Samsung & Nokia Sells Strategy

Prepared by Navneet kumar malik Gunjan narula Anurag Ravindra sharma ISBE _ A

AGENDA
Products Distribution Center R & D Center Man Power Sells Analysis

Products

Samsung's product range in India included TVs, audio and video products, information technology products, mobile phones and home appliances. 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. On the other hand Nokia has played a pioneering role in the growth of cellular technology in India, starting with the first ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network..

Its Obvious that Samsung has wide product range of electronic goods and hence wider sell strategy for its different products.

Distribution Center

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 need. Nokia has Nokia Priority Dealers across the country and Nokia Concept stores in Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore, Mumbai to provide customers a complete mobile experience. Samsung has wide range of distribution center for its wide range of products on the other hand Nokia has priority dealers for distribution of its handsets.

R & D Center

Samsung has two Software development centres - Samsung India Software Centre (SISC) and Samsung India Software operations unit (SISO) at Noida and Bangalore respectively. SISO is working 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. In addition to working on global R&D projects, SISO is also helping Samsung Indias Mobile business by focusing on product customization for the Indian market. Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packet-switched mobile technologies and communications solutions to enhance corporate productivity.

Man Power

Samsung India currently employs around 3000 employees across its R&D Centres at Noida and Bangalore.
Nokia India started off its business with manpower of 450 and within few years it increased to 6000 people and this is the current manpower strength. This is a major growth and proves the company's efficiency in providing employment options to people. Nokia has upper hand in terms of man power. But globally total number of employees for handling large range of products for Samsung is more than the Nokia.

Sells Analysis

Samsung
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. The introduction of World First, Wow, leading technology products in the Indian market coupled with the Companys efforts to customize products for the Indian consumers, have contributed to the success of the brand in the Indian market. Technology Leadership, Product design and innovative marketing have all contributed to making Samsung a household name in the Indian market.

Sells Analysis(Cont.)

The Company has carried out over 170 Dream Home Road Shows - a four day exhibition of its new products and technologies - in the metros and smaller markets to create consumer awareness. To display Samsung products in a more lifestyle ambience and to communicate the product benefits in a more interactive manner, Samsung India has set up a widespread network of Samsung Digital Plazas all over the country.

Sells Analysis(Cont.)

The Samsung Brand shop network complements the over 8500 retail points for Samsung products located across the length and breadth of the country. Samsung plans to continue enhancing its penetration levels in the country to reach out to more and more Indian consumers.

Sells Analysis(Cont.)

Advertising and Sales Promotion

In 1995, when Samsung entered India, it realized that Indian consumers were not familiar with the company. So, in order to establish itself in the Indian consumers mind, Samsung launched corporate advertisements highlighting its technologically superior goods.
The "Team Samsung India First" Campaign

In August 2002, India's leading consumer electronics player, Samsung India Electronics Ltd. (Samsung) announced the signing on of seven celebrity cricketers -'Team Samsung', as its brand ambassadors. In doing this, it aimed to cash in on the popularity of cricket in India. In place of the ads featuring the cricketers, Samsung launched its - 'Team Samsung. India First' campaign all over the country in December 2002.

Sells Analysis(Cont.)
The Indian arm of Korean consumer durable major Samsung posted a
turnover of $3.5 billion (over Rs 15,935 crore) during 2010 and has set a growth target of 40 percent this year.

The $3.5 billion turnover last year covers all three segments of consumer electronics, mobiles and information technology.

Sells Analysis(Cont.)

Nokia
Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The Indian operations comprise of the handsets business; R&D facilities in Bangalore, Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore. Nokia has established itself as the market and brand leader in the mobile devices market in India. Nokia has been working closely with operators in India to increase the geographical coverage and lower the total cost of ownership for consumers. Nokia has set up its mobile device manufacturing facility in Chennai, India to meet the burgeoning demand for mobile devices in the country

Sells Analysis(Cont.)

It sells the vast majority of products through distributors, network operators and Nokia branded stores which are owned and operated by its retail partners. Some sales are made direct to users through Nokia Online. Nokia is also creating a chain of flagship stores in India's premier shopping locations which offer Nokia products and services in a fashionable, interactive environment and with a highly-trained staff. Nokia aims to provide products and services which meet the needs of trade customers and consumers. It researches the views of both groups to understand where it is succeeding and how it can do better.

Sells Analysis(Cont.)

Nokia Care provides support services to consumers through online, email and call center services, supported by a network of authorized service centers. The support includes basic product information, guides and demonstrations, discussion boards, software updates, advice on specific issues, and warranty repairs. It also helps consumers to find out where to recycle their old products. It aims at getting a wide picture of consumer experience by using different consumer feedback channels, and respond with targeted improvement actions. The main feedback channels include consumer satisfaction surveys, feedback through independent market research companies and Nokia Care contacts.

Sells Analysis(Cont.)

Sells Analysis(Cont.)

Leading mobile handset maker from Finland, Nokia has suffered a huge decline in revenue in India. There has been almost a decline of 15% in India revenue. It was found out to be Rs 14,000 crore for the period under review.

Comparison

In India, Nokia is losing out to local players as well as Samsung. In 2009-10, Nokias market share has declined from 64% to 52.2%, while Samsung gained market share [from 10% to 17.4%]. In the domain of mobile phones Nokia is still number one in India and Samsung is number two. Reason behind declination of Nokia shares and sells in the market is tough competition with the many handset manufacturers such as Micromax, LG, Sony and many other vendors. Reason behind rise of Samsung share and sells is its wide range of products in different electronic goods.

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