The Start

Coming up as one of the most unique brands creating

innovative and superior digital products every year, Samsung, a name
trusted worldwide, be it anything related to Electronics from Phones to
LCD TV’s to Microwave Ovens & Fridges to Washing Machines to AC’s
…. Samsung has emerged itself as a Global leader in semiconductors
and digital technologies

Samsung India commenced its operations in India in December

1995. Success is seen in quite a short span. The operations, the
technology, the Management, the Workforce & Marketing strategies
were put across the perfect way & so the results too were perfect. A
decade passes & Samsung gains a Sales Turnover of US $ 1Bn - (Rs.
4700 Cr)

There was Core competency in the field of semiconductors which

is backed by it’s Research & Development capabilities and
manufacturing scale.
 The Mission

Seeming to be quite aggressive where it comes to

competitors, market share, current position, Samsung aims to become
India’s leading volume retailer in the consumer electronics segment.
This could be possible only if Samsung continues to carry its way of
working & functioning the way it was during its first decade. Today, to a
good extent the company has reached 80%+ of its target.

The second Aim was Achieving its aim by focusing on its Core
Strategy as it happens to be the main concept where it comes to
Marketing. Looking at todays day & time, Brand Image , Brand loyalty
SPEAKS. People consider the Image of the product in the Market.
Keeping this in mind, the third aim was to Work on strengthening its
unique Brand Image.

One of the main concept to be followed is to win the confidence

of the of the one’s because of whom Samsung could be where Samsung
is today – The Customers. Gaining Customer Satisfaction is a major
concern & target to achieved.

Samsung sets to achieve a target of a $4 Billion turnover by 2011.

 THE STRENGTHS

So Samsung aiming to catch a target of $4 Billion sales turnover,

has caught half its target of $2 Billion by 2008. A good achievement so
far. Its Core value is to Approach the market through technology and
design leadership.

One of the main features of this Brand is it Launches hi-tech and

contemporary products with zeal and speed which accelerates the
Production of the company. This not only skyrockets the sales of
products, but also creates a good awareness across the country.

Samsung believes not only in Target, but also about acquiring and
retaining customers, as customer satisfaction happens to be a major
concern of any organisation universally. If they’re happy, the company
runs.

Because of its dedication, commitment & perfection towards its

work, the company has also created a Unique Brand Image for itself as
a high end value driven brand in relation to majority of its products.
 The Weaknesses

Unfortunately Samsung gets a hit where it comes to Leadership.

Leadership, being a major concern needs to be in place to make all the
processes run in a smooth manner & in an effective way. The other
weakness is that Samsung does not target the Mass Market.

The fact goes unsaid that any organization to have a good rule in
the market & to create 100% awareness, it needs to target Mass
market. And so is the case where it comes to the spreading of Brand.
Samsung, however does not happen to spread its Brand across the
entire country. Many Rural areas & other Uncivilized parts of the
country are unaware about the existence of the Brand.

In such cases, the organization needs to focus on creating

awareness about the brand in 100% if the country & to target Mass
market to get itself in a better position.
 THE OPPORTUNITIES

One of the major competitors of Samsung, LG is slowing

down and has not had any product innovation in the last 6-8 months.
Looking at this, Samsung has a great opportunity to come up with
something new & can be 90% assured of its success because of that
particular product’s non-existence in the current market.

As mentioned in the Weaknesses earlier, Samsung also has an

opportunity to concentrate on the Mass Market.

The high end value driven proposition helps increase the

Market Share. No doubt, to a good extent, Samsung is trying its level
best to increase the market share across the country. The best part
about the company is that it is is well known for its product
differentiation, be it any.

Keeping all this in mind, if the organisation concentrates on the

opportunities & makes the most of them, none would be surprised
to find Samsung as the No. 1 Brand in the World.
 THE THREATS

If Samsung does not concentrate & take its opportunities

seriously, the Indian Mass Market may be captured by other
competitors & leading brands & rival companies such as LG, Onida,
Videocon etc. as there is cut-throat competition throughout. Again ,
one of the major concerns is that The consumer durable industry is not
in the best of health, atleast in today’s day & time.

Looking at things form an Economic point if view, demand falls if

products get too expensive. & so happens to be the case here. There
are a few products of the brand that cost more than they should be &
so the demand falls. In short, Due to increased price of inputs and
continuing price erosion there is downtrend in the consumer durables
market which needs to be worked on.

Being a huge brand, Samsung should be aware how much

should be invested where. A wrong decision could be harmful for the
entire organisation as a whole depending on the amount of investment.
This has resulted in Increased emergence of modern retail chains & is a
problem as Samsung is investing in building a retail network across the
country.
 CONSUMER BEHAVIOUR

Samsung as a company understands the needs of the

consumers, their preferences, likes & dislikes. And so it Stimulates
desire for new products that fulfill un-satisfied needs of its customers.
All new products are claimed to be new in any case. Consumers also
consider Improved & revised products as New. Keeping this in mind,
they get a different feeling & make a positive approach towards the
products & towards the Brand as a whole.

Not too difficult to judge the behaviour of consumers, lifestyle,

disposable income and age based segmentation are the factors which
decide the behaviour of Consumers based on which, it becomes easy to
manufacture & price the products in a particular way.

In such cases, to make things easier & better, Surveys are

conducted to find out their liking about the product. This not only helps
in knowing about the preferences of consumers but also enhances the
scope for further improvement.
 ENVIRONMENTAL EFFECTS

Keeping in mind the existing competitors in the market,

Samsung is trying to Close on to the Market Leader LG. The brand is
also trying to come clean on its Information Technology business.

Looking at today’s day & time, public, mostly the Upper-Middle

class do not mind spending on high end products where it comes to LCD
TV’s, AC’s, Washing Machines as they find worth for money in this.
Looking at this, Samsung decides to make a mark in the High end
category Segment –LCD & now LEDTVs too, Plasma TVs, Frost free
Refrigerators and Split AC’s. The ongoing success of the new Samsung
phones such as the Samsung Galaxy Tab has gained maximum attention
especially among the teens.

One of the main factors to be consider the rules & regulation of

the govt. As an organization, there are certain laws, & special rules
which the company needs to follow. To abide & adhere them is a
necessity.

The main competitor of Samsung is one of the main leaders of

the market -- LG.
 PRODUCTION STRATEGY

The CTV production was 15.10 million units in 2008-09 and is

expected to grow by at least 25 per cent. That puts a figure of 19
million units approx in the coming year.

Conventional CTV volumes have been falling while flat TVs

have grown strongly. Market sources indicate that most CTV majors
have phased out conventional TVs and have been instead focusing
more on flat TVs. This began around a decade back when Flat screen
televisions were “IN”. It was first the high Upper class owning it which
has now moved on to every second home.

Keeping in mind the success, the flat segment of CTVs now

account for over60 per cent of the total domestic TV production and is
likely to be around 65 per cent in 2009-10 which brings Samsung as a
major contributor with regards to TVs.

All this has been possible because of the consistent performance

of the Industry as a whole. The Research & Development team putting
in great efforts, the Marketing department applying perfect strategies
has put Samsung in place.
 TARGETING STRATEGY

One of the main factors to be considered while keeping in

mind the acceleration of sales is the Target market. The right kind of
people need to be targeted for the right kind of products. For eg ::
High-end mobile phones for Businessmen & Teen agers, High-end LED
TVs for the Upper-Middle class etc. In short, to Identify and profile
distinct groups of buyers who differ in their needs and preferences
should be the main attention of the company.

In such cases, it is obvious for the company to Select one or more

market segments to enter, only then can it achieve targets as Samsung
as a brand has a variety of enormous products.

Each target needs to be communicated in a different manner.

The establishment & communication of the distinctive benefits of the
company's market offering needs to be put across in a way which
attracts customers. A classic example is the entrance of the Samsung
Galaxy Tab phone that became the talk of the town, especially among
the Upper-class teens.
 Speaking about the Market positioning strategy of the
company, Samsung puts across a Competitive positioning strategy.
Moreover, Samsung is experienced & fun Brand. So it is seen as a more
Vibrant brand.

PRICING STRATEGY

In the initial stages, the Brand adopts low- pricing strategy

believing to pull in more & more customers, build up the customer base
& then shoot up the prices of the respective products that have huge
demand in the market.

In such cases, when Special occasions, festivals arrive, special

discounts of 20% -- 25% are provided on almost all products. This is
because, Indians believe to make heavy purchases during Festivals
especially Diwali & Dusshera. Over & above, if discounts & other
exciting offers are offered, the reason becomes all the more stronger
for people to purchase. In this the public as well as the Company
benefit.

Samsung believes that even if products are priced high, people

would purchase it as they find value for money in it. So, accordingly the
products are priced.
 PROMOTIONAL STRATEGY

Samsung does not compromise on promoting its brand. It

advertises itself through various means. Beautiful ads are shown of TVs,
Washing Machines, Ovens, Air-Conditioners, Computer Screens etc. At
times Print of Samsung products are also seen. Radio seen as an
effective mean today is also used for the product to gain good
recognition throughout the Rural & other uncivilized parts of the
country. Hoardings across the country are put up in full fledge which
today has made a fixed place in everyone’s mind for Samsung.

Samsung also believes in Celebrity endorsement. For eg ::

Samsung has made Aamir Khan its Brand Ambassador for its Entry level
Mobile phone Samsung Guru which has paid off especially among the
poor sections of the society who cannot afford expensive phones.

Sponsorship advertising is also a promotional strategy adopted by

Samsung.
 MARKET PENETRATION

Samsung somewhere realizes it has already made a good

image in the minds of the public of the Urban areas & has made good
revenue & has no major reason to worry where it comes to sales but
now needs to work towards reaching towards smaller cities & Rural
areas.

Expansion of sales network is a good idea adopted by the

company, as it not only would bring in good revenue but would also
create recognition in the minds of the people who are unaware of the
Brand. Along with all this, Samsung also decides to revamp its sales
infrastructure. Another main concept adopted by the brand is to train
the one’s whom the customers face ---- the frontline force & Shop
demonstrators. The Samsung Marketing Academy has set up to train
frontline sales force and shop demonstrators as they are the ones who
are going to serve & assist the customers in what they require.

The other unique idea adopted by Samsung is to plan Dream Home

Road Shows in many parts of the country (atleast the Metro-Politian
cities). This helps in creating awareness of the Brand & is also A way of
advertising.
 DISTRIBUTION STRATEGY

Samsung, having a strong distribution network benefits through

this. Initially, beginning from one city & moving on , the Brand has
come a long way in making its name & recognition across the Globe.
Proper distribution & good network is required for a Brand & moreover
for an organization to keep going, in terms of sales, Brand Recognition
& Loyalty.

Having a Robust supply chain is an added advantage.

The Brand is available everywhere. Because of the perfect

distribution strategies applied, the Brand has gained proper
recognition. What has made Samsung available everywhere -- ?? Firstly,
other factors such as Good products having good quality (Most
importantly), proper pricing, Good Customer service, perfect Marketing
strategies with regards to Product, Price, Place & Promotions have
played an extremely crucial role in bringing Samsung what it is today.
Over & above this, the Distribution strategy applied have been upto the
mark. The combination of all this has made Samsung a Globally well
recognized and trusted Brand.
 Samsung has received the Golden Peacock Special
commendation Certificate for Corporate Social Responsibility
from Mr. Shivraj Patil, Union Home Minister.

It also became the official sponsor of 2010 Guangzhou Asian Game.

CONCLUSION

Samsung has been consistently been trying to improve its

products. Its dedication towards improving standards and Quality is par
excellent. This is possible through the use of high-end, leading & latest
technology. No wonder, every product of the brand sells. Secondly, it
has given priority to Customers & has made it a point to satisfy their
needs as customers are the one’s who ultimately have a major role in
snow-balling the Brand. Looking at this & the positive feedback from
customers, Samsung continues to upgrade its technology & make
better products than before.

With all this the High-end consumers continue to buy their

products & become a Loyal Customer. But that is not all. As an
organization, the company also strives to make a good reach to the
Middle class segment, as majority of the country’s population has
Middle class people.

Samsung spends a good amount of Revenue on its Research &

Development, thus concentrating on the Quality of its products.