MARKET STRATEGY OF

SAMSUNG MOBILES

SUBMITTED BY:
Chirag Jain
Enrolment No. 16609007
Aakansha Chauhan
Enrolment No. 16609023
Sonali Misra
Enrolment No. 16609004
Pranjali Jain
Enrolment No. 16609064
Vaibhav
Enrolment No. 166

MBA – 1st Trimester

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 INDEX
S. No. Topic
1 History
2 Company history in India
3 Philosophy of Samsung
4 Marketing strategies

5 Price
6 Product
7 Promotion
8 Place
9 Positioning
10 References

11 Conclusion

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 HISTORY

Unlike other electronic companies Samsung origins were not

involving electronics but other products.

In 1938 the Samsung's founder Byung-Chull Lee set up a trade export

company in Korea, selling fish, vegetables, and fruit to China. Within
a decade Samsung had flour mills and confectionary machines and
became a co-operation in 1951. Humble beginnings.

From 1958 onwards Samsung began to expand into other industries

such as financial, media, chemicals and ship building throughout the
1970's. In 1969, Samsung Electronics was established producing what
Samsung is most famous for, Televisions, Mobile Phones (throughout
90's), Radio's, Computer components and other electronics devices.
1987 founder and chairman, Byung-Chull Lee passed away and Kun-
Hee Lee took over as chairman. In the 1990's Samsung began to
expand globally building factories in the US, Britain, Germany,
Thailand, Mexico, Spain and China until 1997.

In 1997 nearly all Korean businesses shrunk in size and Samsung was
no exception. They sold businesses to relieve debt and cut employees
down lowering personnel by 50,000. But thanks to the electronic
industry they managed to curb this and continue to grow.

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The history of Samsung and mobile phones stretches back to over 10
years. In 1993 Samsung developed the 'lightest' mobile phone of its
era. The SCH-800 and it was available on CDMA networks.

Then they developed smart phones and a phone combined mp3

player towards the end of the 20th century. To this date Samsung are
dedicated to the 3G industry. Making video,camera phones at a speed
to keep up with consumer demand. Samsung has made steady growth
in the mobile industry and are currently second but competitor Nokia
is ahead with more than 100% increase in shares.

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 COMPANY’S HISTORY
INDIA
Samsung Electronics commenced its operations in India in December
1995 and is today a leading provider of Consumer Electronics , IT and
Telecom products in the Indian market. Samsung India is the Regional
Headquarters for Samsung’s South West Asia operations, which
provides employment to over 8,000 employees with around 6,000
employees being involved in R&D. In 2010, Samsung India achieved
a sales turnover of US$3.5 billion.

Samsung began operations in India through its manufacturing

complex located at Noida (UP), which today houses facilities for
Colour Televisions (including 3D, LED and LCD Televisions),
Mobile Phones, Refrigerators, Washing Machines and Split Air
Conditioners categories. Samsung commenced operations of its
second state–of-the-art manufacturing complex at Sriperumbudur,
Tamil Nadu in November 2007. Today, the Sriperumbudur facility
manufactures Colour televisions, Fully Automatic Front Loading
Washing Machines, Refrigerators and Split Air Conditioners.
Samsung India has two R&D Centres in India – at Delhi and
Bangalore .

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While the Delhi R&D Centre develops software solutions for hi-end
televisions such as Plasma TVs, LCD TVs and Digital Media
Products, the Bangalore R&D Centre works 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.

Samsung India is a market leader in product categories like LED TVs,

LCD TVs, Slim TVs and Side by Side Refrigerators. While it is the
second largest mobile handset brand in India, it leads in the smart
phone segment in India.

Samsung India has won several awards and recognitions for both its
corporate initiatives as well as its product innovations in audio visual,
home appliance, IT and telecom product categories.

Apart from development of innovative technology, Samsung places

great importance on acting as a responsible corporate citizen in the
communities where it operates.

Its CSR programs respond to the social and environmental needs and
seek to give back to communities that support the company. In 2009,
Samsung launched the company’s Corporate Social Responsibility
initiative – ‘Samsung Hope Project’ with projects in the areas of
education, culture, sports, social welfare and community
development.

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Each program under the Hope Project uniquely addresses the needs of
individual communities while emphasizing on innovations for
development of the community including education, technology,
engineering and IT technical training.

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 THE SAMSUNG
PHILOSOPHY

Samsung philosophy says: we follow a simple business philosophy:

to devote our talent and technology to creating superior products and
services that contribute to a better global society.

Every day, our people bring this philosophy to life. Our 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 our 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 is all about.

Our Values

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We believe that living by strong values is the key to good business.
That’s why these core values, along with a rigorous code of conduct,
are at the heart of every decision we make.

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.

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.

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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.

Integrity
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.

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.

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MARKETING STRATGIES

What is marketing?

The definition that many marketers learn as they start out in

the industry is:

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 Putting the right product in the right place, at the right
price, at the right time.

It's simple! You just need to create a product that a particular

group of people want, put it on sale some place that those
same people visit regularly, and price it at a level which
matches the value they feel they get out of it; and do all that at
a time they want to buy. Then you've got it made!
There's a lot of truth in this idea. However, a lot of hard work
needs to go into finding out what customers want, and
identifying where they do their shopping. Then you need to
figure out how to produce the item at a price that represents
value to them, and get it all to come together at the critical
time.
But if you get just one element wrong, it can spell disaster.
You could be left promoting a car with amazing fuel-economy
in a country where fuel is very cheap; or publishing a
textbook after the start of the new school year, or selling an
item at a price that's too high – or too low – to attract the
people you're targeting.
The marketing mix is a good place to start when you are
thinking through your plans for a product or service, and it
helps you avoid these kinds of mistakes.

Understanding the Tool

The marketing mix and the 4 Ps of marketing are often used
as synonyms for each other. In fact, they are not necessarily
the same thing.
"Marketing mix" is a general phrase used to describe the
different kinds of choices organizations have to make in the
whole process of bringing a product or service to market. The
4 Ps is one way – probably the best-known way – of defining

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the marketing mix, and was first expressed in 1960 by E J
McCarthy.
The 4Ps are:
 Product (or Service)
 Place
 Price
 Promotion

PRICE
Samsung in India brought its first mobile in the year 2004.
When it was first introduced in India, the cost was very high
and it was used by very limited people. Also the features were
very less. Earlier, the mobile phone was basically used for
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two purposes i.e. to receive and make calls and messages.
Now, Samsung has introduced wide ranges of mobile phones
with additional features like cameras, internet facilities,
voice/video recording etc. Since the cost of mobile phones
reduced drastically due to competitive market, it is widely
available and even the poor people can afford to buy mobile
phones.

Price Rs. 5400/-

Launched in 2004 – Price Rs.6300/-

Price Rs. 5200/- Price Rs. 5100/-

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Price Rs. 11200/-

Price Rs. 9200/-

PRODUCT
Tablet Smart Phone

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 Samsung Galaxy Tab 2

SMART PHONES

GALAXY S4, GALAXY S4,

RED AURORA WHITE FROST

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ATIV ODSSEY Windows Phone GALAXY NOTE 2

1.GALAXY NOTE 2 is the latest Samsung phone Current Market

Price: Rs. 36200
it is available in Chennai Delhi Kolkata Mumbai.It comes with 5.5
Inch Super AMOLED HD display. It is powered by 1.6 GHz Quad
Core Exynos processor and 2GB RAM. It runs on Android 4.1 Jelly
Bean.

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 Promotion
EMI Scheme
Samsung introduced the finance-linked schemes
with the launch of the Samsung Galaxy Own Now campaign in
January this year. This was a 360-degree campaign with a focus on
television, print and digital. As part of this campaign, we had offered
an EMI scheme on five Galaxy devices, wherein there is no interest,
down payment or processing fee for Galaxy devices initially. These
devices include Galaxy Note 800, Galaxy SIII, Galaxy Grand, Galaxy
Note II and Galaxy Camera, and our latest launch Galaxy S4.

When we saw the success of the finance schemes, we decided to

launch another offer. In the second quarter of 2013, we offered 15 per
cent cash back on ICICI and Standard Chartered credit cards for our
flagship products. Then, when we achieved the 15-million landmark
for our Galaxy series, we announced a special celebratory offer for
our flagship model Note II. Today, Samsung is offering flat Rs 10,000
cash back when a customer exchanges an old phone for a Galaxy
Note II. While this sale promotion is still on, the cash-back schemes
on other handsets have ended.

Samsung have always worked towards providing consumers with

innovative sales promotions and these promotions have actually
benefited consumers tremendously.

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Having said that, the various finance-related schemes that include 0
per cent finance, equated monthly installments (EMI) and the cash-
back offer launched early this year have been widely accepted and
have become very popular with the consumers. According to report
Samsung’s sales have increased nearly 20 % because of this EMI
scheme.

ADVERTISING

Samsung spends nearly 5% of total sales in advertising on various

fields like media, sports etc. Samsung also sponsor various
international/national events for sales promotion.

Distribution channels of Samsung

Samsung Mobile, the world's second largest mobile phone maker, is
revamping its sales and distribution structure in India. The company
will set up 17 sales offices in key smaller markets, decentralize
operations till the
Branch level and rope in more distributors. Samsung feels its latest
initiative will help insulate it from the slowdown in sales and also
double market share in India by end-2009.

The company claims to enjoy 8% market share in the Indian mobile

phone turf. "We are undertaking a restructuring exercise in the
organization. The new branch offices will strengthen our response to
the needs of end consumers by supporting the channel better. We also
plan to restructure our distribution network," Samsung Telecom
country head Sunil Dutt told ET.
Samsung, which had one single distributor in North, has appointed
four more distributors for the region. "We plan to have a zonal

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distribution structure from our earlier strategy of having just a
distributor for each of the regions," said Mr. Dutt.

POSITIONING

Samsung Electronics Co. 005930.SE 0.00% holds the top spot in

smartphone unit sales in India, the world’s second-largest telecom
market after china.
Samsung however maintained its leadership in smart phonesales in
the first quarter (January-March) with a share of 32.7% of the 6.1
million units sold, according to research firm International Data Corp.
(IDC). Micromax was second at 18.8%, followed by
Karbonn (10.9%), Nokia India Sales Pvt. Ltd and Sony (5.9%
each). Smartphone sales rose 74% in India from the year-ago quarter,
IDC said in its 19 June report.

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Samsung is ruling the roost among different dealers, remaining at the
top position with a market share of 23.65 percent, ahead of Nokia at
14.8 percent and Apple at 9 percent. Just a year ago, Nokia was on top
with 19.7 percent market share.

Sales rose by 13 percent for Samsung and 16 percent for Apple, while
Nokia suffered a steep 24 percent fall, compared to the corresponding
period last year. The overall sales figures in the market in the first
three months rose by 0.7 percent, driven by a strong demand for smart
phones in the Asia Pacific region which managed to offset weaker
sales in other parts.

The world’s number one seller of smart phones was Samsung in the
first quarter of the year. It was leading in revenue and has overtaken
the data of Apple from the show of strategic analysis. The first there
months of the year showed an eye-candy figure of $23.63 billion as
the sale of smartphones of Samsung. This report was provided by
Yonhap News which revealed that these figures have also toppled up
the leading iPhone maker.

Perhaps the biggest difference between Apple and Samsung is how

much they're willing to sacrifice to reach cheaper prices. Apple has
long said what's most important is making great products, and it's not
willing to make big compromises to cut pricing. Samsung, however,
has taken a different approach. It makes high-end, aspirational devices
but also makes lower-cost devices to get people to open their wallets.
That may mean quality isn't as high for some of those smartphones,
but it also means more people have Samsung devices in hand

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 REFERENCES

1. http://www.samsung.com/in/consumer/mobile-phone/mobile-phone

2. http://www.samsung.com/in/business/resource/promotion

3. http://www.samsung.com/in/business/resource/marketing

4. http://apps.samsung.com/mercury/main/getMain.as/positioning

5. https://account.samsung.com/account/check.do/price/india

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 Conclusion

Although Samsung has captured the highest market share in Indian

market, but the company had to face so many problems. For example
conflict with the Apple, Apple blamed the Samsung that company
is copying some of its features and designs. This blame
damaged the reputation of the Samsung all over the world.
But still Samsung is the favourite brand of Indian consumers
whether we talk about Electronic consumer goods or
Smartphone. It means despite of problems and blames,
Samsung has positioned itself in consumer’s mind as a
Quality Brand.

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