“A Study on Marketing Strategies & Customer Satisfaction of Samsung

India Pvt Ltd”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce (Business Management)

Under the Faculty of Commerce

By

Pooja Arun Singh

College Roll No: 27

Under the Guidance of

Prof. Sonam More

PADMASHRI ANNASAHEB JADHAV BHARTIYA SAMAJ UNNATI MANDAL’S

B.N.N. COLLEGE, BHIWANDI DIST. THANE 421305

2018-19
 Padmashree Annasaheb Jadhav Bharatiya Samaj Unnati Mandal’s

B.N.N. College, Bhiwandi.

(A.S. & C.) Dist. Thane – 421 305
‘A’ NAAC Accredited
Est. June 1966
Certificate

This is to certify that Mrs. Pooja Arun Singh has worked and duly completed
his Project Work for the degree of Master in Commerce under the Faculty of
Commerce in the subject of Project Work II and his project is entitled, “Study
on Marketing Strategies & Customer Satisfaction of Samsung India Pvt
Ltd” under my supervision, I further certify that the entire work has been
done by the learner under my guidance and that no part of it has been
submitted previously for any Degree or Diploma of any University. It is his
own work and facts reported by his personal findings and investigations.

Seal of college

Prof Sonam More

Date of submission:
 Declaration

I the undersigned Mrs. Pooja Arun Singh here by, declare that the work
embodied in this project work titled “Study on Marketing Strategies &
Customer Satisfaction of Samsung India Pvt Ltd” Forms my own
contribution to the research work carried out under the guidance of Prof.
Sonam More is a result of my own research work and has not been previously
submitted to any other University for any other Degree/ Diploma to this or
any other University.

Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I hereby further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct

Pooja Arun Singh

Certified by

Prof Sonam More

 Acknowledgement

I extend our warmest thanks and appreciation to all people who have assisted
me in the preparation of this report. I thankful towards the whole B.N.N
COLLEGE for providing the infrastructure and facilities, without which my
project would have not taken a shape.

I would like to acknowledge the following as being idealistic channels and

fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving chance to
do this project.

I would like to thank my Principal Dr Ashok D. Wagh for providing the

necessary facilities required for completion of this project.

I would also like to express my sincere gratitude towards my project guide

DR. ASHOK.D.WAGH whose guidance and care made the project successful

I would like to thank my College Nirlon Library, for having provided various
reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the Completion of the project especially my Parents and Peers
who supported me throughout my project.

Pooja Arun Singh

 Table of Content

Page
Sr. No Particulars
No.
1 INTRODUCTION 6
SEGMENTATION OF THE CONSUMER
2 7
DURABLE INDUSTRY
3 INDUSTRY SIZE, GROWTH AND TRENDS 9
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
 1. INTRODUCTION

As rapid socio-economic changes sweep across India, the country is

witnessing the creation of many new markets and a further expansion of the
existing ones. India’s consumer market is riding the crest of the country’s
economic boom. The Indian consumer durables industry has witnessed a
considerable change in the past couple of years. Changing lifestyle with access
to disposable incomes, easy finance options and a surge in advertising has
been instrumental in bringing about a sea change in the consumer behavior
pattern.

Before the liberalization of the Indian economy, only a few domestic players
like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the
consumer durables market, accounting for no less than 90% of the market.
Then, after the liberalization, foreign players like Samsung, LG, Sony,
Whirlpool, Daewoo, and Aiwa have entered into Indian market dethroning the
Indian players and dominating Indian market. Today, these players control
the major share of the consumer durables market.

The market share of MNCs in consumer durables sector is 65%. MNC's major
target is the growing middle class of India. MNCs offer superior technology to
the Consumers whereas the Indian companies compete on the basis of firm
grasp of the local market, their well-acknowledged brands, and hold over wide
distribution network. However, the penetration

According to a study conducted by FICCI on the Indian consumer durables

industry, a shift in consumer preferences towards higher-end, technologically
advanced branded products has been quite discernable. This shift can be
explained by narrowing differentials between the prices of branded and
unbranded products added with the high quality of after sales service
provided by the branded players. The shift has also been triggered by the
availability of foreign branded products in India owing to lower import duties
coupled with other liberal measures as introduced by the government.
 2. SEGMENTATION OF THE CONSUMER DURABLE INDUSTRY

The Consumer Durables industry consists of durable goods and appliances for
domestic use such as televisions, refrigerators, air conditioners and washing
machines. Instruments such as cell phones and kitchen appliances like
microwave ovens are also included in this category. The Indian Consumer
Durables Industry can be segmented into three key groups: White Goods,
Kitchen Appliances/Brown Goods and Consumer Electronics.

Consumer Durables
Kitchen Appliances/Brown Consumer
White Goods
Goods Electronics

Refrigerators, Mixers,
Mobile Phones,
Washing
Grinders, Televisions,
Machines,
Microwave Ovens, MP3 Players,
Air Conditioners,

Speakers and Audio, Iron, DVD Players,

Equipments
Electric Fans,
VCD Players,
Cooking Range,

Chimneys
 3. INDUSTRY SIZE, GROWTH AND TRENDS

Consumer Durables is one of the fastest growing industries in India. India

holds 5th position in global retail industry.

In 2015, revenue from consumer durables sector in India stood at USD 9.7
billion, which further increased to USD 12.5 billion in FY16. Consumer durable
market expected to grow at CAGR of 13 per cent from FY05 to FY20. Around
two third of the total revenue is generated from urban population & rest is
generated from rural population.

Overall, the sector is a dynamic one, with significant growth opportunities.

 4. THE KEY DRIVERS BEHIND THE GROWTH

The consumer durable sector has been witnessing significant growth in recent
years, helped by several drivers such as increase in income levels, rise in
living standards, easy access to consumer finance, increase in consumer
awareness, and introduction of wide range of choice, as many foreign players
were entering in the market. The key trends that impact the Indian Consumer
Durables Industry today are reflected in the diagram.

India being the second largest growing economy with huge consumer class
has resulted in consumer durables as the fastest growing industries in India.
SAMSUNG & LG, the two Korean companies have been maintaining the lead in
the market with Samsung being leader in almost all the categories.
 5. SAMSUNG - OVERVIEW

The Samsung Group is a South Korean multinational conglomerate

corporation headquartered in Samsung Town, Seoul, South Korea. It
comprises numerous international affiliated businesses, most of them united
under the Samsung brand.

Notable Samsung Group industrial subsidiaries include Samsung Electronics

(the world's largest information technology company measured by 2010
revenues), Samsung Heavy Industries (the world's second-largest shipbuilder
measured by 2010 revenues), and Samsung Engineering and Samsung C&T
(respectively the world's 35th- and 72nd-largest construction companies).
Other notable subsidiaries include Samsung Life Insurance (the world's 14th-
largest insurance company), Samsung Securities, Samsung SDS, Samsung
Everland (the oldest theme park in South Korea), Cheil Worldwide (the
world's 19th-largest advertising agency measured by 2010 revenues) and
Shilla Hotel.

Samsung Group produces around a fifth of South Korea's total exports and its
revenues are larger than many countries' GDP; in 2006, it would have been
the world's 35th-largest economy. In many South Korean industries Samsung
Group enjoys a monopoly position. The company 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". Many
businesses today use Samsung's international success as a role model.
 6. SAMSUNG : HISTORY

With only 30,000 won (about $27 USD), Lee Byung-chull started Samsung on
March 1 in 1938, as a trading company based in Taegu, Korea. The small
company of only 40 employees started as a grocery store, trading and
exporting goods produced in and around the city, like dried Korean fish and
vegetables, as well as its own noodles.

The company grew and soon expanded to Seoul in 1947 but left once the
Korean War broke out. After the war, Lee started a sugar refinery in Busan
that was called Cheil Jedang, before expanding into textiles and building the
(then) largest woolen mill in Korea.

The successful diversification became a growth strategy for Samsung, which

rapidly expanded into the insurance, securities, and retail business. Samsung
was focused on the redevelopment of Korea after the war with a central focus
on industrialization.

Samsung entered the electronics industry in the 1960's with the formation of
several electronics focused divisions. The initial electronics divisions included
Samsung Electronics Devices, Samsung Electro-Mechanics, Samsung Corning,
and Samsung Semiconductor & Telecommunications. Samsung built their
initial facilities in Suwon, South Korea, in 1970, where they started producing
black and white television sets.

Between 1972 and 1979, Samsung began selling washing machines, changed
to Samsung Petrochemical and then Samsung Heavy Industries, and by 1976,
had sold its 1 millionth B&W television.

In 1977, they started exporting color TVs and established Samsung

Construction, Samsung Fine Chemicals, and Samsung Precision Co. (now
called Samsung Techwin). By 1978, Samsung had sold 4 million black and
white television sets and started mass producing microwave ovens before
1980.

1980 to Present:

In 1980, Samsung entered the telecommunications hardware industry with

the purchase of Hanguk Jenja Tongsin. Initially building telephone
switchboards, Samsung expanded into telephone and fax systems which
eventually shifted to mobile phone manufacturing.

The mobile phone business was grouped together with Samsung Electronics
which began to invest heavily in research and development throughout the
1980's. During this time Samsung Electronics expanded to Portugal, New
York, Tokyo, England, and Austin, Texas.

In 1987 with the death of Lee Byung-chull, the Samsung group was separated
into four business groups leaving the Samsung Group with electronics,
engineering, construction, and most high-tech products. Retail, food,
chemicals, logistics, entertainment, paper, and telecom were spun out among
the Shinsegae Group, CJ Group, and Hansol Group.
Samsung grew as an international corporation throughout the 1990's. The
construction division of Samsung secured several high-profile construction
projects, including one of the Petronas Towers in Malaysia, Taipei 101 in
Taiwan and the half-mile tall Burj Khalifa Tower in the UAE.

Samsung 's engineering division also includes Samsung Techwin, an aerospace

manufacturer that manufactures aircraft engines and gas turbines as well as
supplying parts used in jet engines on Boeing and Airbus aircraft.

In 1993, Samsung began to focus on three industries — electronics,

engineering, and chemicals. The reorganization included selling off ten
subsidiaries and downsizing. With a renewed focus in electronics, Samsung
invested in LCD technology, becoming the largest manufacturer of LCD panels
in the world by 2005.

Sony partnered with Samsung in 2006 to develop a stable supply of LCD

panels for both companies, which had been an increasing problem for Sony,
which had not invested in large LCD panels. While the partnership was nearly
a 50-50 split, Samsung owned one share more than Sony, giving them control
over the manufacturing. At the end of 2011, Samsung bought Sony's stake in
the partnership and took full control.

Samsung's focus in the future is centered on five core businesses including

mobile, electronics and biopharmaceuticals. As part of its bio-pharma
investment, Samsung formed a joint venture with Biogen, investing $255
million to provide technical development and biopharmaceutical
manufacturing capacity in South Korea. Samsung has budgeted nearly $2
billion in additional investment to pursue their bio-pharma growth strategy
and leverage the advantages of their joint venture.

Samsung has also continued to expand in the mobile phone market, becoming
the largest manufacturer of mobile phones in 2012. To remain a dominant
manufacturer, Samsung has earmarked $3-4 billion to upgrade their Austin
Texas semiconductor manufacturing facility.

Samsung announced the Gear VR in September 2014, which is a virtual reality

device developed for use with the Galaxy Note 4. Also in 2014, Samsung
announced that they would begin selling fiber optics to glass manufacturer
Corning Inc.

By 2015, Samsung had more US patents approved than any other company,
being granted over 7,500 utility patents before the end of the year.

Samsung released a fitness smartwatch in 2016 called Gear Fit 2, as well as

wireless earbuds called Gear Icon X. By the end of the year, the Gear G3
smartwatch was announced. In late 2017, the company continued to release
products: The Galaxy Note 8 was a particular triumph for the company, which
had struggled with manufacturing issues during the release of the Galaxy Note
7.
 7. BACKGROUND OF SAMSUNG ELECTRONICS

Samsung Electronics is a South Korean multinational electronics and

information technology company headquartered in Samsung Town, Seoul. It is
the flagship subsidiary of the Samsung Group. With assembly plants and sales
networks in 61 countries across the world, Samsung has approximately
160,000 employees.

In 2009, the company took the position of the world’s biggest IT maker by
surpassing the previous leader Hewlett-Packard. Its sales revenue in the areas
of LCD and LED displays and memory chips is number one in the world.

In the TV segment, Samsung’s market position is dominant. For the four years
since 2006, the company has been in the top spot in terms of the number of
TVs sold, which is expected to continue in 2010 and beyond. In the global LCD
panel market, the company has kept the leading position for eight years in a
row.

With the Galaxy S model mobile phone, Samsung’s Smartphone lineup has
retained the second-best slot in the world market for some time. In
competition to Apple's iPad tablet, Samsung released the Android powered
Samsung Galaxy Table.

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 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.
 8. THE SAMSUNG PHILOSOPHY

At Samsung, we follow a simple business philosophy: to devote our talent and

technology to creating superior products and services that contribute to a
better global society.

Every day, our people bring this philosophy to life. Our 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. The result is that all of our products—from
memory chips that help businesses store vital knowledge to mobile phones
that connect people across continents— have the power to enrich lives. And
that’s what making a better global society is all about.

Our Values

We believe that living by strong values is the key to good business. At

Samsung, a rigorous code of conduct and these core values are at the heart of
every decision we make.

Samsung Business Principals

Samsung: Vision 2020

As stated in its new motto, Samsung Electronics' vision for the new decade is,
"Inspire the World, Create the Future."

This new vision reflects Samsung Electronics’ commitment to inspiring its

communities by leveraging Samsung's three key strengths: “New Technology,”
“Innovative Products,” and “Creative Solutions.” -- and to promoting new
value for Samsung's core networks -- Industry, Partners, and Employees.
Through these efforts, Samsung hopes to contribute to a better world and a
richer experience for all.

2000-Present Pioneering the Digital Age

The digital age has brought revolutionary change – and opportunity – to

global business, and Samsung has responded with advanced techno-logies,
competitive products, and constant innovation.

At Samsung, we see every challenge as an opportunity and believe we are

perfectly positioned as one of the world's recognized leaders in the digital
technology industry.
Our commitment to being the world's best has won us the No.1 global market
share for 13 of our products, including semiconductors, TFT-LCDs, monitors
and CDMA mobile phones. Looking forward, we're making historic advances
in research and development of our overall semiconductor line, including
flash memory and non-memory, custom semiconductors, DRAM and SRAM, as
well as producing best-in-class LCDs, mobile phones, digital appliances, and
more.
Samsung Affiliated Companies:

Samsung is comprised of companies that are setting new standards in a wide

range of businesses, from consumer electronics to petrochemicals, from
advertising to life insurance. They share a commitment to creating innovative,
high quality products that are relied on every day by millions of people and
businesses around the world.

Machinery & Heavy Industries

 Samsung Heavy Industries

 Samsung Techwin

Electronics Industries

 Samsung Electro-Mechanics
 Samsung SDI
 Samsung Corning Precision Materials
 Samsung SDS
 Samsung Mobile Display
 Samsung LED

Chemical Industries

 Samsung Total Petrochemicals

 Samsung Petrochemicals
 Samsung Fine Chemicals
 Samsung BP Chemicals
Financial Services

 Samsung Life Insurance

 Samsung Fire & Marine Insurance
 Samsung Card
 Samsung Securities
 Samsung Investment Trust Management

Affiliated Organizations

 Samsung Human Resources Development Centre

 Samsung Lions
 The Ho-Am Foundation
 Samsung Foundation of Culture
 Samsung Welfare Foundation
 Samsung Life Public Welfare Foundation

Other Affiliated Companies

 Samsung C&T Corporation

 Samsung Engineering
 Cheil Industries
 Samsung Everland
 The Shilla Hotels & Resorts
 Cheil Worldwide
 S1 Corporation
 Samsung Medical Centre
 Etymology

According to the founder of Samsung Group, the meaning of the Korean hanja
word Samsung is "tristar" or "three stars". The word "three" represents
something "big, numerous and powerful"; the "stars" mean eternity.

Logos

The Samsung Byeolpyo noodles logo, used

from late 1938 until replaced in 1950s.

The Samsung Group logo (“three

stars”), used from late 1980 until
replaced in 1992

The Samsung Group logo, used from late

1969 until replaced in 1979

The Samsung Electronics logo, used from

late 1980 until replaced in 1992

Samsung's current logo used since 1993.

 LITERATURE REVIEW

In 2014, we invested KRW 15 trillion in R&D to lead industry innovation as we

continued to expand global R&D centers and recruit top talent. Our New York
and Silicon Valley-based Open Innovation Center 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 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.
 OBJECTIVES AND METHODOLOGY

Objective:

1. Primary objective
2. To find the past sale growth and demand analysis
3. Secondary Objective
4. Market structure analysis
5. SWOT analysis
6. Competitor analysis
7. Performance evaluation

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.
1. Secondary data’s are pre published and research data’s collected from
different websites, journals, newspapers, company research papers.

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

3. Detailed analysis of data’s is made by plotting different graphs and tables

which can be easily understandable.

4. Then by observing these graphs we have made our conclusions and

recommendations.
 Samsung Marketing Strategy

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.

Product Line

MOBILE TV / AUDIO CAMERA / HOME PC / MEMORY

PHONES / VIDEO CAMCORDER APPLIANCES PERIPHERALS CARDS
/ PRINTERS

Tablet Television Digital Refrigerator Notebook SD Cards

Smartphone Camera
Smart Blue - Ray Digital Air Monitor Micro SD
Phone Camcorder Conditioner
Product Depth / Width

Dual SIM DVD Player Washing Optical Disk SDHC

Phone Machine Drive Plus
Touch Home Micro Wave External HDD Micro
Phone Theatre Oven SDHC
Plus
Qwerty Multimedia Smart Oven Laser Printer
Messaging Players /Multifunction
Phone
Multimedia TV
Phone Accessories
CDMA
Phone
Essential
Phone
Mobile
Phone
Accessories
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 in

different 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.

Place in the marketing mix of Samsung – Samsung is present through

various 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.

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.

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.

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.
 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.

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
 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:

1. Establishing identity on the product

2. Cost involved in the repositioning of the product
3. Reaction from opponents or competitors
4. Techniques adopted in costing
5. Research and development

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

1. Also it was observed that company strengths leverage has lead in

acceptable dividends and which it leads to “focused hard works.”
2. Keeping a proper channel connection causes the results of sales to be
relatively strong. The incremental sale also yields a strong return.
3. 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:

1. 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.

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

When asked about the company’s plan to tap into the e-commerce segment,
Rushi Suri, Samsung India Director-Product Marketing Consumer Electronics,
said, “For us the consumer is the key. Where the consumer would want us, we
would be there and would be offering right kind of products at right price. In
case of (consumer) electronics, the clear understanding with the management is
where the consumer would want us, we would be there.”

In terms of Samsung’s strategy to drive overall sales, it is focussing on ‘Made

for India’ products that have the right set of features for the right prices. The
company recently announced, which have good value-for-money factor along
with features such as 4G LTE and Ultra Data Saving mode that Indian
consumers are demanding these days. However, the company’s official
declined to comment on the percentage of sales that the company is attracting
from the online channels

SWOT ANALYSIS

Samsung Electronics Co. Limited (OTC: SSNLF) 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 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%.
 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.
 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.

PORTERS 5 FORCES ANALYSIS

Introduction

Porter’s Five Forces methodology is used in this article to analyze the business
strategies of white goods makers like Samsung. This tool is a handy method to
assess how each of the market drivers impact the companies like Samsung
and then based on the analysis, suitable business strategies can be devised.
Further, companies like Samsung are known to study the markets they want
to approach thoroughly and deeply before they make a move and it is in this
perspective that this analysis is undertaken.
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 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 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.

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.

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 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

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.

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.
 SUGGESTION

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 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 future realize significant growth in sales and profits in our
developing businesses, such as Digital Appliances, Printing Solutions,
Networks, Health & Medical Equipment, System LSI and LED.
 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 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
 Google search
 www.samsung.co.in
 www.scribd.com

Besides it various books are also consulted to prepare project report.