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INTRODUCTION
Samsung Electronics Co., Ltd. is a South Korean multinational electronics company
headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group and
has been the world's largest information technology company by revenues since 2!. Samsung
"lectronics has assembly plants and sales networ#s in $$ countries and employs around %&,
people. 'or a 2(2 the )"* is Kwon *h+,yun.
Samsung has previously been #nown for its position as a manufacturer of components such as
lithium+ion batteries, semiconductors, chips, flash memory and hard drive devices for clients
such as -pple, Sony, ,.) and /o#ia. In recent years, Samsung "lectronics has e0panded upon
its manufacturing roots and diversified into consumer mar#ets leading to an ever increasing
portfolio of products and revenue stream.
Samsung "lectronics currently stands as one of the world's largest vendors in the mobile phone
and smartphone mar#ets fueled by the popularity of its Samsung Gala0y line of devices. .he
company is also one of the largest vendors in the tablet computer mar#et than#s to its -ndroid+
powered Samsung Gala0y .ab collection and is generally regarded as pioneering the phablet
mar#et through the Samsung Gala0y /ote family of devices.
Samsung has been the world's largest ma#er of 1)2 panels since 22, the world's largest
television manufacturer since 23, and world's largest manufacturer of mobile phones since
2((. Samsung "lectronics displaced -pple Inc. as the world's largest technology company in
2(( and has been a ma4or part of the "conomy of South Korea.
In 2((, Samsung was ran#ed as India's fifth most trusted brand and in 2(2, Samsung was
ran#ed as India's fourth most trusted brand by .he 5rand .rust 6eport, an annual report
published by .rust 6esearch -dvisory. In 2(%, .he 5rand .rust 6eport, ran#ed Samsung as
India's second most trusted brand.
OPERATIONS
.he company focuses on four areas7 digital media, semiconductor, telecommunication networ#,
and 1)2 digital appliances.
.he digital+media business area covers computer devices such as laptop computers and laser
printers8 digital displays such as televisions and computer monitors8 and consumer entertainment
devices such as 292 players, :;% players and digital camcorders8 and home appliances such as
refrigerators, air conditioners, air purifiers, washers, microwave ovens, and vacuum cleaners.
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.he semiconductor+business area includes semiconductor chips such as S26-:, S6-:,
/-/2 flash memory8 smart cards8 mobile application processors8 mobile .9 receivers8 6'
transceivers8 ):*S Image sensors, Smart )ard I), :;% I), 292<5lu+ray 2isc<,2 292
;layer S*) and multi+chip pac#age =:);>8 and storage devices such as optical disc drives and
formerly hard dis# drives.
.he telecommunication+networ#+business area includes multi+service 2S1-:s and fa0
machines8 cellular devices such as mobile phones, ;2- phones, and hybrid devices called
mobile intelligent terminals =:I.s>8 and satellite receivers.
.he 1)2 business area focuses on producing .'.+1)2 and organic light+emitting diode
=*1"2> panels for laptops, des#top monitors, and televisions.
Samsung ;rint was established in 2! as a separate entity to focus on 525 sales and has
released a broad range of multifunctional devices and printers and more.
VISION STATEENT
Samsung "lectronics' vision for the new decade is to ?Inspire the @orld, )reate the 'uture.?
.hey are committed to inspiring communities around the world by developing new technologies,
innovative products and creative solutions. .hey are also committed to creating a brighter future
by developing new value for our core networ#s7 industry, partners and employees. .hrough
these efforts, they hope to contribute to a better world and a richer e0perience for all.
-s part of their new vision, they have mapped out a specific plan of reaching AB billion in
revenue and becoming one of the worldCs top five brands by 22. .o this end, they have also
established three strategic approaches in our management7 creativity, partnership and talent.
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.hey are e0cited about the future. -s they build on our previous accomplishments, they loo#
forward to e0ploring new territories, including health, medicine and biotechnology. .hey are
committed to being a creative leader in new mar#ets and becoming a truly /o. ( business going
forward.
T!E SASUN" P!ILOSOP!#
-t Samsung, they follow a simple business philosophy7 to devote their talent and technology to
creating superior products and services that contribute to a better global society.
"very day, their people bring this philosophy to life. .heir leaders search for the brightest talent
from around the world and give them the resources they need to be the best at what they do. .he
result is that all of our productsDfrom memory chips that help businesses store vital #nowledge
to mobile phones that connect people across continentsD have the power to enrich lives. -nd
thatCs what ma#ing a better global society is all about.
Values
.hey believe that living by strong values is the #ey to good business. .hatCs why these core
values, along with a rigorous code of conduct, are at the heart of every decision they ma#e.
People
Euite simply, a company is its people. -t Samsung, they are dedicated to giving its people a
wealth of opportunities to reach their full potential.
Excellence
"verything they do at Samsung is driven by an unyielding passion for e0cellenceDand an
unfaltering commitment to develop the best products and services on the mar#et.
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Change
In todayCs fast+paced global economy, change is constant and innovation is critical to a
companyCs survival. -s they have done for & years, they set their sights on the future,
anticipating mar#et needs and demands so they can steer the company toward long+term success.
Integrity
*perating in an ethical way is the foundation of our business. "verything they do is guided by a
moral compass that ensures fairness, respect for all sta#eholders and complete transparency.
Co-prosperity
- business cannot be successful unless it creates prosperity and opportunity for others. Samsung
is dedicated to being a socially and environmentally responsible corporate citiFen in every
community where we operate around the globe.
ANA"EENT AND $OARD O% DIRECTORS
)hief e0ecutive officer, 9ice chairman7 C&oi "ee'Sung
)hief financial officer7 ;resident #oon (u'&)a
)hief operating officer, ;resident7 Lee (ae'#ong
.he following are the names of board of directors members7
"ee'Sung C&oi 9ice chairman, ;resident and chief e0ecutive officer
(u'!)a #oon )hief financial officer
Dong'in #oon Independent director =-ttorney at 1aw, Kim G )hang>
C&ae'*oong
Lee
Independent director =;rofessor of "conomics, Sung#yun#wan Hniversity>
In'!o Lee Independent director =-dvisor, Shinhan 5an#>
O&'Soo Par+ Independent director =;rofessor of 5usiness -dministration, Seoul /ational
Hniversity>
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!ISTOR#
,-.- TO ,-/0 ' EARL# #EARS
Samsung "lectric Industries was established as a subsidiary of Samsung Group in (!3! in
Suwon, South Korea. Its early products were electronic and electrical appliances including
televisions, calculators, refrigerators, air conditioners and washing machines. In (!&, Samsung
Group established another subsidiary, Samsung+/"), 4ointly with Iapan's /") )orporation to
manufacture home appliances and audiovisual devices. In (!&B, the group e0panded into the
semiconductor business by acquiring Korea Semiconductor, one of the first chip+ma#ing
facilities in the country at the time. .he acquisition of Korea .elecommunications, an electronic
switching system producer, was completed at the start of the ne0t decade in (!$.
5y (!$(, Samsung "lectric Industries had manufactured over ( million blac#+and+white
televisions. In 'ebruary (!$%, Samsung's founder, 1ee 5yung+chull, made an announcement
later dubbed the ?.o#yo declaration,? in which he declared that Samsung intended to become a
26-: =dynamic random access memory> vendor. *ne year later, Samsung became the third
company in the world to develop a 3B#b 26-:. In (!$$, Samsung "lectric Industries merged
with Samsung Semiconductor G )ommunications to form Samsung "lectronics.
,-//',--1 ' CONSUER STRU""LES
Samsung "lectronics launched its first mobile phone in (!$$, in the South Korean mar#et. Sales
were initially poor and by the early (!!s :otorola held a mar#et share of over 3 percent in the
country's mobile phone mar#et compared to 4ust ( percent for Samsung. Samsung's mobile
phone division also struggled with poor quality and inferior products until the mid+(!!s and
e0it from the sector was a frequent topic of discussion within the company.
Samsung "lectronics acquired a B percent sta#e in -S. 6esearch, a Hnited States+based
personal computer ma#er, for HSA%&$ million in 'ebruary (!!J.
,--1'233/ ' COPONENT ANU%ACTURIN"
It was decided that by 1ee ,un Kee that Samsung needed to change strategy. .he company
shelved the production of many under+selling product lines and instead pursued a process of
designing and manufacturing components and investing in new technologies for other
companies. It was hoped in this way Samsung would gain an understanding of how products are
made and give a technological lead sometime in the future. .his patient vertical integration
strategy of manufacturing components has born fruit for Samsung in the late+2s.
-s Samsung shifted away from consumer mar#ets, the company devised a plan to sponsor ma4or
sporting events to remain in the public eye. *ne such sponsorship was for the (!!$ @inter
*lympics held in /agano, Iapan.
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-s a chaebol, Samsung Group wielded wealth that allowed the company to invest and develop
new technology rather than build products at a level which would not have a detrimental impact
on Samsung's finances.
Samsung had a number of technological brea#throughs particularly in the field of memory
which are commonplace in most electrical products today. .his includes the world's first 3B:b
26-: in (!!2, 2J3 26-: in (!!B, (Gb 26-: in (!!3. In 2B, Samsung developed the
world's first $Gb /-/2 :emory chip and a manufacturing deal was struc# with -pple in 2J.
- deal to supply -pple for memory chips was struc# in 2J and Samsung remains a #ey
supplier of -pple components. ,owever the Samsung+-pple relationship has soured following
Samsung's emergence in the consumer mar#et.
233/ TO PRESENT ' CONSUER PRODUCTS
'or four consecutive years, from 2 to 2%, Samsung posted net earnings higher than five+
percent8 this was at a time when (3 out of the % top South Korean companies ceased operating
in the wa#e of the unprecedented crisis.
In 2J, Samsung "lectronics surpassed Iapanese rival, Sony, for the first time to become the
world's twentieth+largest and most popular consumer brand, as measured by Interbrand.
In 2&, Samsung "lectronics became the world's second+largest mobile+phone ma#er,
overta#ing :otorola for the first time. In 2!, Samsung achieved total revenues of HSA((&.B
billion, overta#ing ,ewlett+;ac#ard to become the world's largest technology company
measured by sales.
In 2! and 2(, the HS and "H fined the company, together with eight other memory chip
ma#ers, for its part in a price+fi0ing scheme that occurred between (!!! and 22. *ther
companies fined included Infineon .echnologies, "lpida :emory and :icron .echnology. In
2ecember 2(, the "H granted immunity to Samsung "lectronics for acting as an informant
during the investigation =1G 2isplay, -H *ptronics, )himei Inno1u0, )hunghwa ;icture .ubes
and ,annStar 2isplay were implicated as result of the company's intelligence>.
2espite consistent growth, Samsung, along with its chairman 1ee Kun+hee, has developed a
reputation for insecurity regarding its financial stability and the potential for future crises to
arise. -fter returning from a temporary retirement period in :arch 2(, Kun+hee stated that
?Samsung "lectronics' future is not guaranteed because most of our flagship products will be
obsolete in ( years from now.?
Samsung has emphasiFed innovation in its management strategy since the early 2s and it
again highlighted innovation as part of core strategies when it announced the 9ision 22 in
which the company set an ambitious goal of reaching AB billion in annual revenues within ten
years. In order to cement its leadership in the areas of memory chip and television production,
the company has invested aggressively in research and development. .he company has 2B
research+and+development centers around the world.
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In -pril 2((, Samsung "lectronics sold its ,22 commercial operations to Seagate .echnology
for appro0imately HSA(.B billion. .he payment was composed of BJ.2 million Seagate shares
=!.3 percent of shares>, worth HSA3$&.J million, and a cash sum for the remainder.
In the first quarter of 2(2, the company became the highest+selling mobile phone company
when it overtoo# /o#ia, selling !%.J million units compared to /o#ia's $2.& million units.
Samsung also became the largest smartphone vendor as a result of strong sales of its Gala0y SII
and Gala0y /ote devices.
In :ay 2(%, Samsung announced that it had finally managed to test speed+enhanced fifth
generation=1"> technology successfully.
In -pril 2(%, Samsung "lectronics' new Gala0y S smartphone the Gala0y SB was made
available for retail. 6eleased as the upgrade of the best+selling Gala0y S III, the SB was sold in
some international mar#ets with the companyCs "0ynos processor.
In Iuly 2(%, Samsung "lectronics forecasted wea#er than e0pected profits for its -pril to Iune
quarter. @hile analysts e0pected around (.( trillion won, Samsung "lectronics estimated an
operating profit of !.J trillion won =A$.% billion>. 2uring the same month, Samsung acquired the
media streaming device manufacturer 5o0ee for a reported A% million.
*n -ugust J, 2(%, invitations were received for the ?Samsung Hnpac#ed 2(% "pisode 2?
event on September B, 2(% in 5erlin, Germany during the annual I'- conference. @hile the
invitation does not present any details of the event, industry figures stated that the launch of the
Gala0y /ote III device is e0pected, as Samsung used the 2(2 I'- conference to launch the
Gala0y /ote II.
30
SASUN" AR4ETIN" I5
PRODUCT STRATE"#
LCD AND LED PANELS
5y 2B Samsung was the world's+largest manufacturer of *1"2s, with a B percent mar#et
share worldwide, and as of 2( has a !$K share of the global -:*1"2 mar#et. .he company
generated A(.2 million out of the total AB&J million revenues in the global *1"2 mar#et in
23. -s of 23, it held more than 3 -merican patents and more than 2,$ international
patents, ma#ing it the largest owner of -:*1"2 technology patents.
L
Samsung's current -:*1"2 smartphones use its Super -:*1"2 trademar#, with the
Samsung @ave S$J and Samsung i! Gala0y S being launched in Iune 2(. In Ianuary
2((, it announced its Super -:*1"2 ;lus displays which offer several advances over the
older Super -:*1"2 displays M real stripe matri0 =J percent more sub pi0els>, thinner form
factor, brighter image and an ($ percent reduction in energy consumption.
In *ctober 2&, Samsung introducing a ten+millimeter thic#, B+inch 1)2 television panel,
followed in *ctober 2$ by the world's first &.!+mm panel. Samsung developed panels for 2B+
inch 1)2 monitors =%.J mm> and (2.(+inch laptops =(.3B mm>. In 2!, Samsung succeeded in
developing a panel for forty+inch 1"2 televisions, with a thic#ness of %.! millimeters
=.(J inch>. 2ubbed the ?/eedle Slim?, the panel is as thic# =or thin> as two coins put together.
.his is about a twelfth of the conventional 1)2 panel whose thic#ness is appro0imately J
millimeters =(.!& inches>.
@hile reducing the thic#ness substantially, the company could maintain the performance as
before, including full ,2 resolution, (2 ,F refresh rate, and J7( contrast ratio.
O$ILE P!ONES
Samsung's flagship mobile handset line is the Samsung Gala0y S, which many consider a direct
competitor of the -pple i;hone. It was initially launched in Singapore, :alaysia and South
Korea in Iune 2(, followed by the Hnited States in Iuly. It sold more than one million units
within the first BJ days on sale in the Hnited States.
.he company's I! Gala0y S and S$J @ave smartphones were the winners of the 2(
"uropean "IS- -wards in the smartphone and social media phone categories. .he I! Gala0y
S was recogniFed for its superior+quality screen and e0cellent connectivity while the S$J
@ave for its 5ada operating system with unparalleled social networ#ing and location+based
services.
30
@hile many other handset ma#ers tend to focus on supporting one =or at most two> operating
system, Samsung has #ept supporting a wide range of operating systems in the mar#et. -lthough
the Gala0y S adopts Google -ndroid as the operating system8 Samsung also supports other
competing operating systems such as Symbian, @indows ;hone, 1inu0+based 1i:o, and
Samsung's proprietary 5ada.
Samsung sold 2%J million mobile handsets in the year 2!. -t the end of the third quarter of
2(, the company had surpassed the & million unit mar# in shipped phones, giving it a global
mar#etshare of 22 percent, trailing /o#ia by (2 percent. *verall, the company sold 2$ million
mobile phones in 2(, corresponding to a mar#et share of 2.2 percent. ;artially owing to
strong sales of the Samsung Gala0y range of smartphones, the company overtoo# -pple in
worldwide smartphone sales during the third quarter 2((, with a total mar#et share of 2%.$
percent, compared to -pple's (B.3+percent share. Samsung became the world's largest cellphone
ma#er in 2(2, with the sales of !J million smart phones in the first quarter.
SEI CONDUCTORS
Samsung "lectronics has been the world's+largest memory chip ma#er since (!!%. In 2! it
started mass+producing % nm+class /-/2 flash memories. It succeeded in 2( in mass+
producing % nm+class 26-:s and 2 nm+class /-/2 flashes, both of which were the first
time in the world.
-ccording to mar#et+research firm Gartner, during the second quarter of 2( Samsung
"lectronics too# the top position in the 26-: segment due to bris# sales of the item on the
world mar#et. Gartner analysts said in their report, ?Samsung cemented its leading position by
ta#ing a %J+percent mar#et share. -ll the other suppliers had minimal change in their shares.?
.he company too# the top slot in the ran#ing, followed by ,yni0, "lpida, and :icron, said
Gartner.
-nother hitherto not+well+publiciFed area where the company had significant business in for
years is the foundry segment. It had begun investment in the foundry business since 23 and
now positioned it as one of the strategic pillars for semiconductor growth.
In 2(, mar#et researcher I) Insights predicted that Samsung would become the world's+
biggest semiconductor chip supplier by 2(B, surpassing Intel. 'or the ten+year period from
(!!! to 2!, Samsung's compound annual growth rate in semiconductor revenues has been
(%.J percent, compared with %.B percent for Intel
TELEVISIONS
In 2!, Samsung sold around %( million flat+panel televisions, enabling to it to maintain the
world's largest mar#et share for a fourth consecutive year.
Samsung launched its first full ,2 %2 1"2 television in :arch 2(. Samsung had showcased
the product at the 2( International )onsumer "lectronics Show =)"S 2(> held in 1as 9egas.
30
Samsung sold more than one million %2 televisions within si0 months of its launch. .his is the
figure close to what many mar#et researchers forecast for the year's worldwide %2 television
sales =(.2% million units>. It also debuted the %2 ,ome .heater =,.+)3!J@> that allows the
user to en4oy %2 image and surround sound at the same time. @ith the launch of %2 ,ome
.heater, Samsung became the first company in the industry to have the full line of %2 offerings,
including %2 television, %2 5lu+ray player, %2 content, and %2 glasses.
In 2&, Samsung introduced the Internet .9, enabling the viewer to receive information from
the Internet while at the same time watching conventional television programming. Samsung
later developed ?Smart 1"2 .9? =now renamed to ?Samsung Smart .9?>, which additionally
supports downloaded apps. In 2$, the company launched the ;ower Infolin# service, followed
in 2! by a whole new InternetN.9. In 2(, it started mar#eting the %2 television while
unveiling the upgraded InternetN.9 2(, which offers free =or for+fee> download of
applications from its Samsung -pps store, in addition to e0isting services such as news, weather,
stoc# mar#et, Oou.ube videos, and movies.
Samsung -pps offers for+fee premium services in a few countries including Korea and the
Hnited States. .he services will be custom+tailored for each region. Samsung plans to offer
family+oriented applications such as health care programs and digital picture frames as well as
games. Samsung's range of Smart .9s include the apps I.9 ;layer and motion controlled -ngry
5irds.
OT!ER PRODUCTS
Samsung produces printers for both consumers and business use, including mono+laser printers,
color laser printers, multifunction printers, and enterprise+use high+speed digital multifunction
printer models.
In 2(, the company introduced a number of energy efficient products, including the laptop
6J$, netboo# /2(, the world's+smallest mono+laser printer :1+(33, and color laser
multifunction printer )1P+%($J.
Samsung has introduced several models of digital cameras and camcorders including the @5JJ
camera, the S.JJ dual+1)2+mounted camera, and the ,:P+,(3 =3BG5 SS2+mounted full
,2 camcorder>. In 2!, the company too# the third place in the compact camera segment.
Since then, the company has focused more on higher+priced items. In 2(, the company
launched the /P(, the ne0t+generation interchangeable lens camera.
In the area of storage media, in 2! Samsung achieved a ten percent world mar#et share, driven
by the introduction of a new hard dis# drive capable of storing 2JGb per 2.J+inch dis#. In 2(,
the company started mar#eting the %2Gb+per+dis# ,22, the largest in the industry. In addition,
it was focusing more on selling e0ternal hard dis# drives. 'ollowing financial losses, the hard
dis# division was sold to Seagate in 2((.
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In the :;% player segment, Samsung has launched products including the :( :;% player, and
the world's+smallest 2ivP :;% player 6(.
AR4ET S!ARE O% T!E PRODUCTS IN INDIA
)olour .elevision forms %K share of the sales volume.
6efrigerators G -ir )onditioners together form %K share of sales volume.
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PRICIN" STRATE"#
Samsung uses the following ;ricing strategies 7+
'ocus on cost+cutting measures.
/ot offer any discount and e0change offers.
'i0ed mar#et operating pricing=:o;>
/ever been a price warrior.
COPARISON O% SASUN" *IT! OT!ER
$RANDS

Samsung Others
MOBILE PHONES:-
GSM 2599-39,499 2,!!-45,!!!
"Samsung #s $%%&e ,H'(,S)n* +%er,a,N)-,a,M,.r)ma/,et.0
'1, 1I2EO 3 $42IO
"Samsung #s S)n* Bra#,a, Panas)n,. 1,erra an5 L6G60
'1:-
Pr)7e.t,)n '1
L(2 Pr)7e.t,)n '1 89,!!!- 9!9,!!! 9,99!-99,99!
:&at Pane&
P&asma 285,!!!- 9,!,!!! 2,95,!!!-;,5!,!!!
L(2 '1- 59,99!- 285,!!! ;5,!!!-9,89,9!!
:&at '1
29,n.hes- 99,99!- 39,99! 2!,29!-3;,99!
29 ,n.hes- ,99!- 9;,89! 9,99!-99,99!
()n#ent,)na& '1
29 ,n.hes- 9349! ;,99!-,99!
2! ,n.hes- ;89!- 99! ;,9!-,9!
30
212 P&a*er:- 3,99! 5,!!! 3,99!-4,99!
"Samsung #s S)n*,LG,1,5e).)n an5 Panas)n,.0
$u5,):-
"Samsung #s S)n*,LG,1,5e).)n,Ph,&,%s an5 Panas)n,.0
1(2 S*stem - 9,9!!- 28,99! ,5!!-28,99!
212 S*stem - 98,2!!- 25,99! 93,99!-29,99!

H)me 'heater: - 92,99!- 8,!!! 95,99!-99,99!

In<)rmat,)n te.hn)&)g* %r)5u.ts:-
"Samsung #s HP,Len)#) an5 S)n* 1a,)0
N)te P( - 89,99!- 959,99! ;9,5!!-9,;!,!!!

(2 =)m 3 212 =)m 2r,#e
(2 =)m 2r,#es- ;5! 9,8!!
212 =)m 2r,#es- 9,8!!- 9,9!! 3,3!!

(2 3 212 =ea5 3 >r,te S)&ut,)n
(2 >r,ters- 9,8!! 4,25!
()m?) 2r,#es- 3,!!!-5,!!! 8,5!!
212 >r,ters- 4,8!! ;,!!
M)n,t)rs
(=' M)n,t)rs
9;@ mag,. Br,ght =ange- ,!!! 93,;5!
95@ Entr* Le#e& =ange- 5,45! 5,;5!
L(2 M)n,t)rs - 95,!!!- 34,!!! 99,5!!-48,!!
H)me a%%&,an.es
M,.r)Aa#e O#en
"Samsung #s L6G6 , Ph,&,%s an5 Panas)n,.0
S)&) - 4,99!-8,99! 5,49!-;,99!
Gr,&& - 5,99!- 9!,59! 8,99!-93,99!
()n#e.t,)n - 92,99!- 95,59! 92,99!-9,99!
=e<r,gerat)r:-
"Samsung #s L6G6, G)5re7, 1,5e).)n an5 >h,r&%))& 0
2,re.t ())& - :r)st :ree ;,5!!- 9!,2!! 9,95!-99,4!!
S,5e ?* s,5e s*stem- 8,!!!- 9,2!,!!! 89,!!!-9,25,!!!
$,r ()n5,t,)ner:-
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(Samsung #s Genera& ,2a,-,n, L6G6 an5 1)&tas0
Insta (h,&& >,n5)A - 94,99!- 23,99! 95,49!-2!,99!
Insta (h,&& S%&,t - 24,;9!- 49,99! 28,;5!-42,5!!
PLACE AND DISTIRU$TION STRATE"#
CUSTOER AR4ETIN" C!ANNELS
)hannel ( 7 :anufacturer )onsumer
)hannel 2 7 :anufacturer 6etailer )onsumer
)hannel % 7 :anufacturer @holesaler 6etailer )onsumer
)hannel B 7 :anufacturer @holesaler Iobber 6etailer )onsumer
C!ANNEL DESI"N DECISIONS
-nalysing )onsumer Service /eeds .
Setting the channel ob4ectives and constraints.
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Identifying ma4or alternatives.
"valuating the ma4or alternatives.
2esigning distribution channel.
PLACE DECISIONS
.here are three types of decisions that can be ta#en with regards to the place where the products
will be available 7+
-vailable everywhere
Selective
"0clusive
DISTRI$UTION S#STE
Q *ne level channel
Q .wo level channel
Q Shop+in+shop
Q "0clusive Showrooms
Q Sales and Service networ# all+over the world.
DISTRI$UTION NET*OR4
Original Equipment Manufacturer/Vendor or Supplier
Factory
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Regional Distribution Centre ranc! "are!ouse
Distributor Direct Modern
Dealer Retail /
Sub#Dealer E$clusi%e
Stores and
Consumer Samsung Digital
&la'a
PROOTION STRATE"#
,6 PRINT EDIA ADVERTISIN"
Samsung has e0tensively been using ;rint :edia -dvertising as means of its ;romotional
Strategy.
Samsung has used /ewspapers , :agaFines and 5illboards e0tensively to advertise its
products, both new as well as e0isting products bt way of offers,sales,etc.
30

26 TELEVISION ADVERTISIN"
Samsung has e0tensively been using .elevision -dvertising as means of its ;romotional
Strategy.
Smart, sensible and innovative advertising has been helping it gain mass acceptance and
consumers all over the world.
-lso, the approach of advertising as per the different cultures of different countries has helped
it immensely.
76 INTERNET ADVERTISIN"
Internet as a medium has been very important for Samsung for advertising its consumer
durables.
.hrough its pages on '-)"5**K,.@I.."6,*6KH.,etc it has been able to guide the
consumers about the various products and its uses. -lso, the S-:SH/G website has been
useful in education the consumers in a similar manner about its products.
-lso, Samsung products are e0tensively sold on websites li#e -maFon,'lip#art,"bay,etc.
which helps the consumers in obtaining the products directly at home rather than goin to the
Samsung Store.
86 OT!ER T#PES O% ADVERTISIN"
*fficial Sponsor7
(> 9ancouver 2( ;aralympics @inter Games.
30
2> Samsung )up.
%> )helsea 'ootball )lub.
B> Sydney 6oosters.
J> /-S)-6 /e0tel )up.
3> 'rench ;eopleCs 5aseball .eam.
&> .e0as :otor Speedway.

5rand -mbassadors in India7
(> -amir Khan +R Samsung :obile.
2> ;riyan#a )hopra +R Samsung )onsumer 2urables
%> -bhinav 5indra +R Samsung )onsumer "lectronics
30

16SALES PROOTION IN INDIA
Samsung has various 2iwali, 2usshera, ,oli, Ganesha and 6epublic 2ay *ffers available to
)onsumers.
.6POINT O% SALE
;oint of ;urchase ;romotion ie ;romotional offers at the Samsung Showrooms itself.
Hse of electronic billboards,danglers,etc(
30

06 RURAL PROOTION 9IN INDIA6
Samsung has not only tried catering to the Hrban population, but also the 6ural masses.
Challenges:
"lectricity Shortage.
-cute @ater Shortage.
;oor .ransportation availability.
)onsumer 'inance *ptions.
1iteracy rate.
)ulture and traditions.
6ural reach.
.oo many languages and dialects.
Rural Promotional Strategies:
,aat or wee#ly mar#ets
:elas =2J, melas8 &.3la#hs visits annually>
@all paintings
)ustomer contacts =home+to+home>
9an campaigns
"vent management.
S"O) *+*,-S.S
STREN"T!S
30
(> S (Service =)ustomer Satisfaction !&K>.
2> ;remium brand image positioning.
%> ,igh+end .echnology.
B> )ultural identity.
J> Innovative and fashionable design.
3> 9arious #ind of products.
&> Solid domestic mar#et.
*EA4NESSES
(> ,igh ;rice.
2> Insufficient distribution channel.
%> .he core technologiesC high dependency on foreign country = ,igh
6oyalty>
B> @ea# cost competitive power.
J> 1ac# of patent possession.
OPPURTUNITIES
30
(> 1G down fall during the year.
2> "0plosive increasing demand.
%> Indian mass mar#et.
B> 6egional mar#et activation due to the decentraliFation .
J> @orld cup< -sian game .
3> HtiliFation of local 6G2 centers
T!REATS
(> Godre4 comes with full product line.
2> Investing in core technologies.
%> Strong requirement for transforming of technologies.
B> "merging native companies.
RELATIONS!IP *IT! APPLE INC.
30
2espite recent litigation activity, Samsung and -pple have been described as frenemies who
share a love+hate relationship. Samsung is a ma4or supplier for -pple + first providing memory
for the early i;od devices in 2J, and -pple is a #ey customer for Samsung + in 2(2 its
component sales were thought to be worth in the region of A$ billion revenue to Samsung+ to the
point where -pple )"* .im )oo# originally opposed litigation against Samsung wary of the
company's critical component supply chain for -pple.
In -pril 2((, -pple Inc. announced that they were suing Samsung over the design of its Gala0y
range of mobile phones. .he lawsuit was filed on (J -pril 2(( and alleges that Samsung
infringed on -pple's trademar#s and patents of the i;hone and i;ad. Samsung issued a
counterclaim against -pple of patent infringement. In -ugust 2((, at .he 6egional )ourt of
2Tsseldorf, -pple were granted a preliminary in4unction against the sale and mar#eting of the
Samsung Gala0y .ab (.( across the whole of "urope e0cluding the /etherlands. .he ban has
been temporarily lifted in the "uropean Hnion, with the e0clusion of Germany, whilst it is
investigated whether or not the original in4unction was appropriate.
*n -ugust %(, 2(2, the .o#yo 2istrict )ourt ruled Samsung "lectronics' mobile devices did
not violate an -pple Inc. patent. .he case only addressed -pple's patent that allows mobile
devices and personal computers to synchroniFe or share data with each other and is not
comparable with the H.S. court case ruled on 2B -ugust. *n *ctober ($, 2(2, H.K. ,igh )ourt
ruled that Samsung did not infringe -pple's design patents. -pple was forced to issue a court+
ordered apology to Samsung on its official H.K. website.
ENVIRONENTAL RECORD
30
-ll Samsung mobile phones and :;% players introduced on the mar#et after -pril 2( are free
from polyvinyl chloride =;9)> and brominated flame retardants =5'6s>.
.he company is listed in Greenpeace's Guide to Greener "lectronics, which rates electronics
companies on policies and practices to reduce their impact on the climate, produce greener
products, and ma#e their operations more sustainable. In /ovember 2(( Samsung was ran#ed
&th out of (J leading electronics ma#ers with a score of B.(<(. In the newly re+launched guide
Samsung moved down two places =occupying Jth position in *ctober 2(> but scored
ma0imum points for providing verified data and its greenhouse gas emissions and also scored
well for its Sustainable *perations with the guide praising its relatively good e+waste ta#e+bac#
programme and information. ,owever, the company was criticiFed for not setting an ambitious
target to increase its use of renewable energy and for belonging to a trade association which has
commented against energy efficiency standards.
In Iune 2B, Samsung was the first ma4or electronics company to publicly commit to eliminate
;9) and 5'6s from new models of all its products. .he company however failed to meet its
deadlines to be ;9)+ and 5'6s+free, and has published new phase out dates. Greenpeace
activists protested at the company's 5enelu0 headquarters in :arch 2( for what Greenpeace
calls Samsung's bro#en promises.
.he company has been ta#ing the lead in industry efforts to reduce greenhouse gas emissions,
the company has been awarded as one of global top+ten companies in the )arbon 2isclosure
1eadership Inde0 =)21I>. It was the only -sian company among top+ten companies. In addition,
the company is listed in 2ow Iones Sustainability Inde0 =2ISI>.
.he company's achievement ratio of products approaching the Global "colabel level =?Good
"co+;roducts? within the company> is (( percentage points above the 2( goal =$ percent>. -s
of the first half of 2(, Samsung earned the Global "colabel for its 2,(%B models, thereby
becoming the world's number+one company in terms of the number of products meeting Global
"colabel standards.
.he company is also accelerating its effort to recover and recycle electronic wastes. .he amount
of wastes salvaged throughout 3 countries during 2! was as much as 2B, tons. .he
?Samsung 6ecycling 2irect? program, the company's voluntary recycling program under way in
the Hnited States, was e0panded to )anada.
In 2$, the company was praised for its recycling effort by the H.S. advocacy group "lectronics
.a#e 5ac# )oalition as the ?best eco+friendly recycling program?.
CONTROVERSIES
30
DRA PRICE %I5IN"
In 2ecember 2(, the "uropean )ommission fined si0 1)2 panel producers, including
Samsung, a total of U3B$.!2J million for operating as a cartel. .he company received a full
reduction of the potential fine for being the first firm to assist "H anti+trust authorities.
*n *ctober (!, 2((, Samsung was fined "H6 (BJ,&2&, for being part of a price cartel of
ten companies for 26-:s which lasted from ( Iuly (!!$ to (J Iune 22. .he company
received, li#e most of the other members of the cartel, a (+K reduction for ac#nowledging the
facts to investigators. Samsung had to pay !K of their share of the settlement, but :icron
avoided payment as a result of having initially revealed the case to investigators.
PLA"IARI:IN" APPLE
-pple sued Samsung on -pril (J, 2(( in the Hnited States 2istrict )ourt for the /orthern
2istrict of )alifornia that several of Samsung's -ndroid phones and tablets, including the /e0us
S, "pic BG, Gala0y S BG, and the Samsung Gala0y .ab, infringed on -ppleCs intellectual
property7 its patents, trademar#s, user interface and style. -pple's complaint included specific
federal claims for patent infringement, false designation of origin, unfair competition, and
trademar# infringement, as well as state+level claims for unfair competition, common law
trademar# infringement, and un4ust enrichment.
*n -ugust 2B, 2(2 the 4ury returned a verdict largely favorable to -pple. It found that Samsung
had willfully infringed on -pple's design and utility patents and had also diluted -pple's trade
dresses related to the i;hone. .he 4ury awarded -pple A(.B! billion in damages and Samsung
Fero damages in its counter suit. .he 4ury found Samsung infringed -pple's patents on i;hone's
?5ounce+5ac# "ffect? =HS ;atent /o.&,B3!,%$(>, ?*n+screen /avigation =HS ;atent
/o.&,$BB,!(J>, and ?.ap .o Voom? =HS ;atent /o.&,$3B,(3%>, and design patents that covers
i;hone's features such as the ?home button, rounded corners and tapered edges? =HS 2J!%$&>
and ?*n+Screen Icons? =HS 23B%J>.
SA%ET# ISSUES
2espite their phones' popularity, several e0plosions of Samsung mobile phones has been
reported. - Swiss teenager was left with second and third degree burns in her thigh due to her
Gala0y S%'s e0plosion

followed by two more Gala0y S% e0plosions in SwitFerland and Ireland.
- house in ,ong Kong was set on fire by a Samsung Gala0y SB in Iuly 2(%, followed by
another minor burnt Gala0y SB in ;a#istan.
COPETITIVE ENVIRONENT
30
AR4ET S!ARE
*n an overall basis, the ma4or competition faced by Samsung is from Sony, ;hilips, /o#ia G 1G
amongst its biggest competitors. ,owever, Samsung is a large group operating various divisions
and businesses including those for the cell phones, monitors, digital media devices and %2
appliances. -lthough it has a pioneering competitive position with reference to consumer %2
televisions, it has had fierce competition with its rivals in all other categories. )onsider for
instance, the mar#et for 1)2 monitors where Samsung held (3.(K if the total mar#et share
rivaled by 2ell with its immediate competitor with a mar#et share of (B.3K =2$ est.>
Similarly, with 1G as its ma4or competitor for television sets in 1)2, ;2; G )6. category and
mar#et share (%.&K, Samsung has led the mar#et with a share of 2%K =2! est.>.
,owever, in 2J, Samsung earned acclaim when it had left Sony behind in terms of its
popularity 9%ortune 133, 233-6. 1ater ta#e+over of :otorola in 2& gave it a competitive edge
in mobile phone ma#ing thereby also reducing the competitive pressure.
COPARIN" T!E AR4ETIN" I5
If we are to consider the mar#eting mi0 used by its rivals li#e Sony for instance, it would be
quite evident that it too uses advertising, personal selling and massive public relations
campaigns to leverage its brand in order to secure profits. Iust as Samsung associated with .he
*lympics, Sony associates itself with various sports series and other public events to gain
ma0imum consumer awareness. In the promotional arena, the approach is pretty much the same
since it too offers discounts and Wbuy+this+get+this+freeC with its products 4ust as Samsung, for
e0ample, offered a %2 starter #it on purchase of %2 .9 or 5lue 6ay purchase. ,owever, the
pricing for both the brands is at a higher end. @hile Sony does so by offering value through
style, quality, purpose and performance of the product, Samsung does the same through its
technologically advanced offerings high in quality and innovation.
It is important to note that while most of its rivals in the industry, such as /o#ia,-pple and
Siemens promote their products mainly through advertising and direct selling, Samsung has had
a long history of its association with sports which has created a positive brand image along with
high customer recall.
INDUSTR# ANAL#SIS
STRUCTURE ; CURRENT PER%ORANCE
30
"arlier on, the global electronics industry was mainly about the electricity based products that
could perform the very basic functions. ,owever, now the utility of the product is 4ust not
enough. @ith an increasing globaliFation and thus greater e0posure to technologically advanced
possibilities, there is greater demand for providing the same products as before with a
technology-intensive added value. .his ma#es competition in the mar#et fiercer as a technology
becomes redundant as soon as more and more rivals imitate it and start offering it at a lower
price. .his pushes the companies in the electronics business to continuously innovate and
upgrade their products with the latest technology. .his would however mean higher costs. Oet, if
the value addition is significant, it may 4ustify a premium price for the technologically advanced
product and allow positive returns despite increase in cost.
%UTURE TRENDS
Generally and despite the economic down turn which too is e0pected to undergo a turn+ around
situation, the consumer electronics mar#et in the -sia ;acific region is the one li#ely to e0hibit
large growth trends 9RNCOS E'Ser<ices Pri<ate Limited, (une 23306. -dditionally, )hina
shall be following some big players in terms of the consumer electronic mar#et growth and is
showing signs of e0pansion already due to economic development and possibility of low cost
production. .he %2 technology too would soon become a part of home theatres thereby allowing
the same e0perience to movie watchers at home, as is available to those visiting cinemas for the
purpose.
-s a whole, the global electronics mar#et grew by BK in 2$, reaching a value of A23&. 2
billion and is e0pected to grow further by roughly (BK relative to 2$ reaching A%3.( billion
in value. ,owever, it must be noted that countries including Singapore, .aiwan and ,ong Kong
are progressive with reference to the same industry but the three countries possess e0cellent
s#ills in manufacturing while lagging far behind in #eeping up with the quality standards and
necessary 6G2 efforts to in order to continuously innovate and improve to some sustained
advantage 9Tille= et. al, ,--86. @ith the introduction of the %2 1"2 television sets through the
retailer shelves, for instance, would e0pose the consumer to a new e0perience thereby also
putting some pressure on the non+%2 .9 prices to be brought down.
RESOURCE ANAL#SIS
30
Samsung has held a leading position in the electronics mar#et worldwide. :ore than $, J
employees =2J est.> are ta#en to be an asset for the company and are valued to be the most
important value. .ae+Gyun Shin, the companyCs managing director e0plained SamsungCs ,6
development to be based on three factors. ,e said in an interview,
Samsungs HR development is based on three key words: Value, eadership, and !lobal
competence"Value# means value sharing programs which bring together all Samsung
employees under one banner" eadership# re$ers to development programs that systematically
identi$y and develop ne%t-generation leaders" !lobal# means enhancing our employees global
competencies by developing their global business and $oreign language skills"#9Tae'"=un S&in,
23306 .his very clearly points towards the companyCs commitment to ensuring the personal
development of its employees that in turn ensures ma0imum productivity and wor# quality while
they wor# with it. /ot 4ust this, Samsung is strong an organiFation from the point of view of
financial assets as well. In 23 for instance, it accumulated A &$,&(3.3 million worth of
revenues while ma#ing a profit of A&,BJ$.$ million. -lthough this was nearly a 2(K decrease in
profits comparative to 2B. .he situation by 2! had improved greatly with the profits for EB
2! recorded to be A%.% billion. 2( is e0pected to be the year of high profits where the
analysts are pro4ecting profits of A(3 trillion at year end driven mainly by increased revenues
from memory chips, handsets and flat screen televisions. .his has been a result of its innovative
and technology intensive products and the current financial situation and the e0pected growth in
the -sia ;acific region is sure to enable it to invest more in 6G2.
SamsungCs repute as a pioneer in introducing technology intensive products can be well
understood from the event of Ianuary 2( when it announced to become the first mass producer
of panels for %2 1"2 G 1)2 .9s. It has successfully been able to reduce the response time of
the 1"2 screens such that the %2 images are seem more natural. -ccording to a research carried
out by a related firm, the %2 display mar#et is e0pected to grow dramatically to A22 billion by
2($ from A !2 million in 2$. @ith this, the e0pected sale of 3B million units by 2($
comparative to 2, units in 2! essentially points to the revenues and profits, this
company would be ma#ing.
AR4ET S!ARE
30
Product Samsung
world market
share
Leading
competitor
Market
share
Year
26-: B.BK SK ,yni0 (!.$K E% 2(
/-/2 flash B.BK .oshiba %%.(K E2 2(
1arge+siFe 1)2
panels
=revenue>
23.K 1G 2isplay 2J.!K E% 2(
-ctive+matri0 *1"2s !&K 1G 2isplay (X%K 2(
1ithium+ion batteries ($.&K Sanyo (!.BK E( 2(
1)2 monitors ($.K 2ell (2.$K 2!
,ard+dis# drives !K @estern 2igital %(.%K E( 2(
.elevisions
=1)2, ;2;, )6.,
1"2>
(&.2K 1G "lectronics (B.$K E% 2!
:obile phones 2JK /o#ia 2%K E( 2(2
2igital cameras ((.$K Sony (&.BK 2(
-pplication processors (2K .e0as Instruments (&K E%,B 2((
A(OR CLIENTS
Rank/company Part description Buying
(trillion KRW)
Percent of
total sales
( Sony 26-:, /-/2 flash, 1)2
panels, etc...
(.2$ %.&
% 2ell 26-:, flat+panels, lithium+
ion batteries, etc...
.$& 2.J
B ,ewlett+;ac#ard 26-:, flat+panels, lithium+
ion batteries, etc...
.&3 2.2
J 9eriFon
)ommunications
,andsets, etc... .J (.%
3 -.G. Inc. ,andsets, etc... .J (.%
30
FOR)/+E 011 R*+2.+3 S-S)EM FOR
CO+S/MER D/R*,ES (4155#41546