A

PROJECT

REPORT

ON

( Advertisement & Sales promotion )

Submitted To:
By:
Mrs. Yogita sharma
Himani khatri

Submitted

INDEX

PARTICULARS
Introduction of Topic
Introduction of Company
Objective of the study
Research Methodology
Data analysis
Limitation
Recommendations
Conclusion
Annexture
Bibliography

Sr.No.

Introduction of
company

The Samsung Group (Korean: ) is a multinational conglomerate corporation

headquartered in Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by
revenue[3][4] with an annual revenue of US $173.4 billion in 2008[2] and is South Korea's largest
chaebol. The meaning of the Korean hanja word Samsung () is "tristar" or "three stars".
The Samsung Group is composed of numerous international affiliated businesses, most of them
united under the Samsung brand including Samsung Electronics, the world's largest electronics
company,[5][6][7] Samsung Heavy Industries, the world's second largest shipbuilder[8] and
Samsung C&T, a major global construction company.
Samsung has been the world's most popular consumer electronics brand since 2005 and is the
best known South Korean brand in the world.[9] Samsung Group accounts for more than 20% of
South Korea's total exports[10] and is the leader in many domestic industries, such as the
financial, chemical, retail and entertainment industries. The company's strong influence in South
Korea is visible throughout the nation, which has been referred to as the "Republic of Samsung.

Samsung Group

Type

Public (Korean: )

Industry

Conglomerate

Founded

1938

Founder(s)

Lee Byung-chul

Headquarters
Area served

Samsung Town, Seoul, South Korea

Worldwide

BACKGROUND

The Samsung Group is a multinational conglomerate corporation

headquartered in
Samsung Town, Seoul, South Korea. It is the world's largest
conglomerate by revenue
with annual revenue of US$173.4 billion in 2008 and is South
Korea's largest chaebol.

The meaning of the Korean word Samsung is "Tri-Star" or "three

stars".
The Samsung Group is composed of numerous international
affiliated businesses, most
of them united under the Samsung brand including Samsung
Electronics, the world's
largest electronics company, Samsung Heavy Industries, the
world's second largest
shipbuilder and Samsung C&T, a major global construction
company.
Samsung has been the world's most popular consumer
electronics brand since 2005
and is the best known South Korean brand in the world. Samsung
Group accounts for
more than 20% of South Korea's total exports and is the leader in
many domestic
industries, such as the financial, chemical, retail and
entertainment industries.

History

In 1938, Lee Byung-Chull founded Samsung, a small trading

company with
forty employees located in Daegu. The company prospered until
the Communist
invasion in 1950 when he was forced to leave Seoul and start
over in Busan. During
the war, Samsung's businesses flourished and its assets grew
twenty-fold. In 1953, Lee
started a sugar refinery. The company diversified into many areas
such as insurance,
securities, and retail. In the early 1970s, Lee borrowed heavily
from foreign interests
and launched a radio and television station. Samsung Group later
formed several electronics-related divisions, such as Samsung
Electronics Devices Co., Samsung Electro-Mechanics Co.,
Samsung Corning Co., and
Samsung Semiconductor & Telecommunications Co., and grouped
them together
under Samsung Electronics Co., Ltd. in 1980s. Its first product
was a black-and-white
television set.
In the late 1980s and early 1990s, Samsung Electronics invested
heavily in research
and development, investments that were pivotal in pushing the
company to the
forefront of the global electronics industry. By the 1980s
Samsung was
manufacturing, shipping, and selling a wide range of appliances
and electronic
products throughout the world. In 1982, it built a television
assembly plant in
Portugal; in 1984, it built a $25 million plant in New York; and in
1987, it built
another $25 million facility in England.
The 1990s saw Samsung rise as an international corporation.
Samsung's construction
branch was awarded a contract to build one of the two Petronas
Towers in Malaysia,

Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates,
which is the
tallest structure ever constructed. In 1993 and in order to change
the strategy sold of
ten of Samsung Group's subsidiaries, downsized the company,
and merged other
operations to concentrate on three industries: electronics,
engineering, and chemicals.
In 1996, the Samsung Group reacquired the Sungkyunkwan
University foundation.
Samsung survived the Asian financial crisis of 1997-98 relatively
unharmed. However,
Samsung Motor, a $5 billion venture was sold to Renault at a
significant loss.
Additionally, Samsung manufactured a range of aircraft from
1980 to 1990s.
Most importantly, Samsung Electronics (SEC) has since come to
dominate the group.
and the worldwide semiconductor business, even surpassing
worldwide leader Intel in
investments for the 2005 fiscal year. Samsung's brand strength
has greatly improved in
the last few years.
Samsung became the largest producer of memory chips in the
world in 1992, and is the
world's second-largest chipmaker after Intel. In 1995, it built its
first liquid-crystal
display screen. Ten years later, Samsung grew to be the world's
largest manufacturer
of liquid-crystal display panels. In 2006, S-LCD was established as
a joint venture
between Samsung and Sony in order to provide a stable supply of
LCD panels for both
manufacturers. Samsung Electronics, which saw record profits
and revenue in 2004
and 2005, overtook Sony as one of the world's most popular
consumer electronics

brands, and is now ranked #19 in the world overall. Behind,

Nokia, Samsung is the
world's second largest by volume producer of cell phones with a
leading market sharein the North America and Western Europe.

SAMSUNG ELECTRONICS IN INDIA

Samsung India Electronics Private Limited (SIEL) is the Indian
subsidiary of the
US $55.2 billion Samsung Electronics Corporation (SEC)
headquartered in Seoul,
Korea. Headquartered in New Delhi, SAMSUNG India has
widespread network of
sales offices all over the country . SAMSUNG India is the hub for
SAMSUNGs South
West Asia Regional operations. The South West Asia
Headquarters, looks after the
SAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and
Bhutan besides
India. SAMSUNG India which commenced its operations in India in
December 1995
enjoys a sales turnover of over US$ 1Bn in just a decade of
operations in the country.
From being a virtually unknown entity in the Year 1995, brand
SAMSUNG today
enjoys an awareness level of over 65% and a positive opinion of
over 80% in the
country today (source: BAS 2007). Initially, a player only in the
Colour Televisions
segment, it later diversified into colour monitors (1999) and
refrigerators (2003).
Today, it is recognized as one of the fastest growing brands in the
sphere of digital
technology. SIEL is the market leader in high end digital television
(Plasma, LCD).

PRODUCT PORTFOLIO OF SIEL

SAMSUNG India is the hub for SAMSUNGs South West Asia
Regional
operations. SAMSUNG India has segmented their products into
five categories.
Source: Samsung Electronics website
Fig: Width of the product mix of SIEL

15

_
_
_
_

MOBILE PHONE
TV/AUDIO/VIDEO
CAMERA/CAMCORDER
HOME APPLIANCES_ PC/PERIPHERALS/PRINTERS
Source: Samsung Electronics website

Introduction of TOPIC:

ADVERTISEMENT AND SALES

PROMOTION:
Promotion stands for various activities the company undertakes
to
communicate and promote its products to the target market. It
involves
communication programs i.e. direct marketing, advertising, sales
promotions,
public relations and motivation of sales force. To the customer
this tool
provides knowledge and information.

ADVERTISING:

It is any paid form of non-personal presentation and promotion of

ideas,
goods or services by an identified sponsor.

SALES PROMOTION:
The short-term incentive to encourage trial or purchase of a
product or
service refers to sales promotion. Whereas advertising ofers a
reason to buy;
sales promotion ofers an incentive to buy. Since sales promotion
directly
push up the sales, increasing number of companies are
undertaking sales
promotion activities.
Where advertisement ofers a reason to buy, sales promotion
ofers an
incentive to buy. Sales promotion includes tools for consumer
promotion

(samples,coupons,cash refund, price

of,premiums,prizes,patronage rewards,
free trials,warranties,tie-in-ofers cross promotion, point of
purchase displays and
demonstration);trade promotion(price of, advertising and display
allowances and
free goods);and business and sales force promotion(trade shows
and
conventions, contests for sales reps and specialty advertising..

Promotion
Samsung Innovative promotion and advertising initiatives
To establish trust and confidence among Indian consumers, Samsung did
active promotion and
advertising by taking the following initiatives.
Samsung India associated itself with the ruling passion of the Indian mass
consciousness:
Cricket. Samsung launched the Team Samsung campaign with the stars of
the Indian
cricket team, which caught the imagination of an entire nation. In 2004,
Samsung also
brought to India what was possibly the biggest cricketing spectacle of this
decade, the
historic India vs. Pakistan cricket series - The Samsung Cup.

Not confining itself to cricket, Samsung sponsors the Indian contingent to

the Olympics
and the Asian Games. It also ran training programmes for deserving Indian
athletes under
the Olympic Ratna banner. Samsung has also helped bring to India, for the
first time, the
Olympic torch relay. Samsung also brings every year to India - the World
Cyber Games,
which is regarded as the Olympics of the Cyber world.

Samsung also launched a series of innovative below-the-line activities. In

mobile phones,
Samsung tied up with noted painter Satish Gujral for his paintings to be
available as
downloads on Samsung mobile phones.
Product placement was done in movies and popular television serials like
Jassi where
Samsung products were set in lifestyle environments.
For Microwaves, Samsung ran a Kitchen-on-Wheels programme where
mobile kitchens
with microwave ovens went to various localities demonstrating the
advantages of
microwave cooking.
Samsung branded its products as superior technology and environment
friendly ones. The
Samsung refrigerators and ACs incorporate a revolutionary new technology
called Silver
Nano Health System that ensures freshness and bacteria free environment.
It launched the
Bio range of products. In microwave ovens, features like the bio-ceramic
coating and
3D shower waves keep in mind the health conscious public of today.
Launched a special marketing campaign for Flat TVs including a focused
advertising
campaign Duniya Hai Gol, TV Flat and attractive exchange ofers. As a
result, flatscreen
TVs make up over 50 per cent of Samsungs TV sales compared an industry
average of 17 per cent.

Customized products for Indian Consumers

Samsung understands the local cultural sensibilities to customize its
products according
to the Indian market. It has set up a usability lab at the Indian Institute of
Technology in
New Delhi to customize Samsung products to meet the specific needs of
Indian
consumers. This industry-institute partnership is helping Samsung to study
and analyze

consumer response in aspects of product design, including aesthetics,

ergonomics and
interface.
Through its research done on consumer preferences in India, Samsung has
concluded that
Indian consumers want more sound oriented products. Thus, the Samsung
televisions for
India have a higher sound capacity than their foreign counterparts.
For the semi-automatic segment of Samsung washing machines, Samsung
has introduced
for the first time in India a feature called Super Dry. It is present in three of
Samsungs
semi automatic models and dries the clothes better than the rest.
Samsung washing machines have an additional menu that takes care of the
local Indian
wardrobes. They also have a memory re-start that takes care of the
frequent power
failures in India.
57 |

SALES PROMOTION TOOLS:

Many tools can be used to accomplish sales promotion objectives.
Descriptions of the main promotional tools are as follows;

Consumer Promotion Tools

The main consumer promotion tools are as follows ;

Samples:

They are ofers of a trial amount of a product. It consists of

inviting
prospective purchasers to try the product without cost or at a
lower cost

in the hope that they will buy the product. Samples may be free
or
discounted.

Coupons:
Coupons are certificates that give buyers a saving when they
purchase
a specified product. Coupons can be mailed, placed in
advertisements
or included with other products.
Rebates:

Rebate is also known as cash refund ofers. Rebates are ofers to

refund part of the purchase price of a product to its customers
who
send a proof of purchase to the manufacturer. These are like
coupons except that the price reduction occurs after the purchase
and not at the point of sale.

Price Packs:
Cents-of deals or price packs ofer consumers savings by way of
reducing prices that are marked by the producer directly on the
package.

Premiums:
These are the goods ofered either free or at a low cost as an
incentive to buy a product. Premiums may be in-pack or on-pack
(outside the pack).

Prizes:
They are ofers of chance to win something such as cash, trips or
goods
by luck or through extra eforts. Contests of talent and
sweepstakes or
draws the most popular prize ofering promotions.

Tie-in Promotions:
Tie-in promotions involve two or more brands or companies that
team up
on coupons, refunds or contests to increase their pulling powers.

Cross Promotions:
Cross promotions involve using one brand to advertise noncompeting brand.

Advertising

Specialties:

These are useful articles imprinted with an advertisers name,

given as
gifts to consumers.
Patronage

Rewards:

They are cash or other awards

for the regular use of companys products
or services. They are values (in cash otherwise) that are
proportional to
ones patronage of a certain vendor or a group of vendors. They
aim at
building brand loyalty.

PoP Promotions:

Point of purchase (PoP) includes displays and demonstrations that

take
place at the point of purchase or sale.

PURPOSE OF STUDY.

Sales promotion tools vary in their specific objectives. They may

be used
to attract new customers, to reward loyal customers and to
increase the
repurchase rates of occasional users. Sales promotion usually
targets brand
switchers because non-users and users of other brands do not
always notice
a promotion. Sales promotions are thus also seen as a tool for
breaking down
loyalty to other product.
Sales promotions also let manufacturers adjust to short term
changes in
supply and demand and diferences in customer segments. They
also let
manufacturers to experiment by varying prices. Sales promotions
also lead to
greater consumer awareness of prices.
To use sales promotion, a company must set objectives, select
the right tools,
develop the best program and implement it and evaluate the
results.

OBJECTIVES:
The specific sobjectives set for sales promotions will vary with the
type of
the target market. For consumer promotions, objectives include
encouraging
purchasing of larger sized units, building trial among non-users
and attracting
switchers away from the competitors brands. For trade
promotions, objectives
may include; including retailers to carry new items and higher
level of
inventory, encouraging of-seasonal buying, of-setting
competitive promotions,
building brand loyalty of retailers and gaining entry into new
retail outlets. The

sales force promotions help in encouraging support of a new

product or
model, encouraging more prospecting and stimulating ofseasonal sales.But
most importantly, sales promotion should be focused on
consumer relationship building.

RESEARCH
METHODOLOGY:

Research design is the arrangement of condition for collection

and
analysis of data in a manner that aims to combine relevance to
the research
purpose with economy in procedures. The research design used
for this study is
Descriptive Research. It focuses on the accurate description of
the variables in
the problem model. Any source of information can be used in a
descriptive study,
although most studies of this nature rely on secondary data
source of survey

research. The sampling design followed in the survey is simple

random
probability sampling in which each population element has a
known and equal
chance of selection.

The researcher has done the research in the following

manner;
a) Type of the research undertaken is analytical.
b) Technique used is random sampling.
c) Sample size taken is 30.
d) Sources of data used include both primary as well as
secondary data.
e) Tool used for the research is questionnaire.
f) Plan of analysis are tables and graphs.

Data Collection Methods:

In this study, the foremost data collection instrument used is the
questionnaire method. The questionnaire has been designed with
both open
ended and closed ended questions. Apart from this, the research
instrument
consists of primary and secondary data collected for the study.

Primary Data:
Here first hand information is obtained by distributing printed
questionnaire to
the marketing executives of the company. Data was also obtained
from the

observation and interview technique adopted by the researcher.

Moreover,
information was disseminated by the departmental heads .

Secondary Data:
Here the information is obtained from the brochure of SAMSUNG
GROUP, books,websites, newsletter, journals, magazines,
newspapers, etc.

LIMITATION OF
STUDY :

Due to time, geographic and monetary constraints. It may not be able

to go deeper in to search

This study is related to Faridabad market only.

This project is primarily focused on Refrigerator, Washing machine, Air

conditioners product category.

Unavailability of data. Especially for promotional strategies of

competitors.

There could be some errors, data collection, data interpretation, and

even the
environment plays an important role in the outcome of the results.

DATA
ANALYSIS..

ANALYSIS
AGE GROUP

36 Above; 10% 18-20; 9%

21-25; 33%
31-35; 37%
26-30; 11%

INCOME GROUP (PER ANNUM IN

THOUSAND)

175 above; 4%
150-175; 11%
75-100; 17%
125-150; 11%
100-125; 57%

THREE ELECTRONICS COMPANIES THAT COMES IN

YOUR MIND.

70
58

60
50
40
30

20

20
10

10

10
2

0
LG

Samsung

Videocon

Haier

Others

Things that you looked while

purchasing an electronic item ?

80
75

71
70

68

69

60

50

40

33

30

20

10

32

45

40

35

30

25

20

15

10

0
Adv.

Fam. Inf.

Frn`s Rc.

Fmly Rcm.

How did you get to know about Samsung

that you are having at

present?

I preferred Samsung than other because of?

80

71
66

70
60
50
40

33

30
14

20
10
0
L.M.C.

Looks

Low Priceless physical efforts

Respondents may

QUESTIONNAIRE

CONSUMER SURVEY
Name: ______________________

Address: _____________________
Q1. Please mention your age group
18-20

21-25

26-30

31-35

36- Above

Q2.) Please mention your income group (per annum in thousand)

75-100

100-125

125-150

150-175

175 & above

Q3) Gender
Male

Female

Q4) Martial Status

Married

Unmarried

Q5) please mention your occupation ?

Officials

Clerical or Salesmen

Student

First Jobbers Retired

Q6) Name three electronic companies that come to your mind ?

LG .
Videocon.
Samsung.
Haier
Whirpool

Q7) Do you think Samsung handsets are updated with the latest
features?
YES
NO

Q7) what are the things that you look while purchasing an electronic item?
More power saver
Looks
Low maintenance cost
Reliability(less chances of breakdown)
Least physical efforts
Low price

Q8) how did you get to know about Samsung that you having at present?
Advertisement
Family information
Friends recommendation
Dealers recommendation
Q9) which other electronic item would you have preferred to buy?
LG

others

Videocon

Sony

Q10) Prefer Samsung than other because of:

low price
Less physical efforts
Better looks
Low maintenance cost
Q12) what is the image of samsung in your mind?
Economical
Durable

Smooth product
Safe product
warranty and guarranty they offer.

Q13)Except Samsung your other preferred mobile phone brands?

Nokia
LG
Motorolla

Others

CONCLUSION.

This study highlighted that Faridabad market is still a virgin

market for SAMSUNG
products. Customers need to be made aware of the productive
usages of these
Products if SAMSUNG want to target these untapped market
segments of customers.
Also SAMSUNG need to modify their advertising strategies in
order to educate the
target audience about the product. Hence SAMSUNG will be able
to win a major between the competitors

BIBLIOGRAPHY..

 BOOKS AND JOURNALS REFERRED:

SAMSUNG Electronics annual report,2009
Marketing Management, 12th Edition
o By: Philip Kotler and Kevin Lane Keller

WEBSITES:

http://www.google.com
http://www.ibef.org
http://www.displaysearch.com
http:// www.dnb.com
http://www.samsung.com.