Electronics Industry

Entertainment Appliances
 PREPARED BY:
KEVIN DESAI(09)
RINKY GHAI(15)
SONAL INTWALA(18)
BHAVIK PANCHOLI(37)
MONA RATHOD(47)
KEY PLAYERS
 INTRODUCTION

o What is primary marketed in entertainment

industries?
• Goods - Television, music system, mobile phones,
computers etc
• Events – sponsorship in cricket matches and award
function
• Persons – Aamir Khan for SAMSUNG, SRK for
VIDEOCON.
 MISSION STATEMENT

o SONY:
• "To experience the joy of advancing and applying
technology for the benefit of the public."
o LG:
• The mission of LG is to provide the customers
with utmost satisfaction through leadership. The
fundamental policy of development is to secure
product leadership that the Customers may have
the utmost satisfaction.
 MISSION STATEMENT
o SAMSUNG:
• Samsung aims to become India’s leading volume
retailer in the consumer electronics segment
• Achieving its aim by focusing on its Core Strategy
• Work on strengthening its unique Brand Image
• Gaining Customer Satisfaction
 MISSION STATEMENT

o ONIDA:
• To benefit society at large through Innovation,
Quality, Productivity, Human Development
and Growth, and to generate sustained
surpluses, always striving for excellence,
within the framework of law, and in nothing
but the truth in which we base every action.
ANSOFF MATRIX
 SWOT ANALYSIS OF SAMSUNG

o STRENGHTS
• Clear target: $ 2.4 billion by 2009.
• Launching hi-tech and contemporary products
with zeal and speed.
• Target is not only number driven but also
about acquiring and retaining customers.
• Created a Unique Brand Image for itself as a
high end value driven brand.
 SWOT ANALYSIS OF SAMSUNG

o WEAKNESS
• Approach market through technology and design
leadership: a slow process.
• Not targeting the mass market
• Not spreading the brand all over India
 SWOT ANALYSIS OF SAMSUNG

o OPPORTUNITIES
• LG: its slowing down and has not had any product
innovation in the recent past.
• The Indian Mass Market.
• The high end value driven proposition helps increase
the Market Share.
• Samsung is well known for it product differentiation
 SWOT ANALYSIS OF SAMSUNG

o THREATS
• Indian Mass Market may be captured by a rival company, LG,
Onida, Videocon; etc.
• The consumer durable industry is not in the best of health.
• Due to increased price of inputs and continuing price erosion
there is downtrend in the consumer durables market.
• Increased emergence of modern retail chains- a problem as
Samsung is investing in building a retail network across the
country
 FEW THINGS ABOUT LG

o The brand platform:-

• The LG brand is composed of four basic
elements –
• Value
• Promise
• Benefits
• Personality
 FEW THINGS ABOUT LG

o The Brands core Value that never changes:

• Trust
• Innovation
• People
• Passion
 FEW THINGS ABOUT LG

o Product localization is a key strategy used by

LG:
• LG came out with Hindi and regional language
menus on its TV.
• Introduced the low-priced “Cineplus” and
“Sampoorna” range for the rural markets.
• LG was the first brand to introduce gaming in
CTVs. In continuation of its association with
cricket, LG introduced the cricket game in CTVs.
 FUTURE PLANS

• LG has a positive perception of India and the Indian

consumer.
• LG is making a foray into the e-commerce market in
India and has partnered with various local websites
like fabmall.com, rediff.com, indiatimes.com, and
indiaplaza.com.
• LG is also planning to invest over US$ 208 million in
India over the next three years to expand the business.
Mobile software development is also on LG’s agenda.
PLC OF ONIDA
 Samsung’s socially responsible marketing

• In 2004, Samsung won the Golden Peacock Special

Commendation for Corporate Social Responsibility. This
award was given by the Institute of Directors and the
World Council for Corporate Governance. Samsung runs
the Digital Hope programme, supporting organizations
that promote the use of technology to improve the lives of
youth, empower them and help bridge the ‘digital divide’.
• Organizations supported by this programme include
Development Alternatives and the National Centre for
Promotion of Employment of Disabled People
(NCPEDP).
 SAMSUNGS PRODUCT LINE
o Consumer Electronic Products like :
• Color Television (CTV’s)
• Refrigerators (Frost Free)
• Air Conditioners
• GSM Handsets
• Front Loading Washing Machines
• LCD TV, Plasma TV
 ENVIRONMENTAL ANALYSIS OF SAMSUNG
(Where are we now??)

• In 2004 and 2005 sales turnover was 4,900 crores and

6,300 crores respectively
• Trying to Close on to the Market Leader LG
• Making a mark in the High end category Segment
• LCD TV, Plasma TV, Frost free Refrigerators and
Split AC’s.
ENVIRONMENTAL ANALYSIS OF SAMSUNG
(Where are we now??)

• Samsung had a sting of design successes in 2000s.

For example, the Syncmaster series of LCD
monitors was lauded for its simple design and
went on to win several awards.
• In 2000s, LCD TVs and Plasma TVs were gaining
popularity therefore Samsung’s design team
started work on developing a slim projection TV
based on digital light processing (DLP)
technology. The result was the highly acclaimed
HLP series of DLP TVs.
 CORE COMPETENCIES

o L.G
• Product leadership, Market leadership, People
leadership”
o SONY
• Known for creating “products that stimulate
the senses and refresh the spirit”
 Marketing Communication Mix
o Advertising
• Through TV we have seen different advertisements of SONY
products such as Bravia televisions or Sony Wega TV. Sony
also advertise its products by those favorable television
programs, like sports, series and also it has its own channel
called Sony TV channel.
o CELEBRITY ENDORSEMENT
• LG had Abhishek Bachhan, Samsung Has Aamir Khan,
Videocon had Amithabh Bachhan and now Sharukh Khan, and
All these players have used celebrity to a good effect to
endorse their brands. On the other hand Onida is stuck with its
old “Devil” which isn’t helping.
 Marketing Communication Mix
o Association with events:
• LG was the first brand to enter cricket in a big way, by
sponsoring the 1999 World Cup, and followed it up in 2003 as
well.
• Samsung has very successfully leveraged its association with
Cricket and Cinema in the form of ‘Team Samsung’ and
‘Samsung IIFA Award’
• Samsung has also helped bring to India for the first time, the
Olympic torch relay.
• In 2004, Samsung also brought to India what was possibly the
biggest cricketing spectacle of this decade, the historic India
vs. Pakistan cricket series - ‘The Samsung Cup’.
 Marketing Communication Mix

o Sales Promotion
• Free samples, discount, rebates, coupons, contents and
sweepstakes, premiums, scratch cards, exchange offers, early
bird prizes, etc. Sony has promoted its products through
different sales promotional strategies.
• For example after the release of the Sony BRAVIA television
sets, Sony promoted them by early bird prizes by saying that
all BRAVIA full HD LCD TVs purchased during July 2008
and registered within two weeks of purchase qualify for a
Bonus Playstation 3 as long as the customer claims is one of
the first 35,000 received and validated by Sony.
 Marketing Communication Mix

o Distribution
• Sony being the company which positions itself
as a seller of durable and high-end products, it
is practicing selective distribution of its
products from the selective dealers i.e. SONY
World.
 COMPETITOR ANALYSIS
o LG ELECTRONICS
• LG Electronics rightly understood the consumer
motivations to create magnetic products, price them
strategically, position them sharply and keep making
the magnetism more potent.
o SAMSUNG
• Initially the strategy of Samsung in India was to
create premium image by emphasizing global brand.
After facing stiff competition from another Korean
major- LG, Samsung also started playing price game.
 COMPETITOR ANALYSIS

o ONIDA (MIRC ELECTRONICS)

• Its popular devil ad although had engendered a strong
emotional pull towards the brand, technologically it
represented no advancement. The company plugged
the gap by touting its digital technology. Like
Videocon, it has also been able to hold its market
share.
 COMPETITOR ANALYSIS

o VIDEOCON
• Videocon has always been a price player and has an
image of a low price brand. This entails providing
more features at a given price vis-à-vis competitors. It
has taken over multinational brands to cater to
unserved segments, like Sansui- to flank the flagship
brand Videocon in the low to mid priced segment,
essentially to fight against brands like BPL, Philips,
Onida and taken over Akai.