Marketing Strategy of Samsung

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INTRODUCTION
SAMSUNG is a company that has been steadily growing throughout the
past decade. The following report will help SAMSUNG maintain the
growth that has been enjoyed in the past, with a strong emphasis on
the growth of the consumer durables and mobile divisions. By analyzing
customers and what they want, strategies can be devised as to how
SAMSUNG can increase their share of the market. Furthermore, by
comparing SAMSUNGs strengths and weaknesses to that of the
competition, opportunities can be identified and capitalized entered in
Indian market with its technologically advanced home appliances. But
when it entered in an Indian market, it had to face very tough
competition and still it is facing tough competition, but now it has
gained the top position among different companies in India. Not only
SAMSUNG has highest market share in home appliances, but also in
Smartphone created its own marketing strategies and also defined their
target market to penetrate into Indian market. SAMSUNG aims to have
more market share in Indian market. India is a country having its major
consumers in high and medium income, as the poverty level is declining
the major group is turning into medium income group with some
purchasing ability. SAMSUNG India is now available with a big target
market. Already in the Market major companies are available which is
having a trust among the consumer with respect to the quality,
durability & price. The major competitors in Electronic consumer goods
market are LG, Sony, and Panasonic etc. and in Smartphone market
Apple, LG, Nokia, Blackberry, HTC etc. are the major competitors of
SAMSUNG. In this project we try to find out some important things. The
different kind of marketing strategies of SAMSUNG in Indian market.
Market strategy, positioning strategy, Marketing Mix (Product Strateg

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Price Strategy, Promotion Strategy), Financial, Innovation, Branding
strategy etc,Competitive advantage of SAMSUNG, SWOT analysis of
SAMSUNG.
SAMSUNG G History Unlike other electronic companies SAMSUNG
origins were not involving electronics but other products. In 1938 the
SAMSUNGs founder Byung-Chull Lee set up a trade export company in
Korea, selling fish, vegetables, and fruit to China. Within a decade
SAMSUNG had flour mills and confectionary machines and became a
co-operation in 1951.From 1958 onwards SAMSUNG began to expand
into other industries such as financial, media, chemicals and ship
building throughout the 1970s. In 1969, SAMSUNG Electronics was
established producing what SAMSUNG is most famous for, Televisions,
Mobile Phones (throughout 90s),Radios, Computer components and
other electronics devices.1987 founder and chairman, Byung-Chull Lee
passed away and Kun-Hee Lee took over as the 1990s SAMSUNG began
to expand globally building factories in the US, Britain, Germany,
Thailand, Mexico, Spain and China until 1997 nearly all Korean
businesses shrunk in size and SAMSUNG was no exception. They sold
businesses to relieve debt and cut employees down lowering personnel
by 50,000. But thanks to the electronic industry they managed to curb
this and continue. In 1993 SAMSUNG developed the lightest mobile
phone of its era. The SCH-800 and it was available on CDMA networks.
Then they developed smart phones and a phone combined mp3player
towards the end of the 20th century. To this date SAMSUNG are
dedicated to the 3Gindustry. Making video, camera phones at a speed
to keep up with consumer demand. Employing approximately 138,000
people in 124 offices in 56 countries.The Making of a Global Brand -In
1993, as a first step in its globalization drive, SAMSUNG acquired a new

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corporate identity. It changed its logo and that of the group. In the new
logo, the words SAMSUNG Electronics were written in white color on
blue color background to represent stability, reliability and warmth. The
words SAMSUNG Electronics were written in English so that they would
be easy to read and remember worldwide. The logo was shaped
elliptical representing a moving world – symbolizing advancement and
change.

Company HistoryInin India SAMSUNG Electronics commenced its


operations in India in December 1995 and is today a leading provider of
Consumer Electronics, IT and Telecom products in the Indian market.
SAMSUNG India is the Regional Headquarters for SAMSUNG in South
West Asia operations, which provides employment to over 8,000
employees with around 6,000 employees being involved in R&D.
In2010, SAMSUNG India achieved a sales turnover of US$3.5
billion .SAMSUNG began operations in India through its manufacturing
complex located at Noida (UP),which today houses facilities for Colour
Televisions (including 3D, LED and LCD Televisions),Mobile Phones,
Refrigerators, Washing Machines and Split Air Conditioners categories.
SAMSUNG commenced operations of its second state–of-the-art
manufacturing complex at Sriperumbudur, Tamil Nadu in November
2007. Today, the Sriperumbudur facility manufactures Colour
televisions, Fully Automatic Washing Machines, Refrigerators and Split
Air Conditioners. SAMSUNG India has two R&D Centres in India – at
Delhi and Bangalore. While the Delhi R&D Centre develops software
solutions for hi-end televisions such as Plasma TVs, LCD TVs and Digital
Media Products, the Bangalore R&D Centre works on major projects for
SAMSUNG Electronics in the area of telecom, wireless terminals and
infrastructure, Networking, SoC (System on Chip)Digital Printing and
other multimedia/digital media as well as application
software .SAMSUNG India is a market leader in product categories like
LED TVs, LCD TVs, Slim TVs and Side by Side Refrigerators. While it is the

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largest mobile handset brand in India, it leads in the smartphone
segment in 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. Apart from development of innovative technology,
SAMSUNG places great importance on acting as a responsible corporate
citizen in the communities where it operates. Its CSR programs respond
to the social and environmental needs and seek to give back to
communities that support the company. In 2009, SAMSUNG launched
the company‘s Corporate Social Responsibility initiative –‗SAMSUNG
Hope Project with projects in the areas of education, culture, sports,
social welfare and community development. Each program under the
Hope Project uniquely addresses the needs of individual communities
while emphasizing on innovations for development of the community
including education, technology, engineering and IT technical training.
Company consists of five main business units: o Digital media Business
o LCD Business o Semiconductor Business o Telecommunications o
Digital Appliance Business 7
When Samsung came to India, it was a little known brand. But so
strongly did Samsung’s management believe in the India growth story
that it not only decided to set up a manufacturing unit in Noida, it had
the vision to set up R&D units in Bengaluru way back in 1996. The
Indian economy was at $360 billion in 1995. In 2019, it became the
world’s fifth largest economy at $2.94 trillion, surpassing the UK and
France. According to RoC data, Samsung’s revenues grew from $6
million in 1996 to $10 billion in 2019. This is outstanding growth, and a
shining example of an MNC doing all the right things to win over Indian
consumers .
“When Samsung entered India, very few Indians knew about it. It was
an underdog. But in 25 years, it has become a brand that is known in
every part of the country, riding on the back of its strong innovations
and understanding of consumers,” says Prabhu Ram, head – Industry
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Intelligence Group, CyberMedia Research. “Almost every home has a
Samsung product today.”
Consumer centricity
A key facet of Samsung’s success is its consumer centricity, explains
Dipesh Shah, managing director, Samsung R&D Institute, Bengaluru,
which is also completing 25 years in the country early in 2021. “As part
of our DNA, we are always listening to consumers. In fact that is a
central part of our R&D philosophy, which has meant we have listened
to consumers in India over the years and have innovated for the Indian
market. And consumers have loved us for it,” he says.
Samsung has worked on several India-centric innovations across
smartphones, televisions, refrigerators and microwave ovens. These
include the recently launched privacy solution for smartphones AltZLife,
the Curd Maestro refrigerator, Masala & Sundry Microwave Oven,
among others. “We have been extremely bullish on R&D in India and
this focus on R&D has helped us cement our number one position in the
Indian market. The three R&D centres in India work on several cutting
edge technologies such as AI, IoT, machine learning, cameras and cloud
and apart from working on innovations that are centred on the needs
of Indian consumers, they are contributing to innovations for global
products,” says Shah.
Over the next three decades, the group diversified into areas including food
processing, textiles, insurance, securities and retail. Samsung entered the
electronics in the late 1960s and the construction and shipbuilding
industries in the mid-1970s; these areas would drive its subsequent growth.
Following Lee's death in 1987, Samsung was separated into four business
groups – Samsung Group, Shinsegae Group, CJ Group and HansolGroup.
Since 1990s, Samsung has increasingly globalized its activities and
electronics, particularly mobile phones and semiconductors, have become
its most important source of income.

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Notable Samsung industrial subsidiaries include Samsung Electronics (the world's
largest information technology company measured by 2012 revenues, and 4th in
market value), Samsung Heavy Industries (the world's 2nd-
largestshipbuilder measured by 2010 revenues), and Samsung
Engineering and Samsung C&T (respectively the world's 13th and 36th-largest
construction companies). Other notable subsidiaries include Samsung Life
Insurance (the world's 14th-largest life insurance company), Samsung
Everland(operator of Everland Resort, the oldest theme park in South
Korea) and Cheil Worldwide (the world's 15th-largest advertising agency
measured by 2012 revenues).
Samsung has a powerful influence on South Korea's economic development,
politics, media and culture and has been a major driving force behind the
"Miracle on the Han River". Its affiliate companies produce around a fifth of South
Korea's total exports. Samsung's revenue was equal to 17% of South Korea's
$1,082 billion GDP.
Samsung Electronics commenced its operations in India in December 1995 and is
today a leading provider of Consumer Electronics, IT and Telecom products in the
Indian market. Samsung India is the Regional Headquarters for Samsung’s
Southwest Asia operations, which provides employment to over 45,000
employees with around 11,500 employees being involved in R&D.
Samsung began operations in India through its manufacturing complex located at
Noida (UP), which today houses facilities for Colour Televisions (including 3D, LED
and LCD Televisions), Mobile Phones, Refrigerators, Washing Machines and Split
Air Conditioners categories. Samsung commenced operations of its second state-
of-the-art manufacturing complex at Sriperumbudur, Tamil Nadu in November
2007. Today, the Sriperumbudur facility manufactures Colour Televisions, Fully
Automatic Front Loading Washing Machines, Refrigerators and Split Air
Conditioners. Samsung India has three R&D Centres in India–two in NCR and one
in Bangalore. While the Noida R&D Centres develops software solutions for high-
end televisions such as Plasma TVs, LCD TVs and Digital Media Products, the other
Centre is engaged in R&D solutions for product hardware. The Bangalore R&D
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Centre works on major projects for Samsung Electronics in the area of telecom,
wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital
Printing and other multimedia/digital media as well as application software. 
Samsung India is the Market leader in product categories like Mobile Phones,
Smart Phones, Panel TVs, Side By Side Refrigerators, Frost Free Refrigerators,
Microwaves and Inverter ACs.
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.
Apart from development of innovative technology, Samsung places great
importance on acting as a responsible corporate citizen in the communities where
it operates. Its CSR programs respond to the social and environmental needs and
seek to give back to communities that support the company. In 2009, Samsung
launched the company’s Corporate Social Responsibility initiative ‘Samsung Hope
Project’ with projects in the areas of education, culture, sports, social welfare and
community development. Each programme, under the Hope Project, uniquely
addresses the needs of individual communities while emphasizing on innovations
for development of the community including education, technology, engineering
and IT technical training.
The Company’s CSR initiatives such as Samsung Smart Class and Samsung
Technical Schools have been recognised by several reputed organisations, and the
Company has won accolades from these projects aimed at giving back to the
society.
With more than two decades in the country, Samsung India has a finger in every
pie, and is fighting competition to stay on top of the game with innovation and a
strong distribution network. 
Those were heady days. India had just woken up to a brand new world after the
economy was liberalised. The Daewoo Cielo, a sedan, created quite a stir, while
TVs from Akai, GoldStar, Aiwa, and Samsung could be bought in stores. Indians
travelling from abroad didn’t have to carry fancy VCRs and cool electronic gadgets
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in their luggage anymore. The magic wand of liberalisation had indeed brought
the world to India’s doorstep. Multinationals from around the world started
setting up shop in the country—some of the min a big way—to tap into the
massive demand that the booming Indian population, one of the largest in
Asia,promised. There were others who decided to test the waters before making
the plunge. Samsung, the South Korean behemoth, was one of them.
Samsung products are widely available and very popular in India today,
but when the parent group, Samsung Electronics, set up Samsung India
Electronics in 1995, it started small. It had just two employees and a
small office in New Delhi’s Connaught PlaceDealing in televisions then,
the company had a tie-up with Videocon..
Samsung’s first research and development (R&D) centre in the country
was set up in Bengaluru in 1996. A year later, televisions assembled in
India rolled off the company’s Noida factory in Uttar Pradesh. Samsung
started making refrigerators in the country in 2003 and mobile phones
in 2007. The same year, an R&D centre dedicated to the mobile division
was setup in Noida.

Almost 23 years later, the conglomerate has more than 70,000


employees in the country, five R&D units, and is present in six product
categories—including televisions, washing machines, and refrigerators
—in consumer electronics; it also has four other business verticals,
besides mobile phones. Today, Samsung’s R&D centres in India are
responsible for conceptualising many products for the country, which
are later used for global markets. It’s no surprise when Mohandeep
Singh, senior vice president,mobile business, Samsung India, tells
Fortune India, “India is an extremely critical market for Samsung
globally.”

From being one of the top smartphone players in the country, to making the first
projector-less theatre screen, to fitting smart air conditioning systems in modern
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apartment complexes, Samsung’s varied product portfolio and investments show
India’s importance in its plans. Earlier this year, it invested ₹4,915 crore to expand
its Noida factory, which it says will be the world’s largest mobile phone
manufacturing facility. But competition has increased manifold with Chinese and
some Indian firms offering similar products with comparable quality at much
lower prices. So how is the multinational maintaining an edge in a competitive
business environment? We met top Samsung officials at its India headquarters in
Gurugram to find out. Most of them believe that the focus on innovation is what
will keep Samsung going.
“Samsung has always been at the forefront of technology innovation,”
says Asim Warsi, senior vice president, mobile business, Samsung India.
“Our philosophy of keeping our ear to the ground and incorporating
consumer feedback into our products has enabled us to remain at the
top in the smartphone market.”

According to IDC India’s quarterly mobile phone tracker, the


smartphone market reached an all-time high of 42.6 million shipments
in the third quarter of the year, registering 9.1% year-on-year growth.
Xiaomi maintained its lead for the fifth consecutive quarter, growing
27% in Q3. The company’s Redmi 5A and Redmi Note 5 continued to be
the fastest-selling smartphones in the country with a combined
shipment of more than 5 million in two consecutive quarters, IDC says.
The company owns almost half the online market. Samsung remained
at No. 2, but continued to lose share compared to the previous quarters
owing to rapid growth of the China-based players, according to IDC.
Samsung’s mobile shipments registered annual growth of 4.8% during
the quarter, mostly helped by its J series phones
Analysts say the premium segment is not just Samsung and Apple
territory anymore.“OnePlus climbed to the leadership position at the
back of OnePlus 6, surpassing Samsung and Apple in 3Q18. With its
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dedicated community-building activities and high decibel promotional
activities on social media platforms, the vendor [OnePlus] has been
gradually scaling up in volumes,” says Upasana Joshi, associate research
manager, channel research, IDC India. However, Joshi says that Xiaomi
hasn’t exactly eaten into Samsung’s market share; instead, it has grown
at the cost of other Chinese firms. According to Karn Chauhan, research
analyst at market tracker Counterpoint Research, Indian users have “no
loyalty for Xiaomi. If any other brand comes which has more features
and better prices, they will go for the other brand”. Samsung, on the
other hand, has brand loyalty, he adds.

On that count, Samsung hasn’t been complacent. Singh says


Samsung’s understanding of the Indian consumer, that it has gained
over 20 years, gives it a unique advantage. The company is known to
take consumer feedback very seriously and act on it. It introduced the
S-bike mode for people who ride motorbikes to keep them from
getting distracted by calls while they are on the road. It also
introduced an ultra-data saving mode—the company claims it helps
people save up to 50% of their data.
“Samsung has always believed in customised innovation and through
our ‘Make for India’philosophy, we have been endeavouring to solve
India-specific problems, catering to the needs of our Indian
consumers. These products are being developed by our local R&D
teams,” says Warsi.
H.C. Hong, president & CEO, Samsung Southwest Asia, soon after
taking over in 2015, conceptualised the company’s ‘Make for
India’strategy. He was unavailable for this story.
The Indian consumer seems to be on top of everyone’s mind, at least
in the smartphone segment. Pekka Rantala, chief marketing officer of
HMD Global, makers of Nokia phones, tells For-tune India that the
Indian market is the largest and fastest-growing, and “we really like

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having the young millennials on top of our minds”. This is something
Samsung pays attention to as well, and the reason why it introduced
aquad camera in the Galaxy A9 smartphone—primarily targeted at the
young, selfie-crazy crowd.

On that count, Samsung hasn’t been complacent. Singh says Samsung’s


understanding of the Indian consumer, that it has gained over 20 years,
gives it a unique advantage. The company is known to take consumer
feedback very seriously and act on it. It introduced the S-bike mode for
people who ride motorbikes to keep them from getting distracted by
calls while they are on the road. It also introduced an ultra-data saving
mode—the company claims it helps people save up to 50% of their
data.
“Samsung has always believed in customised innovation and through
our ‘Make for India’philosophy, we have been endeavouring to solve
India-specific problems, catering to the needs of our Indian consumers.
These products are being developed by our local R&D teams,” says
Warsi.
H.C. Hong, president & CEO, Samsung Southwest Asia, soon after taking
over in 2015, conceptualised the company’s ‘Make for India’strategy.
He was unavailable for this story.
The Indian consumer seems to be on top of everyone’s mind, at least in
the smartphone segment. Pekka Rantala, chief marketing officer of
HMD Global, makers of Nokia phones, tells For-tune India that the
Indian market is the largest and fastest-growing, and “we really like
having the young millennials on top of our minds”. This is something
Samsung pays attention to as well, and the reason why it introduced a
quad camera in the Galaxy A9 smartphone—primarily targeted at the
young, selfie-crazy crowd.

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Literaturereview
Marketing comes in a wide variety of flavours based on audience,
media platform and business in today’s evolving and dynamic
marketplace. Therefore, it is no surprise that marketers define what
they do differently. To start, here are explanations from the American
Marketing Association (AMA), marketing’s professional organization,
and Dr. Philip Kotler, the author of business school marketing classics.
They are followed by the other definitions in alphabetical order by
author’s last name. Dr. Philip Kotler defines marketing as “the science
and art of exploring, creating, and delivering value to satisfy the needs
of a target market at a profit. Marketing identifies unfulfilled needs and
desires. It defines, measures and quantifies the size of the identified
market and the profit potential. It pinpoints which segments the
company is capable of serving best and it designs and promotes the
appropriate products and services.”
Marketing strategy Marketing strategy is defined by David Aaker as a
process that can allow an organization to concentrate its resources on
the optimal opportunities with the goals of increasing sales and
achieving a sustainable competitive advantage. Marketing strategy
includes all basic and long-term activities in the field of marketing that
deal with the analysis of the strategic initial situation of a company and
the formulation, evaluation and selection of market-oriented strategies
and therefore contributes to the goals of the company and its
marketing objectives. According to Shaw, Eric (2012)."Marketing
Strategy: From the Origin of the Concept to the Development of a
Conceptual Framework”. Journal of Historical Research in Marketing.,

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there is a framework for marketing strategies. Samsung's Marketing
Strategy in India
Product Innovation Samsung's product range in India included CTVs,
audio and video products, information technology products, mobile
phones and home appliances. Its product range covered all the
categories in the consumer electronics and home appliances. Analysts
felt that the wide product range of Samsung was one of main reasons
for its success in the Indian market. Samsung positioned itself on the
technology platform. 1. Pricing also seemed to have played a significant
role in Samsung's success.
Distribution Along with the launch of new products, Samsung also
consolidated its distribution system. Samsung had 18 state-level
distribution offices and a direct dealer interface. The direct dealer
interface helped the company get quick feedback from dealers and
enabled it to launch products according to consumer needs.
In 2014, we invested KRW 15 trillion in R&D to lead industry innovation
as we continued to expand global R&D centres and recruit top talent.
Our New York and Silicon Valley-based Open Innovation Centre
extended our reach, enabling us to secure outside talent and
technologies. Those forward-looking measures fueled remarkable
performance and sparked superior technologies, including mass
production of the world’s first 20nm DRAM and V-NAND with 3-bit
technology; the launch of a smartphone with the world’s first curved
display; wearable devices such as Samsung Gear S and Gear VR; and
developing new IoT (Internet of Things) technology based on automatic
ID technology that utilizes diverse sensors. We also reinforced the
foundation of our technology leadership and sustained future growth
by registering 4,952 US patents in 2014, the No. 2 world record. In
addition, we maintained our profile as an innovative company with 36

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CES 2015 Innovation Awards and with the No. 3 ranking on the Boston
Consulting Group’s list of The Most Innovative Companies 2014 around
the world. Moreover, we were ranked No. 7 on Interbrand’s The Best
100 Global Brands 2014, with an estimated brand value of USD 45.5
billion. Fortune listed Samsung Electronics as No. 13 on its list of the
World’s Most Admired Companies 2014.

Going forward, we anticipate lingering uncertainty in the world


economy owing to an increase in US interest rates, economic recession
in the Eurozone and financial risks in emerging countries because of the
sharp drop in crude oil prices. Competition in the electronics industry
will turn ever more fierce as growth continues to slow in our key
product markets. Nevertheless, we are prepared. Our experienced
sound management and unrivaled challenging spirit will enable us to
effectively respond to the fast-changing business environment. First, we
will strengthen our competitiveness and profit structures in existing
business areas. In our core areas, including memory chips, TVs and
mobile phones, we will hone our competitive advantages as we focus
on developing premium products and strengthening technology
leadership. Our top ranking in the Memory Business is fully supported
by our superior technology. In TVs, we will highlight our premium brand
power with a central focus on SUHD TVs. In the Mobile
Communications Business, we will lead the premium market with the
Galaxy S6 and Galaxy S6 edge, while also launching differentiated
products for mid- and low-priced markets. That strategy will not only
maintain our dominance in advanced markets but also fuel growth in
emerging and low-priced markets. In addition, we will
Advertising and Sales Promotion In 1995, when Samsung entered India,
it realized that Indian consumers were not familiar with the company.

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So, in order to establish itself in the Indian consumers' mind, Samsung
launched corporate advertisements highlighting its technologically
superior goods.

OBJECTIVEOBJECTIVE
Primary objective
To find the past sale growth and demand analysis
Secondary Objective
Market structure analysis
Competitor analysis
Performance evaluation
On that count, Samsung hasn’t been complacent. Samsung’s
understanding of the Indian consumer, that it has gained over 20 years,
gives it a unique advantage. The company is known to take consumer
feedback very seriously and act on it. It introduced the S-bike mode for
people who ride motorbikes to keep them from getting distracted by
calls while they are on the road. It also introduced an ultra-data saving
mode—the company claims it helps people save up to 50% of their
data.
“Samsung has always believed in customised innovation and through
our ‘Make for Indian philosophy, we have been endeavouring to solve
India-specific problems, catering to the needs of our Indian consumers.
These products are being developed by our local R&D teams,” says
Warsi.
H.C. Hong, president & CEO, Samsung Southwest Asia, soon after taking
over in 2015, conceptualised the company’s ‘Make for India’s strategy.
He was unavailable for this story.
The Indian consumer seems to be on top of everyone’s mind, at least in
the smartphone segment. Pekka Rantala, chief marketing officer of
HMD Global, makers of Nokia phones, tells For-tune India that the

20
Indian market is the largest and fastest-growing, and “we really like
having the young millennials on top of our minds”. This is something
Samsung pays attention to as well, and the reason why it introduced a
quad camera in the Galaxy A9 smartphone—primarily targeted at the
young, selfie-crazy crowd.

organizational objectives
Organizational objectives for Samsung Group are the short to medium
term targets and goals that the organization sets to achieve the bigger
strategic goals set for the long term. The organizational objectives are
important in shaping resource allocation within Samsung Group as well
as in determining the policies, schedules and processes that are
implemented in Samsung Group.

Components of objectives
Specific
All objectives set by Samsung Group are specific and clear. This helps
employees, as well as managers, manage and maintain focus on the
targets and the end results that need to be achieved. At the same time,
specific objectives help managers determine skill development and
training needs within their departments as well.

Measurable
Objectives at Samsung Group are also measurable. This means that all
objectives can be tracked for progress. This is important for Samsung
Group as it helps in meeting deadlines. The element of measurability is
added in objectives by adding quantifiable criteria for determining
progress and objective achievement.

Attainable
The goal should be attainable that even in stretching the abilities of the
employees and challenging them, it should remain possible to achieve.
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The objectives at Samsung Group are attainable in that they push the
employees out of their comfort zones but remain possible to achieve.

Realistic
Objectives at Samsung Group are also attainable in that they are
realistic. This means that Samsung Group sets objectives keeping in
view the organizational resources and constraints to be able to achieve
objectives effectively and within time.

Timely
Objectives at Samsung Group are also time-bound in that they have a
specified start and finish date. The timeliness of the objective helps
Samsung Group maintain a sense of urgency in employees and keep
them motivated towards achieving the objective.

Developing objectives

Focus on overall strategy

 Objectives should focus on the broader organizational strategy


 This will facilitate the organization in keeping in view the broader
purpose and at the same time work towards achieving
quantifiable goals and objectives
 By keeping in view strategic focus, Samsung Group also maintains
proximity with the vision of the organization and works towards
enhancing the performance of the organization

Focus on goal

 Objectives at Samsung Group should be set keeping in view the


set organizational goals

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 Objectives at Samsung Group should flow from the organizational
goals, and work towards helping the company and its
departments and operations achieving the set goals
 This is important as it keeps objectives strategically relevant to
the organizational processes and systems

. Focus on the time frame and skill sets available

 Objectives at Samsung Group should focus on the time constraints


present in terms of resource present, as well as the urgency of the
organization and the industry
 Objectives at Samsung Group should also focus on the skillset of
employee and organizational resources available
 Focus on resources and skills is important to ensure that all
objectives are attainable
 Focus and relevance with resources and skills will also help
Samsung Group identify gaps that it needs to fill through training

Implementing objectives

Communication

 Objectives at Samsung Group should be discussed with employees


mutually
 Purpose of the set objectives should be clearly discussed, and
communicated with the employees
 This discussion should entail not only the objective, but also the
time period within which it is expected to be completed, and the
processes and means to achieve it
 Objectives should also include aspects of personal and individual
growth and development of employees to make sure that
employees remain motivated throughout

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Performance appraisal

 The performance appraisal at Samsung Group helps managers and


supervisors keep track of objective achievement and employee
performance
 The performance appraisal also helps keep the objectives time
bound through regular reviews and discussions
 The performance appraisal also helps identify skills development
aspects that employees need and helps the managers develop
suitable and needful strategic training programs for skill
development and skill Improvement

Samsung is a technology conglomerate whose corporate mission and


vision statements focus on innovation for global societal improvement
through technological products. The company’s mission statement
indicates superiority, which implies excellence and leadership in the
semiconductors, electronics, and other markets. On the other hand,
Samsung’s vision statement promotes an inspiration-focused strategic
objective that makes the business an influencer among people and
societies around the world. Thus, the combination of the corporate
vision and mission statements creates the idea of a technological
conglomerate that aims for industry leadership and global influence. In
order to follow Samsung’s corporate mission and corporate vision, the
business organization must ensure competitive advantages against
major technology companies, including Apple, Sony, Intel, Microsoft,
and LG. This competitive landscape imposes strong forces and strategic
challenges that require high rates of innovation and high quality
standards in Samsung’s operations and technological product
development and design, as well as the utilization of advanced
technologies to support operations.

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Scope
Samsung has a vast product portfolio and its presence is in several
different product categories. The brand image driver for Samsung are
the Samsung Smartphone’s such as the Samsung note series or the
Samsung galaxy series. Overall, Samsung is present in the
following product categories.

Products in the marketing mix of Samsung:-

1) Tablets
2) Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV etc
3) Cameras and Camcorders
4) Refrigerators
5) Air conditioners
6) Washing machine
7) Microwave ovens
8) IT – Laptops, printers and accessories) Mobile phones – Smart
phones, normal phones

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The benefit of Samsung in terms of its product is that there is a trust on
all Samsung products because of the way Samsung products have
performed in the last few years. Problems with the products has been
negligible. And with its Smart phones, Samsung has achieved a status
symbol for its customers. At the same time, Samsung is known for its
service and people know that Samsung gives a very fast service for any
of its product. Thus in the marketing mix of Samsung, the product
portfolio is one of the strongest point for Samsung.

Price in the marketing mix of Samsung – Because of its presence


indifferent product categories, Samsung uses various pricing strategies.
We can divide the pricing strategies and match it with the products that
it is used for.
Skimming price – Samsung’s smart phones are one of the best in the
market and are the market leader in terms of the features and USP’s
that they provide. The recent Samsung Note 3 + Gear is another entrant
in the market which is catching peoples eyes. Thus Samsung uses
Skimming price for these products wherein it tries to get a high value in
the start before competitors catch up. Once the model is old or any
competitor has launched a similar product, Samsung immediately drops
the price. Competitive pricing – For products other than smart phones,
Samsung uses competitive pricing. Televisions, air conditioners,
refrigerators and other products have competition in the form of
Panasonic or LG. Samsung is known to be a great brand but it is not
greater than LG for home appliances. In fact LG beats Samsung where
home appliances are concerned. Similarly in Washing machines –
Whirlpool, and in Cameras – Cannon, are the brands which are to be
beaten. Thus in various categories, Samsung keeps competitive pricing
so as to beat the competitor. Samsung as a brand hardly uses
penetrative pricing because it doesn’t enter late in the market. In fact,
it is present in most consumer durable segments in the market.

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Place in the marketing mix of Samsung – Samsung is present
throughvarious channels in the market. It works on
the channel marketing concept wherein there are three segments.
Sales and service dealers, Modern retail and Distributors. The sales and
service dealers handle key accounts for Samsung and are involved in
corporate sales. These dealers may also open exclusive Samsung
showrooms. The Modern retail segment includes large retailers like
Croma, Hypercity, Vijay sales, Vivek’s and any others who are present in
the modern electronic retail chain. Samsung being such a branded
product, the retailers are bound to keep Samsung as an alternative for
their customers.
The distribution network is the most interesting in the case of Samsung.
In several cities, Samsung has a single distributor through whom they
distribute throughout a territory. For example – In Mumbai, Samsung
has SSK distributors who are distributors for all Samsung products. This
distributor has a huge investment in Samsung and both, the distributor
and the company, go hand in hand for the sale of Samsung’s products.
Thus all material of Samsung will be sold to a single distributor who in
turn will sell it forward to retailers.

Promotions in the marketing mix of Samsung  – Samsung uses multiple


forms of promotions. Samsung as a company believes in pulling the
customer to themselves through advertising but at the same time uses
strong tactics to push the product to the customer through sales
promotions. Thus on one hand, Samsung uses various marketing
vehicles across the year covering festive season as well as non festive
time. On the other hand, it gives many offers and discounts to its trade
partners to motivate them to sell Samsung above competition. With
such a strategy, Samsung’s brand is on the rise so that both, the pull as
well as push strategy is working simultaneously in Samsung.
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The marketing mix of Samsung is a lesson to marketers in several
points. First, Business will grow if you have multiple products at once as
all of these products can become revenue drivers for your company.
Second, Pull strategy, though expensive, is far more beneficial in the
long time.

Advertising

Print and media advertising is one of the core elements of the


marketing mix extensively utilized by Samsung Electronics. The most
noteworthy media advertising campaigns include live commercials for
Samsung Galaxy S 3 device on popular Jimmy Kimmel Live show in June
2012 and on Late Night With Jimmy Fallon on July and August of the
same year. Moreover, partnership with Fox channel in the US to run
four 30-second advertising clips during the National Football League,
college football and World Series games in 2012 have been praised as
efficient marketing campaigns.Samsung print advertising in popular
newspapers, magazines and journals have previously included direct
attacks on its major competitors, notably Apple. For example, a print ad
campaign titled ‘It doesn’t take a genius’ is a clever play of words on
Apple’s emphasize on genius branding. The print ad compares major
functionalities of iPhone5 and Galaxy S III and illustrating the
superiority of Samsung’s product on several fronts.

Viral marketing is also extensively used by Samsung as one of the most


effective advertising methods. For example, the latest 60-second viral
marketing video titled “Anticipation” is a successful attempt to
associate Samsung Galaxy S6 with excitement and a sense of
achievement and recognition.

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Sales Promotion

Samsung uses sales promotions as a marketing tool more extensively


compared to the majority of its competitors. It has been estimated that
the company had spent about USD 4.6 billion on sales promotions
during 2013 alone globally, that included USD 888 million sales
promotions budget on its home market in South Korea. It is important
to clarify that this budget is separate from the marketing budget
illustrated in Figure 3 above.  Moreover, Samsung official website
contains sales promotions announcements on mobile phones,
accessories, cameras, back to school offers, as well as, bundle offers

Samsung Electronics Report contains more detailed analysis of Samsung


marketing strategy covering issues of public relations, events and
experiences and direct selling. The report also comprises application of
SWOT, PESTEL, Porter’s Five Forces and Value-Chain Analyses on
Samsung, along with analysis of company’s approach towards
Corporate Social Responsibility (CSR).

BRAND POSITIONING
Samsung, once known to be the low-quality service provider of all time
is now one of the leading mobile companies of the world. Having said
that, we can see how it all comes down to proper brand positioning and
innovation, which takes a brand to its zenith.
After having its share of booms and slumps, Samsung came up with
new ideas to be more customer-focused and creative in order to
establish a strong brand image in the global market. Rather than
making normal or usual handset devices, they started to produce
smartphones to catch up with their competitors. Their main strategy
was to provide the best quality products in order to meet their
customers’ expectation.

29
They have been constantly redesigning and introducing new series of
products, e.g. – Galaxy Series. Currently they are working on designing
the lightest and slimmest phone of the world,along with an amazing
powerful performance to gain an edge over their competitors. Samsung
doesn’t have any particular tagline/slogan for the company as a whole;
they prefer to use unique taglines for each and every product. They
tend to promote and position their mobile phones/note/tab at all the 3
different levels of positioning. Two promo links have been provided
below of their Galaxy Note 4 and Galaxy S6, which specifies all the
product attributes, values and benefits that customers might look out
for, before they choose to buy it. Samsung doesn’t target any specific
segment of the market, but mostly seem to serve the high-end people
of the society, for e.g. – business people, young adults.

Samsung Segmenting and Targeting Markets


Geographic Segmentation
Samsung geographic segmentation is world wide, they sell their phones
in 61 different countries. They make slight variations in languages and
applications but the physical appearance of their phones is universal. 

Demographic Segmentation
 Age Segmentation : Their target age segmentation is teens,young
adults and adults in early and mid 30's.
 Income Segmentation : Their target income segmentation is
middle class and high class income.

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 Ethnic Segmentation : Since Samsung sells world wide, they don't
have a specific ethic segmentation. 
 Family Life Cycle Segmentation : Their target family life cycle is
young single, young married or divorced with or without children.
 Gender Segmentation : Smartphones are not gender specific but
since women shop more than men I would assume they have more
women buying their phones than men.

Psycho graphic Segmentation


Samsung psycho graphic segmentation includes individuals from teens
to mid 30's who like new technology, tech savvy and can afford to buy
it.

Benefit Segmentation
When Samsung customers buy their phones the benefit they expect
from it is simple appearance, new and updated features and reasonably
priced.

Usage- Rate Segmentation


The smartphones market has a lot of heavy users because of the
convenience of it, you can call, text, send pictures, play games, listen to
music and surf the web all from a smartphone. Samsung as a large
percentage of heavy users who buys all of their latest phones and with
mobile service company offering upgrade plans it makes it easier to get
the newest phones.There are people who goes from one smartphone
brand like Apple to Samsung because they tired of it or they want to try
another smartphone.

31
Samsung Innovation Strategy

Everyone has heard about the company named Samsung and the
reason why they have heard of it is because of its innovation strategies.
Innovation strategy at Samsung can be described as the way that made
them a leading manufacturer in electronic industry as they keep the
competitors at bay. In the present business environment, businesses of
whatever size must face and defeat challenges which is posed by
accelerated globalization and technological changes. It is not just
innovative strategy that matters, but innovations that embed on
themselves some strategies that are truly game changing.

The game changing innovation of Samsung encapsulates business


models, business processes and manner of positioning themselves vis a
vis their competitor. This is what has made them survive all these years.

It is a fact that there is a link between innovation and the economy of a


country, the culture of its peoples and those businesses running on it.
South Korea, where Samsung originated, is not rich when it comes to
natural resources

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Branding Strategy of Samsung

In the present day, the accomplishment of a business depends not just


on the product quality rather on how efficiently and effectively the
value of the product is presented to the clients at the last part. When it
comes to this aspect, Samsung Company has taken big steps in its
development, whether financially or operationally.

In order to improve the product value of the company, the following


are some of the branding strategy of Samsung that other business
owner must kept in mind:

• Establishing identity on the product


• Cost involved in the repositioning of the product
• Reaction from opponents or competitors
• Techniques adopted in costing
• Research and development

When it comes to cost efficiency, it was taken care of which the rules
adopted by company were not “cost prohibitive”

• Also it was observed that company strengths leverage has lead in


acceptable dividends and which it leads to “focused hard works.”

• Keeping a proper channel connection causes the results of sales to be


relatively strong. The incremental sale also yields a strong return.

• To put the company as a technology leader in the business world.

Result of Branding Strategy Samsung Adopted

Past few years, Samsung Company adopted a lot of measures in order


to make its existence felt worldwide. Some of them include:

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Sponsoring
One such significant instance was when Samsung sponsored the 1998
Seoul Olympics. Samsung had made an agreement together with the
International Olympic Association.The business executives anticipated
that through sponsoring special and worldwide events and by means of
embracing different marketing methods as well as investments, the
product of value of the company would be improved. Because of this
the value of the product of the Company escalated by almost 200
percent, obtaining $8.3 billion in 2002 from 3.1 billion dollar in the year
1999. Valued through Interbrand Incorporation.The different measures
obtain by the company didn’t go in waste because Samsung was listed
amidst the topmost products, the product being evaluated by the
Interbrand Incorporation. Among the non Japanese products, Samsung
Company was the only company from Asia.

Samsung focussing on its online sales strategy for the Indian market

Samsung has been facing fierce competition in the Indian smartphone


segment from the likes of Xiaomi, Motorola, OnePlus, and ASUS, and
some Indian brands, which are focussing on online sales. Now, Samsung
has revealed that the company is focussing on and fine tuning its online
sales strategy in the country. The company is also focussing on sales
from the rural market, which has contributed significantly to sales.
According to sources within the company, the South Korean
smartphone giant is looking to tap into the booming e-commerce
market in India, and the company has even a separate team at its
headquarters to plan online sales strategy. The company had to face

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revolt from offline retailers after online retailers started providing huge
discounts and price cuts on Samsung devices.

Methodology
In this project we have followed descriptive method of study.

Research instrument
Here project analysis is made by collecting secondary data from
different websites, journals, etc.
 Secondary data’s are pre published and research data’s collected
from different websites, journals, newspapers, company research
papers.

 These documents and data’s are very useful for the theoretical,
conceptual and organizational background analysis.

 Detailed analysis of data’s is made by plotting different graphs and


tables which can be easily understandable.

 Then by observing these graphs we have made our conclusions


and recommendations.
Descriptive research is used in this project report in order to identify
the brand value of Samsung in India. This is the most popular type of
research technique, generally used in survey research design and most
useful in describing the characteristics of consumer behaviour. The
method used was questionnaire and interview of the Samsung
customers was taken. The essential part of any report is research
methodology. The field study was conducted to analyze the market

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share and understand the brand image of Samsung products. The
sample size was 100. 60% males and 40% females was the ratio of the
respondents in this survey. The age of the respondents was in the
following proportion:  Less than 18 years - 06.67%  18-22 years -
36.67%  22-2 years - 30.00%  26-30 years - 16.67%  Greater than 30
years - 10% These numbers show that most of the respondents are
young The occupation of the respondents was also kept in mind while
conducting the survey to have a complete and comprehensive analysis.
The occupation of the respondents was in the following proportion: 
College students - 46.67%  Business man - 16.67%  Working
population - 20%  Others - 16.67% Data used in this report is mainly
primary data, which is collected first hand by survey in the field. In
some areas secondary data has also been used. Method of data
collection
1.Collection of secondary data
Secondary data analysis saves time that would otherwise be
spent collecting data and, particularly in the case of
quantitative data, provides larger and higher-quality
databases that would be unfeasible for any individual
researcher to collect on their own. In addition, analysts of
social and economic change consider secondary data
essential, since it is impossible to conduct a new survey that
can adequately capture past change and/or developments.
The data is collected from journals and trusted internet
2.Analysis and Interpretation
Ownership Trends of Samsung Products From the above, it can be
observed that the respondents use Samsung products-
mobile (63.33%)

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Tablet (3.33%)
TV (6.67%)
Home apps (10%)
PC/Laptop (3.33%)
others (13.33%)
These numbers show that Samsung mobile are in the hands of most of
the customers.
Frequency of changing mobile phones From the above , it can be
observed that the respondents are using mobile phones less than 1
year.
Less than 1 year (70%),
1-2 years(20%)
2-4 years(6.67%)
Above 4 years (3.33%)
Level of satisfaction with the Samsung product From the above chart, it
can be observed that the respondents are satisfied with Samsung
products, 93.33% respondents are satisfied and 3.33% respondents are
not satisfied. Differentiating factor of Samsung compared with its
competitors From the above, it can be observed that the respondents
consider Samsung as an innovative product.
Affordable price (20%)
innovation (37%)
design (30%)
technology (3.33%)

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application (10%)

ANALYSIS OF DATA
Samsung Electronics is actually the consumer electronics subsidiary of
the Samsung Group, a conglomerate based in Suwon, South Korea.
Outside of Korea, Samsung is best known as the world’s largest
manufacturer of mobile phones and smartphones, including the highly
popular and successful Galaxy.
It is also the world’s largest manufacturer of televisions and LCD panels.
Thanks to its manufacturing and marketing expertise, Samsung is
regarded as the world’s second largest consumer electronics company.
Only its American rival, Apple Inc. (NASDAQ: AAPL), reported larger
revenues.
Unfortunately, it is difficult to determine exactly what Samsung’s are
because it is based in Korea and not covered by U.S. corporate
38
reporting laws. Samsung did report an estimated TTM revenue of
$42.35 billion for the second quarter of 2015. That figure is based on
sales of 48 trillion Korean won.

Strengths
 Samsung is the world’s most successful electronics manufacturer.
It is the world’s largest manufacturer of television sets, liquid
crystal display (LCD) panels, mobile phones and smartphones.
 Samsung is the world’s number one marketer of mobile phones
with 21.4% of the world’s largest market share in the second
quarter of 2015. Apple is number two with 13.9%[2]
 Samsung has impressive research and design capabilities. It was
able to create and roll out Samsung Pay, a payment app with
similar capabilities to Apple Pay, in less than a year. Samsung has
been able to replicate many of the capabilities of both Apple Inc.’s
phones and Google Inc.’s Android operating system for mobile
devices.
 Samsung has strong manufacturing and marketing capabilities.
 Samsung has long-standing relationships with retailers in the
United States and Europe that provide a steady sales channel for
its products.

Weaknesses
 Samsung has not been able to match Apple
Inc.’s marketing capabilities for smartphones. Its share of the U.S.
smartphone market fell by 2.3% between 2014 and 2015. In
contrast, Apple’s share price grew by 34.9%.
 Some Chinese competitors are catching up to Samsung in the
smartphone market. Between 2014 and 2015 Huawei’s share grew
by 48.1%, and Xiaomi’s share grew by 29.4%.

39
 Samsung is heavily dependent upon consumer electronics sales in
markets with limited potential for growth, such as the United
States and Europe, for much of its revenue.
 Samsung’s devices use the Google Android open source operating
system. Many consumers seem to view Android as an inferior
product to Apple’s iOS. The public has not been as accepting of
Android as the tech community has.
 Some consumers view Apple products as more advanced and
dependable than Samsung products.
 Samsung’s marketing efforts are not as sophisticated as Apple’s.

Opportunities
 Growing market for smartphones, tablets and other mobile
devices, especially in developing regions such as Africa and India,
where consumers are unfamiliar with PCs. Sales of tablets finally
overtook sales of traditional personal computers in 2015.
 Increased demand for tablet and smartphone-based solutions such
as Samsung Pay
 New technologies such as wearable tech
 Growing middle class in developing world will increase market for
consumer electronics.
 Growing online market from sales channels such as Amazon.com

Threats:
 Apple has emerged as the dominant smartphone and tablet brand
in some markets, such as the United States. Samsung has not been
able to overcome Apple’s reputation for reliability.
 Apple’s reputation for quality, reliability and sophistication seems
to be growing.
 The Google Android operating system, which Galaxy devices
depend upon, is not as popular with average people as iOS is.

40
 Declining or stagnating middle-class incomes in North America and
the United States could reduce consumer buying power in those
key markets for Samsung.
 Chinese manufacturers such as Huawei and Xiaomi could emerge
as serious rivals to Samsung. These companies’ share of the critical
mobile device market is growing while Samsung’s is falling.
 Apple could enter more consumer products areas such as home
appliances and cameras and directly compete with Samsung in
those markets.
Samsung maintains impressive research, design and manufacturing
capabilities, but it appears to have lost its edge in marketing. This
company may need to revamp its smartphone marketing and perhaps
design efforts in order to maintain market share in critical arenas like
the U.S.
Industry Rivalry
This element is especially significant for Samsung as the other White
Goods multinationals like LG, Nokia, and Motorola not to mention
Apple are engaged in fierce competitive rivalry. Indeed, Samsung
cannot take its position in the market for granted as all these and other
domestic white goods players operate in a market where margins are
tight and the competition is intense. Apart from this, Samsung faces the
equivalent of the “Cola Wars” (the legendary fight for dominance
between Coke and Pepsi) in emerging markets like India where
Samsung has to contend and compete with a multitude of players
domestic and global. This has made the impact of this dimension
especially strong for Samsung.
Barriers to Entry and Exit
The White Goods industry is characterized by high barriers to entry and
low barriers to exit especially where global conglomerates like Samsung
are concerned. Indeed, it is often very difficult to enter emerging

41
markets because a host of factors have to be taken into consideration
such as setting up the distribution network and the supply chain.
However, global conglomerates can exit the emerging markets easily as
all it takes is to handover and sell the business to a domestic or a
foreign player in the case of declining or falling sales. This means that
Samsung has entered many emerging markets through a step-by-step
approach and has also exited the markets that have been found to be
unprofitable. This is the reason why white goods multinationals like
Samsung often do their due diligence before entering emerging
markets.
Power of Buyers
The power of buyers for white goods makers like Samsung is somewhat
of a mixed bag where though the buyers have a multitude of options to
choose from and at the same time have to stick with the product since
they cannot just dump the product, as it is a high value item. Further,
the buyers would have to necessarily approach the companies for after
sales service and for spare parts. Of course, this does not mean that the
buyers are at the mercy of the companies. Far from that, they do have
power over the companies, as most emerging market consumers are
known to be finicky when deciding on the product to buy and explore
all the options before reaching a decision. This means that both the
buyers and the companies need each other just like the suppliers and
the companies, as we shall discuss next.
Power of Suppliers
In many markets in which Samsung operates, there are many suppliers
who are willing to offer their services at a discount since the ancillary
sectors are very deep. However, this does not mean that the companies
can exert undue force over the suppliers as once the supply chain is
established; it takes a lot to undo it and build a new supply chain
afresh. This is the reason why white goods makers like Samsung

42
invariably study the markets before setting up shop and also take the
help of consultancies in arriving at their decision.
Threat of Substitutes
This element is indeed high as the markets for white goods are flooded
with many substitutes and given the fact that consumer durables are
often longer term purchases, companies like Samsung have to be
careful in deciding on the appropriate marketing strategy. This is also
the reason why many multinationals like Samsung often adopt
differential pricing so as to attract consumers from across the income
pyramid to wean them away from cheaper substitutes. Further, this
element also means that many emerging market consumers are yet to
deepen their dependence on white goods and instead, prefer to the
traditional forms of housework wherein they rely less on gadgets and
appliances. However, this is rapidly changing as more women enter the
workforce in these markets making it necessary for them to use
gadgets and appliances.
Stakeholders
This is an added element for analysis as the increasing concern over
social and environmentally conscious business practices means that
companies like Samsung have to be careful in how they do business as
well as project themselves to the consumers. For instance, white goods
makers are known to decide after due deliberation on everything from
choosing their brand ambassadors to publicizing their CSR (Corporate
Social Responsibility) initiatives.
CHANGES OVER DECADES
In 2000, Samsung opened a computer programming laboratory
in Warsaw, Poland. Its work began with set-top-box technology before
moving into digital TV and smartphones. As of 2011, the Warsaw base
is Samsung's most important R&D center in Europe, forecast to be
recruiting 400 new-hires per year by the end of 2013.
43
The prominent Samsung sign in Times Square, New York City
In 2010, Samsung announced a ten-year growth strategy centered
around five businesses. 
In December 2011, Samsung Electronics sold its hard disk drive business
to Seagate.
In first quarter of 2012, Samsung Electronics became the world's largest
mobile phone maker by unit sales, overtaking Nokia, which had been
the market leader since 1998. On 21 Augusts’ edition of the  Samsung
confirmed plans to spend 3 to 4 billion dollars converting half of its
Austin chip manufacturing plant to a more profitable chip. The
conversion should start in early 2013 with production on line by the
end of 2013. On 14 March 2013, Samsung unveiled the Galaxy S4.
On August 24, 2012, nine American jurors ruled that Samsung had to
pay Apple $1.05 billion in damages for violating six of its patents
on smartphone technology. The award was still less than the $2.5
billion requested by Apple. The decision also ruled that Apple did not
violate five Samsung patents cited in the case. Samsung decried the
decision saying that the move could harm innovation in the sector. It
also followed a South Korean ruling stating that both companies were
guilty of infringing on each other's intellectual property. In first trading
after the ruling, Samsung shares on the Kospi index fell 7.7%, the
largest fall since 24 October 2008, to 1,177,000 Korean won. Apple then
sought to ban the sales of eight Samsung phones (Galaxy S 4G, Galaxy
S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G,
Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the United
States which has been denied by the court.
On September 4, 2012, Samsung announced that it plans to examine all
of its Chinese suppliers for possible violations of labour policies. The
company said it will carry out audits of 250 Chinese companies that are
its exclusive suppliers to see if children under the age of 16 are being
used in their factories.

44
In 2013, a New Zealand news outlet reported a number of Samsung
washing machines spontaneously catching on fire. The corporation is
expected to spend $14 billion on advertising and marketing in 2013,
with publicity appearing in TV and cinema ads, on billboards and at
sports and arts events. In November 2013, the corporation was valued
at $227 billion.
In May 2014, Samsung announced it will be shutting down its streaming
service on 1 July 2014, also meaning the end of the Samsung Music Hub
app that typically comes installed on its Android phones.
On September 3, 2014, Samsung announced Gear VR, a virtual reality
device in collaboration with Oculus VR and developed for the Galaxy
Note 4
In October 2014, Samsung announced a $14.7 billion investment to
build a chip plant in South Korea. Construction will begin next year with
production beginning in 2017. The company has not yet decided the
type of chips to be produced.
In October 2014, Samsung also announced it would invest 633 billion
South Korean won ($560 million USD) in the construction of a new
700,000 square metre production complex in Vietnam.
Samsung plans to launch a new set of services beginning early 2015.
The goal of this new suite of business offerings, dubbed Samsung 360
Services, is to become a help desk of sorts for businesses IT
departments. The customizable services range from technical support
to security solutions for having a Samsung employee embedded in a
client's business as an on-site support manager or technology
consultant.
On December 2, 2014, Samsung announced it will sell Fiber Optics to
U.S. speciality glass manufacturer Corning Inc.
Samsung Electronics Inc. is expanding in Silicon Valley with a $300
million facility in San Jose, California. The 10-story complex will include

45
1.1 million square feet of floor space, a clean room for semiconductors
and a "fitness center in the sky". The facility will be split between
semiconductor research and development and other sales and
marketing functions. It will serve as the North America headquarters for
semiconductor operations.
In 2015, Samsung has been granted more U.S. patents than any other
company - including IBM, Google, Sony, Microsoft and Apple. The
company received 7,679 utility patents through Dec.11.

FINDINGS,recommendations and suggestions


Following Are The Findings Of the Study On The Topic MARKETING
STRATEGIES OF SAMSUNG
With the passage of time use of sophisticated software tools- ERP,
Trend Data, Qualitative field inputs will increase and as a result
forecasting would be better.

46
One major finding is that, while branding differentiates the image of
the product, the distribution will determine its success to a large
extent.
Rural markets would be the cornerstones of all MARKETING
strategies in the near future and this difficult markets will only be
cracked by companies that form partnerships across their value and
supply chains.
SAMSUNG companies are now realising that change will come faster
and harsher than ever before, so why not change before change is
thrust upon. Therefore, Distribution has suddenly emerged from the
background of the business to the very forefront.
Last but definitely not the least with all attention now being centred
on Supply chain and logistics specifically in marketing sector, this
could well turn out to be the business to be in.
Looking ahead in 2015, Samsung is committed to social responsibility
contributions, with a focus on education, job training and improving
healthcare. Designed for corporate citizenship, our programs support
local issues around the world. We are also leading the way in a range of
green management and environmental activities, such as producing
green products and workplaces and working to reduce greenhouse gas
emissions. We strive to maintain safe environments in which our
employees can work healthfully and live happily. As always, we support
our partners worldwide and promote their success by forging win-win
partnerships for shared and sustainable growth. For the past 46 years,
Samsung Electronics has grown rapidly by surmounting many crises and
difficulties. As we pursue our dream of making a better and brighter
world for everyone, we will embrace and overcome new challenges.
Today’s complex business environment is pushing us to redouble
efforts and increase innovation. We will steadily realize our dream by

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relying on our wisdom to overcome crisis, our courage to blaze new
trails and our passion to serve our customers. We are grateful for your
unwavering support and encouragement as we create the imaginative
opportunities that will open doors to the futurerealize significant
growth in sales and profits in our developing businesses, such as Digital
Appliances, Printing Solutions, Networks, Health & Medical Equipment,
System LSI and LED.
 Customers are loyal and appreciating the brand. Samsung is enjoying
a very good position against its customers. It maintains a very good
relationship with the suppliers.  Samsung is financially strong and
stable.
The production processes and procedures of inventory management
are consistent with the industrial standards.  Samsung enjoys the
widest range of product portfolio which includes mobile phones,
tablets, TV’s, cameras, camcorders, home appliances, personal
computers, printers and other accessories.  Chinese products focus on
economies of scale and dump into Indian market for lesser cost. This
results in reduction of sales.  Samsung is a hardware leader but it has
too much of dependence for software from other parties.  Online
stores which sell a wide range of products are giving better deals as
they don’t incur cost in distribution.  Samsung has wide variety of
product lines; failure of one product line will have impact on the other
and will result in brand dilution.  Since India is a potential market,
entry of foreign players is likely. Foreign players like Haier have already
started gaining market share in India in home appliances.
The SAMSUNG management has initiated a market-mapping exercise to
get into our fold distributors who haverelevant knowledgeof the
market, credibility, a good distribution network and will therefore
contribute in strengthening SAMSUNGs reach in the market .The new
distribution strategy would take its penetration level in the marketfrom

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the current55percentto 85 percent by the end of the year. On the retail
front, it was taking initiatives to increase the number of retailers
enrolled as SAMSUNG Mobile Privilege Partners (SMPPs) fromaround
100in 2007 to around 400 by the end of the year. Single and multi-
brand retailers had shown an interest in becoming SMPP. In the same
month, the company launched five new mobile phone models and said
that it would launch another 13 by the middle of the year. The models
that were launched included multimedia phones, phones for corporate
customers, and a comparatively lower priced model aimed at a bigger
chunk of the market. The company as of early 2008, its mobile phones
were priced between Rs. 1,700and Rs. 28,000, butthat the company
would launch more expensive mobile phones in the future. The
company also announced its new positioning with the new pay-off line
Next is What? and that it had roped in a leading actor of the Indian film
industry Aamir Khan (Aamir) as its brand ambassador. Aamir would also
feature in its new ads. Announcing the major celebrity endorsement for
the brand, HBLee, presidentand CEO, SAMSUNG (South-WestAsia), said,
"TheSAMSUNG brand stands for qualities of innovation, change,
discovery, self-expression, and excellence in performance. And these
very samequalities are epitomized by Aamir Khan, whoseequality and
depth of work as well as versatility as an actor, have made him a much
loved and respected actor in India today. We are indeed very proud and
privileged to have him as our brand ambassador. Future Prospects We
found out common is that SAMSUNG lacks in after sales service. The
drawback in their after sales servicestrategy is that they haveonly one
customer servicecentre throughoutIndia which is situated in Delhi.
When a customer has a complaint he approaches his retailer who in
turn registers the complaint in the Delhi service centre from where the
complaints are processed and replacements are made. The presenceof
only one servicecentre makes it very difficult to give timely responseas
the complaints come throughout India. The complaints are not
entertained for a period of 10 -15 days. Hencethe customer is not
satisfied with the after sales serviceof SAMSUNG. Social Contribution
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Apart fromdeveloping innovativetechnology products, SAMSUNG
places great importance on acting as a responsiblecorporatecitizen in
the communities whereit operates. Its CSR programs respond to the
social and environmental needs and seek to give back to communities
where it operates. In 2009, SAMSUNG launched the company‘s
CorporateSocial Responsibility initiative – SAMSUNG Hope Project with
projects in the areas of education, culture, sports, socialwelfareand
community development. Each program under the Hope
Projectuniquely addresses theneeds of individual communities while
emphasising on innovations for development of the community
including education, technology, engineering and ITtechnical training.
After conducting the survey and knowing the market, I realize that
:  Samsung should focus on further increasing its market share of its
various products.
 Samsung should work on constantly innovating its products in order
to ensure that their sales don’t fall.
 Samsung should work on maintaining and increasing international
relationships with various countries.
 Samsung should get involved in more amd more partnerships and
events like it did in the 2012 London Olympics.

CONCLUSION

Samsung India ltd. Is a leading Electronic company in India and from


last five consecutive years has shown accelerated growth in electronic
portfolio. Customers in India are also spending more in electronics as
their standard of living is growing. Samsung has placed itself
successfully in the position of market leader in electronic products.
Though there was some downfall in sales and profit of the company in

50
the beginning of this decade but after that Samsung has shown
considerable rise in both sales and profit. The future of the company is
also looking bright as electronic market in India is still expanding and so
we can safely conclude that Samsung will be able to secure its number
one position in electronic product.

Samsung has also started project that has provided it direct reach to
rural market. This may be considered a revolutionary step since the
urban market is reaching its saturation level and there is a huge scope
exploring rural market. This will also be helpful not only increasing its
market share but also fight competition

BIBLIOGRAPHY
In order to make this project we have taken the help of the following
websites & books:

 www.wikipedia.com
 www.oppapers.com
 www.samsung.co.in
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 www.scribd.com
 www.ibef.org
 www.Fortuneindia.com
 www.knowledgeplatform.com
 www.indiatoday.in

REFERENCES

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