Preface

In this era, where the technology is growing in a very faster speed and every positive change is bringing new and enhanced features with them, the cellular phones are at the very hot issue in this growing technology. The technologies in these cellular/mobile phones are enhancing and developing day by day, including new features of entertainment, and multiple options like imaging facilities, movie/animation features, sound technologies etc. When the technology is the matter, every consumer/user prefers the latest, best and interacting featured technologies and also prefers these facilities in less cost. So, in this view, there is a very big and fast competition between many companies/manufacturers of cellular phones at the world level.

Samsung Group

THE SAMSUNG PHILOSOPHY

At Samsung, 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 productsfrom memory chips that help businesses store vital knowledge to mobile phones that connect people across continents have the power to enrich lives. And thats what making a better global society is all about.

OUR VALUES
We believe that living by strong values is the key to good business. At Samsung, a rigorous code of conduct and these core values are at the heart of every decision we make.

PEOPLE
Quite simply, a company is its people. At Samsung, were 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 excellenceand an unfaltering commitment to develop the best products and services on the market.

CHANGE
In todays fast-paced global economy, change is constant and innovation is critical to a companys 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.

Vision 2020

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future."This new vision reflects Samsung Electronics commitment to inspiring its communities by leveraging Samsung's three key strengths: "New Technology," "Innovative Products," and "Creative Solutions." -- and to promoting new value for Samsung's core networks -Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all.

As

part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the worlds top five brands by 2020. To this end, Samsung has also established three strategic approaches in its management: "Creativity," "Partnership," and "Talent."Samsung is excited about the future. As we build on our previous accomplishments, we look forward to exploring new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward.

Samsung Profile 2010

Wherever you are... in the hustle of the streets or the comfort of the home...Samsung is part of the fabric of your life. As a global leader we are at the forefront of change, anticipating today what our customers around the world will want tomorrow.

2010 Financial Overview (WON/DOLLARS/EUROS)

2010 Financial Overview

AMOUNTS IN BILLIONS WON 220,120. Net Sales* 4 343,811. Total Assets 6 212,512. Total Liabilities 9 131,298. Total Stockholder's Equity 6 Net Income* 17,663.8 [Amounts in billions] Won/U.S. Dollar yearly average exchange rate 1,276.40/1$, Won/Euro : 1,606.77/1 Won/U.S. Dollar as of the end of December 31, 2009: 1,167.60/1$, Won/Euro : 1,776.22/1 Financial data includes Samsung affiliates ending their fiscal year at the end of March 2010, such as Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Securities, Samsung Investment Trust Management. DOLLARS EUROS 172.5 294.5 182.0 112.5 13.8 124.1 205.3 126.9 78.4 10.0

Affiliated companies

Samsung is comprised of companies that are setting new standards in a wide range of businesses, from consumer electronics to petrochemicals, from advertising to life insurance. They share a commitment to creating innovative, high quality products that are relied on every day by millions of people and businesses around the world.

Samsung Electro-Mechanics Samsung SDI Samsung Corning Precision Materials Samsung SDS Samsung Techwin Samsung Mobile Display Samsung Digital Imaging

Samsung Heavy Industries

Samsung Total Petrochemicals Samsung Petrochemicals Samsung Fine Chemicals Samsung BP Chemicals

Samsung Life Insurance

Samsung Fire & Marine Insurance Samsung Card Samsung Securities Samsung Investment Trust Management Samsung Venture Investment

Samsung C&T Corporation Samsung Engineering Cheil Industries Samsung Everland The Shilla Hotels & Resorts Cheil Worldwide S1 Corporation Samsung Medical Center Samsung Human Resources Development Center Samsung Economics Research Institute Samsung Lions The Ho-Am Foundation Samsung Foundation of Culture Samsung Welfare Foundation

Samsung Life Public Welfare Foundation

PRODUCT INNOVATION
Samsung's product range in India included CTVs, audio and video products, information technology products, mobile phones and home appliances (Refer Exhibit I). Its product range covered all the categories in the consumer electronics and home appliances. Analysts felt that the wide product range of Samsung was one of main reasons for its success in the Indian market. Samsung positioned itself on the technology platform...

PRICING
Pricing also seemed to have played a significant role in Samsung's success...

DISTRIBUTION Along with the launch of new products, Samsung also consolidated its distribution system. Samsung had 18 state-level distribution offices and a direct dealer interface.The direct dealer interface helped the company get quick feedback from dealers, and enabled it to launch products according to consumer needs...

ADVERTISING AND SALES PROMOTION

In 1995, when Samsung entered India, it realized that Indian consumers were notfamiliar with the company. So, in order to establish itself in the Indian consumers'mind, Samsung launched corporate advertisements highlighting its technologicallysuperior goods... ---------------------------------------------xxxxx--------------------------------------------------We are investing aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most trusted and preferred brand in the market." - Jong Yong Yun, vice-chairman & CEO, Samsung Electronics, in February 2003.

nokia

NOKIA is the world leader in mobile communications backed by its experience, innovation, user-friendliness and secure solutions. It is a very well known company having its vast offices world wide. Their specialized product is cellular phones. They have many houses hold items as well.

March 2011 Nokias mission is simple, Connecting People. Our strategic intent is to build great mobile products. Our job is to enable billions of people everywhere to get more of lifes opportunities through mobile. The strategy Nokias strategy is about investing in and ensuring Nokias future. I have incredible optimism because I can see fresh opportunity for us to innovate, to differentiate, to build great mobile products, like never before, and at a speed that will surpass what we have accomplished in the past, Elop said. We are going forward. We are not going backwards. We have a strategy. We

have a path. We have a future. And we can deliver great mobile products. And despite all of these changes, we remain true to our mission, that of Connecting People.

Structure April, 2011

Smart Devices: our business unit which focuses on smartphones, and additionally on exploring next-generation opportunities in devices, platforms and user experiences to support our industry position and longer-term financial performance. Mobile Phones: our business unit focused on bringing a modern and affordable mobile experience to people around the world. NAVTEQ: a leading provider of comprehensive digital map information and related locationbased content and services for mobile navigation devices, automotive navigation systems, Internet-based mapping applications, and government and business solutions. Nokia Siemens Networks: jointly owned by Nokia and Siemens, is one of the leading providers of telecommunications infrastructure hardware, software and professional services globally

Introducing the product ----------------------Nokia is a communications based company, which focuses on mobile telephone technology. When mobile phones first became available on the market the models were very basic with the best technology being SMS messaging (sending written "text messages" from one phone to another). Then the next advance in technology was being able to put different faces on your phone (different style covers for the front and back of your mobile device) and after that the technological advances have come thick and fast, with advances such as: * MMS * WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones and * Video recorders Competition in the market ------------------------With all this technology available in the communications market it is obvious that Nokia will have lots of competition, they include: * Sony Ericsson

* Samsung * Motorola * Siemens * Panasonic * NEG * Sagem and * Toplux With all of these competitors in the market Nokia must keep ahead of the game by running successful marketing strategies, to do this Nokia must focus on the principles of marketing. At the moment Nokia are the world's best selling phone company (see table below which shows market share). Nokia strengthened its lead as the No. 1 vendor in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when 59 percent of sales occurred. 1. Nokia 37.2% (34.7% 1Q02) 2. Motorola 17.3% (15.5%) 3. Samsung 9.8% (9.6%) 4. Siemens 8.5% (8.8%) 5. Sony-Ericsson 5.2% (6.4%)
Quantity Market Shares by Gartner (New Sales)

BRAND

Percent

Nokia 2009 Nokia 2010 Samsung 2009 Samsung 2010 LG Electronics 2009 LG Electronics 2010 Research In Motion 2009 Research In Motion 2010 Apple 2009 Apple 2010 Others-1 2009 Others-1 2010 Others-2 2009 Others-2 2010

36.4% 28.9% 19.5% 17.6% 10.1% 7.1% 2.8% 3.0% 2.1% 2.9% 12.6% 9.8% 16.5% 30.6%

Note: Others-1 consist of Sony Ericsson, Motorola, ZTE, HTC and Huawei.(2009-2010)

These competitors of NOKIA has also a big market, but as compared to NOKIA, we cannot say that they can compete this organization at the same level of competition.

Nokias current marketing strategy The marketing mix Price- The phones that Nokia produce are usually sold at high prices (new phones can be expected to enter the market at around 200+, if they carry the latest technology). The price of the new phones usually decreases after an introductory period, which is usually around 2 months long. Nokia's prices are usually competitor based, in such a way as, they try to keep their prices a bit lower then those of the closest competitors, but not as low as the "smallest" competition as consumers do not mind paying the extra money for the "extra quality" they will receive with a well known brand, such as Nokia. Place- Nokia phones are generally sold at all established mobile phone dealerships such as Carphone Warehouse and The Link, although they are also sold at other retailers such as Dixon's and other electrical suppliers. The products are only sold in the electrical suppliers and stores other then dedicated phone dealerships after the introductory period so the phones can remain limited edition, as this will encourage younger consumers to buy them. Promotions- Nokia tend to promote the new technologies and mobile

devices they create using one big advertising campaign that focuses on a singular technology instead of each individual handset so they can appeal to a lot of different markets with one campaign. Product- Nokia phones tend to include all the latest technology and a lot of the consumers favourite aspects such as text messaging and games like Snake and Memory. When the phones came out they were big and bulky and quite unattractive but now they are all quite sleek and stylish with phones now getting small enough to fit in the palm of your hand as standard. Most of the phones produced nowadays have accessories that consumers must buy with them (carry cases, hands free kits and in-car chargers) these generate Nokia a lot of profit, as they are very high priced. Nokia's marketing mix has worked very well until recently as the market they are aiming at has become more and more saturated and after looking at all the mobile phone sales figures, it looks as if the phone companies can aim at this same youth market for about another 2 years until they need to change, but they should change sooner so they can start making a bigger profit and get a head start on the competition who will also have to change the market they are aiming at. Nokia's current promotional strategy is working very well as they are able to "talk to" a large number of consumers in different markets rather then the niche markets the old promotional strategies where restricted to.

Market segmentation Market segmentation refers to the different areas of the population that companies can aim their products towards. The market segment that Nokia has chosen to aim is the youth market focusing on students aimed 13-19 as market research has shown that some of the youth market are receiving large amounts of pocket money and most have no real commitments to spend it on and that means they have lots of disposable income and will be able to spend a lot money on new mobile phones. As a big company Nokia are able to do a lot of promoting and advertising that smaller, less successful companies, may not be able to afford, such as television advertising and sponsoring lots of events that will be viewed or heard by large amounts of people in their chosen market segment (events such as music festivals and music awards are a goldmine for companies as they are viewed by millions of people worldwide). Adverts such as television and print adverts will be put into certain areas so that they can attract their chosen market segment, Nokia tend to put a lot of their print adverts in men's magazines such as FHM and Loaded so they can appeal to all of their readers instead of a smaller percentage of the readers they would attract in magazines such as Lifestyle and Good Housekeeping. I think Nokia's way of promoting is very good as they can appeal to mass markets and large amounts of people in their chosen market segmentation with certain advertisement's and with sponsoring large

events like the ones I have previously mentioned. Pricing strategy Nokia's current pricing strategy is based on 2 main theories: 1. Penetration pricing- although this strategy is usually for companies that are trying to gain instant market share in a new market, companies who are already well known in the market still do it with new products that carry new technologies so they can take more market share form their competitors. 2. Competitor based pricing- this is used when there is a lot of competition in the market and a company is looking to take another companies market share by offering the same or similar products for a lower price, this happens a lot in the communications market and this strategy is used by every mobile phone producing company that is still in business. Nokia's pricing strategy has proven very effective, this is down to the fact that they first sell their products for high prices and have very limited sales but make big profits on each sale, they then lower the price of their product and have lots more sales but they make less profit, but they still make a large profit due to the amount of sales, the other reason that they are so successful is that they offer high quality products and they sell them for the same price and sometimes even lower prices then the competition and have now built up the highest market share, they currently have 37.2% of the mobile phone

market share and are the biggest selling mobile phone company in the world. Suggestions Though the NOKIA is the worlds largest cellular phone company and has the very efficient features and facilities but there are some suggestions by me after analyzing and researching about this company. It should decrease its prices of the sets so that the sets may become in reach of every user and the market may increase and become the cause of increasing profit rate. Its spare parts should be available in its every market. There should be replace warrenty in case of defection. Memory capacity should be increased to save the different Corporate culture

entertaining materials in the sets.

[edit]