CHAPTER 2

INDUSTRY PROFILE

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 c

cellphones and kitchen appliances like microwave ovens were also included in this category.

The sector has been witnessing significant growth in recent years, helped by several drivers

the emerging retail boom, real estate and housing demand, greater disposable income and an

overall increase in the level of affluence of a significant section of the population. The industry

represented by major international and local players such as BPL Videocon, Voltas, Blue Star.

MIRC Electronics, Titan, Whirlpool,cte

The consumer durables industry can be broadly classified into two segments Consumer

Electronics and Consumer Appliances, Consumer Appliances can be further categorized into

Brown Goods and White Goods, The key product lines under each segment were as follows

Industry Size, Growth, Trends

The consumer durables market in India was estimated to be around US 5 billion in 2007-08

More than 7 million units of consumer durable appliances have been sold in the year 2006-07

with colour television (CTV) forming the bulk of the sales with 30 per cent share of volumes

CTV.refrigerators and Air-conditioners together constitute more than 60 per cent of the sales in

terms of the number of units sold

In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool

segment has grown by per cent Companies like LG, Whirlpool and Samsung have registered

double-digit growth in the direct cool refrigerator market

In the case of washing machines, the semi-automatic category with a higher base and fully-

automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to 229.000

units, respectively. In the air-conditioners segment, the sales of window ACs have grown by 32

per cent and that of split ACs by 97 per cent

Since the penetration in the urban areas for these products is already quite high the markets

both C.TV and refrigerators were shifting to the semi-urban and rural areas. The growth across

product categories in different segments is assessed in the following sections

Consumer Electronics

The CTV production was 15.10 million units 2007-08 and is expected grow by at least 25

per cent, At the disaggregated level conventional CTV volumes have been falling while flat TVs

have grown strongly Market sources indicate that most CTV majors have phased out

conventional TVs and have been instead focusing more on flat TVs. The flat segment of CTV

now account for over60 per cent of the total domestic TV production and is likely to be around

65 per cent in 2007-08. High-end products such as liquid crystal display (LCD)and plasma

display CTV grew by 400 per cent and 150 PER

 COMPANY PROFILE OF SAMSUNG ELECTRONICS

Samsung Electronics Co. Ltd.is - South Korean multinational electronics company

headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group and

the world's largest information technology company by revenue since 2009." Samsung

Electronics has assembly plants and sales networks in 61 countries and employs around
221.000 people.

Samsung Electronics is the world's largest mobile phone maker by 2011 unit sales and world

second-largest semiconductor chip maker by 2011 revenues (after Intel Corporation). It has

the world's largest television manufacturer since 2006 and the world's largest maker of LCD

panels for eight consecutive years. It has the largest market share worldwide in memory chips.

The company was the world's largest vendor of smartphones in 2011. Samsung has also

established a prominent position in the tablet computer market, with the release of the
Android

powered Samsung Galaxy Tab.

 SAMSUNG HISTORY 1969 to 2000

Samsung Electric Industries was established as a subsidiary of Samsung Group in 1969

in Suwon, South Korea. Its carly products were electronic and electrical appliances including

television calculator, refrigerators, air conditioners and washing machines. In 1970, Samsung

Group established another subsidiary, Samsung-NEC. jointly with Japan's NEC Corporation to

manufacture home appliances and audiovisual devices. In 1974, the goup expanded into

the semiconductor business by acquiring Korca Semiconductor, one of the first chip-making

facilities in the country at the time. The acquisition of Korea Telecommunications, an electronic

switching system producer, was completed at the start of the next decade in 1980.

By 1981, Samsung Electric Industries had manufactured over 10 million black-and white

television. In February 1983, Samsung's founder, Lee Byung-chull, made an announcement later

dubbed the "Tokyo declaration." in which he declared that Samsung intended to become

a DRAM (dynamic random accesS memory) vendor. One year later, Samsung became the third

company in the world to develop a 64kb DRAM. In 1988, Samsung Electric Industries merged

with Samsung Semiconductor & Communications to form Samsung Electronics.

Samsung Electronics launched its first mobile phone in 1988 in the South Korean market Sales

were initially poor and by the early 1990s Motorola held a market share of over 60 percent in

country's mobile phone market compared to just 10 percent for Samsung. Samsung's mobile
phone division also struggled with poor quality and inferior products until the mid-1990s and

exit from the sector was a frequent topic of discussion within the company

Samsung Electronics acquired a 40 percent stake in AST Research, a United States-based

personal computer maker, for USS378 million in February 1995

In 1996, the company devised a plan to sponsor major sporting events, resulting in it becoming

an official sponsor for the 1998 Winter Olympics held in Nagano, Japan.

In December 1998 Samsung Electronics agreed to sell its power.device division to Fairchild

Semiconductor Corporation for US$435 million.

The Samsung display at the 2008 Internationale Funkausstellung in Berlin

For four consecutive years, from 2000 to 2003. Samsung posted net eamings higher than five

percent; this was at a time when 16 out of the 30 top South Korean companies ceased
operating

in the wake of the unprecedented crisis

In 2005, Samsung Electronics surpassed Japanese tival, Sony, for the first time to become the

world's twentieth-largest and most popular consumer brand, as measured by Interbrand

In 2007, Samsung Electronics became the world's second-largest mobile phone maker

overtaking Motorola for the first time. In 2009, Samsung achieved total revenues of US 174

billion, overtaking Hewlett-Packard to become the world's largest technology company

measured

by sales
In 2009 and 2010, the US and EU fined the company, together with eight other memory chip

makers, for its part in a price-fixing scheme that occurred between 1999 and 2010. Other

companies fined included infineon Technologies, Elpida Memory and Micron Technology. In

December 2010, the EU granted immunity to Samsung Electronics for acting as

an informant during the investigation (LG Display, AU Optronics, Chimei Innolux. Chunghwa

Picture Tubes and HannStar Display were implicated as result of the company's intelligence)

2010 to present

Despite consistent growth, Samsung, along with its chairman Lee Kun-hee, has developed a

reputation for insecurity regarding its financial stability and the potential for future crises to

arise. After returning from a temporary retirement period in March 2010, Kun-hee stated that

"Samsung Electronics' future is not guaranteed because most of our flagship product will be

obsolete in 10 years from now."

Samsung has emphasized innovation in its management strategy since the early 2000s and it

again highlighted innovation as part of core strategies when it announced the Vision 2020 in

which the company set an ambitious goal of reaching $400 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. The company has 24

research-and-development centers around the world.

In April 2011. Samsung Electronics sold its HDD comercial operations to Seagate

Technology for approximately US$1.4 billion. The payment was composed of 452 million

Seagate share (9.6 percent of shares). worth IS$6875 million and a cash sum for the

remainder
In the first quarter of 2012, the company became the highest-selling mobile phone company

when it overtook Nokia, selling 93.5 million units compared to Nokia's 82.7 million units.

Samsung also became the largest smartphone vendor as a result of strong sales of its Galaxy SII

and Galaxy Note devices.

VISSION AND MISSION

Vision & Mission

Our Vision

Samsung is guided by a singular vision: to lead the digital convergence movement.

We believe that through technology innovation today, we will find the solutions we need to

address the challenges of tomorrow. From technology comes opportunity for businesses to
grow,

for citizens in emerging markets to prosper by tapping into the digital economy and for people

invent new possibilities

It's our aim to develop innovative technologies and efficient processes that create new market.

enrich people's lives and continue to make Samsung a trusted market leader

Our Mission

Everything we do at Samsung is guided by our mission to be the best digital-Company

 Awards and Rewards

Brand with Most Happy Customers. TeleAnalysis Leadership Awards: 2016. ...

Awarded: Best Customer Centric Culture. Awarded: Best Customer Centric Company. ...

Awarded: Best Contact Centre. Customer Fest Awards: 2016. ...

Awarded: Best Service Leadership. Customer Fest Awards: 2016. ...

Brand with Most Happy Customers.

 Chapter 3

Theoretical background of customer satisfaction

Satisfaction:

It is no longer enough to satisfy customers. You must delight them.

Satisfaction is a person feeling of pleasure or disappointment resulting from

comparing the products to comparing product received performance is or outcome) in

relation to his or her expectations

As this definition makes clear satisfaction is a function of received performance und

expectations. With the performance full sup expectations, the customer is satisfied. If

the performance matches the expectations the customer is satisfied With the performance

exceeds expectations, the customer is highly satisfied or delighted

Mini companies are aiming for high satisfaction because customers who are just

satisfied still find it easy to switch when a better offer comes along

Those who are highly satisfied are much less ready to switch

High satisfactions are delight creates an emotional brand with the brand. Not a just

rational performance the result is high customer loyalty Xeroxes senior manager believe

that a very satisfied or delighted customer is worth tent times much to the company a
satisfied customer. A very satisfied customer is likely to stay with Xerox years

and bay more than a satisfied customer

A customer's decision to be loyal or to defect is the some of many small encones

with the company Consulting firm forum corporation says that in one for all this small

encounters to add up to customer loyalty, companies need to create a branded customer

experiences" in addition to customer value expectations and satisfaction companies need to

monitor their competitors performance in this areas. For example a company was pleased to

find the 80% of his customers and they were satisfied

Then the CEO found of that its leading competitor Mends a 90% customer

satisfaction score. He was further dismayed when he learned that this competitor was aiming

to reach a 95 satisfaction score

For customer-centered companies, customer satisfaction is both goal and marketing

tool. Companies that achieve high customer satisfaction ating make sure that their target

market knows it.

Although the customer-centered firms to create high customer satisfaction is

main goal is to maximize customer satisfaction. If the company increases customer

satisfaction by Lowering its price of increasing its services, the result may helwer profits

The company might he able to increase its profitability by means other than increased

satisfaction (for example. by improving manufacturing processes are investing more in reb

(also the company has many stakeholders including employers, dealers, suppliers and stock
boulders Spending more to increase customer satisfaction might divert funds from increasing

the satisfaction of other partners. Ultimately the company must operate on philosophy that it

is trying to deliver function to other stakeholders within the constraints of its total resources

Customer satisfaction service:

Studies show that although customers are dissatisfied with one out of every 4

purchases Lew than 5% of dissatisfied customers will complain. Mest customers will buy

less or switch suppliers. Complaint levels me thus not good measure of customer

satisfaction. Responsive company measure customer satisfaction directly by conducting

periodic service, they sent questionnaires or make telephone calls to random sample of

recent customers.

White collecting customer satisfaction data, it i also useful to ask additional

questions to measure repurchase intention this will normally be high if the customer's

satisfaction is high. It is also useful to measure the likelihood or willingness to recommend

the company and brand to others. A high positive word-of-mouth sore indicates that the

company is producing high customer satisfaction.

Defining customer satisfaction

Over 35 years above peter drucker observed that a company find task is to create

customers Bar today's customers face a vas very of product and branch choices, prices and

suppliers.
We believe that customers estimate which offer will deliver the most value

Customers are very valuable maxi misers, with in the bounds of search conts and limited

knowledge, mobility and income the form and expectations of value and to it. Whether are to
the offer lives up to value expectations affect both satisfaction and repurchase prop

The key to customer retention is customer satisfaction. A highly satisfied customer

Stays loyal longer

2. Buys more as the company introduces new products and upgrades existing products.

3. Talko favorably about the company and its products

4. Pass less attention to competing brands and advertising and is less sensitive to price

5. Offers product or service ideas to the company

6. Costs less to serve the new customers because transactions are routinized

Thus a company would be wise to measure customer satisfaction regularly. The

company would to cent buyers and in air many are very satisfied satisfied.

indifferent dissatisfied, and very dissatisfied.

100% guarantee

Ah of our products are guaranteed to give 100% satisfaction in every way. Return

anything purchased from at any time proves otherwise We will replace it, refund yoni

purchase price or credit your credit card, you wish. We do not want you to have anything

from LL.bean that is not completely satisfactory

A buyer's satisfaction is a function of the product's perceived performance and the

buyer's expectations. Recognizing that high satisfaction leads to high customer loyalty, many

companies today are aiming for the - total customer satisfaction. For such companies.

customer satisfaction is both a goal and a marketing tool.

Quality is the totality of features and characteristics of a product or service that bear

na ir ability to satisfy stated or implied needs. Today's companies have no choice but to

implement total quality management programs they are to remain solvent and profitable.

Total quality is the key to value creation and customer satisfaction.

Customer satisfaction:

Today in the customer driven economy, ail firms are engaged in a rate to attract

customers and build a long term relationship with their loyal customer. The key to customer

loyalty is through customer satisfaction. A satisfied customer will act as a spokesperson of the

company product, and hing in more buyers. There is the pareto principle or the 80/20 rule.

it says 80 of one thing comes from 3% of author. That is to say a small percentage of
loyal customers will lend a large weight to the company's sales. So markten have to

customer value satisfaction. For this they have to ensure

1. Products are developed to meet customer requirements

2. Brands are positioned so as to convey distinctiveness

3. Relationships are built to offer lifetime customer value to enable the customer to experience
value satisfaction

All the efforts of the marketers trying

understand buying motives.

Organizing buying behaviour and working out suitable promotional strategy to the customer

behaviour is to ensure customer satisfaction

In today's competitive environment, where companies are adopting various methods

to when the prospective customer, markethive to make all efforts to understand all the

complexities which go into the behaviour and frame marketing programmes suitable to the
target market