Samsung Marketing Research
Samsung Marketing Research
Samsung Marketing Research
S.No.
SUBJECT
INDUSTRY PROFILE
INTRODUCTION
BOARD OF DIRECTORS
COMPANY PROFILE
SAMSUNG VISION
10
11
SAMSUNG PHILOSOPHY
12
13
ADVERTISING SCENARIO
14
15
RESEARCH METHODOLOGY
16
RECOMMENDATIONS
17
SWOT ANALYSIS
18
FINDINGS
19
20
CONCLUSION
21
BIBLIOGRAPHY
PREFACE
Theoretical and practical knowledge are the two different but inter related
aspects, which makes the concepts clear and vision bright and help in facing the
actual situations. Although theory is the first and important step which acts as a
base and create a picture in mind for a thing but practical knowledge which
bridges the gap between the imaginations and realities. So practical knowledge is
very important for developing thoughts and giving shape to them.
Field training has been made a part and passing of our training programme. This
type of training programme is very helpful as:-
Feeling of exceptness
Generate morale
This present report has been divided into various chapters, which includes
discussion about industrial scenario of the Television industry, Company Profile
of Samsung International Ltd., Research Methodology, Work Schedule,
Recommendation and Conclusion.
INDUSTRY PROFILE
In the wake of 20th century a revolutionary breakthrough in the area of technology
revoked the whole world due to the efforts of scientist J.L. Baird. Earlier people
believed that only sound can travel long distances, but this myth was subdued
with the invention of television in 1926. Television came in India in 1959 with
transmission centre at Delhi. Earlier this magic box was meant only for the
higher strata of the society, but with the competition & reduction in prices it was
made available for the middle & lower classes of society also.
C.T.V. came in India in 1980 during Asiad Games. With the inception of colour
TV many players emerged in the market. These entrants were Weston, Atari,
Salora, Dynora, Binatone, Uptrone, Konark, BPL Sanyo, Nelco, Bush, EC etc.
Most of the manufacturers made Black & While TVs as well as colour
televisions.
Onida, which came, up, with sleek vertical model & priced it at a premium range
for ahead of rest.
Binatone, a very sophisticated company, which had collaboration with British
Dynamic Ltd. was offering stereophonic sound in CTV models.
Nelco, from the house of TATA, came out with Blue Diamond range of CTVs.
Some other leading brands were Philips, Uptron, Weston etc.
The late eighties saw a massive shakeout & half of the players disappeared.
Earlier it was Sellers Market but with cutthroat competition market turned into
Buyers Market & the product was designed keeping customers satisfaction in
the mind. The remote control became the integral part of CTVs, Audio & Visual
Quality was upgraded & new features added.
After 1988 only a few major players were left in the market with the few other
regional players with a fringe presence.
VIDEOCON & PHILIPS. Major broad leaders set up R&D facilities. Soon the
CTV market in India was a mature one with high quality product having special
features.
In the pest Liberalisation era of 1991, doors were fleeing open to foreign
operators. Many new brands came flooding in & the competition heated up.
Foreign majors like Sony, National Panasonic, Akai, Gold star, Samsung, LG,
Daewoo, Aiwa, Hitachi, Konka etc. entered the Indian market offering big
screens & better sound quality with added features.
All the above mentioned brands have occupied a place of its own, highly
powerful & of greater significance that were recalling of the name enables people
to identify the brand, its owner, various products sheltered under it and so on and
so forth. All this is accomplished by the awareness created by the mass media in
the consumers mind.
INTRODUCTION
SAMSUNG IS CONSOLIDATING
Samsung has been making efforts to serve the world with export trade,
technology development, and social contribution for the 64 years since the
foundation of the company in 1938.
It is difficult to describe Samsung in few words.
Samsungs business area range from semiconductor to oil tankers and from trade
and banking to information communications. Samsungs technology research
and development, investment and service include 170,000 employees at 305
international offices in 65 different countries. However the trend of expanding
corporations is slowly changing.
restructuring the fundamental business towards the future core area and by
pursuing vale-added products and services.
crisis and the following corporate restructuring, Samsung survived because it had
started a new management campaign as early as 1993, moving from a quality
centered management style to a quality-centered one.
Samsung is re-organizing its businesses, focussing on the electronics, banking
and the service industries to become the global leader in the 21st century.
TITLE
Director
NAME
Kun
NATIONALITY
REMARK
Korea
Korea
Hee
Lee
2.
Director
Sang
housing
Dae
Lee
3.
4.
Director
Myung
Korea
Kwan Hyur
housing
Director/A
Nae
Professor
uditor
park
hoi Korea
COMPANY PROFILE
CHRONOLOGICAL GROWTH OF SAMSUNG
1940S Foundation of Samsung
On March 1, 1938, the late founding Chairman Byung Chull Lee started a
business with the name of Samsung in Taegu with 30,000 won in capital.
In the early days of Samsungs business, the company exported dried fish and
vegetables and fruits produced around Korea to Manchuria and Beijing. Soon
Samsung also started manufacturing and sales activities by setting up a flour mill
and confectionery machines.
In November 1948, the late founding Chairman Lee moved Samsungs office to
Seoul and founded the Samsung Corporation. This marked the beginning to
Samsungs entry into full-scale international trade. Samsung Corporation be
come known for its usual management style (for those days), such as letting its
employees to participate in the companys investment and profit sharing and
rewarding employees for their abilities.
1950s The Principle of Economic Stabilization
After Koreas Independence from Japan in 1945, the Korean economy become
unstable due to political and social unrest. The Korean War (started in June
1950) also decimated the economy.
Samsung Corporation, which had been growing steadily, lost all its assets during
the war. Despite this loss, the company refused to become discouraged. Instead,
management moved the company to Pusan (the main port city in the Southern tip
of the Korean penisula) in January.
Samsung began the first step of its grand idea to rebuild Koreas economy by
entering the manufacturing industry. It began substituting imported goods with
domestically produced products through the establishment of Cheil Sugar Co.
(currently Cheil Jedang, now an independent company from Samsung) in 1953,
The following year, Samsung established Cheil industries and opened the era of
Korean produced fabrics, which also helped to rebuild Koreas economy.
Until the mid 1950s, most Korean companies hired employees based on
relationships through schools, families, and relatives.
However, Samsung
become a leader in modern business partices, being the first Korean company to
recruit new employees through a public and established personnel management
system in 1957. This management system was designed to recruit and cultivate a
highly efficient work force, and it instituted policies to rainproof the welfare of its
employees.
1960s Entering the Electronics Industry and Expansion of Key Industries
Following the April 19 Revolution (1960) and the May 16 (1961) military coup in
Korea, Samsung faced many difficulties under the resulting social upheaval.
During this period, Samsung prepared a new to rebuild the Korean economy. In
1969, it established Samsung Electronic Co. Ltd. a company that would help
develop Koreas electronics industry into a worldwide competitor.
The late
The 1970s marked the period when Samsung laid the foundations for several
future strategic industries: heavy chemical, and petro chemical
Prepared in August 1973, Samsungs second five-year management plan
included intensive investments to the each chemical industry as well as the
establishment of a new ship building company.
Access Memory) VLSI chip in December 1983, Samsung took a world leading
position by introducing many new semiconductor products.
Samsung precious Company (established in 1977) laid the foundation
In another high tech industry. Renaming the company to Samsung Aerospace
Industries, Ltd. in February 1987, Samsung officially entered the aerospace
unprecedented speed and it plans to participate in the development of future
space stations, as well as space facilities to the Moon and Mars in the early 21 st
century.
Samsung entered of the systems development business by establishing Samsung
data Systems Company.
high
polymer
chemicals,
genetic
engineering,
optical
Samsung led the LCD field in market share for all seven consecutive years since
entering the field in 1993, Samsung Heavy Industries drill ship, a probe vessel
for a sub marine oil field, captured 60% of the world market.
To emphasize the importance of courts and customer service, Samsung Human
resources Development Centre has been conducting customer service lectures for
all Samsung customer service personnel.
managed etiquette and manner courses and customer service for the employee of
such Samsung aviates as Samsung Life Insurance, Samsung Securities, and
Samsung Card. In the service area, Samsung company utilizes the Line Stop
system: when inferior product are discovered, the production line completely
stops until the problem in solved.
Samsungs image as a key contributor to the world of sports. In late 1997, due to
Koreas economic, the business activities of all companies in Korea shrank,
samsung restricted personnel, and improving the sonless or its financial structure.
Samsung reduced the number of its affiliates to 47 companies. The company sold
10 business units to overseas companies for 15 billion dollars, including.
Samsung Heavy Industries highly acclaimed construction equipment business
foundation to Volvo AB of Sweden and its business units to Clark.
It also lowered 1997s 365% debt ratio to 183% late 1999 and reduced its labour
force by almost 50,000 people. In the 2000 years Samsung will grows as a leader
of the information society, identified with digital and internet technology by
concentrating on electronic, banking and services.
methods and sound technologies to impinge upon past record in their favor. So
Indian soil is witnessing both the Indian and global brands vying for Major share.
Today mass markets are fragmenting into micromarkets, so brands builders are
using every savvy to catch pulses of consumers but todays customer is
discerning and exhibit varying and diverse requirements. Customer are buying
director through catalogues., telemarketing and internet, etc. Price discounts and
sales promotion is rampant (Exchange offers etc.) and eroding brand loyalty
diminishing consumer loyalty means that companies must re-examine their
foundational concept and even reverse the premised on which they built their
successful business.
Inspite of cut-throat competition in white goods market, Mega global brand are
keen to in view their lot projected Foreign direct investment in core industries.
SAMSUNG VISION
Samsung Indias Vision entails helping people improve the quality of their lives
by providing them with superior quality, state-of-the-art technology products at
the right time and the right price. But beyond its role as a purveyor of quality
products in India, Samsung seeks to contribute to the economic growth of the
country through its export commitments and large scale production facilities
generating secured employment for hundreds of Indian people.
At Samsung, we strive to contribute to the development of the electronics and
components industry in India:
By enhancing the knowledge levels of our workforce through the introduction
of our advanced management systems and production Know-how in our
manufacturing facilities.
By introducing our Indian vendors to our world class quality systems and
helping them improve their our quality systems and production processes;
And setting benchmarks for the industry-be it in terms of after sales service
for our products, quality systems and management techniques at our facilities,
or our products themselves.
The
Metallica series, represents the success of the Samsung India R&Dcenter and that
of Samsung Electronics, Korea, in producing a product designed as per the Indian
customer needs and preferences.
WASHING MACHINE
The Samsung washing machines are designed to wash clothes clean as if they
were washed by hand. The Hydroject washing action is unique to Samsungs Top
Loading Fully Automatic Washing Machines. The Waterfall flow causes a strong
flow of water to stream down from the top, helping light clothes to come in
contact with the pulsater, enabling a perfect wash. This is complemented by the
Centrejet, which is a strong gush of water formed right at the center of the
washing
machine,
which
forces
the
dirt
out
of
the
clothes.
The Samsung washing machines have an ergonomical design and fuzzy logic
controls. The models currently available in the market are in the 5.5 kg.-6 kg.
Capacity range including the fully automatic top loading and front loading
versions.
AIRCONDITIONER
Samsung has introduced in the Indian market its wide portfolio of Window and
Split Air conditioners, available in the capacities between 1.0 tonne to 2.0 tonne,
in both window and split versions. The Samsung Instachill Airconditioners are
equipped with a special 4 row condenser coil for faster cooling. Extra 2 rows of
coils provide double the surface area for the refrigerant to dissipate its heat. This
results in faster chilling, thereby putting lesser strain on the compressor-resulting
in lower electricity bills. Further only Samsung Airconditioners are equipped
with a 3 stage filtering operation. The antibacterial filter sieves bacteria, the
electrostatic filter remvoes dust and the deodorizing filter removes bad odour to
give more healthy air to breathe.
MICROWAVE OVEN
Samsung commenced the microwave business in India in July 1997 by launching
microwave ovens, based on imports from Korea. Subsequently in March 1999, it
commenced the manufacture of Microwave Ovens in India. Today, Samsung
Electronics holds the top share of the world microwave oven market with 24%
market share. The Samsung microwaves after various combinations to meet the
needs of different customers-microwave. A unique bio ceramic enamel cavity in
the Samsung microwave ovens, compared to the stainless steel cavity in other
brands, enables the Samsung microwave oven to retain much more Vitamin C
and F in the food during cooking, make faster and more gentle cooking of food
and enables easier cleaning.
SUPERIOR
PRODUCTS
AND
SERVICES,
THEREBY
technology for product development, but also to the technology for improving the
quality of life in general.
CREATE SUPERIOR PRODUCTS AND SERVICES:
To fully satisfy customer needs, Samsung will concert its efforts to create
superior products and services.
Hitron Circuitry
On/Off Timer
Child Lock
100W PMPO
5 picture Modes
Game Mode
Bilingual OSD
Auto Search
5 Picture Mode
200W PMPO
Multiligual OSD
Channel Sorting
Blue Screen
Channel Scan
100 Channels
Bio Series TV
CZ-20D8(20)
51 cms
Hitron Circuitry
150 W PMPO
Game Mode
Child Lock
Bilingual OSD
Two Speakers
Pickn choose
CS-21D8(21)
53 cms
Child Lock
On/Off Timer
A/V Stereo
5 Picture Modes
Game Mode
200 W PMPO
Bilingual OSD
Hitron Circuitry
CS-21S7 (21)
53 cms
4 Speakers
100 channels
Channel Naming
A2 Nicarn Stereo
800 W PMPO
Sleep Timer
Turbo Sound
Transparent OSD
Curtain Effect
CZ-21E4(21)
53 cms
Hitron Circuitry
5 picture Modes
140 W PMPO
Bilingual OSD
Channel Sorting
2 Speakers
Back A/V IN
Monitor Out
CZ-21S1(21)
53cms
180W PMPO
On/Off Timer
Child Lock
Hitron Circuitry
Bilingual OSD
5 Picture Modes
Game Mode
CS-25M6(25)
64cms
Pure Flat TV
DVD Input
A2 stereo
Turbo Sound
300W PMPO
Game Mode
Multi System
Child Lock
Monitor Out
CS-29Z4(29)
74cms
450 W PMPO
DVD Input
VGA PC Input
74 cm Picture Tube
LG
Punch line EXPAND YOUR LIFE
LG lays more emphasis on the goodness of health through their advertisements to
attract customers at various levels. Their ads focus more on the eyes for a better
viewing purpose. Their Golden Eye television is a revolution in itself as no
matter how long you watch TV, your eyes simply wont get strained. LG caters
to the middle and upper middle class and has a tough competition from other
leading brands.
BPL
Punch line BELIEVE IN THE BEST
BPL advertisement focuses more on the features so that the customer gets
educated more about their color television. They are trying to show that their
color television is value for money. Brand image of the company is there is the
market on which they are capitalizing. Free gifts are being given on the purchase
of their televisions in order to attract the customer. They are not targetting any
particular segment but trying to convey that their colour television is affordable
by the entire segment.
PHILIPS
Punch line LETS MAKE THINGS BETTER
They are focussing on technology and the price. Their aim is to target to all the
segments providing customers with superior technology at affordable price. Price
strategy was shown in their advertisement campaign to show that their color
television are affordable, middle class and the lower middle class can offerd their
color television. Comparison test was shown with SAMSUNG and SONY into
prove their color television technologically superior. Their main aim is to put
television technology at the top and bring prices at the bottom.
VIDEOCON
Punch line BRING HOME THE LEADER
They are trying to focus on the features especially sound output. In their latest
compaign of BAZOOMBA they are focussing on sound output because sound is
the most important feature a customer actually goes for. They are targetting to
the entire segment. They are trying to show that their colour television is
affordable.
SONY
Punch Line Its A Sony
International brand image is so strong that they need not say anything besides its
a Sony. Their prices are high basically catering to the upper class and the upper
middle class but due to the strong international image their product are very
popular in the market. Their advertising is easy to understand by a customer,
which gives insight of their product. Trinitarian is the technology given by Sony.
They come out with various schemes and discounts to here the middle class
people.
SANSUI
Punch Line BETTER THAN THE BEST
Sansuis latest advertisement shows about their latest feature the combine
television. Though their advertisement they are trying to convey that V.C.D.,
Television and A.C.D. is there is one television so that the customer will get
attracted towards their color television. Through their advertisements they are
trying to convey that it is the latest technology which they are providing while
others are still using the outdated technology.
THOMSON
Punch line HAPPY TECHNOLOGY
Thomson advertisement focuses on technology. Their advertisement cooping
focuses on the various features, which they are providing in color television.
They are not targeting a particular segment but those who are very keen about the
technology they should do for Thomson that is what their advertisement is trying
to convey.
AIWA
Punch Line PURE PASSION
RESEARCH METHODOLOGY
I.
Research instrument :
1.
2.
3.
1.
2.
III.
Sampling technique:
For the purpose of the survey a random sample of 100 dealers was taken.
The extent of this survey was limited to the city of Delhi only.
IV.
Area of study :
Daryaganj
Patel Nagar
Connaught place
Bali Nagar
Ashok Vihar
Raja Garden
Azadpur
Hari Nagar
Shalimar Bagh
Vikaspuri
Model Town
Uttam Nagar
Paschim Vihar
Shakti Nagar
Najafgarh
Sultan Puri
Nangloi
Palam
Rohini
Pitampura
Karol Bagh
Moti Nagar
Paharganj
Karampura
Kamla Nagar
LIMITATIONS
A small sample size of 100 dealers was considered due to time and resource
constraints.
The scope of the project is limited to the city of Delhi only. So we cannot say
that the same response will exist throughout India.
Some of the dealers were not co-operating in giving correct information even
if they were selling Samsung CTV.
Human error during recording, tabulation and printing error could be present.
RECOMMENDATIONS
To create brand image to build good relations with the customer and to retain
customer loyalty, Samsung India Electronics Limited should ensure that their
CTV are properly installed and are delivered on time.
In the coming years competition will intensify more, so companies will have
to fight hard to woo the customers. Thus at the moment price will play a
crucial role. So Samsung India Electronics limited should set up more R & D
centres in India to facilitate price control. In other words, lower down its cost
of production.
Buyers are aware of market and ask for finance schemes due to monetary
constraints. So, the company should arrange for easy finance facility to attract
the customers.
Packaging can be handier. Hand care can be provided so that the customer is
able to carry their television sets more handy and with more comfort.
To survive for the long run, company should offer better product at a lesser
price and a customer satisfaction approach with keeping in mind weak areas
like after sale service and technological advancement.
SWOT ANALYSIS
STRENGTHS:
Company
1.
2.
3.
4.
5.
Product:
1. A wide range of product to meet the requirement of the target customers.
2. The attractive promotional offers like :
a) Five year warranty
b) 0% finance scheme
c) Festival offers like the Samsung Phod ke Dekho Offer.
2.
Product:
1.
The Tantus and the Plano versions are comparatively costly than the others.
2.
OPPORTUNITIES:
With the fast changing economy the pricing strategy needs to be tackled with care
as it can decide upon long term decisions of the company.
THREATS:
The nearest competitors (eg. LG, SONY, BPL, VIDEOCON, PHILIPS etc)
having the identical product range are the greatest threat to the company.
FINDINGS
Samsung has a current market share of 11% and is expected to reach 14% by
2003.
In the 29 category Sony again captures the market but has stiff competition
from samsung, LG and BPL.
The No. of dealer surveyed felt that the brand samsung was excellent was
equaled by the number that felt it was a satisfactory brand. However these
sections form an insignificant percentage of the total population.
In the coming years samsung has tough competition from some of the leading
brands such as LG, Sony, Videocon, BPL, Philips and Onida.
SAMSUNG
5500
LG
5900
BPL
2540
VIDEOCON
3500
PHILIPS
2500
SANSUI
1800
ONIDA
800
BUSH
320
OSCAR
960
SHARP
400
N
S
U
I
BRANDS
S
H
A
R
P
H
C
A
U
S
O
S
O
N
ID
A
H
IL
IP
LG
U
N
G
O
C
O
ID
E
SALES OF CTV
7000
6000
5000
4000
3000
2000
1000
SAMSUNG
5500
LG
5800
BPL
6000
VIDEOCON
6500
PHILIPS
5200
SANSUI
3000
ONIDA
5800
BUSH
800
OSCAR
300
SHARP
280
6000
5000
4000
3000
2000
1000
BRANDS
H
A
R
P
R
S
C
A
O
S
U
S
B
O
N
ID
A
U
I
A
N
S
S
S
H
IL
IP
P
ID
E
O
C
O
N
L
P
LG
B
V
U
N
G
SALES OF CTV
7000
SAMSUNG
8000
LG
7200
BPL
6000
VIDEOCON
5800
PHILIPS
4600
SONY
5600
SANSUI
3500
ONIDA
4200
BUSH
1100
OSCAR
500
SHARP
650
BRANDS
SH
AR
P
OS
CA
R
BU
SH
ON
ID
A
SA
NS
UI
SO
NY
PH
ILI
PS
BP
L
VI
DE
OC
ON
LG
SA
MS
UN
G
SALES OF CTV
9000
8000
7000
6000
5000
4000
3000
2000
1000
4200
4000
3900
3700
2500
4500
1500
1700
200
100
400
M
S
LG
U
N
G
BRANDS
S
H
A
R
P
H
C
A
U
S
O
S
L
O
C
O
N
P
H
IL
IP
S
S
O
N
Y
S
A
N
S
U
I
O
N
ID
A
ID
E
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
SAMSUNG
LG
BPL
VIDEOCON
PHILIPS
SONY
SANSUI
ONIDA
2650
3000
2800
1800
1640
3680
1100
1400
4000
3000
2500
2000
1500
1000
500
BRANDS
O
N
ID
A
U
I
N
S
A
S
O
N
Y
S
S
H
IL
IP
ID
E
O
C
O
N
L
P
LG
B
V
U
N
G
3500
SAMSUNG
25850
LG
26550
BPL
21240
VIDEOCON
21300
PHILIPS
16440
SONY
13780
SANSUI
10900
ONIDA
13900
BUSH
2420
OSCAR
1860
SHARP
1730
OPINION
30000
No. OF DEALERS
EXCELLENT
25000
GOOD
20000
N.A
15000
SATISFACTORY
10000
POOR
PERCENTAGE
15
15
60
60
18
18
5000
60
BP
VI
L
DE
O
CO
N
PH
IL
IP
S
SO
NY
SA
N
S
UI
O
N
ID
A
BU
SH
O
S
CA
R
SH
A
R
P
UN
G
70
LG
50
BRANDS
40
30
20
10
0
1
OPINION
TURNOVER
PROFIT
1996
138
1997
395
1998
540
1999
850
32
10.5
2000
1950
50
11
2001
2800
3000
2800
12
11
10.5
2500
10
2000
1950
1500
1000
850
540
500
395
138
0
0
1996
32
50
1997
1998
1999
2000
2001
YEAR
TURNOVER
PROFIT
Percentage
in Rs.Crores
CONCLUSION
Most of the dealers are selling more than the brand. They sell different brands to
gain more volume and more availability to the customers. So dealers preference
to push the particular brand to the customer play the major role in the colour
television market. Dealer preference to sell that brand in which he gains more
profit and whose schemes are more beneficial and best suited to him. A dealer
also prefers the company, which provides better after sale service. Along with
these he will keep in mind the product quality and technology while selling a
CTV.
According to the dealers advertising and promotional schemes i.e, exchange
scheme offers and other Dhamaka like schemes also effect the consumers
willingness. Aggressive advertising put into effect for a long time in the
customers mind which influence the people are TV, Newspapers and Magazines.
Consumers prefer a MNC brand due to the quality and technical features.
Consumer also judge after sale service availability which purchasing a CTV.
DEALER QUESTIONNAIRE
Q 1.
Videocon
BPL
Samsung
Sony
Onida
Philips
Sansui
Q 2.
How many units did you sell in last financial year? (In number)
Q 3.
What was the breakup (No. of units sold in each model) ? CVT
14 Model
20 model
21 model
25 model
29 model
Q 4.
Q 5.
Price
Quality
Looks
Features
Life
Please mention the average quantity of colour television sold in the last
one year?
Brand
Quantity in units
Lg
Videocon
Bpl
Samsung
Sony
Onida
Philips
Sansui
Q 6.
Q 7.
Excellent
Good
Satisfactory
Poor
N.A.
Bibliography
www.samsungindia.com
www.google.com
product catalogue and brochure
annual report of the company
business india
business world