The case examines the marketing strategy of Samsung in India.

It provides a detailed account of Samsung's marketing strategies to garner more market share. The case examines Samsung's approach to product, pricing, distribution and promotion. The case also provides insights into the future prospects of the company in light of the increasing competition and the slowdown in the consumer electronics market.
Issues:
The marketing strategies adopted by Samsung to gain market share in the highly competitive Indian consumer electronics market. Analyze the role of the four Ps in Samsung's marketing mix. We are investing aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most trusted and preferred brand in the market." - Jong Yong Yun, vice-chairman & CEO, Samsung Electronics, in February 2003.1

The "Team Samsung India First" Campaign

In August 2002, India's leading consumer electronics player, Samsung India Electronics Ltd. (Samsung) announced the signing on of seven celebrity cricketers - 'Team Samsung', as its brand ambassadors. In doing this, it aimed to cash in on the popularity of cricket in India. However, the company's hopes of celebrity endorsement received a setback due to anti-ambush marketing clauses2, arising from ICC's agreement with some other companies. In place of the ads featuring the cricketers, Samsung launched its - 'Team Samsung. India First' campaign all over the country in December 2002.
Said Arun Mahajan of Mudra, Samsung's ad agency, "The focus has been to evolve concepts to do with the players, to promote the cause of cricket and patriotism.'' The copy of the print ad read, 'With Team Samsung, It's India First.''

According to Samsung's former vice-president marketing, S.S. Lee: "The Team Samsung theme will be leveraged right through the year, with a concentrated burst in the first quarter to coincide

. In 2002. owned by Venugopal Dhoot of the Videocon group. washing machines and air conditioners at Noida. Middle East and South East Asia. In 1998. It also had a presence in consumer electronics.with the World Cup. Samsung won the First Prize in the Consumer Electronics category at the Annual 'Awards for Excellence in Electronics'. Electrolux Kelvinator Ltd. and then slowly expanded its operations. chairman and managing director. 5. Samsung established manufacturing facilities for colour televisions. In December 2002. Samsung reported a sales turnover of Rs 30 billion with a growth rate of 20% (Refer Table I). aggressive advertising and a tightly-run administration. In 2000. With Samsung buying the total stake of RCSPL. mobile phones and home appliances. Samsung set up an R&D center for the manufacture of CTVs at Noida (Uttar Pradesh) with a total investment of US$5 million.''3 Analysts felt that the ad campaign would enable Samsung to effectively leverage the cricket craze in the country. the FIPB4 cleared Samsung's proposal to buy RCSPL's remaining (23%) stake. Samsung launched is operations in North India. This center became Samsung's regional hub catering to the design requirements in India. and increase awareness of its brand. RCSPL diluted its stake in Samsung to 26% and in November 2002. it became a wholly-owned subsidiary of its South Korean parent company.40 billion for the calendar year 1998. Samsung's flagship businesses were consumer electronics and home appliances. which contributed more than 60% of its revenues. Initially. In September 2002." Background Note Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt Ltd (RCSPL). Government of India. the company had a presence all over the country. instituted by the Department of Information Technology. microwave ovens.50 million on a turnover of Rs. Aggressive marketing had clearly contributed to Samsung's success. Uttar Pradesh. By January 1998. Samsung announced profits of Rs. information technology products. "Samsung's success is the result of a variety of factors such as competitive pricing. Said Rajeev Karwal.

" In 2002. Its consumer electronics business grew by 29% and contributed 60% to the total sales. Samsung launched is operations in North India. owned by Venugopal Dhoot of the Videocon group. Samsung announced profits of Rs. Managing Director. "It is indeed an honor to receive this Award and I am happy that our efforts to make Samsung a top electronics company in India have been recognized and appreciated. which contributed more than 60% of its revenues. consumer friendly features. Government of India. Samsung won the First Prize in the Consumer Electronics category at the Annual 'Awards for Excellence in Electronics'. R&D are all geared towards providing our customers technologically advanced products with superior. Samsung set up an R&D center for the manufacture of CTVs at Noida (Uttar Pradesh) with a total investment of US$5 million. information technology products. and then slowly expanded its operations. . Initially.. Middle East and South East Asia. In 2000.S. Samsung established manufacturing facilities for colour televisions. product quality. the company had a presence all over the country. Samsung reported sales of Rs. instituted by the Department of Information Technology. Samsung. contributing 40 % of the total sales. In 1998. By January 1998. mobile phones and home appliances. In 2002. With Samsung buying the total stake of RCSPL. and its home appliances division grew by 21%. In September 2002.170 million with 26% growth over the previous year. RCSPL diluted its stake in Samsung to 26% and in November 2002.. Our focus on product planning. it became a wholly-owned subsidiary of its South Korean parent company. It also had a presence in consumer electronics. microwave ovens. washing machines and air conditioners at Noida.S. Samsung's flagship businesses were consumer electronics and home appliances. Lee.50 million on a turnover of Rs.40 billion for the calendar year 1998. Uttar Pradesh. the FIPB4 cleared Samsung's proposal to buy RCSPL's remaining (23%) stake. said. 5. Background Note Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt Ltd (RCSPL). This center became Samsung's regional hub catering to the design requirements in India.

S. By January 1998. contributing 40 % of the total sales.. consumer friendly features. Samsung announced profits of Rs. Samsung established manufacturing facilities for colour televisions. Uttar Pradesh. Our focus on product planning." In 2002. This center became Samsung's regional hub catering to the design requirements in India. said. and its home appliances division grew by 21%. Samsung. In September 2002. the company had a presence all over the country. In 2000. Its consumer electronics business grew by 29% and contributed 60% to the total sales. Samsung set up an R&D center for the manufacture of CTVs at Noida (Uttar Pradesh) with a total investment of US$5 million. owned by Venugopal Dhoot of the Videocon group. Managing Director. instituted by the Department of Information Technology.50 million on a turnover of Rs. R&D are all geared towards providing our customers technologically advanced products with superior. Middle East and South East Asia. 5. In 2002. Initially. washing machines and air conditioners at Noida.40 billion for the calendar year 1998. In 1998. Samsung's flagship businesses were consumer electronics and home appliances. Government of India. the FIPB4 cleared Samsung's proposal to buy RCSPL's remaining (23%) stake. mobile phones and home appliances. Samsung reported sales of Rs. product quality. "It is indeed an honor to receive this Award and I am happy that our efforts to make Samsung a top electronics company in India have been recognized and appreciated. . information technology products.170 million with 26% growth over the previous year.S. Samsung launched is operations in North India. and then slowly expanded its operations. It also had a presence in consumer electronics.. With Samsung buying the total stake of RCSPL. Background Note Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt Ltd (RCSPL). microwave ovens. Samsung won the First Prize in the Consumer Electronics category at the Annual 'Awards for Excellence in Electronics'. which contributed more than 60% of its revenues. Lee. RCSPL diluted its stake in Samsung to 26% and in November 2002. it became a wholly-owned subsidiary of its South Korean parent company.

Samsung reported sales of Rs. Samsung had posted a turnover of Rs. and enabled it to launch products according to consumer needs. Lee.. Our focus on product planning. Its consumer electronics business grew by 29% and contributed 60% to the total sales. when Samsung entered India." In 2002. mobile phones and home appliances (Refer Exhibit I). in order to establish itself in the Indian consumers' mind. 30 billion . contributing 40 % of the total sales.. Managing Director. it realized that Indian consumers were not familiar with the company.S. The direct dealer interface helped the company get quick feedback from dealers. consumer friendly features. Advertising and Sales Promotion In 1995. Samsung positioned itself on the technology platform.. Samsung launched corporate advertisements highlighting its technologically superior goods. "It is indeed an honor to receive this Award and I am happy that our efforts to make Samsung a top electronics company in India have been recognized and appreciated.. . information technology products. R&D are all geared towards providing our customers technologically advanced products with superior... Samsung had 18 state-level distribution offices and a direct dealer interface. Sustaining Growth At the end of December 2002.170 million with 26% growth over the previous year. product quality.. Samsung.. said.. and its home appliances division grew by 21%. 24 billion. audio and video products.. Its product range covered all the categories in the consumer electronics and home appliances.S. Product Innovation Samsung's product range in India included CTVs. Analysts felt that the wide product range of Samsung was one of main reasons for its success in the Indian market.25% growth from the previous year's Rs. So. Distribution Along with the launch of new products. Pricing Pricing also seemed to have played a significant role in Samsung's success. Samsung also consolidated its distribution system.

Analysts appreciated the fact that Samsung had a diversified product range and had implemented holistic brand communications in order to achieve a homogeneous brand image. Analysts also pointed out that Samsung had deployed a unified and consistent brandmarketing program along with an aggressive sports marketing strategy... .

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