A

PROJECT REPORT
ON

( Advertisement & Sales promotion )

Submitted To: Submitted By:

Mrs. Yogita sharma Himani khatri

INDEX

PARTICULARS Sr.No.
 Introduction of Topic

 Introduction of Company

 Objective of the study

 Research Methodology

 Data analysis

 Limitation

 Recommendations

 Conclusion

 Annexture

 Bibliography

Introduction of company………
The Samsung Group (Korean: 삼성 그룹) is a multinational conglomerate corporation
headquartered in Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by
revenue[3][4] with an annual revenue of US $173.4 billion in 2008[2] and is South Korea's largest
chaebol. The meaning of the Korean hanja word Samsung (三星) is "tristar" or "three stars".

The Samsung Group is composed of numerous international affiliated businesses, most of them
united under the Samsung brand including Samsung Electronics, the world's largest electronics
company,[5][6][7] Samsung Heavy Industries, the world's second largest shipbuilder[8] and Samsung
C&T, a major global construction company.

Samsung has been the world's most popular consumer electronics brand since 2005 and is the
best known South Korean brand in the world.[9] Samsung Group accounts for more than 20% of
South Korea's total exports[10] and is the leader in many domestic industries, such as the financial,
chemical, retail and entertainment industries. The company's strong influence in South Korea is
visible throughout the nation, which has been referred to as the "Republic of Samsung.

Samsung Group
 삼성 그룹

Type Public (Korean: 삼성 그룹)

Industry Conglomerate

Founded 1938

Founder(s) Lee Byung-chul

Headquarters Samsung Town, Seoul, South Korea

Area served Worldwide

BACKGROUND…
The Samsung Group is a multinational conglomerate corporation headquartered in
Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by
revenue.with annual revenue of US$173.4 billion in 2008 and is South Korea's
largest chaebol.
The meaning of the Korean word Samsung is "Tri-Star" or "three stars".
The Samsung Group is composed of numerous international affiliated businesses,
most
of them united under the Samsung brand including Samsung Electronics, the
world's
largest electronics company, Samsung Heavy Industries, the world's second largest
shipbuilder and Samsung C&T, a major global construction company.
Samsung has been the world's most popular consumer electronics brand since 2005
and is the best known South Korean brand in the world. Samsung Group accounts
for
more than 20% of South Korea's total exports and is the leader in many domestic
industries, such as the financial, chemical, retail and entertainment industries.

History
In 1938, Lee Byung-Chull founded Samsung, a small trading company with
forty employees located in Daegu. The company prospered until the Communist
invasion in 1950 when he was forced to leave Seoul and start over in Busan.
During
the war, Samsung's businesses flourished and its assets grew twenty-fold. In 1953,
Lee
started a sugar refinery. The company diversified into many areas such as
insurance,
securities, and retail. In the early 1970s, Lee borrowed heavily from foreign
interests
and launched a radio and television station. Samsung Group later formed several
electronics-related divisions, such as Samsung
Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co.,
and
Samsung Semiconductor & Telecommunications Co., and grouped them together
under Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-and-
white
television set.
In the late 1980s and early 1990s, Samsung Electronics invested heavily in
research
and development, investments that were pivotal in pushing the company to the
forefront of the global electronics industry. “By the 1980s Samsung was
manufacturing, shipping, and selling a wide range of appliances and electronic
products throughout the world”. In 1982, it built a television assembly plant in
Portugal; in 1984, it built a $25 million plant in New York; and in 1987, it built
another $25 million facility in England.
The 1990s saw Samsung rise as an international corporation. Samsung's
construction
branch was awarded a contract to build one of the two Petronas Towers in
Malaysia,
Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates, which is the
tallest structure ever constructed. In 1993 and in order to change the strategy sold
off
ten of Samsung Group's subsidiaries, downsized the company, and merged other
operations to concentrate on three industries: electronics, engineering, and
chemicals.
In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation.
Samsung survived the Asian financial crisis of 1997-98 relatively unharmed.
However,
Samsung Motor, a $5 billion venture was sold to Renault at a significant loss.
Additionally, Samsung manufactured a range of aircraft from 1980 to 1990s.
Most importantly, Samsung Electronics (SEC) has since come to dominate the
group.
and the worldwide semiconductor business, even surpassing worldwide leader Intel
in
investments for the 2005 fiscal year. Samsung's brand strength has greatly
improved in
the last few years.

Samsung became the largest producer of memory chips in the world in 1992, and
is the
world's second-largest chipmaker after Intel. In 1995, it built its first liquid-crystal
display screen. Ten years later, Samsung grew to be the world's largest
manufacturer
of liquid-crystal display panels. In 2006, S-LCD was established as a joint venture
between Samsung and Sony in order to provide a stable supply of LCD panels for
both
manufacturers. Samsung Electronics, which saw record profits and revenue in
2004
and 2005, overtook Sony as one of the world's most popular consumer electronics
brands, and is now ranked #19 in the world overall. Behind, Nokia, Samsung is the
world's second largest by volume producer of cell phones with a leading market
sharein the North America and Western Europe.
SAMSUNG ELECTRONICS IN INDIA
Samsung India Electronics Private Limited (SIEL) is the Indian subsidiary of the
US $55.2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul,
Korea. Headquartered in New Delhi, SAMSUNG India has widespread network of
sales offices all over the country . SAMSUNG India is the hub for SAMSUNG’s
South
West Asia Regional operations. The South West Asia Headquarters, looks after the
SAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan
besides
India. SAMSUNG India which commenced its operations in India in December
1995
enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the
country.
From being a virtually unknown entity in the Year 1995, brand SAMSUNG today
enjoys an awareness level of over 65% and a positive opinion of over 80% in the
country today (source: BAS 2007). Initially, a player only in the Colour
Televisions
segment, it later diversified into colour monitors (1999) and refrigerators (2003).
Today, it is recognized as one of the fastest growing brands in the sphere of digital
technology. SIEL is the market leader in high end digital television (Plasma, LCD).

PRODUCT PORTFOLIO OF SIEL

SAMSUNG India is the hub for SAMSUNG’s South West Asia Regional
operations. SAMSUNG India has segmented their products into five categories.
Source: Samsung Electronics website

Fig: Width of the product mix of SIEL

15
_ MOBILE PHONE
_ TV/AUDIO/VIDEO
_ CAMERA/CAMCORDER
_ HOME APPLIANCES_ PC/PERIPHERALS/PRINTERS
Source: Samsung Electronics website

Introduction of TOPIC:
ADVERTISEMENT AND SALES
PROMOTION:
Promotion stands for various activities the company undertakes to
communicate and promote its products to the target market. It involves
communication programs i.e. direct marketing, advertising, sales promotions,
public relations and motivation of sales force. To the customer this tool
provides knowledge and information.

ADVERTISING:
It is any paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor.

SALES PROMOTION:

The short-term incentive to encourage trial or purchase of a product or

service refers to sales promotion. Whereas advertising offers a reason to buy;
sales promotion offers an incentive to buy. Since sales promotion directly
push up the sales, increasing number of companies are undertaking sales
promotion activities.

Where advertisement offers a reason to buy, sales promotion offers an

incentive to buy. Sales promotion includes tools for consumer promotion
(samples,coupons,cash refund, price off,premiums,prizes,patronage rewards,
free trials,warranties,tie-in-offers cross promotion, point of purchase displays and
demonstration);trade promotion(price off, advertising and display allowances and
free goods);and business and sales force promotion(trade shows and
conventions, contests for sales reps and specialty advertising..
Promotion
Samsung Innovative promotion and advertising initiatives
To establish trust and confidence among Indian consumers, Samsung did active promotion and
advertising by taking the following initiatives.
Samsung India associated itself with the ruling passion of the Indian mass consciousness:
Cricket. Samsung launched the Team Samsung campaign with the stars of the Indian
cricket team, which caught the imagination of an entire nation. In 2004, Samsung also
brought to India what was possibly the biggest cricketing spectacle of this decade, the
historic India vs. Pakistan cricket series - ‘The Samsung Cup’.

Not confining itself to cricket, Samsung sponsors the Indian contingent to the Olympics
and the Asian Games. It also ran training programmes for deserving Indian athletes under
the Olympic Ratna banner. Samsung has also helped bring to India, for the first time, the
Olympic torch relay. Samsung also brings every year to India - the World Cyber Games,
which is regarded as the Olympics of the Cyber world.

Samsung also launched a series of innovative below-the-line activities. In mobile phones,

Samsung tied up with noted painter Satish Gujral for his paintings to be available as
downloads on Samsung mobile phones.

Product placement was done in movies and popular television serials like ‘Jassi’ where
Samsung products were set in lifestyle environments.

For Microwaves, Samsung ran a Kitchen-on-Wheels programme where mobile kitchens

with microwave ovens went to various localities demonstrating the advantages of
microwave cooking.

Samsung branded its products as superior technology and environmentally friendly ones. The
Samsung refrigerators and ACs incorporate a revolutionary new technology called Silver
Nano Health System that ensures freshness and bacteria free environment. It launched the
“Bio” range of products. In microwave ovens, features like the bio-ceramic coating and
3D shower waves keep in mind the health conscious public of today.

Launched a special marketing campaign for Flat TVs including a focused advertising
campaign ‘Duniya Hai Gol, TV Flat’ and attractive exchange offers. As a result, flatscreen
TVs make up over 50 per cent of Samsung’s TV sales compared an industry
average of 17 per cent.

Customized products for Indian Consumers

Samsung understands the local cultural sensibilities to customize its products according
to the Indian market. It has set up a “usability lab” at the Indian Institute of Technology in
New Delhi to customize Samsung products to meet the specific needs of Indian
consumers. This industry-institute partnership is helping Samsung to study and analyze
consumer response in aspects of product design, including aesthetics, ergonomics and
interface.
Through its research done on consumer preferences in India, Samsung has concluded that
Indian consumers want more sound oriented products. Thus, the Samsung televisions for
India have a higher sound capacity than their foreign counterparts.
For the semi-automatic segment of Samsung washing machines, Samsung has introduced
for the first time in India a feature called Super Dry. It is present in three of Samsung’s
semi automatic models and dries the clothes better than the rest.
Samsung washing machines have an additional menu that takes care of the local Indian
wardrobes. They also have a ‘memory re-start’ that takes care of the frequent power
failures in India.
57 |

SALES PROMOTION TOOLS:

Many tools can be used to accomplish sales promotion objectives.
Descriptions of the main promotional tools are as follows;

Consumer Promotion Tools

The main consumer promotion tools are as follows;

Samples:

They are offers of a trial amount of a product. It consists of inviting

prospective purchasers to try the product without cost or at a lower cost
in the hope that they will buy the product. Samples may be free or
discounted.

Coupons:
Coupons are certificates that give buyers a saving when they purchase
a specified product. Coupons can be mailed, placed in advertisements
or included with other products.

Rebates:

Rebate is also known as cash refund offers. Rebates are offers to

refund part of the purchase price of a product to its customers who
send a proof of purchase to the manufacturer. These are like
coupons except that the price reduction occurs after the purchase
and not at the point of sale.

Price Packs:

Cents-off deals or price packs offer consumers savings by way of

reducing prices that are marked by the producer directly on the
package.

Premiums:

These are the goods offered either free or at a low cost as an

incentive to buy a product. Premiums may be in-pack or on-pack
(outside the pack).

Prizes:
They are offers of chance to win something such as cash, trips or goods –
by luck or through extra efforts. Contests of talent and sweepstakes or
draws the most popular prize offering promotions.

Tie-in Promotions:

Tie-in promotions involve two or more brands or companies that team up

on coupons, refunds or contests to increase their pulling powers.

Cross Promotions:

Cross promotions involve using one brand to advertise non-competing brand.

Advertising Specialties:

These are useful articles imprinted with an advertiser’s name, given as

gifts to consumers.

Patronage Rewards:
They are cash or other awards
for the regular use of company’s products
or services. They are values (in cash otherwise) that are proportional to
one’s patronage of a certain vendor or a group of vendors. They aim at
building brand loyalty.

PoP Promotions:
Point of purchase (PoP) includes displays and demonstrations that take
place at the point of purchase or sale.
PURPOSE OF STUDY….

Sales promotion tools vary in their specific objectives. They may be used
to attract new customers, to reward loyal customers and to increase the
repurchase rates of occasional users. Sales promotion usually targets brand
switchers because non-users and users of other brands do not always notice
a promotion. Sales promotions are thus also seen as a tool for breaking down
loyalty to other product.
Sales promotions also let manufacturers adjust to short term changes in
supply and demand and differences in customer segments. They also let
manufacturers to experiment by varying prices. Sales promotions also lead to
greater consumer awareness of prices.
To use sales promotion, a company must set objectives, select the right tools,
develop the best program and implement it and evaluate the results.

OBJECTIVES:
The specific sobjectives set for sales promotions will vary with the type of
the target market. For consumer promotions, objectives include encouraging
purchasing of larger sized units, building trial among non-users and attracting
switchers away from the competitor’s brands. For trade promotions, objectives
may include; including retailers to carry new items and higher level of
inventory, encouraging off-seasonal buying, of-setting competitive promotions,
building brand loyalty of retailers and gaining entry into new retail outlets. The
sales force promotions help in encouraging support of a new product or
model, encouraging more prospecting and stimulating off-seasonal sales.But
most importantly, sales promotion should be focused on consumer relationship
building.

RESEARCH
METHODOLOGY:

Research design is the arrangement of condition for collection and

analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedures. The research design used for this study is
Descriptive Research. It focuses on the accurate description of the variables in
the problem model. Any source of information can be used in a descriptive study,
although most studies of this nature rely on secondary data source of survey
research. The sampling design followed in the survey is simple random
probability sampling in which each population element has a known and equal
chance of selection.
The researcher has done the research in the following manner;
a) Type of the research undertaken is analytical.
b) Technique used is random sampling.
c) Sample size taken is 30.
d) Sources of data used include both primary as well as secondary data.
e) Tool used for the research is questionnaire.
f) Plan of analysis are tables and graphs.

Data Collection Methods:

In this study, the foremost data collection instrument used is the
questionnaire method. The questionnaire has been designed with both open
ended and closed ended questions. Apart from this, the research instrument
consists of primary and secondary data collected for the study.

Primary Data:

Here first hand information is obtained by distributing printed questionnaire to

the marketing executives of the company. Data was also obtained from the
observation and interview technique adopted by the researcher. Moreover,
information was disseminated by the departmental heads.

Secondary Data:
Here the information is obtained from the brochure of SAMSUNG GROUP,
books,websites, newsletter, journals, magazines, newspapers, etc.
s

LIMITATION OF STUDY :

 Due to time, geographic and monetary constraints. It may not be able to go deeper in to
search

 This study is related to Faridabad market only.

 This project is primarily focused on Refrigerator, Washing machine, Air

conditioners product category.

 Unavailability of data. Especially for promotional strategies of competitors.

 There could be some errors, data collection, data interpretation, and even the
environment plays an important role in the outcome of the results.
 DATA
ANALYSIS……..

ANALYSIS

AGE GROUP

36 Above 18-20
10% 9%

21-25
33%
31-35
37%

26-30
11%
 INCOME GROUP (PER ANNUM IN THOUSAND)

150-175 175 above 75-100

11% 4% 17%
125-150
11%

100-125
57%

THREE ELECTRONICS COMPANIES THAT COMES IN

YOUR MIND.

70

58
60

50

40

30
20
20
10 10
10 2

0
LG Samsung Videocon Haier Others
 Things that you looked while
purchasing an electronic item ?

80
75

71 69
68

70

60

50

40
32
33

30

20

45
10
 40
0
Reliability Looks Low main- Reliability Least physical Low price
tenance (less chances effects
cost of breakdown)

35

How did30 you get to know about Samsung

that you are having at present?

25

20

15

10

0
Adv. Fam. Inf. Frn`s Rc. Fmly Rcm.

I preferred Samsung than other because of…?

80 71
66
70

60
 40 33

30
14
20

10

0
L.M.C. Looks Low Price less physical
efforts

 Respondents may QUESTIONNAIRE

CONSUMER SURVEY

Name: ______________________

Address: _____________________
Q1. Please mention your age group
18-20  21-25
 26-30  31-35
  36- Above
Q2.) Please mention your income group (per annum in thousand)
 75-100 100-125
 125-150 150-175
 175 & above
Q3) Gender
 Male Female
Q4) Martial Status
Married Unmarried
Q5) please mention your occupation ?
Officials Clerical or Salesmen
Student First Jobbers Retired
Q6) Name three electronic companies that come to your mind ?
 LG .
 Videocon.
 Samsung.
 Haier
 Whirpool

Q7) Do you think Samsung handsets are updated with the latest
features?

YES

NO

Q7) what are the things that you look while purchasing an electronic item?
More power saver
 Looks

Low maintenance cost

Reliability(less chances of breakdown)
Least physical efforts
Low price

Q8) how did you get to know about Samsung that you having at present?
 Advertisement
 Family information
 Friend’s recommendation
 Dealer’s recommendation
Q9) which other electronic item would you have preferred to buy?
 LG others
Videocon Sony
Q10) Prefer Samsung than other because of:
 low price
 Less physical efforts
 Better looks
 Low maintenance cost

Q12) what is the image of samsung in your mind?

Economical
Durable
Smooth product
Safe product
warranty and guarranty they offer.

Q13)Except Samsung your other preferred mobile phone brands?

Nokia
  LG

Motorolla

 Others

CONCLUSION….
This study highlighted that Faridabad market is still a virgin market for
SAMSUNG
products. Customers need to be made aware of the productive usages of these
Products if SAMSUNG want to target these untapped market segments of
customers.
Also SAMSUNG need to modify their advertising strategies in order to educate the
target audience about the product. Hence SAMSUNG will be able to win a major
between the competitors
BIBLIOGRAPHY…..

 BOOKS AND JOURNALS REFERRED:

 SAMSUNG Electronics annual report,2009

 Marketing Management, 12th Edition

o By: Philip Kotler and Kevin Lane Keller

 WEBSITES:

 http://www.google.com
 http://www.ibef.org
 http://www.displaysearch.com
 http:// www.dnb.com
 http://www.samsung.com.