Once the customer has purchased the article, the salesman should
show and suggest an allied product. For instance, he may suggest socks, ties,
handkerchiefs, vests, etc., to a customer purchasing a shirt. This is known as additional
sales and requires great skill and tact.
8. Post-sale follow-up: It refers to the activities undertaken to ensure that the customer is
satisfied with the article and the firm. These activities include installation of the products,
checking and ensuring its smooth performance, maintenance and after-sale service. It
helps to secure repeat sales identify additional prospects and to evaluate salesman's
effectiveness.







3.3 SALES PROMOTION

16


(Figure 9)
Sales promotion is any activity that offers an incentive for a limited period to obtain a
desired response from the target audience or intermediaries which includes wholesalers
and retailers. It stimulates consumer demand, market demand and improve product
availability. Examples: Contests, product samples, Coupons, sweepstakes, rebates, tie-
ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
Sales promotion offers three distinctive benefits:
Communication: They gain attention and usually provide information that may
lead the consumer to the product.
Incentive: They incorporate some concession, inducement, or contribution that
gives value to the customer.
Invitation: They include a distinct invitation to engage in the transaction now.
Companies use sales promotion tools to draw a stronger and quicker buyer response. Sales
promotion can be used for short-run effects such as to dramatize product offers and boost
sagging sales.


17

3.4 PUBLICITY

(Figure 10)
Non-personal stimulation of demand for a product, service or business unit by generating
commercially significant news about it in published media or obtaining favourable
presentation of it on radio, television or stage. Unlike advertising, this form of promotion is
not paid for by the sponsor. Thus, publicity is news carried in the mass media about an
organization, its products, policies, actions, personnel etc. It can originate with the media or
the marketer, and is published or broadcast at no charge for media space and time. Examples:
Magazine and Newspaper articles/reports, radio and television presentations, charitable
contributions, speeches, issue advertising, and seminars. Publicity can be favourable
(positive) or unfavourable (Negative). The message is in the hands of media and not
controlled by the organization/firm.
The appeal of publicity is based on three distinctive qualities:
High credibility: News stories and features are more authentic and credible to readers
than advertisements.
Ability to catch buyers off guard: Publicity can reach prospects who prefer to avoid
salespeople and advertisements.

18

Dramatization: Publicity has the potential for dramatizing a company or product.
Marketers tend to underuse publicity; yet a well-thought-out program coordinated with the
other promotion mix elements can be extremely effective.
3.5 DIRECT MARKETING

(Figure 11)
Direct Marketing is reaching the customer without using the traditional channels of
advertising such as radio, newspaper, television etc. This type of marketing reaches the
targeted consumers with techniques such as promotional letters, street advertising, catalogue
distribution, fliers etc.
Direct marketing has four distinctive characteristics. Direct marketing is:
Non-public: The message is normally addressed to a specific person which leads to
higher satisfaction.
Customised: The message can be prepared to appeal to the addressed individual.

19

Up-to-date: A message can be prepared on the spot and very quickly.
Interactive: The message can be changed depending on the persons response.
3.6 PUBLIC RELATIONS

(Figure 12)
Public Relationsis the practice of managing the spread of information between an
individual or an organization and the public.Public relations may include an
organization or individual gaining exposure to their audiences using topics of public
interest and news items that do not require direct payment. The aim of public relations
by a company often is to persuade the public, investors, partners, employees, and
other stakeholders to maintain a certain point of view about it, its leadership, products,
or of political decisions. Common activities include speaking at conferences, winning
industry awards, working with the press, and employee communication.
"Public relations is a strategic communication process that builds mutually beneficial
relationships between organizations and their publics."




20

CHAPTER 04
LITERATURE REVIEW
PROMOTION MIX
Pheng low (1995) in defining promotion mix states, promotion involves any ways of
providing information and persuasion and reminding consumers of marketing mix of
products, goods or services. ohHyunjoo (2009) believes promotion results in increase
of sales and profit and also develops the tendency toward the brand finally brings
about increase in sales. Understanding consumers' reaction to promotion in supplying
useful approaches is very important both for increasing sales and other components of
marketing mix, because these factors are deeply interrelated; in fact components of
sales promotion can serve as significant factors in deriving consumers (Banerjee,
2009). In other words, promotion consists of providing direct or indirect ways of
communication with people, groups or organizations in order to inform and persuade
them on the way to purchase products and services (Rezvani, 2008). Promotion mix
tools most applied in this industry include: Sales promotion, advertising, personal
selling and direct marketing.According to Kotler et al.(2010) advertising is part of
promotional mix which also consists of public relations, direct marketing, sales
promotion and personal selling. Advertising and public relations are mass-promotion
tools which are used by companies to inform consumers about a new product or
service whereas others mentioned have a more personal and direct way of
communicating. Companies use paid media to inform, persuade and
remind consumers. When firms create their promotional mix they can choose from
two strategies: push or pull strategy. Through push strategy the companies are
pushing their product forward through distribution channels towards e.g.
wholesalers and retailers. The main emphasis on the promotional mix is usually sales

21

promotion and personal selling. Pull strategy tries to influence the consumers and
thereby increase the demand. Advertising and sales promotion have greater emphasis
on the pull strategy. According to the standards of Finnish Consumer Agency, advert
should clearly demonstrate who the advertiser is and also follow the codes of good
practice (Consumer Agency 2011).

ADVERTISING
Advertising has been designed to direct views also make change in behaviour easy
and may present the most convincing sale messages with most accurate perspective of
products or services without much cost (Celeb, 2007). Until 1989, advertising in
eastern and central Europe had carried a negative implication and been considered as
a tool to spread Capitalism, but gradually advertisement have been designed which
had informative aspects and because of its significance in informing upon new
products and services it turned to be generally accepted(Petrovici, 2007). Indeed
advertisement is one of the primary communication link with consumers, hence
consumers' desired image and language along with culture, economy and commercial
changes should be kept in mind (Wang, 2009) and in order to bring about the best
influence, the message type should accord with the product, that is logical messages
are more useful for consumer products whereas emotional messages fit with value
based and empirical products (Mortimer, 2008). If the content of the message and the
way it's represented convey association of an specific desired brand for
people, they get more information on it which results in positive reaction toward the
product (Praxmarer,2009). With respect to the variety of advertising media, three
public ones are studied which are most applied in this industry: television, radio and
magazine.

22

SALES PROMOTION
Defining the term sales promotion is rather difficult for the presence of multiple
relating techniques and tactics and that sales promotion is a tool to achieve company's
marketing communication objectives and an essential element in planning marketing
(Blattberg, 1990). Sales promotion is a short term strategy to derive demand and also
and especial marketing offer which provides more profit than what consumers receive
from the sale position of a product and also has sharper influence on sales (Banerjee,
2009). This tool has the ability to attract and keep loyal customers and is an excellent
what to persuade them build viable link with the organization and involves all motifs
applied by the producer to persuade trade with members of a channel (Ndubisi, 2006).
Among various tools of sales promotion, four ( free sample, advertising gifts, coupon
and discount) have more influence in the industry.
PERSONAL SELLING
Personal selling is the executive wing of organizations to attract customers and
increase sale of products and services. All efforts in organizations' different
departments result in the performance of Personal selling(Azizi, 2009), since it is
informed of the rival companies and market changes sooner than other
departments(Storbacka, 2009). In fact, they act as private link between company and
customer and from consumers' point of view represent the company, bring value for it
and so need information on the consumer (Moghareh Abed, 2009) and in order to be
successful in sales process, having information on marketing, financial issues and
activities are essential (Storbacka, 2009). Trust between the seller and the buyer is
important which has been vastly discussed in marketing literature and researches
show that more trust results in more effective performance (Dawes, 2006).


23


DIRECT MARKETING
Direct Marketing Association defines Direct Marketing as follows: Direct Marketing
is an interactive marketing system which uses one or more advertising media to
provide a measurable reaction or trade in every level (Kotler, 2006). This represents a
flexible method which can deliver the message and target especial group of customers
in an effective way (Hayter, 2005). Direct Marketing is one of the most important
elements of marketing mix in most successful companies. The more competition in
market and customers surrounded by messages and information on the products, the
clearer boundaries of marketing environment become and more potential channels for
most traditional companies are provided (Duffy, 2005).
Among various direct marketing methods, four main ones i.e. sale through catalogue,
email, telephone and S.M.S are the most commonly used methods.

PUBLIC RELATIONS / PUBLICITY
Fiske (1980) defined public relations as a form of communication management that
seeks to influence the image of an organization and its products and services. Public
relations usually focus on communicating positive aspect of the business.
This involves a company to use publicity tools like news release whereby the
company informs a newspaper, radio station or other media of an idea for a story.
The firm can also use news conference in which the representatives of the media are
all invited to an information meeting and advance materials regarding the content are
sent.
Kotler (2000) noted that non-profit organizations rely heavily on Public Service
Announcements (PSAs), which are free space or time donated by the media. Non-

24

profit organizations also use high visibility individuals as publicity tools to create
visibility for their companies, their products and themselves.
The publicity efforts are coordinated with news releases, conferences, advertising,
donations to charities, volunteer activities endorsements and any other activities that
may have impact on public perceptions.





















25

CHAPTER 05
ABOUT SAMSUNG

5.1 AN OVERVIEW
The Samsung Group is a multinational conglomerate corporation headquartered in
Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by revenue
with annual revenue of US$268.8 billion in 2012 and is South Korea's largest chaebol.
The meaning of the Korean word Samsung is "Tri-Star" or "three stars". The Samsung
Group is composed of numerous international affiliated businesses, most of them
united under the Samsung brand including Samsung Electronics, the world's largest
electronics company, Samsung Heavy Industries, the world's second largest
shipbuilder and Samsung C&T, a major global construction company. 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 accounts for more than 20%
of South Korea's total exports and is the leader in many domestic industries, such as
the financial, chemical, retail and entertainment industries.

5.2 HISTORY
In 1938, Lee Byung-Chull founded Samsung, a small trading company with forty
employees located in Daegu. The company prospered until the Communist invasion in
1950 when he was forced to leave Seoul and start over in Busan. During the war,

26

Samsung's businesses flourished and its assets grew twenty-fold. In 1953, Lee started
a sugar refinery. The company diversified into many areas such as insurance,
securities, and retail. In the early 1970s, Lee borrowed heavily from foreign interests
and launched a radio and television station.
Samsung Group later formed several electronics-related divisions, such as Samsung
Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and
Samsung Semiconductor & Telecommunications Co., and grouped them together
under Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-and-white
television set. In the late 1980s and early 1990s, Samsung Electronics invested
heavily in research and development, investments that were pivotal in pushing the
company to therefore front of the global electronics industry. By the 1980s Samsung
was manufacturing, shipping, and selling a wide range of appliances and electronic
products throughout the world. In 1982, it built a television assembly plant in
Portugal; in 1984, it built a $25 million plant in New York; and in 1987, it built
another $25 million facility in England. The 1990s saw Samsung rise as an
international corporation. Samsung's construction branch was awarded a contract to
build one of the two Petronas Towers in Malaysia, Taipei, 101 in Taiwan and the
BurjKhalifa in United Arab Emirates, which is the tallest structure ever constructed.
In 1993 and in order to change the strategy sold off 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 University foundation. Samsung survived the Asian
financial crisis of 1997-98 relatively unharmed. However, Samsung Motor, a $5
billion venture was sold to Renault at a significant loss. Additionally, Samsung
manufactured a range of aircraft from 1980 to 1990s.Most importantly, Samsung

27

Electronics (SEC) has since come to dominate the group and the worldwide
semiconductor business, even surpassing worldwide leader Intel in investments for
the 2005 fiscal year. Samsung's brand strength has greatly improved in the last few
years.
Samsung became the largest producer of memory chips in the world in 1992, and is
the world's second-largest chipmaker after Intel. In 1995, it built its first liquid-crystal
display screen. Ten years later, Samsung grew to be the world's largest manufacturer
of liquid-crystal display panels. In 2006, S-LCD was established as a joint venture
between Samsung and Sony in order to provide a stable supply of LCD panels for
both manufacturers. Samsung Electronics, which saw record profits and revenue in
2004 and 2005, overtook Sony as one of the world's most popular consumer
electronics brands, and is now ranked #19 in the world overall. Behind, Nokia,
Samsung is the world's largest by volume producer of cell phones with a leading
market share in the North America and Western Europe and Asia.

5.3 ABOUT SAMSUNGELECTRONICS
Founded in 1969 in Suwon, Gyeonggi-do, Korea, Samsung Electronics Co., Ltd.
manufactures and sells a wide variety of electronic products, communication devices,
and semiconductors. In January 2009, we restructured our organizational structure to
better reflect the respective characteristics of each business sector and the common
technology, market and customer base denominators within its businesses, thereby
creating synergies. The previous six division-based system was separated into a
Digital Media & Communications (DMC) business unit and a Device Solution (DS)
business unit.

28

Today, its global presence includes a total of 111 subsidiaries in the form of
production subsidiaries, sales subsidiaries, distribution subsidiaries, research
laboratories and eight overseas business divisions representing North America,
Europe, China, Southeast Asia, Southwest Asia, Central and South America, CIS, the
Middle East and Africa.

2012 FINANCIAL HIGHLIGHTS (Amounts in billions)

Won Dollars
Euros
Net Sales* 302,939.5 268.8
208.4
Total Assets 503,677.1 470.2
356.2
Total Liabilities 279,298.0 260.8
197.5
Total Stockholders' Equity 224,379.1 209.5
158.7
Net Income* 29,537.0 26.2
20.3

Exchange rate information
Won/U.S. Dollar yearly average exchange rate : 1,126.88/1$. Won/Euro: 1,453.68/1
Won/U.S. Dollar as of the end of December 31, 2012 : 1,071.10/1$.
Won/Euro: 1,413.85/1
(Figure 13)

.


29


5.4 MISSION AND VISION STATEMENT

VISION STATEMENT
Samsung is guided by a singular vision: to lead the digital convergence movement.
SAMSUNG believe that through technology innovation today, SAMSUNG will find
the solutions they need to address the challenges of tomorrow. Fromtechnology comes
opportunity for businesses to grow, for citizens in emerging marketsto prosper by
tapping into the digital economy, and for people to invent newpossibilities.
SAMSUNGs aim is to develop innovative technologies and efficientprocesses that
create new markets, enrich peoples lives and continue to makeSamsung a trusted
market leader.

MISSION STATEMENT
Everything done in Samsung is guided by the mission: to be the best digital-
Company.

Source: Samsung Website
(Figure 14)

30


Samsung grew into a global corporation by facing challenges directly. In the years
ahead, our dedicated people will continue to embrace many challenges and come up
with creative ideas to develop products and services that lead in their markets.

5.5 ORGANISATION STRUCTURE

(Figure 15)








31


5.6 MARKET SHARE OF SAMSUNG INDIA

(Figure 16)
Overall Television Market Share

(Figure 17)




32


5.7 PRODUCTS












33


5.8 HIGHLIGHTS OF SAMSUNG INDIA
2012
Mr. B D Park appointed Regional President & CEO for Samsung South West Asia
Operations
2011
Samsung creates a new mobile category in the Indian market by launching its
revolutionary Galaxy Note with the market's largest HD Super AMOLED display,
supreme portability and advanced Smart Pen feature to meet the consumers' creativity
and productivity needs
Samsung India strengthened its operations in the country by stepping up its
investments in its mobile manufacturing facility at Noida. The Company brought in
investments of over US$ 70 million towards tripling the mobile manufacturing
capacity at Noida.
Samsung South West Asia organised its first regional forum held under the theme of
"Smarter Life". Announced Samsung's Smarter Life philosophy: Smart Design, Smart
Experiences and Smart Connections.
2010
Brought the Nobel Museum's traveling exhibition Alfred Nobel Networks of
Innovation exhibition to India. The exhibition presents the entrepreneur and
innovator Alfred Nobel's life through the latest technology, developed in collaboration
with Samsung Electronics.

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Samsung India's state- of- the art refrigerator manufacturing facility at
Sriperumbudur, Chennai was inaugurated on site by Dr. M.K Stalin, the Hon'ble
Deputy Chief Minister of Tamil Nadu and H.E Mr Kim JoongKeun, Ambassador of
the Republic of Korea to India along with Mr J S Shin, President & CEO, Samsung
South West Asia.
The First Company to launch Tablets in the Indian market, with the Galaxy tab 7
Samsung Electronics proposed a CDM project in India with government,
environmental agencies and vendors to respond to climate change.
Launches the first of its kind Samsung Takeback and Recycle (STAR) Program in
India aimed at generating awareness and educating consumers on the importance of
recycling e-waste
2009
Mr J S Shin appointed Regional President & CEO for Samsung South West Asia
Operations
2007
Samsung Manufacturing Facility at Sriperumbudur inaugurated by the Hon'ble Chief
Minister of Tamil Nadu, Dr Kalaignar M Karunanidhi and Samsung Vice Chairman
& CEO, Mr Jong Yong Yun
Samsung India Software Centre (SISC) made the Global Hub for Software
development for Samsung's worldwide requirements for Digital Media products
Mr H B Lee appointed as the President & CEO of Samsung South West Asia
Headquarters.

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2006
MoU signed with Tamil Nadu Government for setting up a second manufacturing
Complex at Sriperumbudur, near Chennai
Samsung commences manufacture of LCD TVs in India
2005
Samsung awarded as the Best Retailer of the year 2005 in the consumer Durables
category by the India Retail Forum.
Mr S H Oh appointed as President & CEO of Samsung India Electronics Pvt. Ltd.
2004
Samsung received the Golden Peacock Special commendation Certificate for
Corporate Social Responsibility (Private Sector) for the year 2004 from Mr.
ShivrajPatil, Union Home Minister.
India made regional headquarters for Samsung Southwest Asia.
2003
Inauguration Samsung's new, High-Tech, advanced Refrigerator facility.
Commencement of production at refrigerator facility in Noida.
Software technology park set up at Noida
2002
Construction commences for 5,000,000 refrigerator plant in Noida


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2001
Samsung India wins the Rajiv Gandhi National Quality Commendation Certificate for
Best Quality in the Electrical and Electronics Industry for the Year 1999
Samsung India begins the domestic production of Fully automatic washing machines
at its Noida facility.
Samsung's seventh Colour Monitor Plant in the world and the First Colour Monitor
Plant in India commences production. Plant Capacity: 1.5 million units
Colour monitor plant set up
Mr. K S Kim, MD of Samsung India between September 1998 - March 2001 returns
to Korea as Sr. Vice President, Global Display Division, Samsung Electronics Co.
Ltd.
Mr. S S Lee takes over charge as Managing Director, Samsung India. Mr. Lee was
MD of Samsung's subsidiary in Vietnam between January 1995 and March 2001.
Samsung India announces its Corporate Initiative for the Year 2001 -To be a Digital
E-Company
2000
On December 2, 2000, Samsung India completed 5 Years of Operations in the
country.
Vice Chairman & CEO, Samsung Electronics, Mr. Jong Yong Yun visits India
Announces fresh investments of US$10 million for setting up a high tech, state-of-
the-art Colour Monitor Plant in India.

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Samsung India commences exports of 'Made in India' Colour televisions to Western
Europe Samsung sponsors the Indian Olympic Team to the 2000 Sydney Olympics
Samsung India produces its One Millionth Colour television in India - The first MNC
to achieve this milestone in India
Launch of Samsung Electronics India (P) Ltd - Samsung's 100 per cent subsidiary for
IT and Telecom products in the country
Sets up a Hardware R & D Centre for Colour Television at Noida.998
Samsung Running Festival held at New Delhi. Part of Samsung's Bangkok Asian
Games Programme, it drew participation from around 8000 people from all walks of
life.Samsung awarded 'SAP Star Award' by SAP AG
Mr. K. S. Kim appointed as the new Managing Director of Samsung India. Took
charge from Mr. B. M. Park who was MD, Samsung India between August 1995-
September.
1998
All India operations with launch in East
1997
Sponsorship of the lighting of the Permanent Asian Games Flame Ceremony at the
National Stadium, New Delhi.
Sponsorship of Indian Contingent to 13th Asian Games in Bangkok.
CTV Factory Inaugurated with Initial Plant Capacity of 400,000 units per annum


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1996
Foundation Stone laid for CTV Factory at Noida, Uttar Pradesh.
Launch in South Home Appliances Launch
1995
Samsung India Electronics (SIEL) products launched in India.
Certificate for commencement of business received by Samsung India.

5.9 AWARDS WON BY SAMSUNG INDIA
Samsung India has won several awards and recognitions for both its corporate initiatives as
well as its product innovations in audio visual, home appliance, IT and telecom product
categories.
2012
Samsung was presented with the Golden Peacock Award for the most innovative
product for the year 2011 for the MV800 digital still camera.
Samsungs MV800 digital still camera bagged the Asian Photography Best
Innovation in Camera Technology award for 2011.
Samsung awarded as the Consumer Durable Company of the year at the 2011 NDTV
Profit Business Leadership Awards in recognition for its initiatives and innovations
taken up to respond and adapt to the ever changing business scenario as well as
exceptional ability in business performance fuelling the Indian economy.


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2011
Samsung emerged as the Most Aspirational Brand of the Year 2011 in the Best
Brands Survey 2011 conducted by Financial Express and market research agency
Synovate. Samsung was ranked high for its 'Flaunt Factor' linked to its attributes like
quality, brand reputation and imagery. Samsung also ranked amongst the top 3 brands
in the Overall Ranking of the Top Brands of 2011 and the Most Visible Brand of 2011
list.
Mr. JS Shin, President & CEO, Samsung South West Asia was awarded the
prestigious MAN OF ELECTRONICS AWARD 2011 by Consumer Electronics
and Appliance Manufacturers Association for his exceptional all round contribution to
the Indian Electronics and Appliances Industry. Shri. Rajeev Shukla, Hon'ble Minister
of State for Parliamentary Affairs handed over the award to Mr. J.S. Shin.
Samsung Electronics was awarded the best Manufacturer of BEE Star Labeled
Appliances in the Air Conditioner category by the Hon'ble Union Minister for Power,
Shri SushilkumarShinde. The Function was presided over by the Hon'ble Prime
Minister of India, Shri Manmohan Singh. Samsung won the Award based on criteria
like the number of star labeled products sold, the energy savings achieved thanks to
its technology and the growth in sales of energy efficient products over the previous
year.
While Samsung ranked 27th in Economic Times annual Survey on the Top 100
trusted brands in India, it emerged as the most Trusted Consumer Durable brand in
India, while maintaining its position as No. 2 company in the mobile phone category.

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Samsung was awarded as the Tablet Company of the Year by Voice & Data at the
V&D 100 Awards.
Samsung was awarded the Golden Peacock Awards (GPA) For Corporate Social
Responsibility for its Corporate Citizenship and Community Affairs initiatives that
address education, sports, culture and environment management programs
Samsung won 3 much coveted awards at the NDTV Gadget Guru Awards 2011 that
honour innovation and products that truly make a difference in the world of
technology.
o Design of the Year - 3D LED TV UA55C9000
o TV of the Year - 3D LED TV UA46C8000
o Smartphone of the Year - Galaxy S
2010
Samsung India won the 'Golden Peacock Eco-Innovation for the year 2010 for its for
LED TV ranked as the most innovative product that shows the maximum customer
satisfaction at minimum cost as determined by customers.
Samsung won 3 awards at the NDTV Tech Life Awards 2010 to honour the years
coolest gadgets and the best technological innovations.
o Best Budget Mobile of the Year: Samsung Corby
o Best Television Display of the Year: Samsung 3D LED TV UA46B7000
o NDTV Gadget of the Year: (decided by the eminent jury panel and also by vie
wer's choice through public voting) Samsung LED 3D TV

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CHAPTER 06
PROMOTION MIX STRATEGIES ADOPTED BY SAMSUNG
Samsung offers advanced technology products, therefore positioning itself on the
technological platform is not enough for the company to sell its products, It has to
communicate with the potential customers properly to make its market presence. To raise the
brand awareness and highlight the technological superiority of its goods, Samsung has
adopted various promotional strategies.
The promotion mix strategies used by Samsung are different for different product types:
6.1 MOBILE PHONES:

Samsung tries to use a mix of both push and pull strategy for promoting its range of
mobile phones. Samsung incurs a huge advertisement expenditure for creating awareness
about the latest technology used by the company in creating these phones, therefore
advertisement creates product awareness, thereby creating a pull for the product.
Samsung also uses sales promotion techniques such as heavy discounts, exchange offers, 0%
finance options, cash back offers, etc. to promote the mobile phones and create a pull for
the product.


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6.2 TELEVISIONS:

A large amount of expenditure is incurred in the Research and Development of the televisions
as these are huge investment projects. The product awareness of the televisions are created by
way of publicity and public relations, the media tries to create awareness about these products
by discussing about them in their tech-shows and in the new inventions column in the daily.
The company itself holds press conferences in order to make the people aware about the
product.
Advertisement and other sales promotion techniques such as discounts, coupons, and combo
offers are used to boost the sales of the products. These techniques help the product to gain a
significant market share in the competitive market.

6.3 AUDIO / VIDEO GADGETS:


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Samsung does not use intensive advertising campaigns for promoting these gadgets as these
do not incur high R&D expenditure and are not new inventions, instead these products are
promoted through personal selling and sales promotion strategies. These products are usually
promoted by using the push strategy.
6.4 CAMERAS:


The major revolution in the cameras segment was seen when the digital cameras were
introduced in the market. At that time a huge amount was spent on television advertisements,
but in the current scenario the cameras are promoted using direct marketing, sales promotion
and personal selling.
6.5 REFRIGERATORS:


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The refrigerators are high investment ventures and require a huge amount of Research and
Development in their production. These products are launched in the market by creating
awareness through advertisements on televisions, distribution of pamphlets and direct
marketing by way of demonstrations. The company tries to create a pull for the product.
The conventional refrigerators available in the market are promoted by using sales promotion
techniques such as discounts, 0% finance schemes, exchange offers, etc. Here the company
tries to create a push for the product.
6.6 OTHER HOME APPLIANCES:

Home appliances such as washing machines, microwave ovens, air-conditioners, smart-
ovens, etc. are promoted by using a small proportion of television and radio advertisements
and majorly by using direct marketing by distributing brochures, demonstration and different
sales promotion techniques. The home appliances are usually demanded by mostly all the
households, therefore their promotions are done by keeping in view the needs of all the
interest groups.
The sales promotion techniques are extensively used in promoting these products. Since these
products are demanded by different income groups therefore the cost of the products are
shown reduced by way of discounts, cash-backs and various exchange offers. Hence, a push
is created for these products.

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6.7 PC / PERIPHERALS / PRINTERS:

The PCs and printers used for personal use are promoted by using sales promotion and a
little bit of advertising but those which are used for industrial purposes are promoted majorly
by direct marketing as the sales executives brief the prospective buyers about the technical
benefits of the product and try to convince them about the long-term benefits of the product.









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CHAPTER 07
CONCLUSION
This study highlights the benefit of promotion mix in the sale of the products. It is seen that
only manufacturing a particular product is not enough for a brand to make its market
presence, instead a good promotion strategy helps in making a product successful in the
market. It is also seen that there is no perfect promotion mix, each product and its market
require their own type of promotion mix. For example, consumer products are effectively
promoted by way of advertising and at the same time industrial products are promoted by
using direct marketing and personal selling.
Samsung as a company is also seen using different types of promotion mix for promoting
their products. Each promotion mix is seen having its own essence in making a product
successful in the market. The extent to which a particular promotion element is to be used in
a promotion mix also depends on the nature of the product.
It is also seen that Samsung as a company has changed the promotion mix for the same
product on the basis of the life stage of the product. If a product has just been launched, the
promotion mix will focus more on making the product popular by way of advertising and if
the product is already matured, the promotion mix will focus more on boosting its sales by
using sales promotion techniques, etc.
The promotion strategies i.e. pull and push strategies are also designed as per a particular
product and its prospective market.
Hence, it can be concluded that a promotion mix is product specific and also product market
specific, this is evident in the way Samsung has promoted its different product types.