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PROJECT REPORT

ON

A STUDY ON MARKETING MIX IN SAMSUNG PVT.LTD.


[Submitted in partial fulfillment for the award of degree of MBA (2014-16)]
[Fourth Semester ]

As a part of the Curriculum of


MASTER OF BUSINESS ADMINISTRATION [MBA]
From
UNIVERSITY SCHOOL OF MANAGEMENT STUDIES, DELHI

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, NEW DELHI

Submitted By

Submitted To

Jyotirmoy Nath
Prof. Puja Khatri
MBA fourth Semester
Project Guide

University School of Management Studies, Delhi

03616688514
Department of MBA

DECLARATION BY THE CANDIDATE


Date :

I hereby declare that the work, which is being present in this project, entitled A
STUDY ON MARKETING MIX IN SASMUNG PVT..LTD.. is an authentic record
of my own work carried out by me under the supervision and guidance of Prof.

Puja Khatri (Project Guide) , University School of Management Studies, Guru


Gobind Singh Indraprastha University, Dwarka, Delhi-110092.
This project was undertaken as a partial fulfillment of the major project report in
fourth semester of Master of Business Administration (M.B.A.) degree as per the
curriculum of Guru Gobind Singh Indraprastha University (G.G.S.I.P.U.).
I have not submitted the matter embodied here in this project for the award of
any other degree or diploma.

Name Jyotirmoy
Nath

University School of Management Studies, Delhi

E.No. 03616688514
M.B.A. 4th Semester
USMS, Delhi

CERTIFICATE BY PROJECT GUIDE


Date:

To whomsoever it may concern


This is to certify that the project report titled A STUDY ON MARKETING MIX IN
SAMSUNG

PVT..LTD. submitted in partial fulfillment of the degree of

Masters of Business Administration at University School of Management


Studies, Dwarka, Delhi is a bonafide project carried out by Jyotirmoy Nath
(03616688514) under my supervision and guidance. His Performance was
satisfactory during his research process for the above said major project.

University School of Management Studies, Delhi

Prof. Puja Khatri


(PROJECT GUIDE)
USMS, Delhi

ACKNOWLEDGEMENT
The project entitled A STUDY ON FUNCTIONS OF MARKETING MIX IN
SAMSUNG PVT..LTD. was a challenging assignment for me and required an improved
environment, extensive endeavor and all necessary guidance and support. I take this
opportunity to express my gratitude to Prof. Puja Khatri, in-charge- department of M.B.A.
and project guide for her able guidance, cooperation and out of the box thinking without
which this project would not have been possible at all.

University School of Management Studies, Delhi

Name: Jyotirmoy Nath


Roll No. 03616688514
M.B.A 4th Semester

TABLE OF CONTENT
S.No.

TOPIC

P. No.

1.

DECLARATION

2.

CERTIFICATE

iii

3.

ACKNOWLEDGEMENT

iv

4.

INDEX

5.

EXECUTIVE SUMMARY

vi

6.
7.

CHAPTER-1
INTRODUCTION TO MARKETING MIX
4 Ps OF MARKETING MIX AND OTHER 3 Ps

8.

OBJECTIVES OF THE STUDY

9.

LIMITATIONS

10.

RESEARCH AND METHODOLOGY

11.

13.

CHAPTER-2
PROFILE OF THE ORGANISATION
CHAPTER-3
ANALYSIS AND INTERPRETATION OF DATA
ANALYSIS OF 4Ps IN SAMSUNG

14.

SAMSUNG IN 2013

15.
16.

CHAPTER-4
SUGGESTIONS, FINDING AND CONCLUSIONS
ANNEXURE

17.

BIBLIOGRAPHY

12.

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ii

01

EXCECUTIVE SUMMARY

The set marketing tools the firm uses to pursue its marketing objectives in the target market is
called as marketing mix. The project is giving the importance and role of marketing mix in
Samsung Pvt. Ltd. Marketing Mix is one of the key concepts in modern marketing. The
phrase first used by Neil H. Broaden. The concept tends its genesis in the classic work of
James Culliton on the management Marketing Cost. Philip Kotler has defined the Marketing
Mix as The set marketing tools the firm uses to pursue its marketing objectives in the target
market. Borden suggested 12 Marketing Mix variables, in the context of manufacturers. The
most popular 4Ps framework is suggested by McCarthy which are product, price, place and
promotion. Since the Marketing Mix tools originated from the study of the manufacturers i.e.
the organization engaged in production and marketing of goods, it is more oriented to deal
with goods marketing situation.
CHAPTER1. INTRODUCTION: This chapter consist information about marketing mix,
considering 4 Ps of product and 3Ps of services. The introduction includes meaning and
definition of marketing mix, objectives, limitations, and research and methodology.
CHAPTER2. COMPANY PROFILE: It is a detailed outlay of Samsung Companys vision,
mission, product, achievements, problems and issues.
CHAPTER3. ANALYSIS AND INTERPRETATION OF DATA: This chapter includes
Detailed analysis of the secondary data collected and a detailed interpretation of their output.
CHAPTER4. CONCLUSION AND SUGGESTION: In the last chapter the overall
conclusion and suggestions are mentioned under two headings.

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Chapter-1
INTRODUCTION

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MARKETING MIX
WITH SPECIAL REFERENCE TO PRODUCT, PRICE, PROMOTION AND PLACE

Marketing Mix is one of the key concepts in modern marketing. The phrase first used by Neil
H. Broaden. The concept tends its genesis in the classic work of James Culliton on the
management marketing cost. Philip Kotler has defined the Marketing Mix as The set
marketing tools the firm uses to pursue its marketing objectives in the target market. Borden
suggested 12 Marketing Mix variables, in the context of manufacturers. The most popular
4Ps framework is suggested by McCarthy which is product, price, place and promotion. Since
the Marketing Mix tools originated from the study of the manufacturers i.e. the organization
engaged in production and marketing of goods, it is more oriented to deal with goods
marketing situation. However services characteristics are radically different from goods
marketing and so are the challenges in their marketing.
Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, services to create exchanges that satisfy individual and
organizational goals. Marketing is a societal process by which individuals and groups obtain
what they need and want through creating, offering, and freely exchanging products and
services of value with others. Marketing is getting the right product or service to the right
people (target market), at the right time, at the right place, at the right price with the right
communications and promotion. Marketing is the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large. The previous definition: Marketing is an
organizational function and a set of processes for creating, communicating, and delivering
value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.

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The marketing manager concentrates on four major decision areas while planning the
marketing activities, namely,
(i)
(ii)
(iii)
(iv)

Products,
Price,
Place (Distribution) and
Promotion

These 4 Ps are called as elements of marketing and together they constitute the marketing
mix. All these are inter-related because a decision in one area affects decisions in other areas.
In this lesson you will learn about the basic aspects relating to these 4Ps viz., product, price,
place and promotion.
Product: Product refers to the goods and services offered by the organization. A pair of
shoes, Pizza, a lipstick, all is products. All these are purchased because they satisfy one or
more of our needs. We are paying not for the tangible product but for the benefit it will
provide. So, in simple words, product can be described as a bundle of benefits which a
marketer offers to the consumer for a price. While buying a pair of shoes, we are actually
buying comfort for our feet, while buying a lipstick we are actually paying for beauty because
lipstick is likely to make us look good. Product can also take the form of a service like an air
travel, telecommunication, etc. Thus, the term product refers to goods and services offered by
the organization for sale.

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PRODUCT CLASSIFICATION
Product can be broadly classified on the basis of (1) use, (2) durability, and (3) tangibility. Let
us have a brief idea about the various categories and their exact nature under each head,
noting at the same time that in marketing the terms product and goods are often used
interchangeably.
1. Based on use, the product can be classified as:
(a) Consumer Goods; and
(b) Industrial Goods.
(a) Consumer goods: Goods meant for personal consumption by the households or ultimate
consumers are called consumer goods. This includes items like toiletries, groceries, clothes
etc. Based on consumers buying behavior the consumer goods can be further classified as :
(i) Convenience Goods;
(ii) Shopping Goods; and
(iii) Specialty Goods.
(i)

Convenience Goods: Do you remember, the last time when did you buy a packet
of butter or a soft drink or a grocery item? Perhaps you dont remember, or you
will say last week or yesterday. Reason is, these goods belong to the categories of
convenience goods which are bought frequently without much planning or
shopping effort and are also consumed quickly. Buying decision in case of these
goods does not involve much pre-planning. Such goods are usually sold at
convenient retail outlets.

(ii)

Shopping Goods: These are goods which are purchased less frequently and are
used very slowly like clothes, shoes, household appliances. In case of these goods,
consumers make choice of a product considering its suitability, price, style, quality
and products of competitors and substitutes, if any. In other words, the consumers
usually spend a considerable amount of time and effort to finalize their purchase

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decision as they lack complete information prior to their shopping trip. It may be
noted that shopping goods involve much more expenses than convenience goods.
(iii)

Specialty Goods: Because of some special characteristics of certain categories of


goods people generally put special efforts to buy them. They are ready to buy
these goods at prices at which they are offered and also put in extra time to locate
the seller to make the purchase. The nearest car dealer may be ten kilometers away
but the buyer will go there to inspect and purchase it. In fact, prior to making a
trip to buy the product he/she will collect complete information about the various
brands. Examples of specialty goods are cameras, TV sets, new automobiles etc.

(b) Industrial Goods: Goods meant for consumption or use as inputs in production of other
products or provision of some service is termed as industrial goods. These are meant for
non-personal and commercial use and include (i) raw materials, (ii) machinery, (iii)
components, and (iv) operating supplies (such as lubricants, stationery etc). The buyers of
industrial goods are supposed to be knowledgeable, cost conscious and rational in their
purchase and therefore, the marketers follow different pricing, distribution and promotional
strategies for their sale. It may be noted that the same product may be classified as consumer
goods as well as industrial goods depending upon its end use. Take for example the case of
coconut oil. When it is used as hair oil or cooking oil, it is treated as consumer goods and
when used for manufacturing a bath soap it is termed as industrial goods. However, the way
these products are marketed to these two groups are very different because purchase by
industrial buyer is usually large in quantity and bought either directly from the manufacturer
or the local distributor.
2. Based on Durability, the products can be classified as :
(a) Durable Goods; and
(b) Non-durable Goods.
(a) Durable Goods: Durable goods are products which are used for a long period i.e.,
for months or years together. Examples of such goods are refrigerator, car, washing
machine etc. Such goods generally require more of personal selling efforts and have
high profit margins. In case of these goods, sellers reputation and presale and aftersale service are important determinants of purchase decision.

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(b) Non-durable Goods: Non-durable goods are products that are normally
consumed in one go or last for a few uses. Examples of such products are soap, salt,
pickles, sauce etc. These items are consumed quickly and we purchase these goods
more often. Such items are generally made available by the producer through large
number of convenient retail outlets. Profit margins on such items are usually kept low
and heavy advertising is done to attract people towards their trial and use.
3. Based on tangibility, the products can be classified as:
(a) Tangible Goods; and
(b) Intangible Goods
(a) Tangible Goods: Most goods, whether these are consumer goods or industrial
goods and whether these are durable or non-durable, fall in this category as they Have
a physical form, that can be touched and seen. Thus, all items like groceries, cars,
raw-materials, machinery etc. fall in the category of tangible goods.
(b) Intangible Goods: Intangible goods refer to services provided to the individual
Consumers or to the organizational buyers (industrial, commercial, institutional,
Government etc.). Services are essentially intangible activities which provide want or
need satisfaction. Medical treatment, postal, banking and insurance services etc., all
fall in this category.
Price: Price is the amount charged for a product or service. It is the second most important
element in the marketing mix. Fixing the price of the product is a tricky job. Many factors
like demand for a product, cost involved, consumers ability to pay, prices charged by
competitors for similar products, government restrictions etc. have to be kept in mind while
fixing the price. In fact, pricing is a very crucial decision area as it has its effect on demand
for the product and also on the profitability of the firm. Pricing (determination of price to be
charged) is another important element of marketing mix and it plays a crucial role in the
success of a product in the market. If the price fixed is high, it is likely to have an adverse
effect on the sales volume. If, on the other hand, it is too low, it will adversely affect the
profitability. Hence, it has to be fixed after taking various aspects into consideration. The

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factors usually taken into account while determining the price of a product can be broadly
described as follows:
(a) Cost: No business can survive unless it covers its cost of production and
distribution. In large number of products, the retail prices are determined by
adding a reasonable profit margin to the cost. Higher the cost, higher is likely to
be the price, lower the cost lower the price.
(b) Demand: Demand also affects the price in a big way. When there is limited
supply of a product and the demand is high, people buy even if high prices are
charged by the producer. But how high the price would be is dependent upon
prospective buyers capacity and willingness to pay and their preference for the
product. In this context, price elasticity, i.e. responsiveness of demand to changes
in price should also be kept in view.
(c) Competition: The price charged by the competitor for similar product is an
important determinant of price. A marketer would not like to charge a price higher
than the competitor for fear of losing customers. Also, he may avoid charging a
price lower than the competitor. Because it may result in price war which we have
recently seen in the case of soft drinks, washing powder, mobile phone etc.
(d) Marketing Objectives: A firm may have different marketing objectives such as
maximization of profit, maximization of sales, bigger market share, survival in
the market and so on. The prices have to be determined accordingly. For example,
if the objective is to maximize sales or have a bigger market share, a low price
will be fixed. Recently one brand of washing powder slashed its prices to half, to
grab a bigger share of the market.

(e) Government Regulation: Prices of some essential products are regulated by the
government under the Essential Commodities Act. For example, prior to liberalization
of the economy, cement and steel prices were decided by the government. Hence, it is
essential that the existing statutory limits, if any, are also kept in view while
determining the prices of products by the producers. The organization has to decide
whether to sell directly to the retailer or through the distributors/wholesaler etc. It can
even plan to sell it directly to consumers.

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Methods of fixing the price can be broadly divided into the following categories.
i) Cost based pricing
ii) Competition based pricing
iii) Demand based pricing
iv) Objective based pricing
i) Cost Based Pricing
Under this method, price of the product is fixed by adding the amount of desired
profit margin to the cost of the product. If a particular soap costs the marketer Rs. 8
and he desires a profit of 25%, the price of the soap is fixed at Rs 8 + (8x25/100) =Rs.
10. While calculating the price in this way, all costs (variable as well as fixed)
incurred in manufacturing the product are taken into consideration.
ii) Competition Based Pricing
In case of products where market is highly competitive and there is negligible
difference in quality of competing brands, price is usually fixed closer to the price of
the competing brands. It is called young rate pricing and is a very convenient
method because the marketers do not have to worry much about demand and cost and
effect the change as per the changes by the industry leaders.
iii) Demand Based Pricing
At times, prices are determined by the demand for the product. Under this method,
without paying much attention to cost and competitors prices, the marketers try to
ascertain the demand for the product. If the demand is high they decide to take
advantage and fix a high price. If the demand is low, they fix low prices for their
product. At times they resort to differential prices and charge different prices from
different groups of customers depending upon their perceived values and capacity to
pay. Take the case of cinema halls where the rates of tickets differ for the different sets
of rows in the hall.
iv) Objective Based Pricing

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This method is applicable to introduction of new (innovative) products. If, at the


introductory stage of the products, the organization wishes to penetrate the market i.e.,
to capture large parts of the market and discourage the prospective competitors to
enter into the fray, it fixes a low price. Alternatively, the organization may decide to
skim the market i.e., to earn high profit by taking advantage of a group of customers
who give more importance to their status or distinction and are willing to pay even a
higher price for it. In such a situation they fix quite high price at the introductory
stage of their product and market it to only those customers who can afford it.
Place: Goods are produced to be sold to the consumers. They must be made available
to the consumers at a place where they can conveniently make purchase. Woolens are
manufactured on a large scale in Ludhiana and you purchase them at a store from the
nearby market in your town. So, it is necessary that the product is available at shops in
your town. This involves a chain of individuals and institutions like distributors,
wholesalers and retailers who constitute firms distribution network (also called a
channel of distribution). The path or route adopted by him for the purpose is known as
channel of distribution. A channel of distribution thus, refers to the pathway used by
the manufacturer for transfer of the ownership of goods and its physical transfer to the
consumers and the user/buyers (industrial buyers). Stanton has also defined it as A
distribution channel consists of the set of people and firms involved in the transfer of
title to a product as the product moves from producer to ultimate consumer or
business user. Basically it refers to the vital links connecting the manufacturers and
producers and the ultimate consumers/users. It includes both the producer and the end
user and also the middlemen/agents engaged in the process of transfer of title of
goods.

Primarily a channel of distribution performs the following functions:


(a) It helps in establishing a regular contact with the customers and provides them the
necessary information relating to the goods.
(b) It provides the facility for inspection of goods by the consumers at convenient
points to make their choice.
(c) It facilitates the transfer of ownership as well as the delivery of goods.
(d) It helps in financing by giving credit facility.

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(e) It assists the provision of after sales services, if necessary.


(f) It assumes all risks connected with the carrying out the distribution function.
TYPES OF CHANNELS OF DISTRIBUTION
Generally we do not buy goods directly from the producers. The producers/manufacturers
usually use services of one or more middlemen to supply their goods to the consumers. But
sometimes, they do have direct contact with the customers with no middlemen in between
them. This is true more for industrial goods where the customers are highly knowledgeable
and their individual purchases are large. The various channels used for distribution of
consumer goods can be described as follows:
(a) Zero stage channel of distribution
Zero stage distribution channels exists where there is direct sale of goods by the producer
to the consumer. This direct contact with the consumer can be made through door-todoor
salesmen, own retail outlets or even through direct mail. Also in case of perishable
products and certain technical household products, door-to-door sale is an easier way of
convincing consumer to make a purchase. Eureka Forbes, for example, sells its water
purifiers directly through their own sales staff.
(b) One stage channel of distribution
In this case, there is one middleman i.e., the retailer. The manufacturers sell their goods to
retailers who in turn sell it to the consumers. This type of distribution channel is preferred
by manufacturers of consumer durables like refrigerator, air conditioner, washing
machine, etc. where individual purchase involves large amount. It is also used for
distribution through large scale retailers such as departmental stores (Big Bazaar,
Sponsors) and super markets.
(c) Two stage channel of distribution
This is the most commonly used channel of distribution for the sale of consumer goods.
In this case, there are two middlemen used, namely, wholesaler and retailer. This is
applicable to products where markets are spread over a large area, value of individual
purchase is small and the frequency of purchase is high.

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(d) Three stage channel of distribution


When the number of wholesalers used is large and they are scattered throughout the
country, the manufacturers often use the services of mercantile agents who act as a link
between the producer and the wholesaler. They are also known as distributors. Choice of
an appropriate distribution channel is very important as the pricing as well as promotion
strategy are dependent upon the distribution channel selected. Not only that, the route
which the product follows in its journey from the manufacturer to the consumer also
involves certain costs. This in turn, affects not only the price of the product but also the
profits. Choice of inappropriate channels of distribution may result in lesser profits for the
manufacturer and higher price from the consumer. Hence, the manufacturer has to be
careful while finalizing the channel of distribution to be used. He should pay attention to
the following factors while making his choice.
(a) Nature of Market: There are many aspects of market which determine the choice of
channel of distribution. Say for example, where the number of buyers is limited, they
are concentrated at few locations and their individual purchases are large as is the case
with industrial buyers, direct sale may be the most preferred choice. But in case where
number of buyers is large with small individual purchase and they are scattered, then
need may arise for use of middlemen.
(b) Nature of Product: Nature of the product considerably affects the choice of channel
of distribution. In case the product is of technical nature involving a good amount of
pre-sale and after sale services, the sale is generally done through retailers without
involving the wholesalers. But in most of the consumer goods having small value,
bought frequently in small quantities, a long channel involving agents, wholesalers
and retailers is used as the goods need to be stored at convenient locations. Items like
toiletries, groceries, etc. fall in this category. As against this in case of items like
industrial machinery, having large value and involving specialized technical service
and long negotiation period, direct sale is preferred.
(c) Nature of the Company: A firm having enough financial resources can afford to its
own a distribution force and retail outlet, both. But most business firms prefer not to
create their own distribution channel and concentrate on manufacturing. The firms
who wish to control the distribution network prefer a shorter channel.

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(d) Middlemen Consideration: If right kind of middlemen having the necessary


experience, contacts, financial strength and integrity are available, their use is preferred as
they can ensure success of newly introduced products. Cost factors also have to be kept in
view as all middlemen add their own margin of profit to the price of the products. But
from experience it is learnt that where the volume of sales are adequate, the use of
middlemen is often found economical and less cumbersome as against direct

Promotion: If the product is manufactured keeping the consumer needs in mind, is rightly
priced and made available at outlets convenient to them but the consumer is not made aware
about its price, features, availability etc, its marketing effort may not be successful. Therefore
promotion is an important ingredient of marketing mix as it refers to a process of informing,
persuading and influencing a consumer to make choice of the product to be bought.
Promotion is done through means of personal selling, advertising, publicity and sales
promotion. It is done mainly with a view to provide information to prospective consumers
about the availability, characteristics and uses of a product. It arouses potential consumers
interest in the product, compare it with competitors product and make his choice. The
proliferation of print and electronic media has immensely helped the process of promotion.
Let us have a brief idea about these promotion tools.
i)

Advertising: Advertising is the most commonly used tool for informing the
present and prospective consumers about the product, its quality, features,
availability, etc. It is a paid form of non-personal communication through different
media about a product, idea, a service or an organization by an identified sponsor.
It can be done through print media like newspaper, magazines, billboards,
electronic media like radio, television, etc. It is a very flexible and comparatively
low cost tool of promotion.

ii)

Publicity: This is a non-paid process of generating wide range of communication


to contribute a favorable attitude towards the product and the organization. You
may have seen articles in newspapers about an organization, its products and
policies. The other tools of publicity are press conference, publication and news in
the electronic media etc. It is published or broadcasted without charging any
money from the firm. Marketers often spend a lot of time and effort in getting

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news items placed in the media for creation of a favorable image of the company
and its products.
iii)

Personal selling: You must have come across representatives of different


companies knocking at your door and persuading you to buy their product. It is a
direct presentation of the product to the consumers or prospective buyers. It refers
to the use of salespersons to persuade the buyers to act favorably and buy the
product. It is most effective promotional tool in case of industrial goods.

iv)

Sales promotion: This refers to short-term and temporary incentives to purchase


or induce trials of new goods. The tool includes contests, games, gifts, trade
shows, discounts, etc. Sales promotional activities are often carried out at retail
levels.

THE 3 Ps: PEOPLE, PROCESS AND PHYSICAL EVIDENCE

INTRODUCTION
The increased attention to the application of marketing in the services sector has brought in to
question what the key components or elements of a marketing mix for services, are or what
they should be. If the elements chosen for a service are not comprehensive, then there could
occur a gap between the market requirement and the firms marketing offer.
This makes it appropriate to reconsider the traditional marketing mix of the 4Ps in the
context of marketing service. The traditional mix has been right from a much longer list of 12
variables designed by the Harvard School of Business of time, the concept had gain
acceptance and the mix adopted to capture the market.

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There has always been a consistent debate on the marketing mix, and particularly in the
context of services. As the 4Ps model restrictive in application to the service industry, the
need for including 5th P is being increasingly recognized. People, processes and physical
evidence (5th P) are those elements which demand special emphasize in service marketing.
This is sometimes considered as the separate marketing mix by itself.

PEOPLE AS AN ELEMENT OF MARKETING MIX


A few years ago, if people were spoken of as an element of marketing mix, it would have
been considered blunder. But in recent times, there has been growing awareness of the role
of people in achieving the marketing objectives and the importance of paying adequate
attention to this aspect is being realized.
The quality of service provided cannot be standardized as there is always a human element
and it depends on the state of the individual at that particular moment of providing the
service. This makes it difficult to control the service activities. Hence, this aspect demands
serious attention to ensure a satisfied customer.
By viewing people as a separate element of marketing mix, required attention can be directed
to maximize their efficiency. Steps can be taken to train people to meet the specific need of
their job, motivated to have customer orientation, and reward them to make the desired
contribution.

PROCESS IN MARKETING MIX


Process denotes the way in which the particular action is carried out. Marketer should take
care all of all the procedures, schedules, mechanisms, and routines which are practiced when
the tour is on. It is at the process level that the customer requirements are actually met. Some
of these processes are statutory in nature i.e. they required to be compiled with due to the
govt. rules and regulations, while some others are practiced to facilitate easy control of the
different activities. Processes should facilitate a service operation but at same time they
should not have a negative effect on customer satisfaction. No amount of friendly approach
and pleasant attitude on the part of marketing personnel will overcome continued
unsatisfactory process performance. It is necessary that the processes be simplified and made
customer friendly to ensure a satisfied customer.

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PHYSICAL EVIDENCE
Physical evidence is very much related to the product and hence is considered by many
authors as a sub component of the product element and it has been argued that as advertising
and personal selling are considered as sub elements in promotion, so as it is enough to
consider physical element of product. Every customer would like to see, evaluate and
compare a product physically before making a decision whether to make a purchase or not.
As the services are intangible in nature, it is almost impossible to have firsthand experience
of the desired service before making the final purchase. How much ever a person tries to
judge the quality of service by making inquiries and reading literature, a doubt still remains in
mind as to the exact quality of the service to be expected.

OBJECTIVES OF THE STUDY

1. To understand the importance and role of Marketing Mix.


2. To analyze and evaluate the importance of Marketing Mix in Samsung Pvt.. Ltd..
3. To understand the Product, Pricing, Distribution and Promotional strategies of
Samsung company.

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LIMITATIONS OF THE STUDY


1. It is based on Secondary Data, as no Primary Data is involved.
2. It can be biased, as it is based on Secondary Data.
3. Time constraint was the major limitation in this project.
4. Another problem was knowledge constraint and this report is an attempt to gather as
much of relevant data/information as possible.

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RESEARCH METHEDOLOGY

Research methodology is a way to systematically solve the research problem. It may be


understood as a science of studying how research is done scientifically. In it They study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods or techniques but also the methodology. Research is common parlance
a scientific investigation for knowledge. It can be defined as a systematic effort
to collect the valuable information's. A research can be carried out by different
methodologies, which have their own pros and cons. I have just taken the secondary data.

Secondary Data
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When an investigator uses the data that has been already collected by others, is called
Secondary Data. The secondary data could be collected from Journals, Reports, and various
publications. The advantages of the secondary data can be It is economical, both in terms of
money and time. I took it from various websites.

CHAPTER-2
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PROFILE OF THE
ORGANIZATION

Introduction to Samsung Pvt. Ltd.

Samsung Group is a South Korean multinational conglomerate company headquartered


in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most
of them united under the Samsung brand, and are the largest South Korean chaebol (business
conglomerate).
In 1938, Lee Byung-chull (19101987) of a large landowning family in the Uiryeong county
came to the nearby Daegu city and founded Samsung Sanghoe ( , ), a

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small trading company with forty employees located in Su-dong (now Ingyo-dong). It dealt in
groceries produced in and around the city and produced its own noodles. The company
prospered and Lee moved its head office to Seoul in 1947. When the Korean War broke out,
however, he was forced to leave Seoul and started a sugar refinery in Busan named Cheil
Jedang. After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsandong, Daegu. It was the largest woollen mill ever in the country and the company took on the
aspect of a major company.
Samsung diversified into many areas and Lee sought to help establish Samsung as an industry
leader in a wide range of enterprises, moving into businesses such as insurance, securities,
and retail. President Park Chung Hee placed great importance on industrialization, and
focused his economic development strategy on a handful of large domestic conglomerates,
protecting them from competition and assisting them financially.
In 1947, Cho Hong-jai (the Hyosung groups founder) jointly invested in a new company
called Samsung Mulsan Gongsa (), or the Samsung Trading Corporation, with
the Samsung Group founder Lee Byung-chull. The trading firm grew to become the presentday Samsung C&T Corporation. But after some years Cho and Lee separated due to
differences in management between them. He wanted to get up to a 30% group share. After
settlement,

Samsung

Group

was

separated

into

Samsung

Group

and Hyosung Group, Hankook Tire, and others.


In the late 1960s, Samsung Group entered into the electronics industry. It formed several
electronics-related divisions, such as Samsung Electronics Devices Co., Samsung ElectroMechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications
Co., and made the facility in Suwon. Its first product was a black-and-white television set.

Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three
decades the group diversified into areas including food processing, textiles, insurance,
securities and retail. Samsung entered the electronics industry in the late 1960s and the
construction and shipbuilding industries in the mid-1970s; these areas would drive its
subsequent growth. Following Lee's death in 1987, Samsung was separated into four business
groups Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since the 1990s

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Samsung has increasingly globalized its activities, and electronics, particularly mobile phones
and semiconductors, have become its most important source of income.
Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest
information technology company measured by 2012 revenues, and 4th in market
value), Samsung Heavy Industries (the world's 2nd-largest shipbuilder measured by 2010
revenues), and Samsung Engineering and Samsung C&T (respectively the world's 13th and
36th-largest construction companies). Other notable subsidiaries include Samsung Life
Insurance (the world's 14th-largest life insurance company), Samsung Ever land(operator of
Ever land Resort, the oldest theme park in South Korea), Samsung Techwin (an aerospace,
surveillance and defense company) and Cheil Worldwide (the world's 15th-largest advertising
agency measured by 2012 revenues).
Samsung has a powerful influence on South Korea's economic development, politics, media
and culture, and has been a major driving force behind the "Miracle on the Han River". Its
affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue
was equal to 17% of South Korea's $1,082 billion GDP.

In 2013, Samsung began construction on building the world's largest mobile phone factory in
the Thai Nguyen province of Vietnam.
Samsung comprises around 80 companies. It is highly diversified, with activities in areas
including construction, consumer electronics, financial services, shipbuilding, and medical
services.
In FY 2009, Samsung reported consolidated revenues of 220 trillion KRW ($172.5 billion).
In FY 2010, Samsung reported consolidated revenues of 280 trillion KRW ($258 billion), and
profits of 30 trillion KRW ($27.6 billion) (based upon a KRW-USD exchange rate of 1,084.5
KRW per USD, the spot rate as of 19 August 2011). However, it should be noted that these

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amounts do not include the revenues from all of Samsung's subsidiaries based outside South
Korea.
Samsung Electronics Co., Ltd. is a multinational electronics and information technology
company headquartered in Suwon and the flagship company of the Samsung Group. Its
products include air conditioners, computers, digital televisions, liquid crystal displays
(including thin film transistors (TFTs) and active-matrix organic light-emitting diodes
(AMOLEDs)), mobile phones, monitors, printers, refrigerators, semiconductors and telecoms
networking equipment. It is the world's largest mobile phone maker by unit sales in the first
quarter of 2012, with a global market share of 25.4%. It is also the world's second-largest
semiconductor maker by 2011 revenues (after Intel).
Samsung Engineering Co. Ltd.is a multinational construction company headquartered in
Seoul. It was founded in January 1969. Its principal activity is the construction of oil refining
plants; upstream oil and gas facilities; petrochemical plants and gas plants; steel making
plants; power generation plants; water treatment facilities; and other infrastructure. It
achieved total revenues of 9,298.2 billion won (US$8.06 billion) in 2011.
Samsung Engineering is listed on the Korea Exchange stock-exchange (number 02803450).
Samsung Ever land engages in an array of services closely associated with the day-to-day
lives and business operations of its customers. Its business scope covers the three main
sectors of Environment & Asset, Food Culture, and Resort. Since its inception in 1963 and
the launch of theme park 'Ever land' in 1976, Samsung Ever land has steadily built its
presence across the markets of golf, building management, food and beverage, energy, and
environment, turning challenges into opportunities. Through this process, Samsung Ever land
has managed to achieve its current market standing. As a corporation trusted by the local
community and renowned globally as a pioneer in the infrastructure of life, Samsung Ever
land strives to help its customers lead fulfilling lives and achieve success in their business
operations by building the infrastructure for every aspect of life including entertainment,
culinary, and business.
Samsung Fire & Marine Insurance Co. Ltd.is a multinational general insurance company
headquartered in Seoul. It was founded in January 1952 as Korea Anbo Fire and Marine
Insurance Co. Ltd.and was renamed Samsung Fire & Marine Insurance in December

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1993. Samsung Fire & Marine Insurance offers services including accident insurance,
automobile insurance, casualty insurance, fire insurance, liability insurance, marine
insurance, personal pensions and loans. As of March 2011 it had operations in 10 countries
and 6.5 million customers. Samsung Fire & Marine Insurance had a total premium income of
US$11.7 billion in 2011 and total assets of US$28.81 billion at 31 March 2011. [76] It is the
largest provider of general insurance in South Korea.
Samsung Heavy Industries Co. Ltd.is a shipbuilding and engineering company headquartered
in Seoul. It was founded in August 1974. Its principal products are bulk carriers, container
vessels, crude oil tankers, cruisers, passenger ferries, material handling equipment steel and
bridge structures. It achieved total revenues of 13,358.6 billion won in 2011 and is the world's
second-largest shipbuilder by revenues (after Hyundai Heavy Industries).
Samsung Life Insurance Co. Ltd.is a multinational life insurance company headquartered in
Seoul. It was founded in March 1957 as Don bang Life Insurance and became an affiliate of
the Samsung Group in July 1963. Samsung Life's principal activity is the provision of
individual life insurance and annuity products and services. As of December 2011 it had
operations in seven countries, 8.08 million customers and 5,975 employees. Samsung Life
had total sales of 22,717 billion won in 2011 and total assets of 161,072 billion won at 31
December 2011. It is the largest provider of life insurance in South Korea.
The Samsung Medical Centre was founded on November 9, 1994 under the philosophy of
contributing to improving the nations health through the best medical service, advanced
medical research, and development of outstanding medical personnel." The Samsung Medical
Centre consists of a hospital and a cancer centre. The hospital is located in an intelligent
building with floor space of more than 200,000 square meters and 20 floors above ground and
5 floors underground, housing 40 departments, 10 specialist centres, 120 special clinics, and
1,306 beds. On the other hand, the 655-bed Cancer Centre has 11 floors above ground and 8
floors underground, with floor space of over 100,000 square meters. SMC is a tertiary
hospital manned by approximately 7,400 staff including over 1,200 doctors and 2,300 nurses.
Since its foundation, the Samsung Medical Centre has successfully incorporated and
developed an advanced model with the motto of becoming a "patient-cantered hospital," a
new concept in Korea.

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On December 5, 2012 the antitrust regulators of European Union fined Samsung SDI and
several other major companies for fixing prices of TV cathode-ray tubes in two cartels lasting
nearly a decade.
State-run Korea Agro-Fisheries Trade Corp. set up the venture, aT Grain Co., in Chicago,
with three other South Korean companies, Korea Agro-Fisheries owns 55 percent of at Grain,
while Samsung C&T Corp, Hanjin Transportation Co. and STX Corporation each hold 15
percent.
Samsung sponsors Bundesliga club Bayern Munich. Samsung are the current sponsors of the
English Premier League football club Chelsea Football Club. They also sponsor
English Football League One clubs Swindon Town and Leyton Orient.
Samsung, which started as a domestic sponsor of the Olympics in Seoul 1988, has been a
worldwide Olympic partner since the 1998 Winter Olympics.
Samsung operating many sports clubs, football club Suwon Samsung Blue wings, baseball
club Samsung Lions, basketball club Seoul Samsung Thunders, volleyball club Daejeon
Samsung Fire Blue fangs and etc.
Samsung also sponsors a former Star craft Brood War and current Star craft Professional
Gaming Team named Samsung Khan. Samsung has sponsored the team since 2000.
Samsung Electronics Co. spent an estimated $14-billion (U.S.) more than Icelands GDP
on advertising, promotion, and marketing in 2013. At 5.4 percent of annual revenue, this is a
larger proportion than the worlds other top-20 companies by sales (Apple Inc. spent 0.6
percent and General Motors spent 3.5 percent. Samsung became the world's biggest
advertiser in 2012, spending $4.3-billion, compared to Apple which spent $1-billion.
Samsung's global brand value of $39.6-billion is less than half that of Apple.

In 2007 former Samsung chief lawyer Kim Yong Chul claimed that he was involved
in bribing and fabricating court evidence on behalf of the group's chairman Lee Kun-hee and

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the company. Kim said that Samsung lawyers trained executives to serve as scapegoats in a
"fabricated scenario" to protect Lee, even though those executives were not involved. Kim
also told the media that he was "sidelined" by Samsung after he refused to pay a USD$3.3
million bribe to the judge presiding over a case where two of their executives were found
guilty. Kim revealed that the company had raised a large amount of secret funds through bank
accounts illegally opened under the names of up to 1,000 Samsung executivesunder his
own name, four accounts were opened to manage 5 billion won.
You can even say the Samsung chairman is more powerful than the President of South
Korea. Korean people have come to think of Samsung as invincible and above the law, said
Woo Suk-hoon, host of a popular economics podcast in a Washington Post article named "In
South Korea, the Republic of Samsung," published on December 9, 2012. Critics claimed that
Samsung knocked out smaller businesses, limiting choices for Korean consumers, and
sometimes colluded with fellow giants to fix prices while bullying those who investigate. Lee
Jung-hee, a South Korean presidential candidate, said in a debate, Samsung has the
government in its hands. Samsung manages the legal world, the press, the academics
and bureaucracy.
The Fair Trade Commission of Taiwan is investigating Samsung and its local Taiwanese
advertising agency for false advertising. The case was commenced after the Commission
received complaints stating that the agency hired students to attack competitors of Samsung
Electronics in online forums. Samsung Taiwan made an announcement on its Facebook page
in which it stated that it had not interfered with any evaluation report and had stopped online
marketing campaigns that constituted posting or responding to content in online forums.

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CHAPTER-3
ANALYSIS AND
INTERPRETATION OF
DATA

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3.1 Impact of 4 Ps in Samsung


Samsung Pvt. Ltd. Is a global electronic firm and its product are globally accepted. The
Product offered by Samsung are Apparel, chemicals, consumer electronics, electronic
components,

medical

equipment,

precision

instruments, semi

conductors

ships,

telecommunications equipment.
Along with that, following are the services offered by the Samsung company:
Advertising, construction, entertainment, financial services, hospitality, information and
communications technology services, medical services, and retail. In 2010, Samsung
announced a 10-year growth strategy centered around five businesses. One of these
businesses was to be focused on biopharmaceuticals, to which the company has
committed 2.1 trillion.
In the first quarter of 2012, Samsung Electronics became the world's largest mobile phone
maker by unit sales, overtaking Nokia, which had been the market leader since 1998. In the
August 21 edition of the Austin American-Statesman, Samsung confirmed plans to spend 3 to
4 billion dollars converting half of its Austin chip manufacturing plant to a more profitable
chip. The conversion should start in early 2013 with production on line by the end of 2013.
On March 14, 2013, Samsung unveiled the Galaxy S4. Samsung comprises around 80
companies. It is highly diversified, with activities in areas including construction, consumer
electronics, financial services, shipbuilding, and medical services.
In FY 2009, Samsung reported consolidated revenues of 220 trillion KRW ($172.5 billion).
In FY 2010, Samsung reported consolidated revenues of 280 trillion KRW ($258 billion), and
profits of 30 trillion KRW ($27.6 billion) (based upon a KRW-USD exchange rate of 1,084.5
KRW per USD, the spot rate as of 19 August 2011). However, it should be noted that these
amounts do not include the revenues from all of Samsung's subsidiaries based outside South
Korea. In 2013, Samsung began construction on building the world's largest mobile phone
factory in the Thai Nguyen province of Vietnam.

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Figure 3.1:Samsung Products according to the Profit in financial year 2011, 2012 and 2013:

250
200
150
100
50

fy 2011 in trillion won


2012
2013

INTERPRETATION:
In the above graph the four Samsung Products are showing with their profit in financial year
2011, 2012 and 2013. All the four products are showing the posative growth in 3 years.
Electronic products are earning the heighest profit in all 3 years.

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Samsung products list

Samsung Electronics

Samsung Electronics Co. Ltd. is a multinational electronics and information technology


company headquarter is in Suwon and the flagship company of the Samsung Group. Its
products include air conditioners, computers, digital televisions, liquid crystal displays
(including thin film transistors (TFTs) and active-matrix organic light-emitting diodes
(AMOLEDs)), mobile phones, monitors, printers, refrigerators, semiconductors and telecoms
networking equipment. It is the world's largest mobile phone maker by unit sales in the first
quarter of 2012, with a global market share of 25.4%. It is also the world's second-largest
semiconductor maker by 2011 revenues (after Intel).
Samsung Electronics is listed on the Korea Exchange stock-exchange (number 005930).

Samsung Engineering

Samsung Engineering Co. Ltd .is a multinational construction company headquartered in


Seoul. It was founded in January 1969. Its principal activity is the construction of oil refining
plants; upstream oil and gas facilities; petrochemical plants and gas plants; steel making
plants; power generation plants; water treatment facilities; and other infrastructure. It
achieved total revenues of 9,298.2 billion won (US$8.06 billion) in 2011.
Samsung Engineering is listed on the Korea Exchange stock-exchange (number 02803450).

Samsung Ever land

Samsung Ever land engages in an array of services closely associated with the day-to-day
lives and business operations of its customers. Its business scope covers the three main
sectors of Environment & Asset, Food Culture, and Resort. Since its inception in 1963 and
the launch of theme park 'Ever land' in 1976, Samsung Ever land has steadily built its
presence across the markets of golf, building management, food and beverage, energy, and
environment, turning challenges into opportunities. Through this process, Samsung Ever land
has managed to achieve its current market standing. As a corporation trusted by the local

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community and renowned globally as a pioneer in the infrastructure of life, Samsung Ever
land strives to help its customers lead fulfilling lives and achieve success in their business
operations by building the infrastructure for every aspect of life including entertainment,
culinary, and business.

Samsung Fine Chemicals

Samsung Fine Chemicals is listed on the Korea Exchange stock-exchange (number 004000).

Samsung Fire & Marine Insurance

Samsung Fire & Marine Insurance Co. Ltd. is a multinational general insurance company
headquartered in Seoul. It was founded in January 1952 as Korea Ambo Fire and Marine
Insurance Co. Ltd. and was renamed Samsung Fire & Marine Insurance in December
1993. Samsung Fire & Marine Insurance offers services including accident insurance,
automobile insurance, casualty insurance, fire insurance, liability insurance, marine
insurance, personal pensions and loans. As of March 2011 it had operations in 10 countries
and 6.5 million customers. Samsung Fire & Marine Insurance had a total premium income of
US$11.7 billion in 2011 and total assets of US$28.81 billion at 31 March 2011. It is the
largest provider of general insurance in South Korea.
Samsung Fire has been listed on the Korea Exchange stock-exchange since 1975 (number
000810).

Samsung Heavy Industries

Samsung Heavy Industries Co. Ltd. is a shipbuilding and engineering company


headquartered in Seoul. It was founded in August 1974. Its principal products are bulk
carriers, container vessels, crude oil tankers, cruisers, passenger ferries, material handling
equipment steel and bridge structures. It achieved total revenues of 13,358.6 billion won in
2011 and is the world's second-largest shipbuilder by revenues (after Hyundai Heavy
Industries).
Samsung Heavy Industries is listed on the Korea Exchange stock-exchange (number 010140).

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Samsung Life Insurance

Samsung Life Insurance Co. Ltd. is a multinational life insurance company headquartered in
Seoul. It was founded in March 1957 as Dongbang Life Insurance and became an affiliate of
the Samsung Group in July 1963. Samsung Life's principal activity is the provision of
individual life insurance and annuity products and services. As of December 2011 it had
operations in seven countries, 8.08 million customers and 5,975 employees. Samsung Life
had total sales of 22,717 billion won in 2011 and total assets of 161,072 billion won at 31
December 2011. It is the largest provider of life insurance in South Korea.

Samsung Life Insurance is listed on the Korea Exchange stock-exchange (number 032830)

Samsung Machine Tools

Samsung Machine Tools of America is a national distributor of machines in the United States.

Samsung Medical Centre

The Samsung Medical Centre was founded on November 9, 1994 under the philosophy of
contributing to improving the nations health through the best medical service, advanced
medical research, and development of outstanding medical personnel." The Samsung Medical
Centre consists of a hospital and a cancer centre. The hospital is located in an intelligent
building with floor space of more than 200,000 square meters and 20 floors above ground and
5 floors underground, housing 40 departments, 10 specialist centres, 120 special clinics, and
1,306 beds. On the other hand, the 655-bed Cancer Centre has 11 floors above ground and 8
floors underground, with floor space of over 100,000 square meters. SMC is a tertiary
hospital manned by approximately 7,400 staff including over 1,200 doctors and 2,300 nurses.
Since its foundation, the Samsung Medical Centre has successfully incorporated and
developed an advanced model with the motto of becoming a "patient-cantered hospital," a
new concept in Korea.

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Samsung SDI

Samsung SDI is listed on the Korea Exchange stock-exchange (number 006400). On


December 5, 2012 the antitrust regulators of European Union fined Samsung SDI and several
other major companies for fixing prices of TV cathode-ray tubes in two cartels lasting nearly
a decade.

Shilla Hotels and Resorts

The Hotel opened in March 1979, following the intention of the late Mr. Byung Chul Lee, the
founder of the Samsung Group. Hosting numerous state visits and international events, it has
played the role of locomotive for the service industry in Korea with pride and responsibility
as the face representing the Samsung Group and the hotel representing Korea. THE
SHILLA maintains elegance and a tradition of winning guests hearts with the aim of
becoming the best hospitality company. By joining LHW, it is on par with the most
luxurious hotels in the world. Meanwhile, it has added modernistic design elements on top of
the roof called tradition, thus going through changes to make itself a premium life style space
that upgrades the quality of life. In addition, with its know-how as a service company in the
background, it started a duty-free shop business, and has built its image as the best global
distribution company. Also, it is expanding its business into commissioned management of
fitness facilities with five-star hotels in Korea and abroad as well as into the restaurant
business. THE SHILLA promises to be a globally prestigious hospitality company that offers
the best value for money by making creative innovations and continuously taking on
challenges. Shilla Hotels and Resorts are listed on the Korea Exchange stock-exchange
(number 008770).

S-1 Corporation

S-1 was founded as Koreas first specialized security business in 1997 and has maintained its
position at the top of industry with the consistent willingness to take on challenges. S1
Corporation is listed on the Korea Exchange stock-exchange (number 012750).

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Figure 3.2: Position of Samsung Products in their respective Industries:

S.No.
1.
2.
3.

Product
Samsung TV
Samsung Electronics
Samsung Heavy

Position in Market
1
4
4

Position in Revenue
1
1
2

4.
5.

Industries
Samsung Enginering
Samsung Life

13
14

11
12

Insaurance

INTERPRETATION:
In the following table these are the best products of Samsung including Samsung TV,
Samsung electronics, Samsung heavy industries, Samsung enginering and Samsung life

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insaurance that are ranked according to their industry. Among all TV products in the world
Samsung tv is on top.

Samsung is generally adopting the price skimming strategy where the Samsung products
specially mobiles and electronic goods are the reputed product in the world. The consumers
have a good faith on the products and It is the world's largest mobile phone maker by unit
sales in the first quarter of 2012, with a global market share of 25.4%. Its affiliate companies
produce around a fifth of South Korea's total exports. Samsung's revenue was equal to 17%
of South Korea's $1,082 billion GDP.

Figure 3.2: Rise in Price of Samsung Products in 2013:

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% hike in price

samsung mobiles(14)
samsung electronics(09)
others(12)

INTERPRETATION:
In the following pie diagram the Price Skimming Strategy has justified as the Samsung
mobile, samsung electronics and other products have increased their price from 14%, 09%
and 12% respectively.

In the last 10-12 years Samsung has captured all over the worlds market, in electronic goods
it the world largest company. The distributional strategy includes the suppliers in all over
the world. Notable Samsung industrial subsidiaries include Samsung Electronics (the world's
largest information technology company measured by 2012 revenues, and 4th in market
value), Samsung Heavy Industries (the world's 2nd-largest shipbuilder measured by 2010
revenues), and Samsung Engineering and Samsung C&T (respectively the world's 13th and
36th-largest construction companies). Other notable subsidiaries include Samsung Life
Insurance (the world's 14th-largest life insurance company).
Samsung Electronics Co. spent an estimated $14-billion (U.S.) more than Icelands GDP
on advertising, promotion, and marketing in 2013. At 5.4 percent of annual revenue, this is
a larger proportion than the worlds other top-20 companies by sales (Apple Inc. spent 0.6
percent and General Motors spent 3.5 percent. Samsung became the world's biggest

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advertiser in 2012, spending $4.3-billion, compared to Apple which spent $1-billion.


Samsung's global brand value of $39.6-billion is less than half that of Apple.
Following are the recent promotional strategies adopted by Samsung:

Samsung sponsors Bundesliga club Bayern Munich. Samsung are the current
sponsors of the English Premier League football club Chelsea. They also sponsor
English Football League One clubs Swindon Town and Leyton Orient.

Samsung,

which started as a domestic sponsor of the Olympics in Seoul 1988, has been a
worldwide Olympic partner since the 1998 Winter Olympics.

Samsung operating many sports clubs, football club Suwon Samsung Blue wings,
baseball club Samsung Lions, basketball club Seoul Samsung Thunders, volleyball
club Daejeon Samsung Fire Blue fangs and etc. Samsung also sponsors a former Star
craft Brood War and current Star craft II Professional Gaming Team named Samsung
Khan. Samsung has sponsored the team since 2000.

Samsung Mobile USA made Facebook a key part of the 2012 Samsung Galaxy S III
Launch campaign to:

a. Drive mass awareness of the high-end, android touch-screen-based smart phone.


b. Increase brand favorability and purchase consideration for the new device.
c. Encourage fans to help spread the word about the new phone to their friends.

STRATEGY:

Samsung Mobile USA used Facebook as the digital hub of its integrated campaign,
Running the largest device launch campaign to date on Facebook, investing more than

30 percent of its total digital spend on the platform.


The brand methodically Built connections on its Facebook Page in anticipation of the

launch.
During the launch, it leveraged those millions of connections and Face books social
ads to quickly build broad awareness of the new phone among the more than 588

million Friends of Samsung Mobile USA Page fans.


The second phase focused on using Face books mobile consumer audience targeting
to drive brand consideration for consumers in the market for a Smartphone.

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Figure 3.3 : Comparing Samsung Promotional Expenditure with Apple:

6
5
4
2012

2013
2
1
0
samsung in billion $

apple

INTERPRETATION:
Samsung is spending more than 5 billion dollar on their promotional activities where Apple is
spending only 1 billion dollar. The difference makes a positive impact on the profit of the
company.

Samsung in 2012-13
Despite the global economic recession and rapidly changing business environment in 2013,
Samsung Electronics recorded historic sales and profit. Samsung earned 201 billion won IN
2012 and in financial year 2013 they earned 30.1 billion USD. Samsung electronics has
earned No. 1 global market share across all TV categories every year from 2006 through
2012, including for flat panel TVs and LCD TVs. Despite the depressed TV market, they
maintained their dominant position by extending their sales lead over competitors in
advanced North American and European markets, as well as in emerging markets like Asia,
Africa and Latin America. That striking performance was built on ultra large size premium
Smart TV models, such as the ES9000 and ES8000, with innovative and differentiated picture

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quality and design. In 2012, the technical excellence of their premium T9000 refrigerator
made it a worldwide hit with consumers.
The T9000s wide top refrigerated section and bottom freezer drawers allow customers to
store food easily and safely according to individual habits and menus. In 2013, Samsung
Electronics will continue its efforts to develop inventive products that offer true value to
customers and help them live happily and comfortably. After entering the A4 laser printer
market in 1991, Samsung Electronics now provides a full lineup of A4 laser products. In
2012, they launched seven models of A4 color laser printers and multifunction printers. They
also successfully cleared the tough market barrier for A3 multifunction printers with the
worldwide launch of their second-generation product. In 2012, anticipating rising interest in
enjoying, editing and instant sharing of images after shooting, they released the GALAXY
Camera is an innovative camera that features Android OS, 3G/LTE network capabilities and a
generous 4.8-inch HD display, the camera was hailed for originating new trends in digital
imaging devices.
Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest
information technology company measured by 2012 revenues, and 4th in market
value), Samsung Heavy Industries (the world's 2nd-largest shipbuilder measured by 2010
revenues), and Samsung Engineering and Samsung C&T (respectively the world's 13th and
36th-largest construction companies). Other notable subsidiaries include Samsung Life
Insurance (the world's 14th-largest life insurance company), Samsung Ever land(operator of
Ever land Resort, the oldest theme park in South Korea), Samsung Techwin (an aerospace,
surveillance and defense company) and Cheil Worldwide (the world's 15th-largest advertising
agency measured by 2012 revenues).
Samsung has a powerful influence on South Korea's economic development, politics, media
and culture, and has been a major driving force behind the "Miracle on the Han River". Its
affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue
was equal to 17% of South Korea's $1,082 billion GDP.
Table 3.4 Sales and Gross Profit in 2013 and 2012 :

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INTERPRETATION:
As per the latest data of Samsung Company released in January 2014, the sale and net profit
have increased with an increasing rate. In 2014 quarter 4, the sale has increased from 56
billion dollar to 59 billion dollar.

Figure 3.5: Operating Profit and Sale of different Products:

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CE (Consumer Electronics), IM (IT & Mobile communications), DS (Device Solutions), DP (Display Panel)

2012 sales and operating profit of each business stated above reflect the organizational change in
2013.

INTERPRETATION:
The following figure is showing the rise in sales and operating profit of different products
of Samsung. From 2012 to 2013 the sale has constantly increased.

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CHAPTER-4
CONCLUSION AND
SUGGESTION

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CONCLUSION
In the following project I have analyzed that for any company marketing is must. Samsung
Pvt. Ltd. Is a global electronic firm and its product are globally accepted. Following are the
main points in conclusion:

The company has focused on their Product Strategy to deliver best Products and
Services to the Customer.

The Marketing Mix including Product, Price, Place and Promotion has a positive
impact on the sale of Samsung Company.

The Price Skimming Strategy is adopted by the samsung company that helps in

increasing their profits.


For the promotional activities, Samsung is expanding a huge amount of money on

Advertisement, Publicty and Sales promotion to increase their sales.


In the last 10-12 years Samsung has captured all over the worlds market, in
electronic goods it the world largest company. The distributional strategy includes
the suppliers in all over the world. Notable Samsung industrial subsidiaries
include Samsung

Electronics ,

Samsung

Heavy

Industries ,

and Samsung

Engineering and Samsung C&T. Other notable subsidiaries include Samsung Life

Insurance.
Despite the global economic recession and rapidly changing business environment in
2013, Samsung Electronics recorded historic sales and profit. Samsung earned 201
billion won in 2012 and in financial year 2013 they earned 30.1 billion USD.
So, overall no company can survive without adopting marketing mix

strategy in their business. Samsung Company is a global firm and their effective marketing
mix strategy is appreciated by the customers and the stakeholders and in future also they will
lead the market.

University School of Management Studies, Delhi

SUGGESTION
Although it is very difficult to give suggestions to a global firm like Samsung but here are
some suggestions that I would like to give in the end:

The Company should adopt green marketing so that the Samsung products will not

harm the environment.


They should spend amount on research and development so that they make innovative

products in future.
Samsung Company is generally targeting higher and medium class, but they should

target the lower class also.


The company may start customer loyalty programs to attract the customers from all
over the world.
The above points are the suggestions that Samsung Company may
adopt to increase their customers and expand their business in different markets in all
over the world.

University School of Management Studies, Delhi

BIBLIOGRAPHY

www.wikipedia.com/Samsung
Facebook.com/SamsungMobileUSA
Samsung.com
www.Samsungindia.com

BOOK
Philip Kotler marketing management

University School of Management Studies, Delhi

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