A Study on Marketing Strategy Adopted by Samsung India LTD.

BACHELOR OF MANAGEMENT

STUDIES

SEMESTER-VI

TYBMS

SUBMITTED BY

SHYAM UMESH SAHU

ROLL.NO. 13

UNDER THE GUIDANCE OF

PROF: DIPAK BORICHA

SANT GADGE MAHARAJ COLLEGE OF COM. & ECO

12TH LANE, KHETWADI,

MUMBAI- 400004

FOR ACAMEDIC YEAR

2022-2023

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 DECLARATION

I MR. SHYAM UMESH SAHU THE STUDENT OF BHARAT EDUCATION SOCIETY SANT
GADGE MAHARAJ COLLEGE OF COMMERCE AND ECONOMICS MUMBAI 400004
OF T.Y.B.M.S (SEMESTER 6) HEREBY DECLARED THAT I HAVE COMPLETED THE
RESEARCH STUDY ON THE TOPIC ON A STUDY ON MARKETING STRATEGY
ADOPTED BY SAMSUNG INDIA LTD. DURING THE ACADEMIC YEAR 2022 - 23
INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF MY
KNOWLEDGE.

SIGNATURE OF STUDENT.
DATE OF SUBMISSION

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 CERTIFICATE

This is to certify that Mr. SHYAM UMESH SAHU has worked and duly completed his Project
Work for the degree of Bachelor of Management Studies under the Faculty of Commerce in the
subject of Marketing and her/his project is entitled, “A Study on Marketing Strategy Adopted
by Samsung India 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
work and facts reported by her/his personal findings and investigations.

PROF: DIPAK BORICHA

(Guiding Teacher)

Date of Submission:

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 Acknowledgement

It was grateful pleasure working on this project

“ A STUDY ON MARKETING STRATEGY ADOPTED BY SAMSUNG INDIA LTD .” .

HOWEVER, my efforts alone could not have been sufficient for completion of this project
invaluable advice and suggestion from large number of people have gone into this project.

I am extremely grateful to all these people who have helped me in collecting valuable
information and helping me in completion of the project.

The foremost among them is my guide and our BMS coordinator, Prof. DIPAK BORICHA, Sant
Gadge Maharaj College Commerce and Economics, whose constant corrective guidance and
motivation enabled a Hu focused efforts toward completion of the project.

I am also grateful to my parents for being extremely supportive in this endeavour of mine. Last
but not least: I extend my gratitude to my college Sant Gadge Maharaj College for providing
the all needed support.

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 TABLE OF CONTENT

Chapter Particulars Page

No. No.
1. INTRODUCTION 9 - 16

1.1 Definition. 9

1.2 History. 10 - 15

2. RESEARCH METHODOLOGY 17

3. MANAGERIAL ASPECTS OF COMPANY 18 - 21

3.1 The Samsung Philosophy. 18

3.2 Mission of Company. 18

3.3 Values. 19

3.4 Vision. 20

3.5 Product & Service 20

3.6 Competitors of Samsung. 20

3.7 Board of Directors. 21

4. ABOUT SAMSUNG 22 - 63

4.1 Marketing Mix 22 – 34

4.2 SWOT Analysis 35 – 36

4.3 PESTEL Analysis 37 – 38

4.4 Effective Advertisement 39 - 41

4.5 Marketing strategy of Samsung

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 42 – 48
4.6 Marketing Strategy of Samsung Products 49 - 63

4.7 Results of Samsung Marketing Strategy 63

5. AFTER SALES SERVICE AND FUTURE PROSPECTS 64 -

5.1 After Sales Service 64

5.2 Promotion 64

5.3 Advertising 65 - 71

5.4 Sales promotion 72 – 74

5.5 Sponsorship 74 – 75

5.6 Direct mail 76

5.7 Distribution Channels 76 – 78

5.8 Pricing 78 - 80

6. FINDINGS AND SUGGESTIONS 80 - 87

7. CONCLUSION 88 – 89

1. Suggestion. 89

8. QUESTIONNAIRE 90 – 92

9. BIBLOGRAPHY 93

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 CHAPTER 1: INTRODUCTION

Lee Byung-Chul launched Samsung as a commercial company in 1938. The company expanded
into food processing, textiles, insurance, securities, and retail during the next three decades. In
the late 1960s, Samsung entered the electronics business. Samsung has a diverse product
portfolio and a presence in a variety of product categories. The Samsung Smartphones, such as
the Samsung Note series and the Samsung Galaxy series, is the brand image drivers for
Samsung.
Samsung manufactures a wide range of consumer and industrial electronics, including
appliances, digital media devices, semiconductors, memory chips, and integrated systems,
among other things. It has become one of the most well-known names in the technology
industry, accounting for almost a quarter of South Korea’s total exports

1.1 Definition
Marketing strategy is a process that can allow an organization to concentrate its limited resources
on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

The process of making, communicating and delivering the final good that create value for the
customers is defined as marketing (Tanner & Raymond, 2012).

Marketing is actually a process through which we can plan and execute the concepts of a
company, and it also deals with the promotion and distribution of ideas, goods and services for
satisfying the individuals need and achieving organization’s objectives. (Gundlach, 2007).

If we examine the marketing definition closely, we came to know that there are four components
in this definition (Tanner & Raymond, 2012):

 CREATING: To create valuable products for their customers.

 COMMUNICATING: Describe the product and aware the customers about your products
and services.
 DELIVERING: Provide goods to the customers in a most appropriate way that increase
value.
 EXCHANGE: Compensating value for those goods and services.

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 1.2 History of Samsung.

1938 – 1969
The Beginning.
With only 30,000 won (about US$27), Lee Byung-chul started Samsung as a trading company
based in a city called Taegu in 1938. With 40 employees, Samsung began as a grocery store,
trading and exporting goods produced in and around the city. It sold dried Korean fish and
vegetables, as well as its own noodles.
The meaning of the word Samsung is "three stars," with the number three representing
"something powerful."
The company grew and expanded to Seoul in 1947 but left when the Korean War broke out.
Following the war, Lee started a sugar refinery in Busan before expanding into textiles and
building what was, at the time, the largest woollen mill in Korea.
This early diversification became a successful growth strategy for Samsung, which rapidly
expanded into the insurance, securities, and retail businesses. After the war, Samsung focused on
the redevelopment of Korea, especially industrialization.
Samsung Electronics was founded in 1969 and quickly became a major manufacturer in the
Korean market.
During this initial period a burst of growth came from the burgeoning home electronics business
and the company began exporting its products for the first time. Samsung Electronics also
acquired a 50 percent stake in Korea Semiconductor; further solidifying Samsung Electronics'
position as a leader in semiconductor manufacturing.

1969 – 1979
Diversifying in electronics
Began mass production of microwave ovens. Developed VHS VCRs. Acquired Korea
Electronics Information Co. produced 4 million black-and-white TVs (the most in the world).
Established first overseas office in the United States (SEA). Started exporting colour TVs. Began
mass producing colour TVs. Acquired Korea Semiconductor Co. Produced 1 million black-and-
white TVs. Launched world's third 'Quick Start' system TV (product name: Econo TV). Began

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washing machine and refrigerator production. Began production of black-and-white televisions
for the domestic market. Began exporting black-and-white TVs to Panama. Black-and-white TV
(model: P-3202) production started by Samsung-Sanyo. Samsung-Sanyo Electronics was
established (renamed Samsung Electro. Mechanics in March 1975 and merged with Samsung
Electronics in March 1977) Established "Samsung Electronics Industry Co Ltd."

1980 – 1990

Entering the global marketplace

Samsung Electronics' core technology businesses diversified and expanded globally during the
late 1970s and early 1980s.

Samsung Electronics increasing focus on technology led to the creation of two research and
development (R&D) institutes that helped expand its reach even further into electronics,
semiconductors, optical telecommunications and new fields of technology innovation from
nanotechnology to advanced network architectures. In 1980, a major milestone was the merger
between Samsung Electronics and Samsung Semiconductor.

In 1987, Samsung Electronics' founding Chairman Byung-chull Lee passed away. His son, Kun-
hee Lee, succeeded him as the new Chairman. During this period, Samsung Electronics
challenged itself to restructure old businesses and enter new ones with the aim of becoming one
of the world's top 5 electronics companies.
Produced over 20 million colour TVs. Samsung Semiconductor & Telecommunications Co.
merged with Samsung Electronics. Home appliances, telecommunications and semiconductors
were selected as core business lines. Samsung Advanced Institute of Technology (SAIT) opened
for R&D purposes. Developed the world's smallest, lightest 4mm video tape recorded. Exported
first VCRs to the US. The company's name changed to "Samsung Electronics Co. Ltd". Sales
exceeded 1 trillion won. Began production of personal computers (PCs). Korea
Telecommunications Co. was renamed as Samsung Semiconductor & Telecommunications Co.
Produced 10 million black-and-white TVs. Established 1st overseas manufacturing subsidiary in
Portugal. Semiconductor business was moved to Korea Electronics Information Co. Began

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producing air conditioners. Opened the R&D Centre in Suwon. Merged with Samsung
Semiconductor Co.

1991 – 1993

Competing in a changing tech world

The early 1990s presented tremendous challenges for high-tech businesses. Mergers, coalitions
and buy-outs were common while competition and consolidation flourished.
Companies were pressed to rethink their technology and services offerings. Business began to
flow across borders between countries and companies. Samsung Electronics made the most of
these opportunities by refocusing its business strategy to better respond to market demands.

Samsung Advanced Institute of Technology (SAIT) developed first-ever digital video disk
recorder (DVD-R). Samsung Group enacted the company identity. Samsung Group announced
"New Management". Developed mobile phone system. Developed world's first 64M DRAM.
Produced over 10 million industrial robots. Began manufacturing in China. Developed mobile
phone handset.
1994 – 1996

Becoming a global force

In the mid-1990s Samsung Electronics revolutionised its business through a dedication to
making world-class products, providing total customer satisfaction and being a good corporate
citizen all under the vision of quality first. During this period, 17 different products from
semiconductors to computer monitors, TFT-LCD screens to colour picture tubes climbed into the
ranks of the top-five products for global market share in their respective areas and 12 others
achieved top market ranking in their areas. Being No.1 also means fulfilling corporate social
obligations, whether the cause is social welfare, environmental conservation, cultural events or
sports.
To that end, Samsung Electronics actively participated in sports marketing and as a result of its
intensive efforts, its then-chairman, Kun-hee Lee, was selected as a member of the International
Olympic Committee (IOC) in July 1996, greatly enhancing the company image as a key
contributor to world athletics.

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Developed the 1G DRAM. Began mass production of 64M DRAMs. Samsung Advanced
Institute of Technology (SAIT) developed world’s first real-time MPEG-3 technology.
Developed the world’s first 33" double-screen TV. Developed the world’s first 256M DRAM.
Produced over 30 million microwave ovens
1997 – 1999
Advancing the digital frontier

Despite the 1997 financial crisis that affected nearly all Korean businesses, Samsung Electronics
was one of the few companies that continued growing, thanks to its leadership in digital and
network technologies and its steady concentration on electronics, finances and related services.

Developed the world's first 3D TFT-LCD monitor. Developed a wireless internet phone
(smartphone). Launched the world's 1st MP3 mobile phone. Achieved top share of world's TFT-
LCD market. Began the mass production of world's first digital TV. Developed a complete flat-
screen TV. Served as an Olympic Partner at the Nagano Winter Olympics. Developed world's
first 128MB Synchronous DRAM and 128MB flash memory. Became a Worldwide Olympic
Partner (TOP) in the wireless communications category. Developed world's first complete 30"
TFT-LCD. Announced 2nd phase of "New Management"

2000 – 2004
Pioneering the digital age

The digital age has brought revolutionary change and opportunity to global business and
Samsung Electronics has responded with advanced technologies, competitive products and
constant innovation.

Established a LCD manufacturing facility in Tang Jeong. Established a System LSI R&D centre
in China. Established S-LCD with Sony, to manufacture TFT-LCD panels. Established TSST, to
manufacture optical storage devices. Established SESK, a manufacturing subsidiary in Slovakia.
Became #1 globally in flash memory. Achieved cumulative sales of over 10 million units for the
SGH-T100 mobile phone launched in 2002. Became #1 in NAND flash memory and #2 in
semiconductors worldwide. Signed a patent sharing license agreement with IBM. Began mass

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production of 512Mb flash memory devices. Created the World Cyber Games. Established a
Design Management Centre. Recorded cumulative sales of over 100 million units of colour TVs

2005 – Present
Fortune global top company, Samsung

With the success of its electronics business, Samsung has been recognised globally as an
industry leader in technology and now ranked as a top 10 global brand.

Became the official sponsor of Chelsea, the English Premier League football club. Developed
world's first 50 nanometres 16Gb NAND flash memory. Developed the world's first 40
nanometres 32Gb NAND flash memory, 50 nanometre 1GB DRAM memory. Became an official
sponsor of the Paralympic Games. Became #1 in global TV market share. Developed the world's
first 40 nanometer DRAM. Samsung's brand value was ranked No. 19 in the world by
Interbrand's 2010 Best Global Brands. Established TV manufacturing in Russia. Became an
official Olympic technology sponsor.

Samsung Electronics began mass production of the industry’s first 12 GB LPDDR4 mobile
DRAM. September: Samsung Electronics launched the Gear S2, a stylish smart watch with a
versatile circular design and rotating bezel. September: Merger of Cheil Industries and Samsung
C&T Corporation. August: Samsung Electronics began mass production of the industry’s first
256GB V-NAND flash memory.

Samsung Electronics launched the mobile payment service. Samsung Electronics launched
Galaxy S4 in the Korean market and global markets. Samsung Electronics began mass producing
the world’s first 20 nanometer 4GB ultra-high-speed mobile DRAM. Samsung Electronics
unveiled Galaxy S4. Samsung Bioepis entered into the development and marketing partnership
with Merck of the US. Samsung Display Passes 300 Mil OLED Panel Output Mark. Samsung
recorded the accumulated global shipment volume of 0.1 billion units with Galaxy S smart phone
series

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Samsung Display was established as the world’s largest display company. Vice Chairman& CEO
of Samsung Electronics Kwon Oh Hyun took office in 2012. Samsung Electronics established an
IT community center in the Korean village in Uzbekistan. Samsung Electronics opened Mandela
Multi-Purpose Community Center. Samsung Electronics won the Innovation Awards at the CES
2012 with 30 products. Samsung Electronics was selected as one of the ten brands with the
highest values in Africa. Samsung Electronics sponsored the 2011 London World Skills
Competition as a Premier Sponsor. Cheil Worldwide won the Grand Prix at the Cannes
International Advertising Festival. Samsung Biologics held the ground breaking ceremony of a
plant at Songdo District of Incheon FEZ.

Samsung Electronics launched construction of the 7.5G LCD Fab plant in Suzhou, China.
Samsung established Samsung Biologics; a joint venture specialized in biopharmaceuticals.
Samsung made relief activities in earthquake-stricken areas of Japan. Samsung Electronics
signed the patent cross license agreement with IBM of the US. Launched the Generation17
program in partnership with UNDP. Introduced Galaxy Z Flip and Galaxy Z Fold2 with
innovative form factors. Launched Samsung Galaxy S20 series, Samsung’s first full-5G flagship
line up.

Unveiled 110” Samsung MICRO LED.

Released 5G smartphone ‘Galaxy S10 5G. Completed the development of EUV-based 5nm
process technology. Announced plans for KRW 133 trillion investment in logic chip business by
2030. Began mass production of industry’s first 12GB LPDDR5 mobile DRAM for premium
smartphones. Unveiled industry’s first 108MP image sensor for smartphones. Released the
‘Galaxy Fold’, creating a whole new mobile category. Introduced BESPOKE refrigerator,
opening a new era of personalized appliances. Provided the world’s first 8K HDR10+ content on
its TVs.

Launched 'QLED 8K' and world’s first modular TV ‘The Wall’. Unveiled Samsung and
HARMAN's '2018 Digital Cockpit'. Built cutting-edge EUV semiconductor line in Hwaseong,
Korea. Launched 'Galaxy S9/S9+' and 'Galaxy Note9'. Debuted world’s first '3D Cinema LED'
for movie theatre. Announced medium-to long-term global expansion plans of renewable energy.
Mass-produced world's first 'fifth-generation V-NAND' and developed '8GB LPDDR5 D-RAM'

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Samsung Galaxy S Series, M Series, Tab Series, Fold, A Series, F Series, Smartphones released
in 2021. Samsung's 2022 portfolio includes the revolutionary S95B Samsung OLED 4K TV,
which incorporates Quantum Dot technology to achieve higher peak brightness that approaches
QLED TVs, exceeds traditional competitive OLED models, while maintaining the near perfect
blacks of existing OLED TVs. Samsung Advances New Era of Screens with Its New 2023 Neo
QLED, MICRO LED and Samsung OLED Line-up, Boasting Powerful Performance, Secure
Connectivity and Personalised Experiences. “It will be a 5G-first approach for Samsung this
year. We are starting (our launches) much ahead of time,” said Raju Pullan, senior vice
president, Samsung India. Samsung aims to strengthen top position in 2023 with 5G-first
approach, affordability plans. Samsung Galaxy S23 Ultra 5G, Samsung Galaxy S23 Plus 5G,
Samsung Galaxy Note 22 Ultra are the latest phones of Samsung.

• SAMSUNG LOGO

1. The first logo of Samsung was developed in year 1958.

2. The 2nd logo from year 1979 to 1993.

3. The present logo of Samsung from year 1993.

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 Chapter 2: Research Methodology

 Marketing Research
Marketing research is the function, which links the consumer, customer and public to the
marketer through information.

Information used to identify and define marketing opportunities and problems: generate, refine
and evaluate marketing action, monitor marketing performance, and improve understanding of
market as a process.

Marketing strategies of Samsung vary in their specific objectives. They may be used to correct
new customer, to reward loyal customer’s ad to increase the repurchase rates of occasional users.
Sales promotion usually targets brand switchers because non-users of other brands do not always
notice a promoting.

 Sources of Data

In this study the most data collection instrument used is the questioner’s method. The
questioner has been designed with both open ended and close 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 questioners to the marketing

executives of the company. Data was also obtained from the observation and interviews
techniques adopted by the researchers. Moreover, information was disseminated by the
departmental heads.

 Secondary Data
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Here the information is obtained from the brochure of Samsung group, books, websites,
newsletter, generals, magazines, newspaper, etc.

Chapter 3: MANAGERIAL ASPECTS OF COMPANY

 3.1 The Samsung Philosophy

At Samsung, they follow a simple business philosophy: to devote their talent and technology to
creating superior products and services that contribute to a better global society.
Every day, their people bring this philosophy to life. The 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 its 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 all is about.

 3.2 Mission of Company

Samsung doesn’t have an official mission but express it through company’s philosophy:
Samsung’s mission statement is “We will devote our human resources and technology to
create superior products and services, thereby contributing to a better global society.” The
mission of Samsung is:
 Supporting people to be their best [On the basis of human resources & technologies]
 Create the best products and services

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  And contribute to society

 3.3 Values of Samsung

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.

1. People

Quite simply, a company is its people. At Samsung, we’re dedicated to giving our people
a wealth of opportunities to reach their full potential.

2. Excellence

Everything we do at Samsung is driven by an unyielding passion for excellence—and an

unfaltering commitment to develop the best products and services on the market.

3. Change

In today’s fast-paced global economy, change is constant and innovation is critical to a

company’s survival. As we have done for 70 years, we set our sights on the future,
anticipating market needs and demands so we can steer our company toward long-term
success.

4. Integrity

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 Operating in an ethical way is the foundation of our business. Everything we do is guided
by a moral compass that ensures fairness, respect for all stakeholders and complete
transparency.

5. Co-prosperity

A business cannot be successful unless it creates prosperity and opportunity for others.
Samsung is dedicated to being a socially and environmentally responsible corporate
citizen in every community where we operate around the globe.

 3.4 Vision

“Samsung is dedicated to developing innovative technologies and efficient processes that create
new markets, enrich people's lives and continue to make Samsung a digital leader.”

A vision statement is a broader perspective of companies aim. Throughout time where a

company wants to see itself – is explained in the vision statement.

“To inspire the world with our revolutionary technologies, products, and design that enrich

people’s lives and contribute to social prosperity by creating a new future,” says Samsung’s
vision statement.

 3.5 Product & Service

1. Smartphones 2. Sound Devices

3. Tablets 4. Refrigerators
5. Audio Sound 6. Laundry
7. Watches 8. Air Solutions
9. Smart Switch 10. Cooking Appliances
11. Mobile Accessories 12. Monitors
13. TVs
A. Key Products
1. LED TV Premium Design Monitor

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 2. Note PC SPH-M800 Instinct
3. SGH-A867 Eternity SGH-A877 Impression
4. HZ15W TL320
5. Full HD Camcorder MP3 Player
6. Color Laser Printer Microwave
7. Refrigerator 8M-pixel CIS (CMOS Image Sensor)
8. 800MHz Mobile AP Mobile DDISmart Card IC
9. 2Gb DDR3 SDRAM 1Gb GDDR5 SDRAM

 3.6 Major Competitors of Samsung

A company's competitors are companies who are trying to sell similar goods or services to the
same people.
1. Apple 2. Intel
3. LG Electronics 4. Godrej
5. Sony 6. Lenovo Group Limited
7. HTC 8. Panasonic Corporation
9. Huawei Technologies 10. Whirlpool

 3.7 Board of Directors

Han, Jong Hee
ㆍ Vice Chairman & CEO [2022~Present]
ㆍ Vice Chairman & Head, Device experience
[2021~Present]
ㆍ President & Head, Visual Display Business [2017~2021]
ㆍ Head, R&D Team, Visual Display Business [2015~2017]
ㆍ Head, R&D Office, Visual Display Business
[2013~2015]
ㆍ Head, Product R&D Team, Visual Display Business
[2011~2013]
Kyung, Kye Hyun
ㆍ President & CEO [2022~Present]
ㆍ President & Head, Device Solutions [2021~Present]
ㆍ CEO, Samsung Electro-Mechanics Co., Ltd. [2020~2021]
ㆍ Head, Solution Product & Development, Memory Business
[2018~2020]

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ㆍ Head, Flash Product & Development, Memory Business [2015~2018]
ㆍ Head, Flash Design Team, Memory Business [2011~2015]

Puneet Sethi
• Vice President & Head - Enterprise Business at Samsung India Electronics (Present)

Chapter 4: ABOUT SAMSUNG

 4.1 MARKETING MIX

Marketing basically consists of elements we called marketing mix. Borden was the person who
claims that he used the term marketing mix for the 1st time and this thing was suggested by
Culliton (Goi, 2009). The only (P) from which the concept of marketing mix is originating is
(price) of microeconomic (Wai, 2003). The other P’s was introduced in the marketing mix for
the purpose of facing highly competitively marketing situation (Low and Tan, 1995).

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 Source: Figure 1.1: The 4P marketing mix model. (Meghna Jain & Fang Han 21/05/2012)

The idea of the marketing mix can be compared with the idea of mixing a cake during baking. A
baker changes the proportions of ingredients in a cake depend on the type of cake which he
wants to make. The proportions in the marketing mix differ from product to product. (Nazari &
Eavani, 2012). The firm’s competitive position can be changed depending on the components of
marketing mix (Gronroos, 1994).

To pressure the buyer’s reaction a firm can use the components of marketing mix (Kotler, 2000).
These variables refer to as 4 ‘P’s:

1. Product
2. Price
3. Place (Distribution)
4. Promotion

Every firm try to create a best combination of 4‘P’s, which can satisfy the consumer needs and at
the same time meet its organizational objectives (Nazari & Eavani, 2012). According to the
businessman point of view 4P’s are most important in the following arrangement: price, product,
distribution, and promotion (Sanghvi, 2014). Businessmen do not give the equal importance to
these components of marketing mix. They think that price and product are the most significant
components of marketing mix than place and promotion (Sanghvi, 2014).

Products in the marketing mix of Samsung:

1) Tablets
2) Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV etc
3) Cameras and Camcorders
4) Refrigerators
5) Air conditioners
6) Washing machine
7) Microwave ovens
8) IT – Laptops, printers and accessories)

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9) Mobile phones – Smart phones, normal phones

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 points for Samsung.

1. PRODUCT
When it comes to its products, Samsung has a clear advantage.
Samsung products are trusted since they have delivered excellent
results in recent years. Samsung is well-known for its services, and
buyers should be aware that any of its products can be serviced
extremely quickly. As a result, one of Samsung’s strength points in
the marketing mix is its product line.

Samsung’s product categories are as follows:

1. Tablets
2. Mobile phones
3. Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV, etc
4. Cameras
5. Refrigerators
6. Air Conditioners
7. Washing Machine
8. IT – Laptops, printers, and accessories

Basically, the product can be divided into two product, core product and actual product. There is
another type of product that can be called augmented product that is around the both core and
actual product. Any kind of product is important for the marketer whether the product is the core
product or the actual product. Core Product is related to provide the central benefits to the end
users. And it is also defining the benefit of the customer when a customer buys the product.

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Actual product is related to the components of the product and other things that are related to the
product such as packaging, brand name, quality, design, features and colours. On the other hand,
the augmented product provides the other benefits associated with the actual and core product
such as warranty and after sales service (Kotler, Armstrong, Saunders, & Wong, 1999).

The warranty of a product is most important element of after sale support. The manufacturing
organizations take it as a part of after sale service (Murthy, 2002). The quality of the product can
be assessed by the customer on the basis of the warranty that is provided by the manufacture of
that product. The quality of product should be according to the customer’s expectation and also
create value for the company (Murthy, 2002).

Warranties also play an important role in the maintenance of the company better image in
the market and in the eyes of the loyal users. Therefore, the firms try to provide the best warranty
service to their customers for that
reason the customer cannot easily
switch off to the other competitor’s
brand (Ullah, 2011). Packaging
of a product is very important for a
number of reasons. But in the real
terms packaging is the factor that is
directly connected itself with the main
product and use to identify the
product. (Vidales Giovannetti, 1995).

Packaging is very important from the customer point of view. It is the main thing that the
customers take into account before making the final assessment to buy a product (Vidales
Giovannetti, 1995).

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Source: Three Levels of Product (Kotler, Armstrong, Saunders, & Wong, 1999). Pg.562

BRANDING STRATEGIES FOR PRODUCT

There are many strategies of how to offer a product in the market also known as product
branding strategies. (Kotler, 2000).

1. MANUFACTURING BRAND:

The product that is sold with the name of manufacturer. This strategy is most commonly
used. There are different advantages and disadvantages of this strategy that are directly affect
the producer of a product.

Customer reliability and price premiums are the main advantages of this strategy. There is a
long time required to build a new brand and the manufacturer have to bear high cost to build
a new brand that are the main disadvantages of this strategy.

2. PRIVATE BRAND:

We can define the private brand as the product produces by a one company on the
specifications of other related company (Kotler, 2000).

3. CO-BRANDING:

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 Co-branding is the combination of two or more than two brands (Kotler, Armstrong,
Saunders, & Wong, 1999). Co-branding is used to increase the sales of a particular product.
(Kotler, 2000).

2. PRICE
Samsung is a market leader and authority in smartphones and other
consumer electronics. It is a major player in the home appliance
business, with two pricing schemes to satisfy its clients.        
When Samsung releases a new smartphone with cutting-edge
technology, the corporation employs the price-skimming tactic.
This enables it to make a large profit. When competitors launch
identical products, the price of that specific product is reduced to
acquire market share and increase sales.
Other Samsung items, such as refrigerators, televisions, and air
conditioners, have comparable prices as well. This is because there
is a lot of competition in the market from other brands providing identical products. Competitive
pricing, on the other hand, might occasionally result in lesser profitability.

According to the (Curry, November, 1990), the price sensitivity can be determined through a
number of ways:

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 1) To determine how much the real sale is on a particular price of a company’s product.
2) To check the consumer preferences related to a product on different prices.
3) Price sensitivity can also be determined through laboratory research experiment.

All the times every pricing strategy is not suitable therefore, we have to select a best one strategy
(Griffith & Rust, 1993). A manager can select the most appropriate pricing strategy from
different alternatives. (Cole Ehmke, Joan Fulton, and Jayson Lusk).

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 people’s 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.

BRANDING STRATEGIES FOR PRICE

There are different strategies that a manager can use to set the price of their products (Cole
Ehmke, Joan Fulton, and Jayson Lusk):

1) Cost-plus:

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Accurately assessment of fixed and variable costs is an important part of this pricing method.
This method adds up a standard percentage of profit in cost.

2) Value-based:

This strategy is based on the buyer’s perception of value. The perception of the buyer
depends on all aspects of the product, whether these are non-price factors such as quality,
healthfulness, and prestige.

3) Competitive:

This price strategy is related with the price of the competitors. Company set price according
to their competitors for the purpose of competing with them.

4) Going-Rate:

A price strategy which is set by the company for the purpose of staying in the market.

5) Marketing Skimming:

It is a technique of pricing through which a high price is being set at the initial stage of the
price and then reducing the price according to the market.

6) Discount:

Price strategy for reducing price from the market price.

7) Loss-leader:

A price strategy through which a company sets the price below the cost to attract the
customers.

8) Psychological:

This strategy through which a company set the price which seems good to the customers.

9) Break Even Pricing:

By using this strategy company determine the price of their product that covers all expenses.
At breakeven price company gains no profits and bears no loss.

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 3. PLACE
Place is an important factor for the success of any brand. The basic
purpose of producing goods is to sell them to the customers. With
the evolution of the distribution network, the relationship between
the manufacturers, distributors and end users have been improved.
(Cohen, Agrawal, Agrawal, & Raman, 1995). A company can use
these channels to sale their product to the target customer (Kotler,
Armstrong, Saunders, & Wong, 2002).

Samsung’s e-commerce store has an easy-to-use user interface,

detailed product categorization, and thorough descriptions.
Customers can buy any electronic device from the comfort of their
homes.

Company can use different direct and in direct channels to distribute its products in the market
(Kotler, Armstrong, Saunders, & Wong, 2002). Direct channel is the best distribution channel
that is used by the producer. The most of the successful companies use direct channel for the
success of their business. It is a very motivated and cost saving strategy a company chooses. But
at that stage it is very difficult for the producer to choose direct channel because after choosing
that if further firm need to select any kind of other channel for distribution it become very
difficult for the firms. (www.entrepreneur.com).

Distribution channels can be defined as a bridge between company and their final consumer
(Stern & T., 1980). With the evolution of the distribution network, the relationship between the
manufacturers, distributors and end users have been improved. (Cohen, Agrawal, Agrawal, &
Raman, 1995). Company’s sales depend on the choice of channels (Kotler, 1998). Manufacturers
choose their distribution channels according to the profit they want to earn because if the
distribution channel fails, the company has to bear loss. If a manufacturer takes a wrong decision
while selecting the distribution channels then the all other elements of marketing mix will be
affected. So distribution is very important for all the types of organizations (Wu, Ray, &
Whinston, 2008).

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From above literatures, we find selling product through distributors and selling in large number
of countries prove beneficial for business.

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.

BRANDING STRATEGIES FOR PLACE

There are many strategies of how-to distributer a product in the market also known as branding
strategies for product (Kotler, 2000).

1) DIRECT CHANNEL: To distribute their product directly to the end users. The perfect
example of direct channel is Dell Computers. It provides its products directly to the end
consumer. The plus point of this distribution strategy is that the manufacturer has an
entire control over the prices charged to the final consumer and has a fully control over
distribution (Kotler, 2000).
2) INDIRECT CHANNEL: To distribute their products to the end users by using
intermediaries. The intermediaries include wholesalers and retailers. The negative point
of this strategy is that the company has not fully control over the prices charged to the
final customers (Kotler, 2000). Companies use this channel because intermediary has a
complete knowledge about the market (Kotler, Armstrong, Saunders, & Wong, 2002).

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 Source: (Marketing Mix: Place) http://www.learnmarketing.net/place.html

4.

PROMOTION
Promotion plays an important role in persuading the consumer
for purchasing your product. It is helpful for consumers to get
information about brand. Promotion is a set of activities that a
company can use to communicate with their existing and
prospective consumer (Kotler, Armstrong, Saunders, & Wong,
2002). The marketing promotion mix includes advertising,
publicity, sales promotion and personal selling. The first three
element of promotion mix are used to interact with the group of
potential consumers and the last element of promotion mix is
use to interact with individuals, which includes personal
communication, telephone communication and electronic communication (Onditi, 2012).

We can define the promotion as way of communication between the Manufacturers and the end
users. To communicate with consumers, a company can use one or more of the promotional
alternatives that are personal selling, advertising, sales promotion and public relation (Onditi,
2012). Consumer’s selection behaviour is affected by the retail promotion.

Promotions in the marketing mix of Samsung.

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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.

They have invited celebrities to become ambassadors of their brand. Promotion is an excellent
strategy to take advantage of these celebrities’ followers. Posters and billboards are placed on the
roads, using different promotional tactics to encourage customers to buy their products.

Even after being a notable name in the Asian market, Samsung relies heavily on the American
market. Samsung spent nearly $2.3 billion on advertising in the USA alone in 2021.

BRANDING STRATEGIES FOR PROMOTION

A company can use different strategies in order to communicate with their customers.

1) ADVERTISING:

Through advertising a company can communicate the information of their products to their
customers. Different medium is used for advertising such as the press, television, Email,
radio and outdoor (Kotler, 2000). Advertisement is most important element to build strong
relations with brands (Bayode, 2011). Advertising strategy can be used in order to aware the
customer about your product. Company uses this strategy to inform their customer about
price fluctuation of their products (Bayode, 2011).

2) PERSONAL SELLING:

This strategy is used to interact to the customers personally. In this strategy the company
representative sales the products of their company by using face to face communication.

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 Companies use this strategy to understand customer priorities (Kotler, Armstrong, Saunders,
& Wong, 2002). Through personal selling a company can create consumer values in several
ways. For example, by using face to face communication a company can solve the
consumer’s problems easily (Onditi, 2012).

3) SALES PROMOTIONS/TRADE PROMOTIONS:

Sales promotions can be defined as a type of indirect advertising that are used to increase
sales by giving incentives such as trade discounts, free trails and temporary drop in prices
(Bayode, 2011). By using sales promotion strategy companies can increase their sales in
short run. On the other hand, the trade promotion strategy is used to influence distributors
and retailers to buy large volumes of products and to advertise them (Kotler, 2000).

4) PUBLIC RELATION:

The main focus of this strategy

is to communicate the positive
feature of a business or a
product. This strategy is used
to increase the goodwill of a
business and their product.

PROMOTIONAL MIX STRATEGY

While promoting their products, a marketing manager can select two alternative strategies.

These strategies are:

1) Push strategy.
2) Pull strategy.

1) PUSH STRATEGY:

In this strategy the manufacturer directs their marketing activities channels members to influence
them to bring their product or promote the final product to the end users.

Companies that use the Advertising and sales promotion are often adopt the push strategy.

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(Bayode, 2011).

2) PULL STRATEGY:
In this strategy the manufacturer directs their promotional activities to the end consumers to
encourage them to demand for the product to the retailer. Due to increase in demand the retailers
ask the wholesalers for product. Personal selling and public relations play an important role in
this strategy. (Bayode, 2011)

 4.2 SWOT ANALYSIS

SWOT analysis is a strategic planning technique that can assist a person or organization in
identifying their strengths, weaknesses, opportunities, and threats in the context of
commercial competitiveness or project planning.

1. Strength
2. Weakness
3. Opportunity
4. Threat
1. Strength
 Accessory to necessary.
 Air-conditioner are no longer perceived to be an item of luxury.
 Advancement of technology
which gives companies’
ability to introduce new
products and new product
features.
 High growth key driver
being urban and rural.
 Government policies in favour of infrastructure development and reduction in
excise duty and so on.

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2. Weakness
 Supply continuous to outstrip demand.
 Demand cyclical and seasonal.
 Volatile performance of the agricultural sector has negative impact on demand.
The sectors performance is highly dependent on monsoon and reforms which has
filled often.
 Despite diversifying its resources and expanding its operations in Asia, Samsung
remains heavily reliant on American markets.
 Samsung has produced several defective items to the market, including an
exploding Samsung Galaxy A20e and a malfunctioning foldable phone.
 Samsung’s smartphone sales have been declining since 2017. Due to the Chinese
market’s price sensitivity, a similar tendency was observed.

3. Opportunity
 Diversification and developing new products for new market.
 Easy availability of finance has stimulated consumers to buy durables.
 Changes in Consumer outlook from spend now-save later mentality leading to
high disposable income.
 As the globe transitions to 5G, Samsung has the capacity and know-how to
capitalize on this opportunity.

4. Threat
 Dozen companies operating in the white goods segment. Prices would continue
to remain depressed and margins will be under pressure.
 Threats of cheaper imports from China and other South East Asian countries.
 Samsung has been entangled in several controversies that have jeopardized its
business. Apple has filed a lawsuit against Samsung for patent infringement.
 Competition from competitors, particularly those in the consumer electronics,
smartphone products, and computing industries, has reached an all-time high.

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 Whether it’s Xiaomi, Apple, or Huawei, all of the technological competitors are
outsmarting and exceeding one another in their quest to become the top
technology firm.
 Recent developments have heightened uncertainty in the worldwide market,
resulting in a drop in new smartphone sales.

 4.3 PESTEL ANALYSIS

P -Political Factor

E -Economic Factor

S -Social Factor

T -Technological Factor

E –Environmental Factor

L-Legal Factors

1. Political

Political environment is favourable in some markets for the Samsung but still some foreign
markets create the problem for the Samsung. Political instability and government attitude
towards the industry affect a lot the company profit. The company has to face a number of
political issues in South Korea.

2. Economic

This factor affects a lot the Samsung. Company has to expand their footprints due to the
development of the market. Due to this the buying behaviour of the customers is reduced and
company has to find some kind of profitable solution. That’s why Samsung choose an aggressive
push to maintain their position in the market. Economic factors also affect the level of taxation,

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Interest Rate, Change in Cost of Labour. Company is also impacted by growth or decline in the
industry of the specific country.

3. Social

Samsung is a family oriented multinational company. Samsung change their all kind of aspect
according to the demand of local areas. Also, Samsung change their product speedily by
knowing the preference of the consumer in the market. The increasing trend of mobile usage in
the market increase Samsung product consumption in the market. Samsung prove to be the most
effective form in the market.

4. Technological

Samsung is the leading company that adopts innovation in their technology. The basic aim of the
company is to be first in the market that offers the latest product in the market. And that help the
company gain competitive advantages in the market. Samsung adopt the technology as soon as
possible to maintain their stage in the market.

5. Environmental

Environment impacts are on all types of business. Some effects are positive but some are
negative. Samsung Company also keeps in mind the pollution and waste. This factor affects a lot
the company but is have no direct impact on the trade and profit this is because environmental
factor affects only agricultural business in the market. Samsung have to make their products in
an environmentally and responsible manner.

6. Legal

Samsung have to face many penalties for charges it imitated the apple iPod and iPhone. This
factor effects the reputation of the company. Samsung have to maintain their self-according to
lawsuits they have to face.

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  4.4 Effective Advertisement
 4.4.1. Effective Advertisement and Consumer Attitude
The following model exemplifies the attitude or response of a consumer to an advertisement
and a glance through the following pictorial presentation would simplify our understanding
of the advertisement’s effects on thinking response and it also magnifies the peripheral and
associative effect of an advertisement.
A Model of the Feeling –
Decreases amount
Response to Advertisement of total thinking
A rather simple explanation of
how a feeling – response
Raises product Increases ratio of
advertisement works is that
attribute positive to negative
people like it or dislike it is an valuation thoughts
advertisement, and this attitude
Increase positive
gets transformed to or associated Transform use product attribute
experience attitude
with the product in the
advertisement. There is thus the
Advertising
potential for a direct causal link -Evoked
Positive
between the attitude towards an Increases Attitude
Affective
towards the
advertisement and the attitude Response
Advertisement
and behavior towards a product.
As noted in the diagram, feelings Increase
engendered by an advertisement Evaluation of
Advertisement
can create or influence an attitude characteristics
towards the advertisement

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directly, as well as indirectly, through assessment of the quality of the advertisement’s
exceptional characteristics. In fact, some researchers believe that attitude to the advertisement
really has two different components; an effective one, reflecting the direct effect of the feelings
evoked by the advertisement, and a second more cognitive one, reflecting how well is the
advertisement made and how useful is the advertisement.

It is important, in understanding how an advertisement ultimately affects consumer attitude; to

see what kind of attitude people develop toward the advertisement itself. If the feeling that the
advertisement creates are positive, and if the way the advertisement is made is evaluated
favorably, then the advertisement should elicit a favorable attitude towards itself and vice-versa.

In respect of the viewers of the advertisement, the matter of concern is that, how far does it
influence them and how should it influence them in the right direction. Viewers of
advertisement, who are the mass, have got their own outlook and their own way of
understanding. The customers are to depend on the advertisements, only till he gets the product.
After buying and using the product for the first time, comes the response to the advertisement.
This can be in three different levels viz.

At the first level, when the consumers are fully satisfied, they will respond favorably to use the
product continuously, subject to the price and the availability of the product. Continuous
advertisement in various media further influences the listeners to build up a positive attitude
towards the product. This leads to the change in the consumption behavior of the society, which
leads to a great level of social and cultural change among the people in general.
The next level is the stage of getting dis-satisfaction by the consumers on the use of the product,
on persuasion by the advertisement. This will lead to consumer resistance to the product. The
dissatisfaction at this state means that the quality or the contents of the utility value of the
product might not have reached the height expectations created by the advertisement. If the
product or service at this stage is able to satisfy at least a section of the people, then it can service
higher and thus will serve as forbidding factor. As far as the attitude formation is concerned, this
stage can be considered as a formative stage. But if the product fails to reach, not even a section

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of the society in total, it will lead to the product withering away from the market in course of
time.

The third situation leads to a stage, when the viewer’s understanding that the advertisement
misguides them or giving a wrong information deliberately. Under this situation the viewer loses
confidence on the advertiser, producer and the seller. This leads to a negative attitude on the
marketing of the products of the company in general. The defects are to be brought to the
knowledge of the producer to give a chance for him to correct the mistakes, if it is so. When
there is no proper response for this complaint, then it leads to earning discredit from the
customers.

 4.4.2. An Ideal Consumer Feeling

In order to ensure that the advertisements reach the target consumers in a most effective way
and begets right response from, it has to be ensuring that such advertisements are presented
in the right way. The following steps on the part of consumer may ensure that the
advertisements are on the right track.
1) Getting attracted towards the advertisements.
2) Listening and observing the contents of the advertisements in full.
3) Continuous watching of the same over a period.
4) Comparing the advertisements of similar products.
5) Learning more about the product, the producer and the advertiser.
6) Making a trail purchase as follow up activity.
7) Using the product as per the instructions.
8) Assessing the level of utility of the product individually.
9) Assessing the level of utility derived with other similar consumers.
10) Comparing the level of utility of the product with similar products.
11) Decision-making regarding the continuous use of the product, and to recommend to
others, positively or negatively.
12) If not satisfied with the product discrepancy regarding the quality and the characteristics
of the product are to be taken to the knowledge of the producer and the advertiser.

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  4.5 Marketing strategy of Samsung

 4.5.1 Background
Prior to liberalization, the consumer durable sector in India was restricted to a handful of
domestic players like Godrej, Alwyn, Kelvinator, Voltas. Together, they control nearly 90% of
the market. They were first superseded by the players like Videocon in the early 1990, who
invested in brand building and in enhancing distribution and service channels. Then with the
liberalization came aspect of foreign players from LG Electronics to Sony to Aiwa.

Rs.23000cr consumer durable industry can be divided in to two types, consumer electronics and
consumer utilities. Consumer electronics is basically is entertained system like Television,
VCRs, and Audio System and Home theater systems. Consumer utilities are other household
appliances like Refrigerator, Washing Machine, Air-Conditioners, food processors, and vacuum
cleaner. On most third world countries, consumer durables like Refrigerator and Television are
most popular. Out of this, the television segment is undoubtedly the largest segment. Products in
the white good segments come next to the CTVs in the purchasing hierarchy of the Indian
consumer.

Over the years demand of consumer durables has increased with rising income levels, durable
double income families, changing lifestyle, availability of credit, increasing consumer awareness
and introduction of new model. Products like Air-Conditioner are no longer perceived as luxury

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product, while TV draws its share from both Urban and Rural refrigerator and washing machine
are still inclined towards Urban.

 4.5.2 Current Scenario

Most of the segments in this sector are characterized by intense competition, emergence of
companies (especially MNCs), introduction of state-of-the-art models, price discounts and
change schemes. MNCs continue to dominate the Indian consumer durable segment, which is
apparent from the fact that these companies command more than 65% market share in the colour
television (CTV) segment. The Indian television industry has a size of around Rs 96 billion,
comprising colour television (CTV) of Rs 91 bn and B&W TV market of Rs 5 bn and other
markets (primarily video equipment) of Rs. 4-6 billion. In terms of volumes, the CTV market
was estimated at 9.05 million units and the B&W TV market at 2 million units during calendar
year 2011. Refrigerators constitute the second largest product segment within the Indian
consumer durables sector in India, with an estimated annual turnover of Rs 39 bn during FY2011
with an estimated sale of 4.1m units. The size of the room Air-conditioners industry is estimated
at 1.1 m in volume terms, and Rs 24 bn in value terms. Washing machines sales in India
aggregated an estimated 1.37m during FY2013 or around Rs 11 bn in value terms.

 4.5.3 Demand/Supply.
Supply growth is high across all the segments. But the organized sector has gained substantial
market share from the unorganized segment in recent years. However, there are fewer players in
segments like dishwashers and vacuum cleaners.

Cyclical and seasonal-Demand is high during festive season and is generally dependent on good
monsoons. There are certain factors in the consumer durables industry, which are considered as
demand drivers. They are:

1) The degree of distribution network in the market.

2) The advertising and marketing strategy adopted by the players in the industry.
3) The brand image of the product as perceived by the consumer.
4) The technology used by the company viz. state-of-art technology or an older version.

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 5) The ability of the company to introduce newer products and newer product features. The
capability of the company to service its products 'The discount schemes and consumer
finance facility available
6) The market positioning of the product
7) The cost competitiveness and pricing strategy of the company
8) The financial strength of the players
 4.5.4 Consumer Durable: Urban and Rural India.
1) In the top 5 million households, in affluence terms, 96 percent of households have colour
televisions, 82 percent own refrigerators, and 44 percent own washing machines.
2) In the next 7 million households, penetration of colour TVs is 69 percent, 58 percent for
refrigerators, and 19 percent for washing machines.
3) In the next tier of affluent households - numbering approximately 12 million - 50 percent
own colour TVs, 35 percent own refrigerators, and 8 percent own washing machines.

Rural India too is set to see an increase in the number of high-income households. An additional
4.6 million high-income households and 13 million middle-income households by 2011 to 2012
will take the number of rural households from 122.8 million to 139 million. This constitutes a
huge opportunity for marketers - 60 million households or 300 million consumers with the
capacity to buy consumer appliances and other products is an attractive market for any global
player. And it seems that global appliance players who have established brands in the Indian
market are likely to benefit from this great big push towards consumerism.

 4.5.5 Success Factor for Consumer Durable Industry

Indian consumer durables industry is going through a consolidation phase with MNC companies
going in for strategies to increase market share. Certain success factors for this industry are
identified follows:

1) Technology: Rising competition has resulted in major competitors introducing

technologically superior products at competitive prices. This means the technology input
is gaining more and more importance. In this regard, the large MNC players score over
their Indian counterparts as they can always source technology from their parents. On the
other hand, Indian companies rely on the outside sources for their technology
requirements

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 2) Knowledge of the local market: Indian consumer durables market is different from other
markets. Hence understanding these peculiarities is important for the long-term survival.
For example, Samsung launched the 'Super Horn" brand after it discovered that Indian
consumers prefer loud noise. Indian companies are better placed in this regard as they
know the market pretty well.
3) Strong distribution network: Tough competition means that a proper mindshare of the
consumer has to be maintained and the product has to be made visible. Volumes in this
business are narrow and profitability comes from volumes. To achieve volumes, deep
penetration of the market is necessary. Indian companies score a point here as being in
the market for a longer time; they have developed strong distribution channels.
4) Good brand image: Perception of a particular brand plays an important role in purchase
decision. A typical Indian consumer looks for value for money when he makes purchase
of white goods, as the price involved is significant and unlike developed markets, Indians
do not have the buy, use and throw mind-set. Hence, consumer also looks for reliability
of the product. All this is conveyed through strong brand awareness.

 4.5.6 Consumer Outlook.

The Change in Consumer 11 India is a country in a hurry - changing continuously and also trying
hard to keep pace with these changes. The 'me too' syndrome is no longer valid as consumers
seek customized products. 'The Indian consumer consumer's evolution in the last decade has
thrown up some interesting trends:

1) Consumer base becoming younger. Nearly a third of the country's population is under the
age of 14 years.
2) Kids graduating from pester power to decision makers.
3) People with buying power living longer and developing distinct health needs.
4) Multi-tasking consumers fighting paucity of time and new consumer trends.
5) Huge increase in High Income Groups and spend now-save later mentality leading to
high disposable income.

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 6) Consume wants to be treated as an individual not as part of a large physical mass and the
consumer looks for a 'post buy' relationship to enhance the value of her brand decision
making.
 4.5.7 Scenario in the consumers Durables sector
Prior to liberalization, the Consumer Durables sector in India was restricted to a handful of
domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together, they controlled nearly
90% of the market. They were first superceded by players like BPL and Videocon in the early
1990s, which invested in brand-building and in enhancing distribution and service channels.
Then, with liberalisation came a spate of foreign players from Samsung to LG Electronics to
Sony to Aiwa.

Both rising living standards, especially in urban India, and easy access to consumer finance have
fuelled the demand for consumer durables in the country. Also, the entry of a large number of
foreign players means the consumer is no longer starved for choice. But this has also resulted in
an over-supply situation in recent times as growth levels have tapered off.

 4.5.8 Major players

The major players in the consumer durables industry, operating in different sectors such as air
conditioners, washing machines, refrigerators & television include:
Blue Star Ltd., Micro Electronics Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd.,
Sony Corporation Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International
Ltd.

 4.5.9 Entry of Samsung in India

Emerging Markets (EMs) with large consumer bases and untapped demand constitute the major
growth opportunities for the multinationals and global companies. However, not all companies
are successful in establishing a foothold, leave alone operating profitably, in such markets. For
most, it takes years of struggle before they can even breakeven. Marketing is difficult in such
EMs because of little or no market data, non-existent or poorly developed distribution systems,
lack of regulatory discipline, and where regulations exist, a propensity to change them frequently
and unpredictably.

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Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer
Solutions Pvt. Ltd (RCSPL), owned by Venugopal Dhoot of the Videocon group. In 1998,
RCSPL diluted its stake in Samsung to 26% and in November 2002, the FIPB cleared Samsung's
proposal to buy RCSPL's remaining (23%) stake. With Samsung buying the total stake of
RCSPL, it became a wholly-owned subsidiary of its South Korean parent company. In spite of
being a latecomer to India, Samsung was able to become one of the top consumer electronics
companies in India, an emerging market was due to a combination of several aspects: Product
innovation, Promotion, Pricing, distribution and Positioning; wherein Samsung primarily focused
at.

The three-pronged objectives of Samsung are: -

1) Strengthening their channel relationships,

2) Enhancing their product portfolio and
3) Creating the best service infrastructure, to gain more mindshare."

 Positioning

Many multinational companies adopt a “less developed countries” mind-set, assuming that these
markets are at an earlier stage of the same development path followed by the developed
countries. To take the example of the automobile industry, Ford and GM launched their outdated
models like Ford Ikon and Opel Astra in the Indian market. When these models did not sell well,
the companies changed course and decided to launch newer models in India. In the case of
Samsung, the company from the very beginning launched its whole range of high technology
products, which included CTVs, audio and video products, information technology products,
mobile phones and home appliances in India. It introduced products such as the ‘Bio’ range in
CTVs, high-powered Woofer series of colour televisions in 21-inch and 29-inch conventional
and 21-inch flat TV segments. And not to forget the latest DNie television.

By positioning itself on the technology platform, Samsung was able to differentiate itself from its
competitors. Differentiation today is the key for a brand to be preferred by the consumers, when

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there are so many other brands within the same product category. Without differentiation, its
loyal customer base cannot be created or sustained. But to be a true differentiator, a company
must provide features that are meaningful to customers. Which is what exactly Samsung has
been doing.

 Products
1) Home appliance 2) Home Theater
3) Microwave Oven 4) Digital Audio Player
5) Refrigerator 6) Mobile Phones
7) Air Conditioner 8) Information technology
products
9) Washing Machine 10) Note PC
11) TV, video & audio 12) HDD
13) DVD Player 14) CD Rom & DVD Rom
Drive
15) Camcorder 16) Monitors
17) Audio 18) Laser Printers & Laser
Based MFPs.

Samsung’s product range in India includes CTVs, video products, information technology
products, mobile phones and home appliances. Its product range covers all the categories in the
consumer’s electronics and home appliances. According, to the analyst’s wide product range of
Samsung is one of the main reasons for its success in the Indian market. The wide range products
are as follows: -

Samsung by launching innovative products and using proprietary technology was able to gain
market share. Samsung has therefore set up Samsung India Software Centre (SISC) and Samsung
India Software operations unit (SISO) for software development at Noida and Bangalore
respectively. While the Samsung India Software Centre in developing software solutions in
Samsung’s global software requirements for hi-end television like Plasma and LCD TVs. SISO
is working 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. In addition to working on global R&D
projects, SISO is also helping Samsung India’s CDMA business by focusing on product
customization for the Indian market.

 4.5.10 Market share

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 Product Samsung's Competitors M/S Year
global M/S
DRAM 40.4% Hynix 19.8% Q3 2010
NAND Flash 40.4% Toshiba 33.1% Q2 2010
Large-size LCD Panel 26.0% LG Display 25.9% Q3 2010
(revenue)
Active-Matrix OLED 97% LG Display, AUO 1~3% 2010
Lithium-ion battery 18.7% Sanyo 19.4% Q1 2010
LCD Monitor 18.0% Dell 12.8% 2009
Hard disk drive 9% Seagate 31% Q4 2009
Technology
Television sets 17.2% LG Electronics 14.8% Q3 2009
(LDC, PDP, CRT, LED)
Mobile phone 21.0% Nokia 23.4% Q3 2010
Digital camera 11.8% Sony 17.4% 2010

 4.6 Marketing Strategy of Samsung Products

I. Product Features

To sell a consumer durable product a company has to provide unique features i.e. features which
other companies are not able to provide. Samsung has been using the same strategy to boost their
sales. Samsung provides its consumers with wide range of products with unique features.

For example, Samsung was the only company offering 1000 watts PMPO sound output in the 21-
inch flat TV segment. It also introduced a new 5.5 kg, top loading fully automatic washing
machine with features like ‘saree course’ keeping in mind that the majority of the Indian women
wear sarees.

1) Refrigerator
A. Bio Ceramic Technology (Bio Fresh Refrigerators)

BIO FRESH prevents evaporation of moisture, cell activation; supports antibacterial function
and also prevent the alteration of proteins. This keeps the food fresher for a longer time. At the

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heart of Bio-Fresh refrigerators is Bio Ceramic technology. Ceramics form a part of the raw
materials used in the manufacturing of the Vegetable compartment. Ceramics have the unique
property of emitting 'Far Infrared Rays' (FIR). The FIR helps retain the moisture content in the
vegetables, fruits and other natural products as they are in the natural resonant frequency of
water molecules. The 'FIR', in combination with technologies like the Bio-Deodorizer, Dynamic
Super X Flow cooling system with i-cool and Humidity Controller makes the Samsung Bio-
Fresh refrigerator one of the most unique products in the Indian market today.

Bio-Vegetable Box is made of the newest Bio-Ceramic material. Bio-Ceramic material radiates
far-infrared rays, which help retain the moisture content in vegetables, fruits and other natural
products, keeping them rich in nutrients and essential vitamins for a longer period of time.

B. Super X Flow technology

The Samsung 250 NMB incorporates the Dynamic Super X Flow technology. This technology
sets up a smart cold air distribution system to maintain an even temperature throughout the
refrigerator! This effectively achieves three clear benefits: Even Temperature, Quick Cooling
and Energy Savings. 

C. Samsung's Twin Cooling System

Samsung's Twin Cooling System controls and generates cooling air for the refrigerator and
freezer independently with two separate evaporators and precise electronic control, thus
maintaining each compartment at their optimal cooling conditions. This results in a more
efficient refrigerator with powerful performance!

D. Electricity Consumption Comparison

These features reduce energy consumption by 30%, compared to previous models, with a high
efficiency compressor and better insulation (A class: ISO standard). Another Freezer in
Refrigerator Compartment

The Twin Cooling System allows the Cool Select Zone to maintain -5ºC (Soft Freeze mode) in
the refrigerator compartment. While food stored in the freezer is not easy to handle, the Soft
Freeze mode sets the temperature low enough for easy slicing and allows medium-term storage.
This is only possible by the Twin Cooling System.

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 2) Washing Machine
I. Torando Pulsator
A. SUPER DRY:

Samsung introduced India's first Semi-Automatic Washing machine with a SUPER DRY
Feature. The SUPER DRY Feature provides a 10-minute Spin Dry Timer, which gives you the
power to ensure that your clothes get the BEST POSSIBLE DRYING. SUPER DRY is great
value; especially for the Monsoon and winter months, when clothes don't dry easily. This
powerful feature is available on the latest models launched recently - WT9300, WT9200, and
WT7800. While all other brands will provide the standard 5 minutes Spin Dry Timer, these
models give you EXTRA DRYING for full 10 minutes.

B. I-CONTROL SYSTEM:

The Samsung Washing technology is designed to put you in control of the washing process, and
the machine action. Samsung Washing Machines are packed with an array of incredible features
that come together to make the I- control system. These include the ‘ECO Wash - that saves
water and detergent’, ‘Child Lock - To limit small children with tampering settings and getting
hurt’, ‘Auto Restart - that saves you the bother of restarting the washing machine each time the
power fails’, ‘Memory backup- enables the washing machine to remember programmed wash
cycles and settings’, ‘Delay Start- To enable you to time the washing machine with your water
supply and other chores’ and ‘Fuzzy Logic - that makes the washing machine intelligent to adjust
automatically to wash loads, water and detergent levels’ etc. These 6 amazing technologies come
together to put you in total control and command of the washing machine and the wash process

C. HYDROJET WASHING TECHNOLOYG:

Samsung Hydrojet gives you a combination of three powerful washing actions: 1) Waterfall
Flow: Strong flow of water that streams down from the top. Pushing heavy and light clothes
towards the pulsator. 2) Centre Jet: A strong gush of water formed right at the center of the
washing machine, forcing the dirt out of clothes. This also ensures that the clothes do not get
entangled at the center.3) Water Pores: Saves water and detergent and washes clothes from all
sides.

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 D. BIO WASH TECHNOLOYG:

Clothes washed in Samsung Washing machines are not only dirt free, they are also 'germ free'.
Samsung has developed this unique Bio-Wash Technology to ensure just that. The Bio-Pulsator
is made from some percentage of Bio - Resin, which destroys germs and keeps the environment
inside the washing machines, pure and germ free, wash after wash.

3) Air conditioners
A. Turbo power: {BRINGS INSTANT RELIEF FROM HEAT}
The Turbo function makes the AC operate under full power for 30 minutes, irrespective of the
set temperature, which leads to quick change of the room temperature, instantly bringing the air-
conditioning comfort in the room. Turbo operates faster than the conventional system. The new
compact range of Samsung Window ACs not only occupies lesser window space but also is more
aesthetically appealing.  

B. Quick power optimizer: {ENSURES LOW ELECTRICITY BILLS}

The Samsung Split Air conditioners 5-Step Heat Exchangers have 122% larger surface area.
Samsung Window Air conditioners are equipped with a 3-row cooling coil and L bent condenser
coil that provide a larger surface area helping the refrigerant to dissipate heat faster. This results
in faster chilling and lesser strain on the compressor resulting in lower electricity bills.

4) Micro Oven
A. Bio Ceramic Technology:

Only Samsung Microwave Ovens come with a unique Bio Ceramic Enamel coating. Bio ceramic
enamel produces less oxidation, which helps retain essential vitamins while cooking. The
ceramic enamel retains 2.5 times more heat than stainless steel, leading to faster cooking.

B. High scratch resistance:

Bio Ceramic Enamel’s durability and protective qualities make it far more scratch resistant than
other microwave interiors. When scratched with equal force, the roughness of the ceramic
enamel surface increases only 7.5% compared to 106% for the stainless steel.

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 C. Higher nutrient retention:

Food cooked in Bio Ceramic enamel cavity microwave ovens retains significantly greater
amounts of vitamin C and F (an essential fatty acid that helps reduce cholesterol and blood
pressure) than food cooked in conventional stainless steel cavity microwave ovens.

D. Exclusive Feature: 3D Shower wave

Unlike other Microwave Ovens, only Samsung Microwave Ovens come with the unique 3D
Shower wave System, which helps to distribute heat evenly, enabling uniform cooking
horizontally and vertically.

5) Television

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 The Samsung 70-inch PDP TV (Plasma Display Panel) and at 54 inches is the world's largest
thin film transistor liquid crystal display (TFT-LCD) television and offers the highest picture
resolution available anywhere in the world.

The 70-inch PDP delivers high-definition imaging from over two million pixels - a resolution

twice the clarity of other models on the market today. Samsung has also applied its proprietary
Digital Natural Image engine image-enhancement technology to ensure the highest quality
possible image in terms of picture brightness and contrast.

Samsung's 54-inch TFT-LCD TV features a crisp, high-resolution image and excels in

performance that ensures a smooth playback of the most action-packed visual content. The 1920
x 1080 resolution and 16:9 aspect ratios can accommodate future changes in high-definition
broadcasting. These advanced features and unprecedented screen size, combined with inherent
crisp display characteristics of TFT-LCD, make this 54-inch TFT-LCD TV one of the most
advanced display products available today.

A. India’s first wireless home theater (Bluetooth technology):

Samsung India Electronics Ltd. has introduced India’s first wireless home theater, Model No.
HTDB390 in the Indian market. The wireless Home Theater in Box (HTiB) uses bluetooth
technology to provide a wireless connection to the rear speakers of the 5.1 channel speaker setup
- eliminating the need for rear wires, and giving the user total freedom to setup the rear speakers.

B. Wireless HTiB:

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Rear speakers totally remove the hassles of wiring up the home theater. Extremely convenient
they embody the concept of HTiB (Home Theater in Box) - since a user can literally take the
system out of the box and place the speakers around his/her room to create a Home Theater. Add
to the feature of "no-wires", the Samsung exclusive SDSM feature that calibrates sound from
each speaker at the touch of a button to give the best sweet spot - and this Home Theater
provides a never-heard-before audio experience.

6) DVD
The highlight of the Samsung DVD Range is the Hyper vision DVD, HD 938, which is the
world’s first and only HDTV compliant DVD Player. The Hyper vision DVD utilizes the world’s
first digital visual interface (DVI) output to transmit uncompressed digital video signals without
any analogue conversion, preventing image quality loss.
This results in viewers being able to enjoy high-definition
quality picture quality even for standard DVDs.
28%
7) Mobile Phones
India is one of the fastest growing mobile markets in the
world, having more than 400+ million mobile subscribers.
72%
Currently in India 4G is in the existence in GSM
CDMA GSM
Technology. Whereas another technology is CDMA (code
division multiple access), 5G is coming into the existence.

As per as mobile market in India is concerned there are number of GSM service provider such
as:
1. Airtel
2. VI
3. JIO etc.
Whereas in CDMA there are few numbers of player as compare to GSM mobile, such as:
1. TATA (TTSL/TTML)
2. Reliance India mobile
3. Virgin
4. MTS.
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In this sector number of equipment manufacturer or mobile manufacturer presents such as:
1. Nokia 2. Sony
3. Apple 4. Haier
5. Samsung 6. HTC
7. LG 8. Chinese mobiles
9. Motorola

Samsung India Mobile

Samsung India Mobile a telecom equipment manufacturer, head office in New Delhi and country
head Puneet Sethi.

Samsung has divided the mobile business in to areas:

1. GSM Mobile Business.

2. CDMA Mobile Business.

Samsung CDMA Mobile Business

In CDMA segment Samsung is in market with two functional area that are:

1. Operator handsets.

Operator handsets are handsets manufacture by Samsung but it is collaborated with any
network operator.

2. Open handsets

Open handsets are handsets manufacture by Samsung and handsets is compatible to any CDMA
network, there is no restriction of any specific CDMA network.

 Various Strategy Used By SAMSUNG.

Samsung employs a variety of marketing techniques and strategies to draw clients to the brand
and encourage them to purchase its products. Samsung Marketing Strategies As a result, the
company’s marketing plan is effective, allowing it to expand and advance in a variety of ways.

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 1) Brand Ambassador strategy of Samsung

To promote their devices, Samsung has teamed

up with celebrities. Through this relationship,
celebrities were able to promote their phones
and other businesses across a variety of social
media platforms. Collaborations with A-list
celebrities can guarantee a rise in brand
exposure due to their large fan base.
They have worked with several well-known
celebrities, including BTS, BLACKPINK,
Huma Qureshi, etc.

2) Digital Presence of Samsung

Samsung’s success in digital marketing
can be attributed to its adept use of
social currency to achieve corporate
results. Customers’ level of
engagement with a brand, as well as
their readiness to share knowledge with
others, is characterized as social
currency. By extending its social media
presence, Samsung has done its best to
provide customers and brand loyalists
with the chance to share their Samsung
experience with those in their circle—
friends and family members.
Brands like Samsung must speak to the
interests and concerns of the many segments of the population that their products target. This
means they have social profiles on all of the major social networks. Samsung has done a
commendable job on the same and is well-represented on all major social media sites, including

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Facebook, Twitter, YouTube, and Instagram. Through its specialized social media pages,
Samsung has very attentive and committed customer care teams available.
3. Digital Marketing Campaigns of Samsung 
Samsung has positioned itself to be a
community-oriented brand impacting
audiences worldwide by introducing various
marketing campaigns. Along with a
promising marketing strategy Samsung also
does a great job in promoting its products
and appealing its audience with exceptional
marketing campaigns.
Recently during Pride Month, the brand
celebrated with the community displaying
with pride the importance of diversity and
how Samsung stands as an ally for the LGBTQ++ community on its Social Media handles. 
 
Enjoy having a look at these exceptional Marketing Campaigns by Samsung.
Here’s the marketing campaign that made people reconsider their options since Samsung directly
targeted its main competitor by comparing its brand to Apple iPhones. This video took the world
by storm when it went popular on the internet.

4. Social Media Marketing Strategy.

Samsung has a social media presence on major social networks to keep an eye on the goings-on
in and around the smartphone market. Their engaging social media content centers around
product promotions and user interaction.

 Facebook: 162M
 Twitter: 12.5M
 YouTube: 6.24M
 Instagram: 4.5M

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 Samsung's YouTube channel has 6.27M subscribers, with individual subsidiary channels
for different countries.

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  Samsung's Facebook page has a massive following of 46M users

 Samsung's Instagram profile, filled with visually appealing posts, has 1.2M followers.

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  Samsung's TikTok
profile has an
engaging audience
of over 2M followers
garnering 11.6M
likes.

5. Search Engine Marketing Strategy

Samsung's website
is SEO optimi zed to rank on
the first page of Google. Its
domain authority has
an exceptional
score of 94 with Samsung
Galaxy S22 Ultra
keyword ranking at the
top after Samsung.

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 6. Notable Marketing Campaign

A. Digital marketing campaigns

Samsung marketing strategy is thriving because of its unafraid stance for its beliefs, risk-taking
attitude, and inspirational messaging. Samsung's digital marketing tactics focus on user
interaction with Samsung devices.

Samsung marketing strategy for digital media focuses on the following three pillars:
1) How the user interacts with their device implanting it in their life.
2) How the device makes their life easier. 
3) How users can communicate with their loved ones using Samsung products building
positive emotional relationships.
Here are Samsung's top noteworthy digital campaigns:
1) Growing up Campaign

Samsung's Growing up campaign was a direct jab at its main competitor Apple’s shortcomings
like low storage, high battery drainage, no water resistance, and need for adapters.
2) Ingenious Campaign

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As the idea was a huge success, Samsung launched a similar concept named the Ingenious
campaign. It took shots at Apple's disadvantages while comparing it to Galaxy S9. The message
was that Apple's superior products don't live up to their name.
3) India, Ready, Action! Campaign
Samsung India, ready, action! campaign urges Indians to break the stereotypes against them, and
share the real India.
4) Olympic movement Campaign
Samsung has been an Olympic partner for more than two decades. Through its Olympic
movement, Samsung has enabled fans to engage in real-time with immersive game experiences
and celebrate the Olympic spirit together.
5) Smartphone line Campaign
The Smartphone line was an effort to create a digital line for Galaxy S4 instead of a physical line
outside stores. Fans had to share which features they were most excited about. The more those
posts were liked and re-shared, the closer they got to the front of the line.
6) Join the flip side Campaign
Join the flip side ad campaign starts with the line “I would never switch to Samsung, I love my
phone”, a probable jab at Apple's brand loyalists who cannot fathom the idea of switching to
another smartphone brand. 
7) Do what you can't Campaign
The do what you can’t campaign inspires people to do what can’t be done.
8) Look at me Campaign
Samsung marketing strategy is in tune with social issues. Its Look at me app helps children with
autism develop communication skills through eye contact and interpreting facial expressions.
Samsung prioritizes relationships before its products. They position themselves as a brand that
helps users live comfortably and builds society into a better place. Through customer-centric and
socially conscious marketing, Samsung has emerged as a global electronics powerhouse building
a better future together for tomorrow.

COMPETITIVE STRATEGY

 SEGMENTATION

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Segmentation means to divide the whole market into several homogeneous groups. In re-launch
process Samsung should divide the whole market into different groups on the basis of behaviour,
demographics, geographic and psychographic.
 Types of Segmentation:
There are different types of segmentation.

1. Demographics
2. Psychographics
3. Geographical
4. Behaviour

1. Demographic:

In demographic segmentation Samsung should divide the whole market into different groups on
the basis of different characteristics such as Gender, Age, Income, Ethnicity, marital Status and
education etc
2. Psychographic

In the psychographic segmentation Samsung should divide the whole market into different
groups, on the basis of different characteristics such as the emotions and personality like
Lifestyles and Hobbies etc.
3. Geographic

In geographic segmentation Samsung should divide the whole market into different groups on
the basis of geographical location.
4. Behaviour
This refers to the purchase nature of the consumers Usage Level, Brand Loyalty etc
 Consumers want quality-oriented product.
 Consumers want innovative products.
 Consumers want that the price of a product should be justified with respect to its features.
TARGET MARKETING

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Targeting or target marketing refers to decide which potential customer segments the company
will focus on. Marketing segmentation and targeting are equally important for ensuring the
overall success of a company. As long as demographic segmentation is concerned Samsung
should target on the basis of income and age.
Furthermore, Samsung should

1) Provide their products to both males and females.

2) Manufacture their products for all classes such as lower class, middle class, upper middle
class and upper class.
Samsung should also target the market on the basis of geographical location.

 4.7 Results of Samsung Marketing Strategy

Samsung’s revamped marketing programs and competitive strategy implementation have

significantly contributed to its huge success over the years. 

Performing continuous market research, adding new features, serving customer pain points and
employing special efforts to reduce costs, Samsung has paved the way for its success from the
very beginning. 

Its global value increased by more than 200% in a short span ranging from 2003 to 2008. 

Samsung took over Sony–one of the most valuable consumer-electronics brands worldwide.
Consequently, Samsung’s sales reached $119 billion by 2009. When the company introduced
Samsung Galaxy and leveraged the power of digital platforms for promotions and marketing, its
revenue grew to $218 billion in 2018. 

Today, Samsung stands 5th on Interbrand’s list of Best Global Brands with a brand value of
USD 74.6 billion. It has witnessed a 20% increase in comparison to the last year.

Chapter 5: AFTER SALES SERVICE AND FUTURE PROSPECTS

5.1 After Sales Service

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Offering advanced technology products and positioning itself on the technology platform will not
help a company sell its products if it fails to give proper after-sales-serfvice. With a focus on
strengthening the satisfaction level of the consumer, Samsung India Electronics Ltd (SIEL) has
launched its 3S — Speed, Smile and Sure campaign.

As part of this customer service program, the company is working on a two-pronged strategy.
This involves: one, improving the service infrastructure by setting up customer service plazas in
key metro locations; and two, improving the skill levels of technicians by setting up a training
school with a technical evaluation system for after sales service engineers.

Till now, most of the players in the sector have been professing that it's the relationship with the
customer that matters. However, with the competition increasing, customer satisfaction is fast
becoming a core issue,'' an industry analyst pointed out. He further stated that Samsung's current
effort ``will also strengthen its customer base as most of the players claim that 60 per cent of
their sales is repeat purchase.''

5.2 Promotion

Offering advanced technology products and positioning itself on the technology platform will not
help a company sell its products if it fails to communicate properly with the potential customers.
To raise brand awareness and create strong, favorable and unique brand associations, Samsung
adopted various marketing strategies like celebrity endorsements, corporate advertisements,
highlighting its technologically superior goods and many promotional schemes.

Samsung attracts customers via advertising while employing the best tactics to push products
through sales promotions.

The company employs several marketing vehicles both during the festive season and outside of
it. It grants numerous discounts and incentives to business partners, encouraging them to sell
Samsung products above the competition. 

4.3 Advertising

Samsung is involved in aggressive marketing and advertising of its product to develop attitudes,
create awareness, and transmit information in order to gain a response from the target market.

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Samsung involves heavy promotions in their advertising strategy by using both push and pull
strategy. By following push advertising strategy, Samsung places their products through sales
and advertising strategies. it is done by heavy investment on traditional advertising. In the push
advertising strategy, Samsung spot placements in the major events like Super Bowl.

Again, Samsung uses social networking sites such as Facebook, Twitter, YouTube etc. to
maintain their online presence regularly. Through these social media marketing strategies,
Samsung builds and maintain a relationship with the customers. They also declare
announcements of their new products in the social networking sites. These types of initiatives are
included in pull advertising strategy.
Samsung used to tied up with celebrity in advertising their products. They never tied up with
David Beckham for the advertising of their Samsung Galaxy Note & Samsung Galaxy. Again,
Samsung hired Bollywood actress Nargis Fakhri for advertising Samsung Galaxy in India.
Samsung used to follow another way of advertising their mobile phones by focusing their
attention on gathering audiences. Samsung started the advertisement by telling basic information
about Samsung phones to the customers. This technic informs the customers about the brand
name of the phones by zooming into Samsung phones so that the customers are able to see the
brand name printed on the phones.
In terms of Samsung Electronics, all of their advertising activities are designed to provide
accurate information to the customers through high-quality advertisements and these sorts of
advertisements help the customers to take the decision whether they will buy the products or not.
In a broad sense, Samsung’s advertisement is centered on the empowerment of corporate brand
identity and product.
Besides these, common global advertising strategy ways of Samsung are
1) TV advertisement
2) Print advertisement
3) Point of Sale advertisement
In the re-launch process Samsung should use different types of advertising in order to promote
their slogan. Samsung should promote their brand by using their slogan on different advertising
media.

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 "Inspire the World, Create the Future.”

Samsung should use this strategy to communicate the information of a product to the customers.
Such as “Samsung takes on the solar challenge.” Samsung should use this strategy to expand
their market and to aware the new customer about your products. Samsung should use different
advertising media.

I. PRINT MEDIA
Print media is a type of communication media that is handles by space not by time. It is easy to
read at any time. This includes,
1) Books
2) Newspapers
3) Magazines
4) Newsletter
5) Broachers
6) Billboards

 NEWSPAPER
Newspaper and magazine are the
most important element of print
media. Newspaper is one of the most
important and effective print media of
mass communication.
Samsung tag line

” Inspire the world, create the future.”

 BILLBOARD
It is also a type of print media advertising mostly found on roads. it is also an effective way to
Convey the information to the target customers.

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 II. ELECTRONICS MEDIA
Electronic media is also a type o advertising media. Electronic media allows information and
ideas to travel almost instantly from its source to the public through the Internet. Because of the
availability of the Internet, electronic media has given billions of people access to information
that they previously would not have had access to. There are different types of advertising
Electronic media.
1) TVC
2) Face book
3) Radio
4) Twitter
5) Online websites
My recommendation to Samsung about Advertising media:
In the re-launch process Samsung should use newspapers advertising and billboards advertising.
Samsung should promote their products by using different newspapers and magazines such as:

1) India Today
2) Outlook
3) Wired.
4) Computer World.
5) MIT Technology Review.
6) E&T Magazine.
7) Tech Advisor.
8) Digit Magazine.
9) Tech Briefs.
10) Innovation & Tech Today.

 Samsung 1st teaser Ads on Billboards

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 Samsung 2nd teaser Ad on Billboard

 Samsung 3rd Ad on Billboard

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Samsung should promote their slogans related to every new model of their mobile phone on the
newspapers. And on the other hand, Samsung should use billboards for creating teasers ads.
Samsung teaser ads should be brief so that a busy person could read it. Such as:

“Guess who is coming with new style?”

Samsung should use this teaser ad for not more than 15 days. After 15 days Samsung should use
another teaser ad:

” Technology offers us a unique opportunity.”

After 10 days of this ad Samsung should use another ad that is:

“It’s not a phone, it’s a Galaxy”

Samsung should use this ad on billboards for minimum 1 month.

On the other hand, Samsung should also use all the electronic Media in order to change the bad
perceptions of the consumers about their products. Samsung should use such types of electronic
media in order to create the good perception of their product in the mind of customers. Samsung
should promote their products through Television advertisement, Face book, Twitter, radio,
online websites and other social media.

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  DIRECT MARKETING

Samsung should use different tools of direct marketing such as:

1. Direct Mail 2. Catalogues
3. Telephone 4. Concert
5. Voicemail 6. Festivals
 SALES PROMOTION
Samsung should also use different types of sales promotion tool such as

1. Discounts 2. Free Samples

3. Return Back Allowances 4. Lucky Draw
5. Free Goods 6. Prizes
7. Fairs & Exhibition 8. Coupons

 Free Samples:
According to my observation Samsung should provide Sample in their outlets. Because before
purchasing, most of the consumers want to use cell phone for their internal satisfaction.
Therefore, Samsung should give them a free trail of 5 to 7 minutes in order to satisfy them.

 Discount:
According to my observation Samsung should give cash discount to their customers at the time
of purchase. According to my survey most of the consumers agree that Samsung don’t provide
discount to their customers. I recommend to the Samsung to give an appropriate discount to their
customers. In this way Samsung can enhance their sales.

 Return Back Facility:

In the re-launch process Samsung should provide the facility to the customers to return the
product if it is not working properly and there is any defects in the mobile phone.

 Free Goods:
In the re-launch process Samsung should provide an extra free product with their mobile phone
to their customers such as memory cards. Samsung should provide 4GB or 8GB memory card
with their mobile phones.

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  Fairs & Exhibition:
In the re-launch process Samsung should conduct different events and exhibitions in order to
promote their brand.

 PUBLICITY/PUBLIC RELATIONS:

Samsung should also use maximum tools of Publicity/Public Relation in order to promote their
products.
1. Campaigns 2. Magazines
3. Events 4. Talk about Social issues
5. Sponsorship 6. Customer Referral Incentive
Program
7. Seminars 8. Causes and Charity
9. Word of Mouth

 PERSONAL SELLING:
Samsung should use maximum Tools of Personal Selling to promote their products in the
market.

1) Door to door
2) Catalogs
3) Press Release
4) Interviews

“As long as you have a Cell Phone you're never alone”

In conclusion, we can say that Samsung is very effective in terms of advertising their products.
Samsung creates association with their products and uses those associations to appeal their
customers and try to make them one of the customers of their products. Samsung basically uses
their advertising method in two ways, direct 7 indirect methods. The indirect method, they
advertise their products through television, internet, and other media. And in the indirect method,
Samsung let their customers know that the new products are good to use.

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5.4 Sales Promotion

Along with advertisements, Samsung also focuses on promotional schemes to increase its sales.
In October 2001, Samsung launched its highly successful promotional scheme, the Samsung
Phod ke Dekho Offer. This offer instantly boosted the sales of the company generating sales of
Rs. 2.75 bn from this offer. The campaign was launched on an all-India basis during the festival
season. Under the scheme, consumers who bought any Samsung product were given a tamper
proof plastic coconut with three coins in it. One out of every 10 coconuts had a lucky coin with a
gift printed on it. As a part of the campaign, Samsung’s brand ambassador, Tabu interacted with
the customers and dealers of Samsung in Bangalore and Chennai and handed over the lucky
coconuts to select Samsung customers. The prizes included products from the Samsung range.

The Phod ke Dekho offer was followed by another promotion scheme in May 2002, Dabake
Jeeto offer coinciding with the football World Cup. During the promotion every customer who
purchased company’s electronics or home appliances product got plastic football with an alarm
clock in it. The customer had to press the football from the top, and was given the free etched on
the tamper-proof anodized sticker. Under this campaign, Samsung gave out gifts worth Rs. 100
mn, which included Samsung digital flat TVs, frost free refrigerators, microwave ovens, Karisma
washing machines, mobile phones, cameras and Soccer 2002 official licensed T-shirts from
Adidas. This campaign notched up sales worth Rs.310 Crores during the period of the
Promotion.

The next major promotional campaign was the Phir Se Phod Ke Dekho offer. The offer was
launched during October-November 2002 generating a sale of Rs. 380 crores. It was a repeat of
the earlier ‘Phod Ke Dekho’ campaign.
On March 20, 2003 Samsung Launched 'Samsung Rang De Kismat Offer' for Frost Free
Refrigerators which entitled a customer to Lucky Gifts worth Rs 4 Crores, with the purchase of
any Samsung Frost free Refrigerator. This Promotion derives its name from the 'Rang de
Kismat' glass, which was handed over to a customer with the purchase of any Samsung Frost
Free Refrigerator. The Customer needed to pour chilled water into the glass and wait for the 'Bio'
logo on the Glass to change colour to find out the gift won by him/her. There were Colour Codes

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for types of Gifts won by the Customer - For example, a Green 'Bio' entitled a customer to a
Samsung Microwave oven while a Red 'Bio' gets the Lucky winner a Gift Voucher from Tanishq
worth Rs 30,000. This offer was launched to capitalize on the sales of its Frost-free refrigerators
in the summer months. The Company’s market share went up to 21% in the Frost-free
refrigerator market after the offer.

Following its success with its 'Samsung Rang De Kismat Offer' Samsung India come up with
another innovative Consumer Offer “Samsung's Bundling Offer with Reliance IndiaMobile” for
the buyers of its Consumer Electronics and Home Appliance Products in the Delhi and NCR
Region on 25 July, 2003. A buyer of any Samsung Consumer Electronics or Home Appliance
products gets the option of walking away with a sleek, advanced Samsung Mobile Phone N191
model along with a Reliance IndiaMobile connection, without having to pay any activation
charges. Furthermore, the user gets free talk time worth Rs.600 over a 6-month period. All other
payment terms are the standard billing terms and conditions offered by Reliance IndiaMobile
depending on the package taken up by the customer. On 6 October 2003 Samsung India
Electronics Ltd launched its mega festival promotion called ‘Samsung Pinning Toh Winning
Offer’ on an all-India basis. In this Promotion, where the consumer stood to win an assured gift
on the purchase of any Samsung product, have gifts worth Rs. 100 crores to offer as prizes. The
offer entitled the buyer of a Samsung product, a card with a unique 16-digit alpha-numeric code.
All the consumer had to do is SMS “SAM” followed by the 16-character code to 8888 and s/he
would immediately get a message showing what gift has been won. The Gifts won in the
Promotion include; Samsung Projection TVs, Samsung Mobile Phones, Samsung Yepp Disc
Players, Samsung DVD players, Titan Fast Track Glares, Touch Screen Landline Phone, Trendy
Portable Travel Iron and Britannica Encyclopedia 3 pack CDs.This offer was basically launched
to maximize its sales during the festival season.
Following its success with its ‘Samsung Pinning Toh Winning Offer’ Samsung India Electronics
Ltd launched ‘The $-DOLLAR Program’ for its IT Reseller and System Integrator fraternity on
June9, 2004. The program meant for the System Integrators (SI) was applicable on Samsung
monitors, Hard Disk Drives (HDD) and Optical Media Storage (OMS) products. Each time a
SI/reseller purchases Samsung products from a Samsung Star Elite or Samsung Storage Preferred

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Partner (SSPP), the SI was issued a cheque. The cheque was of one of the four colors – White,
Blue, Silver, Gold – depending upon the products bought.

Samsung believes that its SIs and re-sellers play a pivotal role in business growth. They are the
ones who provide them the edge that they need in today’s competitive marketplace. This is why
they have spearheaded revolutionary programs for them ensuring healthy growth in revenues and
profitability.

The last sales promotion offer was launched on Feb 3, 2005 called “Fastest Finger First” which
was a nationwide contest to find India’s fastest SMSer. The message to be typed reads as
follows: “The razor-toothed piranhas of the genera Serrasalmus and Pygocentrus are the most
ferocious freshwater fish in the world. In reality they seldom attack a human". This SMS had to
be typed on the cell phone keypad, complete with punctuation marks and lower & upper case. No
predictive text (T9 Dictionary), QWERTY keyboards/ any keyboard was allowed.
5.5 Sponsorship
Samsung used sponsorship of events like Olympic series to boost its sales. Samsung was the
global wireless communications sponsors at the Athens Olympics. Samsung used the strategy of
relating itself directly with the values of the Olympic games, which included attributes like world
class, global, excellence, fair competition and peace. The Olympic series of August5, 2004 was
Samsung’s salute to the Olympic values.
Samsung was the sponsor of Lakme India Fashion Week held on April21, 2005. Team Samsung
cricketers - Irfan Pathan, Mohd. Kaif and Virendra Sehwag launched the World’s Best Handset,
Samsung D500 during the Samsung Show at the Lakme India Fashion Week. The theme for the
Samsung Show was ‘The Best Thing Says Everything’ in keeping with the positioning of
Samsung D500 - Samsung’s latest and path-breaking mobile phone which has been rated as the
‘World’s Best Mobile phone’ by the 3GSM Association World Congress held at Cannes in
February 2005.
Samsung sponsored Samsung & MTV Youth Icon 2005 on June10, 2005. The idea behind the
sponsorship was that the Samsung Mobiles were targeted at the fun loving, lifestyle oriented and
trendy youth of today. By associating with the Samsung & MTV Youth Icon, they are seeking to

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further strengthen their relationship with the youth. Samsung mobiles make a style statement and
by partnering with the Youth Icon, this positioning is further re-inforced.
Samsung was even the sponsor of Samsung IIFA Awards held on June 13, 2005. Popular film
actress, Preity Zinta was awarded the ‘Samsung Diva’ award while Hrithik Roshan was
conferred the prestigious ‘Samsung Style Icon’ award at the Samsung IIFA Awards 2005.
Samsung India had carried out an online voting process on the Samsung India website between
May 20th - June 5th 2005 for selecting the recipient of the ‘Samsung Style Icon’ and ‘Samsung
Diva’ awards. The same was also promoted extensively on other sites like indya.com and
msn.com as well. The Company received a phenomenal response to this online voting contest.
“The ‘Samsung Style Icon’ and ‘Samsung Diva’ awards which have been growing in popularity
year on year, the company uses the response level
received every year as its popularity indicator.

Samsung are passionate about football. That is

based on the company-wide belief that sport plays a
unique role in unifying people. They have been
connecting with sports fans the world over by
supporting sporting events including the Olympic
Games, the Winter Olympic Games, the Asian
Games, the World Cyber Games, Samsung Super
League (Equestrian) and of course football. As well
as being very proud sponsors of Chelsea since the 2005/6 season, they support many teams
across the globe. Samsung became the Official Club Sponsor of Chelsea Football Club from 1
June 2005 in a five-year deal. The agreement was signed at Stamford Bridge, Chelsea´s stadium,
by In-Soo Kim, Samsung European President, and Peter Kenyon, Chelsea FC's chief executive at
the time. It was the biggest ever sponsorship deal signed by Chelsea and the second largest by
Samsung after its sponsorship of the Olympic Games. The logo of ´Samsung´ now appears on
the famous Chelsea shirts.

Peter Kenyon said at the time: “We are absolutely delighted to have Samsung as our new official
club sponsor. The company is one of the world’s largest brand names, and we are excited about
what it can offer Chelsea.”

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'Samsung has a key part to play in the future global development of Chelsea and we believe we
can play a similar role for it in its strategic aims. There is a great synergy between the two brands
in terms of recent dramatic growth and success, levels of performance and market targets.'

5.6 Direct Mail

Samsung even uses Direct Mail concept for its product promotion. Samsung sends mail to target
consumers depending on the database i.e. the frequency of site visit and on their purchases.
Samsung is very actively involved in e- commerce.

5.7 Distribution Channels

Samsung uses supply chain to enhance differentiation, increase sales and penetrate new markets
and channels. Its supply chain is beneficial in several ways. It helps the company to deliver
products to the customer faster. It efficient supply chain is transparent, so that all the players in
the supply chain have the right information at the right time about the movement of the products
within the chain. This means lower inventories, elimination of waste, and reductions of costs. In
addition to the intangible benefits like quick feedback from customers help in launching new
products.

Samsung has 24 state-level distribution offices and a direct dealer interface. The direct dealer
interface helps the company to get quick feedback from dealers, and enables it to launch products
according to consumer needs. To minimize time overruns, Samsung delivered its products
directly from its factories to its Regional Dispatch Centers (RDCs), and from there to dealers.
Samsung has sales and service networks all over India and 650 service points.

Samsung has implemented an innovative logistics system – Global Logistics Network Systems
(GLONETS). GLONET application is used on the B2B i.e., Business to Business front for the
vendors. This involved linking the key vendors, which form the bulk of Samsung’s sourcing (26
domestic and 30 international) through Samsung’s GLONET. This system enables Samsung to
connect its purchase department with the Samsung headquarters and international procurement
offices through integrated ERP systems. The integrated ERP system enables Samsung to
purchase its requirements from its international procurement offices and also from its Indian

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vendors. This application is also extended to order placement, production plan sharing and
invoicing, resulting in shorter business cycles and reduced inventory levels and low waste.

In addition to GLONETS, Samsung also believes in JIT (Just-in-Time) concept to its dealers. To
make delivery of products within 48 hours of the expected date of delivery, the company has
setup four RDCs, one at each regional location of the country.

The distribution channel is structured very systematically wherein all the transactions and
business conducted is documented. The program is based on incentives so that dealer payments
can be made on time. The Company supplies its goods to the Star Elite who supplies goods to the
distributor who in turn sell the goods via their own channel of retailers and distributors. The
Samsung Brand shop network complements the over 8500 retail points for Samsung products
located across the length and breadth of the country. Samsung plans to continue enhancing its
penetration levels in the country to reach out to more and more Indian consumers. They consider
the Star Elite partner as their actual product champion as their link with the end customer. As,
they have been adding value to the sale to the customer and guiding him to the right purchase
decision at a fair price.

 Shop-in-shop:

Samsung is ensuring a presence in most big malls and multiplexes; even in the multi-brand
outlets, as the focus there is to create a shop-in-shop atmosphere.

 The exclusive showrooms:

Keeping its target customer to display Samsung products in a more lifestyle ambience and to
communicate the product benefits in a more interactive manner, Samsung India has set up a
widespread network of over 80 exclusive showrooms comprising Samsung Digital Zone
(focusing on high-end digital audio-video products such as MP3 players, camcorders and
LCD/plasma TVs). The Samsung Digit All home goes beyond the concept of a Digital Plaza or a
Brand Shop because in the Digital All home, they are trying to create a more interactive
environment and providing a more lifestyle orientation to the display, so that the customer can
visualize the products in his/her own home settings. The Company plans to supplement its
existing Samsung Digital Plazas' (Brand Shops) by setting up 'Samsung Digit All homes' in

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select cities. The Company will also be creating exclusive Samsung corners in multi brand
outlets this year.

The demands and needs within the distribution channel led to the establishment of
MyMemoryStore.com. The site is more than an ordinary selling site, in fact it is an industry
portal that allows the business partner to come in and track the relevant industry information
within the channel, meaning minimizing the inventory overhead.

Samsung is also planning to invest over $1 million in setting up a chain of exclusive outlets
called `Samsung Talkies'. The entire Samsung mobile range including the latest handsets will be
displayed at the outlets, which will be set up in more than 10 cities across India, including
Bangalore, Mumbai and Hyderabad.

Post VAT they have modified in their policies a bit. The most important step was to bring down
channel inventory post the Budget impact and the VAT impact. They made a conscious decision
to bring down channel inventory, which was at that point of time 60 days, today it is reduced to
11 days, which entails total inventory among dealers, distributors, star elite and SI. This has been
done to ensure that the channel stays profitable.

Samsung India tied up with PlanetM for displaying its new audio range at the PlanetM Outlets in
Delhi, Mumbai, Kolkata, Pune, Chandigarh and Bangalore.

5.8 Pricing

Pricing also seemed to have played a significant role in Samsung’s success. Differentiation is the
key for a brand to be preferred by consumers, when there are so many brands within the same
product category. Samsung believes in providing good products at reasonable prices to its
customers. Samsung’s technology plank communications helped the company to gain market
share, even though it did not offers any discounts or exchange scheme when it entered India.
Samsung focuses on cost-cutting measures to keep its price low which helps to combat the
discount schemes of the local companies.

For e.g.- In 2001, due to high competition in the 20”CTV segment, Samsung had to resort to
price cuts. The company said that value engineering, new product lines and new chassis
development had contributing in combating price erosion. Samsung negotiated with its vendors

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to reduce costs on cabinets, plastics, speakers, harness coils, remote controls, etc. Samsung’s
Brand image seemed to have helped it survive the price erosion. Dealers also agreed to lower
margins owing to company’s brand image.

Samsung in the year 2002, drastically reduced its operational costs which enabled the company
to keep low prices for certain products and extract higher profit margin from premium products.
This helped Samsung to post a turnover of Rs.30bn, a 2 growth from the year 2001.

Samsung is very transparent in functioning. It has a fixed MoP (Marketing Operating Price)
whereby the goods are sold to the distributors and to the customers at a fixed market price only.

The focus of its competitors is to penetrate in the rural and semi-urban mass markets. But
Samsung insists that it's a high-end technology driven player. That's why the urban areas are still
a focus area for it and only 30 per cent of revenue comes from rural and semi-urban India. They
have always been a hi-end technology driven player and want to keep that equity.

Not surprisingly, the target customer for Samsung products won’t be found in the price-sensitive
mass market. Adopting the lifestyle product platform, Samsung’s aiming for the high-end
premium market. Hence Samsung has always been keeping premium prices. Samsung claims it’s
never been a price warrior — its focus has always been on the premium market, which is why it
has remained a steady No. 2 or No. 3 player in most product categories.

It is difficult to achieve the ambitious targets keeping in mind the pricing strategy of Samsung.
But they believe that it takes time to ensure your supremacy in market share. Once you get your
brand perception right in the minds of the consumers as a brand that delivers the best technology
and gives you value for money, then ultimately market share goes up.

Later on, Samsung changed its policy a bit and instead of just remaining a high-end technology
driven brand it tried to change its image to sell products to the huge number of middle-income
families in India. It started pricing its products on the “value for money” concept, keeping in
mind the price sensitivity of Indian consumers.

But still Samsung has the repute of being a premium brand, aggressive in launching newer
models with the latest technology and at economic costs throughout the world.

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Future Prospects

We have done a survey at retail outlets selling Samsung products and one thing that we found
out common is that Samsung lacks in after sales service. The drawback in their after-sales
service strategy is that they have only one customer service centre throughout India which is
situated in Delhi. When a customer has a complaint, he approaches his retailer who in turn
registers the complaint in the Delhi service centre from where the complaints are processed and
replacements are made.

The presence of only one service centre makes it very difficult to give timely response as the
complaints come throughout India. The complaints are not entertained for a period of 10 -15
days. Hence the customer is not satisfied with the after sales service of Samsung.

Marketing Strategy

Samsung has to improve its after sales service in order to retain customer and create brand
loyalty. The current policy adopted by Samsung is aggressive spending more on advertising and
marketing and less on retaining customers that is after sales service.

So, the corrective strategy to be adopted by Samsung must be to spend more on retaining
customer rather than acquiring them as it costs 5 times more to the company to get to a new
customer rather than pleasing existing ones. Moreover, it costs 16 times to take the new customer
to the loyalty stage.

They should have regional service centres in North, South, East, West where the complaints can
be received and processed quickly. Moreover, they should employ and train the technicians to
provide quality and timely sales service.

 Conclusion

Samsung is the most profitable tech company and one of the most valuable brands in the world
today. It has sparked in terms of creativity, and instead of meeting societal requirements, they
have begun to generate new ones. With 150, 000 employees worldwide, it is one of the world’s
largest corporations. Samsung’s marketing strategy is an excellent example of how to advance
and improve as a marketer.

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CHAPTER 5: DATA ANALYSIS AND INTERPRETATION

5.1 Primary data collection

The data was collected through questionnaires from 50 customers. The collected data are
going to get analyzed here by using tables and charts like pie charts and bar diagrams.
Further, the inferences are been made from the collected data.

QUESTIONNAIRE

Q.1) Are you user of SAMSUNG Product?

60%

40%

YES NO

It shows that 60 % people are user of SAMSUNG Products And 40% people don’t use
SAMSUNG products.

Q. 2) By which Medium you come to know about SAMSUNG?

5%
20%

Advertisements
Family Member
Friends/Relative/Neighbour
60% Other Source
15%

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It shows that 60% of people know about SAMSUNG through Advertisement,15% through
Family Member ,20% through Friends/Relative/Neighbours And 5% through Other Sources.

Q. 3) Have you seen any SAMSUNG’s ad?

10%

Yes
No

90%

It shows that 90% of people have seen SAMSUNG Ad and 10% people have not seen
SAMSUNG Ad.

Q. 4) Which advertisement feature influenced you most in a particular Ad?

10%
30
20% %

Concept/Message
Logo/Slogan
Picturisation
Overall

40%

It shows that 30% people were influenced by Concept/Message,40% people were influenced by
Logo/Slogan ,20% people were influenced by picturization and 10% people were influenced by
the Overall ad.

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Q. 5) How do you like of the marketing of SAMSUNG?

15%
40%

Impressive
Satisfactory
Unsatisfactory
45%

It shows that 40% people say Marketing of Samsung was Impressive,45% said satisfactory and
15% said it unsatisfactory.

Q. 6) What makes you recall SAMSUNG?

15%
35%

Logo/Slogan
20%
Message
Presentation of Ad
Model/Celebrity

30%

It shows that 35% of people recall SAMSUNG by its Logo/Slogan,30% by Message,20% by

Presentation of Ad and 15% by Model/Celebrity.

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Q.7) Did you went to go exclusive SAMSUNG’s Showroom?

35%

65%
Yes
No

It shows that 65% of people went SAMSUNG showroom and 35% didn’t went to Showroom.

Q.8) Does the advertisement reflect actual product profile?

15%

Yes
No

85%

It shows that 85% of people say that the advertisement reflects actual product profile and 15%
say No.

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Q. 9) Based on the price range what impression do you carry of SAMSUNG product?

30%
40%
Economical
Costly
Neither Economical nor
Costly
30%

It shows that 40% people found the price range as Economical,30% found it costly and 30%
found it Neither Economical nor Costly.

Q.10) Are you happy with After Sales Service of SAMSUNG?

80%

Yes No

20%

It shows that 80% of people are happy with the after sales service of SAMSUNG and 20%
people are Not happy.

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Q.11) SAMSUNG Mobile Phone are durable?

Chart Title

35%

65%

Agreed Disagreed

Its shows that 65% of people agree and 35% disagreed that SAMSUNG Mobiles Phone are
durable.

Q.12) The prices of Samsung mobile phones are reasonable?

12%

88%

Agreed Disagreed

Its show that 88% people agree and 12% disagreed that the prices of Samsung mobile phones are
reasonable.

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 Conclusion

With respect to the above study and the findings thereby are that the company has
definitely entrenched into the urban market. With few more concerted efforts, the said
organization needs to enter the rural market in order to completely establish itself all
over. Customer Service and Satisfaction are of utmost important in this highly
Competitive market.

Value Proposition should be created in the eyes of the customer to gain Loyalty which
will in turn help to sustain and be a Leader in the Market. Constant Investment in R&D
will help an organization to get Innovative products in the market and in turn lead to
higher Customer Satisfaction. Brand Recall is of utmost importance and the Company
should make efforts to increase the same

Samsung is already seen as the current leader in the Smartphone market. This was due to
its innovative products. To finish up with the strategy analysis section, I have come to my
conclusion that the marketing strategy choices Samsung makes affects its positive
outcome in the Smartphone market. In my research on Samsung’s marketing mix, the
company has chosen to use well the differentiation strategy targeting a broad market
segment.

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 SUGGESTIONS

 Company should improve the after sales service of products as it is the main factor for the
sales of consumer products.

 Company should constantly get innovative in advertising its products, mainly focusing on
Value it will bring to the customer after buying the product

 Company can use some of the marketing tactics like distributing free key chain, calendar,
t-shirts for making brand popular among people
 Company can introduce low price and low power consumption Refrigerator’s for
acquiring the lower middle-income group to increase their market base
 Dealer’s desire more advertisement to be done through local newspaper and cable TV ads
to make consumers aware about the product.
 Advertisements of the company’s products should focus on quality and main features.
 Proper Segmentation should be done and accordingly marketing strategies should be
planned for premium products.
 Welcome call as well as follow up call will help the company to maintain customer
relationship; hence the company should focus on such softer these aspects.
 Establish the service centre as per taluka place for easy accessibility to consumers.

QUESTIONNAIRE

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PROJECT TOPIC: - “MARKETING STRATEGIES OF SAMSUNG”

RESPONDENT PROFILE
Name: -

Sex: - Male [ ], Female [ ]

Age Group: - 15 to 25 [ ], 25 to 35 [ ], 35 to 45 [ ]

45 to55 [ ], 55 and above [ ]

Q. 1 Are you user of SAMSUNG Product?

Yes [ ] No [ ]

Q. 2 By which Medium you come to know about SAMSUNG?

Advertisement [ ]

Family Member [ ]

Friends/Relative/Neighbour [ ]

Other Source [ ]

Q. 3 Have you seen any SAMSUNG’s ad?

Yes [ ], No [ ]

Q. 4 Which advertisement feature influenced you most in a particular Ad?

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 Concept/Message [ ]

Logo/Slogan [ ]

Picturisation [ ]

Overall [ ]

Q. 5 How do you like of the marketing of SAMSUNG?

Impressive [ ], Satisfactory [ ]

Unsatisfactory [ ]

Q. 6 What makes you recall SAMSUNG?

Logo/Slogan [ ]

Message [ ]

Presentation of Ad [ ]

Model/Celebrity [ ]

Q.7 Did you went to go exclusive SAMSUNG’s Showroom?

Yes [ ], No [ ]

Q. 8 Does the advertisement reflect actual product profile?

Yes [ ], No [ ]

Q. 9 Based on the price range what impression do you carry of SAMSUNG product?

Economical [ ], Costly [ ]

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 Neither Economical nor Costly [ ]

Q.10 Are you happy with After Sales Service of SAMSUNG?

Yes [ ], No [ ]

Q.11) Samsung mobile phones are durable?

Agree [ ], disagreed [ ]

Q.12) The prices of Samsung mobile phones are reasonable?

Agree [ ], disagreed [ ]

Bibliography

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

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