Samsung

Place Strategy
Presented by

Akhileshwaran P (FK-3370)
Ashwin Jijo (FK-3334)
Anirudh V (FK-3417)
Zahra Ahammed (FK-3320)
Samsung – Company Profile
• Samsung, South Korean company that is one of the world's
largest producers of electronic devices
• Samsung was founded by Lee Byung-chul in 1938
• Samsung's corporate vision is to “Inspire the world with our
innovative technologies, products and design that enrich
people's lives and contribute to social prosperity by creating
a new future.”
• As of 2020, Samsung has the 8th highest global brand value.
• Samsung is the world’s second-best selling smartphone after
Apple.
Place Strategy and Significance of Distribution
Channels
Place strategy plays a fundamental role in the marketing mix of a product or service. Place
strategy outlines how and where a company will place its products and services in an attempt
to gain market share and consumer purchases.

Significance of Distribution channels:

• The distribution channel can be defined as ‘the path through which goods and services or
payment for those goods or services travel from the vendor to the consumers. 
• These channels vary in the number and types of middlemen involved. Some channels are
short as they directly link producers with customers. Whereas other channels are long and
indirectly link the two through one or several middlemen. 
• The success of distribution channels mainly depend upon the middlemen.
• Samsung  has set up an effective distribution network ,which is capable of  reaching both
the urban and rural areas of India.
Ashwin Jijo
(FK-3334)
Distribution Network
• Two manufacturing units -  Noida and Chennai.
• National distributor - Takes care of the logistics associated with
distributing the goods across the country. 
• C & F Agent is present in each of the main states. 
• Responsible for storing and transporting the goods onwards to
dealers and distributors. 
• C&F agent provides the warehouses for storing the products, but the
goods are still owned by the company. 
• In big cities, the goods
  are shipped directly from the C&F agents to
the dealers.
• For big retailers like Reliance Digital, Croma, the goods may be
shipped from the C&F agents’ warehouse owned by the retail chain.
• Once the goods are transferred to the dealers the ownership is taken
over by them. 
• In case of large retails chains, the purchasing decisions are taken at a
national level and happen directly between the company and the
head office of the retailer.
 Channel Members
Sales and Service Modern Retailers
Dealers
• Includes large
• Handle key accounts for
retailers such as
Samsung.
Croma, Vijay sales,
Reliance Digital.
• Involved in corporate
sales. • Retailers are bound to
keep Samsung
• May open showrooms products because of
for Samsung its brand name.
Distributors
• National distributors, Territory
distributors, and Regional
distributors.
• Grants distributor rights for a
specific product category or all
Samsung products depending
on the area, size, and
experience of the distributor.
Zahra Ahammed
FK-3320
 Classification of Retail Stores Distributors cover
Micro Sized Shops
Devices are supplied to them after they contact the distributor regarding possible demand. Quantity
supplied however, remains limited due to lack of liquidity.

Individual stores
comparatively large stores,These stores often have some small regular orders running which get
delivered on a timely basis, but a majority of their orders are made on call and delivered on demand
as per estimation

Electronics chains
Frequent orders are run by such chains, with a majority of them being the high range products
showcased for sale. The Mid-range products are usually supplied as per estimated demand.

Specialty Device Stores

These stores are company run, and only stock specific company devices. Orders supplied to these
stores are depending on popularity in the market, and surges are expected during marketing
campaigns and special events or promotions
 Strategies used to select & keep distributors
engaged
Bidding System
Strength of the balance sheet
and the reputation of the
dealer is looked at before
authorizing the dealer.
Offers
Goods free with other goods are
almost always given by
retailers usually. Samsung does
rarely give such offers.
Company’s promotions may be
through scratch cards, free trips
etc.
Zero Credit
Followed by company when
dealing with distributors and
dealers. However, the distributor
may allow for a credit period of 7
days, depending on the health of
the retailer’s balance sheet.
Incentives
Incentives to the
distribution channel are
through certificates of
recognition
Akhileswaran P
FK-3370
Online channel of Samsung 
• There is no intermediary in online sales. But only in case of certain exclusive products, they
may be sold through Samsung e- store or a third-party website like Amazon or flipkart. 
• The online platforms were an advantage for the companies, because of the reach they create
and reducing the cost of operating any outlet. The sales of mobile handsets saw a spike with
a boom in e-commerce
• The offline online channel conflict, Samsung had to take a step forward to retain its existing
partners yet not compromising on the online presence, and that is when it has decided to stop
selling 48 phone models online to focus on offline.
• To curb the predatory discounting, Samsung had to set up a brand store on the e-tailer’s
websites where only the vendor-authorized sellers could sell the products at the prices
mandated by the company.
• Samsung cannot afford to lose out on the online market as there are new players who have
emerged with competitive pricing.
 Logistics supported by the company

• Samsung is currently taking care of the Inter State movement for the goods and is
responsible for getting the permits & Licenses and bearing all costs of the movement.

• However, as the Goods move to the National Distributor/ Regional Distributor Level, the
responsibility of getting the transportation permits moves to the ND/RD, and all costs are
hence borne by them.

• Dealers in kerala 
1. SAVEX
2. D&D
3. Safa solutions 
Anirudh V
(FK-3417)
Thank you!