Project Report On

ANALYSIS OF IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS Pvt. Ltd. FOR L.C.D. TV IN NAGPUR CITY

A report submitted to Rashtrasant Tukdoji Maharaj Nagpur University, in partial fulfillment of the award of the degree of Bachelor of Business Administration, Specialization in MARKETING For the Academic Session 2009-2010.

Submitted By: Mayuri Kewalramani

Guided By: Prof. Carol Poonekar

Department of Management Studies & Research, Tirpude College of Social Work, Civil Lines, Sadar, Nagpur 440 001.

CERTIFICATE

To certify that Mayuri Kewalramani is a bonafied student of Department of Management Studies & Research, Tirpude College of Social Work , Nagpur and studying in BBA III yr and has completed her project titled ANALYSIS OF IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS Pvt. Ltd. FOR L.C.D. TV IN NAGPUR CITY under my guidance and supervision. This project is submitted to Rashtrasant Tukdoji Maharaj Nagpur University in partial fulfillment of academic requirement for the degree of Bachelor in Business Administration, for the session 2009-2010. I find the work comprehensive, complete and of sufficiently high standard to warrant its presentation.

Prof. Carol Poonekar

Principal

Date: Place:

DECLARATION

The work presented in this project report titled ANALYSIS OF IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS Pvt. Ltd. FOR L.C.D. TV IN NAGPUR CITY has been carried out by me under the guidance of Prof. Carol Poonekar during the academic year 2009-2010. This work has not been submitted in part or full for any other course conducted by Rashtrasant Tukdoji Maharaj Nagpur University or for any other purpose.

Date: Place:

Mayuri Kewalramani BBA III

ACKNOWLEDGEMENT

I take this opportunity to convey my gratitude to those who provided me help during the course of my study.

It is indeed a great pleasure to express my sincere thanks and great sense of gratitude to Prof. Carol Poonekar for her valuable guidance, timely help and suggestions and constant encouragement during my project work

You can also acknowledge the respective company professionals for their guidance and support in your project.

Date: Place:

Mayuri Kewalramani BBA III

TABLE OF CONTENT

S.No. Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6 Chapter-7 Chapter-8 Chapter-9 Chapter-10 Chapter-11

Contents Introduction Objectives Scope Limitations Hypothesis Research Methodology Data Analysis and Interpretation Conclusion/Findings Recommendations/Suggestions Bibliography Annexure

Page No. 01-07 08 09 10 11 12-17 18-28 29 30 31 32-33

INTRODUCTION

IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V

Introduction to Samsung Electronics

(SEC, Korean) (KRX: 005930, KRX:005935, LSE:SMSN, LSE:SMSD) is the worlds largest electronics company, headquarters in Yeongtong-gu, Suwon, South Korea. It is the largest South Korean company and the flagship subsidiary of the Samsung Group.

Samsung Electronics is the global market leader in more than 60 products including semiconductors as DRAM,SDRAM,flash memory and hard

drives,digital displays such as LCD displays, plasma displays, and OLED displays,home electronics such as TVs DVD players, set-top boxes, mobile devices such as mobile phones, MP3 players, digital cameras and camcorders, computing products such as monitors, laptops, UMPCs, CD and DVD drives, laser printers and fax machines and home appliances such as refrigerators, washing machines, microwaves, ovens, vacuum cleaners and air conditioners.

In 2005, Samsung surpassed Japanese rivalry Sony for the first time to be rated as the new leading and most popular consumer electronics brand in the world by Inter brand. In 2007, Samsung Electronics handset division overtook American rival Motorola, making it the worlds second largest mobile phone maker. At the end of 2007, Samsung exceeded the $100 billion mark in annual sales for the first time in its history. This achievement places the company, along with Siemens of Germany and Hewlett-Packard of the U.S., among the top three companies in the electric appliances and electronics industry.

Department of Management Studies & Research Tirpude College of Social Work, Nagpur

Report Submitted by: Mayuri Kewalramani

IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V

Company Profile

Type Founded

Public 1969

Headquarters Suwon, Gyeonggi-do, South Korea Key people CEO: LEE Yoon-woo Former Chairman: Lee Kun-hee Industry Consumer electronics, Telecommunications, Semiconductor Products Revenue Net income Total assets See Business areas, US$ 110.350 billion (2008) US$ 5.027 billion (2008) US$ 83.60 billion (2008)

Total equity US$ 46.14 billion (2008) Owners Kun-Hee Lee & Affiliates 17.57%, Treasury Stocks(of Samsung) 13.07%, National Pension Service 5.90% ( as of September 31, 2009 ) Employees Parent Website Over 164,600 (2008) Samsung Group Samsung.com

Department of Management Studies & Research Tirpude College of Social Work, Nagpur

Report Submitted by: Mayuri Kewalramani

IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V

History:

1969: Samsung Electronics was founded in Suwon, South Korea as Samsung

Electric Industries, originally manufacturing electronic appliances Such as TVs, calculators, refrigerators, air conditioners and washers.

1981: The company had manufactured over 10 million black and white TVs. 1988: The company merged with Samsung Semiconductor & Communications. Company brands
o o o o o o o Anycall Mobile Phone brand Sens Laptop computer brand Hauzen Premium home appliances brand Zipel Home refrigerator brand Yepp MP3 player brand PAVV TV brand name Kenox Digital camera brand

Department of Management Studies & Research Tirpude College of Social Work, Nagpur

Report Submitted by: Mayuri Kewalramani

IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V

o o o o o o o o o

SyncMaster Monitor brand Zaigen Samsung computer support centre Magic Station PC brand Magic Bright LCD display brand Ultra Edition Slim Mobile Phone brand SpinPoint PC Hard disk drive brand CLP Laser printer brand Nexus MP3 player and XM satellite radio VLUU Digital camera brand

Market ascendance
Samsung is a top rated electronic & IT brand. In 2006, Business Week rated Samsung as 20th on the top 100 global brands and the Number 2 in the electronics industry.Business Week also ranked Samsung as #20 in a ranking of theTop 100 Most Innovative Companies in a special report published April 24,2006.In January 2007, Brand Finance ranked the company as the number 1 global brand in electronics.

The semiconductor division of Samsung Electronics is the worlds largest memory chip and second largest semiconductor manufacturer worldwide. In particular this has been the case of DRAM and SRAM for over a decade. From 1999 to 2002, Samsung conspired with Hynix Semiconductor Infineon Technologies, Elpida Memory and Micron Technology to fix the prices of DRAM chips to American computer makers. In 2005 Samsung agreed to plead guilty and to pay a$300 million fine, the second-largest criminal antitrust fine in the US history. Samsung, the worlds largest LCD manufacturer, plans to begin its eight-generation manufacturing line to make 57- inch panels during the second half of the year. In 2007, Samsung became the worlds second largest mobile phone manufacturer, surpassing Motorola just behind Nokia.
Department of Management Studies & Research Tirpude College of Social Work, Nagpur Report Submitted by: Mayuri Kewalramani

IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V

Corporate affairs

Key business areas

Samsung Electronics focuses on four areas : Telecommunication Network, Digital Media, Semiconductor, and LCD Digital Appliance. The main growing business areas related to LCD +Digital Media + Semiconductor at 2006.as of 2009, Samsung Print was established as a separate entity to focus on B2B sales and has released a broad range of Multi-Functional Devices and Printers. As with all major Print equipments manufactures, Samsung have developed and released supporting management software and utilities. The main Print- Management software has been released as Syncthru WebAdmin Service.

Introduction to Sales Promotion

According to American Marketing Association, those marketing activities other than personal selling, and advertising and publicity that stimulates consumer purchasing and dealer effectiveness such as display, shows and exhibitions, demonstrations and various non-recurrent selling effort in the ordinary routine.

Sales Promotion Activities adopted by Samsung Electronics

In the year 2009, Samsung will look at the activities of the various brands in 2008,especially as it relates to sales promotions. Their main focus will be on the various sales promotions that took place last year, as it seemed all the brands were agreed that, sales promotion is a strategic platform to reach out and connect with the consumers.

Department of Management Studies & Research Tirpude College of Social Work, Nagpur

Report Submitted by: Mayuri Kewalramani

IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V

In addition to using advertising, public relations and personal selling, marketing managers in Nigeria have found that sales promotion is useful to increase the effectiveness of their promotional efforts. Sales promotion is the Marketing communications activities, in which a short term incentive motivates consumers or members of the distribution channel to purchase a good or a service immediately, either by lowering the price or by adding value. Sales promotion is important because it is usually cheaper than advertising and easier to measure. By sales promotion, the marketer can evaluate the presice number of coupens redeemed or the number of entries for the promo campaign. Consumer sales promotion is targeted at the ultimate consumer market, while trade sales promotion is directed to the members of the marketing channel such as wholesalers and retailers. It works best in effecting behaviour rather than attitude. Immediate purchase is the goal of sales promotion regardless of the form it takes.

Last year, many Nigerian brands rode on the leveraging power of sales promotion to make more sales, increase revenue and profitability and stimulate emotional reach to their consumers. It is more effective way to promote their goods and services and also to reward the consumers. In 2009, Samsung stated a consumer promo tagged, Samsung Giveaway Promo which final draw promo which final draw took place at the computer village, Ikeja, Lagos.

Department of Management Studies & Research Tirpude College of Social Work, Nagpur

Report Submitted by: Mayuri Kewalramani

IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V

Sports Sponsership
Samsung owns the professional soccer club Suwon Samsung Bluewings, the baseball team Samsung Lions, the basketball team Seoul Samsung Thunders, the womens basketball team Samsung Bluefangs in South Korea. In 2005, Samsung signed the biggest sponsorship deal in English football history with top premiership team Chelsa.

Department of Management Studies & Research Tirpude College of Social Work, Nagpur

Report Submitted by: Mayuri Kewalramani

OBJECTIVES

Objectives

To study sales promotion activities used by Samsung Electronics Pvt. Ltd. In Nagpur for LCD TV.

To analyze the impact of above sales promotion activities on consumer sales.

To identify problems, if any, in its sales promotion activities.

To maximize the profit by increasing the sales volume of the company

To promote the goods and services and also to reward the consumers at the right time and in a better way.

TO understand the perception of the customers about Samsung LCD T.V.

TO know the reasons of liking and disliking of the customers.

SCOPE

Scope
The scope of the project has been discussed under the following 3 heads-

People of company involved

The target market segment analysis and the sales promotion activities involves the personnel in the marketing department of the company. It is necessary to observe and study the attitude and behavior of the staff members towards customers.

Geographical area covered

The sales promotion activities were to be organized in the Nagpur city. The different areas in the city was covered for the project. People belonging to the high as well as low income group are the owners of T.V.

Time factor
The sales promotion of Samsung as being so important as time stood constraint to an exhaustive market study, which has to be adopted by the company at the right time and in a right way. The time-frame of the project is till November,09.

LIMITATIONS

Limitations
It is difficult to forecast the future of the company, due to close competition.

The project is restricted to Nagpur city.

HYPOTHESIS

Hypothesis
All available brands have small target market. Customers prefer LCD over TV. The company will provide the free services to their customers.

RESEARCH METHODOLOGY

Research Methodology

Sampling Plan:
First step involved in the sampling plan is to decide the population (Samsungs sales promotion activities are to be studied). Once the population is decided, the researcher must concern him/her to find:

1. What sampling unit should be studied?

2. What should be the sample size?

3. What sampling procedure should be used?

4. What sampling method should be utilized?

Sampling Unit:

Sampling Unit is the basic thing to be decided (who is be surveyed). For example: In a survey on the sales promotion activities of Samsung L.C.D T.V; whether employees, managers, shopkeepers, families or a combination of all of them is to be surveyed?

Sampling Size:

Second issue to be decided is the sample size (how many units to be surveyed?). Of course the whole of the universe cannot be studied in a single research project. The researcher has to select a relevant fraction of the population, which is a representation of the entire population or universe. The Sample Size of the project is 100.

Sampling procedure:

How to conduct the survey is the next step in sampling. Sampling procedure depends upon the research objectives to be accomplished through the

investigation. It depends upon the nature of the research project. The researcher must carefully weight the various alternatives available while deciding about the sampling procedure.

Sampling Method:

The last but not the least issue to be decided in the sampling plan is to determine the method (media) of sampling (how the selected units are approached?). The sampling method or media refers to contact methods, e.g., telephone surveys, mail surveys and personal interviews.

Surveys Techniques:

Once the researcher has decided to use survey method for collecting primary data, he should make a decision in connection with the techniques of survey to be employed viz.,

1. Personal Interview 2. Telephone Survey

Types of data Primary Data

Primary data is a data collected directly by the researcher which includes questionnaire, telephone survey and personal interviews. The information collected through all this is called as primary data.

Secondary Data
Secondary data includes those data which is collected for some earlier research work and are applicable or useable in the study of project that has presently undertaken by the researcher.

Tools of data collection

Observation Method
Observation involves recording of events and action as they take place. The researcher records the action, events and behavior of customers. Thus, there is hardly any scope for collection of wrong, faulty or biased data in observation method.

Questionnaire
Questionnaire refers to a self-administered process where the respondent himself read the questions and records his answer without the assistance of an interviewer. Questionnaire may vary in different structure-

1. Close-Ended Question:
It specifies all the possible answers, and respondents make a choice among them. It provide answers that are easier to interpret and tabulate.

For example: From where do you prefer buying an L.C.D T.V? Showroom Dealer Direct Company Exhibition

2. Open-Ended Questions:
It allows respondents to answer in their own words. If often reveals more because they do not constrain respondents answers. They are especially useful in the exploratory state of research, where the researcher is looking for insight into how people think rather than in measuring how many people think in a certain way. For example: Are you aware of Samsung L.C.D T.V?

Interview
In interview schedule the list of questions will be discussed with the respondent in personal by an interviewer who will record the answers given by the respondents.

BOOKS
A book is a collection of paper or other material with text, pictures or both written on them, bound together along one edge, usually within covers. Library and information science, a book is called a monograph to distinguish it from serial periodicals such as magazines, journals or newspapers.

WEBSITE
A website may be the work of an individual, a business or other organization and is typically indicated to some particular topic or purpose. Any website can contain a hyperlink to any other website, so the distinction between individual sites, as perceived by the user, may sometimes be blurred. Websites are written in, or dynamically converted to, HTML (Hyper Text Markup Language) and are accessed using a software program called a Web browser, also known as HTTP client.

 MAGAZINES
A magazine is a periodical publication containing a variety of articles, generally financed by advertising, purchased by readers, or both. In practice, magazines are a subset of periodicals, distinct from those periodicals produced by scientific, artistic, academic or special interest publishers.

DATA ANALYSIS AND INTERPRETATION

Interpretation Of Collected Data

1. Rating of Samsungs L.C.D. T.V

70 60 50 40 30 20 10 0

63

21 15 6

Exelent

Good

Fair

Poor

Table showing rating of Samsungs L.C.D T.V

S.No. 1. 2. 3. 4. Ratings Good Excellent Fair Poor No. of Respondents 21 63 15 06

2. Customers Brand preference for L.C.D T.V.

35 30 25 20 15 10 5 0

Table showing Customers Brand Preference for L.C.D T.V.

S.No. 1. 2. 3. 4. L.C.D Brands L.G Samsung Videocon Sony No. of Respondents 25 25 15 35

3. From where do the customers prefer buying an L.C.D T.V.

E x hibition

Dea ler 8%

S howroom

Direc t C ompa ny 12%

33% 47%

Table showing the place from where the customers buy an L.C.D T.V.

S.No. 1. 2. 3. 4.

Place of buying an L.C.D T.V Exhibition Dealer Showroom Direct Company

No. of Respondents 12% 33% 47% 08%

4. Which parameter influences the most at the time of purchasing an L.C.D T.V.?

45 40 35 30 25 20 15 10 5 0 Price Product Feature Durability Service

Table showing the parameter that influences the customers most at the time of purchasing an L.C.D T.V.

S.No.

Influencing parameter at the time of purchasing L.C.D T.V.

No. of Respondents 32 45 11 08

1. 2. 3. 4.

Price Product Feature Durability Service

5. Customers prime concern or need for buying Samsung L.C.D T.V.

6%

3%

20% P ic ture Q ua lity S iz e D ig ita l O utput 24 x 7 W ork ing 71%

Table showing the prime concern or need of the customers for buying an L.C.D T.V.

S.No.

Concern or need of customers

No. of Respondents 71% 20% 06% 03%

1. 2. 3. 4.

Picture Quality Size Digital Output 24^7 Working

6. How frequently do you change your T.V.?

59 60 50 40 30 20 10 0 13 8 20

1 3 years

3 5 years

More than 5 years

till it last

Table showing the customers frequency of changing their T.V.

S.No. 1. 2. 3. 4.

Frequency of changing T.V. 1-3 Years 3-5 Years More than 5 Years Till it last

No. of Respondents 08 13 20 59

7. Which range do customers prefer for purchasing L.C.D T.V.?

90 100 80 60 40 20 0 28 18 22

11,000 15,000

15,000 19,000

19,000 23,000

23,000 27,000

Table showing the range which the customers prefer for L.C.D T.V.

S.No. 1. 2. 3. 4.

Range of an L.C.D T.V. 11000-15000 15000-19000 19000-23000 23000-27000

No. of Respondents 18 28 32 22

8. What do customers think about the pricing of Samsung L.C.D T.V?

13%

H ig hly P ric ed Modera tely P ric ed 29% 58% L ow P ric ed

Table showing the pricing of Samsung L.C.D T.V according to the customers.

S.No. 1. 2. 3.

Pricing of Samsung L.C.D T.V. Highly Priced Moderately Priced Low Priced

No. of Respondents 58% 28% 13%

9. How did people know about Samsung L.C.D T.V?

R e la tive s /F rie nds 10% N e ws pa pe rs 10% Ne ig hbours 7%

Adve rtis e me nt 73%

Table showing how people are aware of Samsung L.C.D T.V.

S.No. 1. 2. 3. 4.

Awareness of customers for L.C.D T.V Advertisements Newspapers Relatives/Friends Neighbours

No. of Respondents 73% 10% 10% 07%

10.Customers Satisfaction with the services of salesmen at Samsung.

No 18%

Y es 82%

Table showing customers satisfaction with the salesmen services at Samsung .

S.No. 1. 2.

Particulars Yes No

No. of Respondents 82% 18%

11.Do customers have any complaints for Samsung L.C.D T.V?

Table showing whether the have any complaints for Samsung L.C.D T.V.
S.No. 1. 2. Particulars Yes No No. of Respondents 67% 33%

CONCLUSION/ FINDINGS

Conclusion/Findings

1. Many people are using Samsung L.C.D. T.Vs rather than regular T.Vs.

2. Most of the people use their L.C.D. T.Vs till it last.

3. Product feature and durability is the most influencing factor while buying Samsung L.C.D. T.V.

4. Picture quality and size are the major concern of Samsung L.C.D. T.V.

5. Most of the people purchase Samsung L.C.D. T.V. from showroom.

6. Many people think that Samsung L.C.D T.V is highly priced.

7. Most of the people are aware of Samsung L.C.D T.V by advertisements.

8. Majority of the people have not used the Samsung L.C.D. T.V., otherwise the rating of the T.V. is good.

9. Many people prefer buying Sony L.C.D T.V rather than Samsung L.C.D T.V.

10. Many customers have complaints for Samsung L.C.D T.V.

RECOMMENDATIOS/ SUGGESTIONS

Recommendations/Suggestions
1. Company should focus on spending more money on promotional activities.

2. Company should establish a stronger distribution network because many of their perspective customers want quick supply in various parts of Nagpur.

3. Samsung is yet to capture the market, so it should try to maximize the customer base.

4. Samsung should open more service centers so that customers can get better service anytime.

5. Samsung should give their customers something free with an L.C.D T.V. or free services.

BIBLIOGRAPHY

BIBLIOGRAPHY WEBSITES
1. WWW.SAMSUNG.COM

2. WWW.WIKIPEDIA.ORG

BOOKS
1. Marketing Mgt. Philip Kotler C.N. Sontaki

2. Marketing Mgt.

ANNEXURES

Questionnaire
Name: Age: Occupation:

1. Have you heard about Samsung L.C.D T.V? Yes No

2. If yes, how would you would you rate Samsungs L.C.D T.V? Good Fair Excellent Poor

3. Which brand do you prefer for L.C.D T.V? L.G Videocon Samsung Sony

4. From where do you prefer buying an L.C.D T.V? Exhibition Dealer Direct Showroom Company

5. While purchasing Samsung L.C.D T.V, which parameter influences you at the time of decision making? Price Durability Product Feature Service

6. Which of the following is your prime concern/need? Picture Quality Digital Output Size 24x7 Working

7. How frequently do you change your T.V? 1-3 years More than 5 years 3-5 years Till it last

8. What is your range for purchasing L.C.D T.V? 7000-11000 15000-19000 11000-15000 19000-23000

9. What do you think about the pricing of Samsung L.C.D T.V? Highly priced Low priced Moderately priced

10. From where did you know about Samsung L.C.D T.V? Relatives Advertisements Friends Neighbors

11. Are you satisfied with the services of salesmen at Samsung? Yes No

12. Do you have any complaints for Samsung L.C.D T.V? Yes No

13. Your Suggestions/comments on Samsung L.C.D T.V?