SWOT Analysis Of SamsunG.

SWOT Analysis Of SamsunGStrengths: new bogus appurtenances abstraction to rollout in 5 months. • communicable the beating of the buyer, present acceptable designs & accepting emotions. • Heavy asset in technology, artefact architecture and staff. • Focus on new articles for the high-end marketplace. • Weaknesses: • Lack in artefact separation. • Different models at assorted amount points. • centermost on accumulation bazaar instead of alcove markets. • Not actual user affable design. Opportunities: • differentiate its account from competitors. • Offer artefact variation • crave for corpuscle phones apprenticed by the account provider or carriers. • Tie up with account providers. lower the amount of a buzz by just $20 in abounding countries could increase • Affordability by 43%. Threats: • Motorola's babyminding in the U.S market, Nokia's acceptance in the Pakistani market, artful added than bisected of the apple market. • Agitated competitor, including Sony Ericsson and Siemens bistro into its share. • Not befitting clue of the new trend in the market. • Not an appearance accent and appearance statement MARKET SHARE OF SAMSUNG IN CONSUMER ELECTRONICS sh SAMSUNGS PRODUCT LINE Consumer Electronic Products like :  Colour Television (CTV’s)  Refrigerators (Frost Free)  Air Conditioners GSM & CDMA Handsets  Front Loading Washing Machines  LCD TV, Plasma TV  Advertising and Promotional Strategies Initially, Samsung’s advertising activities was decentralized.  In 1999, Samsung unveiled a new slogan – “Samsung DIGITall: Everyone’s invited”  Expressed the company’s aim “FOR ALL GENERATIONS, FOR ALL CUSTOMERS AND FOR ALL PRODUCTS  In zzIn 2001, Samsung added the word ‘WOW’ to its marketing campaigns to show the admiration of consumer for its innovative but affordable products  In May 2002, Samsung announced its plan to extend its ‘DigitAll’ campaign, by launching new global campaigns with different tag lines – ‘DigitAll Passion,’ DigitAll Escape,’ and DigitAll Wow.” New, spunky, tagline - 'Next is What ?'. It is being used in all  of 'Samsung Mobiles' communication material Porter five forces Porter five forces model, developed by Michael E.Porter of Harvard University in 1979, holds the purpose to analyze the industry in order to determine the level of intensity regarding the competition and attractiveness of the industry. The attractiveness of an industry is measured in terms of profit; more profitability means a more attractive industry and low profitability means a low attractive industry. Porter referred to these forces as micro environment rather than macro environment because these forces are nearest in the sense of affecting the organization. Organizations have to re-assess the market if any of the forces change, it does not necessary that the organization should leave the industry if the profitability is low, because most of the organization are making good profits by applying their core competencies to gain competitive edge over their rivals and increase their profits. The word “Strategy” is very common in this advanced era of the business and technological world, it is used even in our daily life routine, you may have heard at times that lots of people discuss about strategies (plans) to achieve something. You must be thinking that strategies are developed in dreams or common sense by higher management of the company but that is not the case, even the best of the strategies always comes after proper evaluation of internal and external environment of the company. The strategies are made by strategists to achieve objective or goals to allow the business to compete in industry. Porter five forces model of competitive analysis is a widely used approach for developing strategies in many industries. The intensity of competition varies across the industries. The intensity of competition is higher in low return industry as compared to high return industry due to less requirement for capital and common products that require minimum R & D (Research & Development) and efforts for production. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of the following five forces: 1. Rivalry among competitive firms 2. Potential entry of new competitors 3. Potential development of substitute products 4. Bargaining power of suppliers 5. Bargaining power of consumers Rivalry Among Competitive Firms Rivalry among competing firms is the most powerful of the five competitive forces i-e the ongoing war between the firms competing in the same industry for gaining customer share in order to increase their revenues and profits. The competition is more intense if the firm pursues strategies that gives it a competitive advantage over the strategies pursued by its rivals. Developing new strategies is easier than retaining the uniqueness of the strategies so as to gain a competitive edge over the rivals in the industry. Changes in strategy by one firm may be met with retaliatory countermoves, such as lowering the prices, enhancing quality, adding features, providing services, extending warranties and increasing advertising. Examples, - In the telecommunication industry, firms are lowering their prices in order to increase their consumer call ratio by minimizing their per minute profit margin but this strategy is increasing the overall company revenues. - In the past few years a number of new features were added in the mobiles, now it not only gives the functionality of cell phone but we are also able to take pictures, make videos, watch streaming and use Internet. The firms like Nokia, Siemens, Samsung and other are following each other’s strategies to minimize the differentiation in the product so customer can easily switch brands. - In the past television companies offered maximum one year warranty but now due to the tough competition in the media market, players as Samsung, LG, Haier, Philips and others enter in the market with their high quality products in order to compete with Sony, that’s the reason customers are getting more services in the form of extended warranty periods. - Pepsi and Coca Cola are competing by increasing their advertising and offering new beverages in the market. We discussed about the offline business, when it comes to online business on the Internet, the competition is more fierce, consumer get more control over its purchasing by sitting at home on computer and comparing the similar and substitute products on bases of features and prices. Amazon.com is the best online book selling site, offering a huge library containing millions of books on a variety of subjects. People visit to amazon because they enjoy user friendly design, products, books and search capability of the site but when it come to purchase the product customer move to other site such as buy.com for purchase on discounts. Buy.com CEO says, ” The Internet is going to shrink retailers margins to the point where they will not survive.” Examples: - Dell.com offers computers and laptops of high quality at low prices as compared to its competitors. - EBay.com is a site where people like to go to purchase products online at low price. The rivalry among competing firms increases as the number of competitors increases, as competitors grow more equal in size and capability, as demand for the company products decline, products are undifferentiated, product prices decline, consumer brand switching cost is less, number of supplier available for raw material, low price substitute products are available and entry into market is easy due to less constraints. As rivalry among competing firms intensifies, industry profits decline, in some cases to the point where an industry becomes inherently unattractive. Potential Entry of New Competitors Potential entry for new competitors is also the factor to intense the competition in the industry. A larger pool of new entrants results in more changes of intense competition. Barriers to entry, however can restrict the firms from entering the market, more number of entry barriers will make it difficult for the new entrants to exploit the opportunity of new market. Barrier to entry, however, can include the need to gain economies of scale quickly, strong customer loyalty, strong brand preferences, large capital requirements, lack of adequate distribution channels, government regulatory policies, tariffs, lack of access to raw material, possession of patents, undesirable locations, counterattack by entrenched firms and potential saturation of the market. If existing firms are producing at economies of scale then the new entrants must ensure to make its entry into the market with a large production scale capability to lower its fixed and variable cost per unit in order to compete with the competitors product, otherwise new entrants will face exceeding cost problems. Government policy creates hurdles for new entrants by heavy taxes and interest rates. New firms must get to know the Government regulations and policies before making a entry decision into the country. Despite the numerous barriers to entry, new firms sometimes enter industries with higher-quality products, lower prices and substantial marketing resources. The strategist’s job, therefore, is to identify potential new firms entering the market, to monitor the new rival firms’ strategies to counterattack as per need and to capitalize on existing strengths and opportunities. Potential Development of Substitute Products Firms mostly monitoring the trends within the industry to track the strategies but competition not only arise within the similar industry but also in different industry. Companies in other industry offer products with similar features and functionality or even better act as substitute for the products. For Instance, the producers of spectacles and contact lenses are facing mounting competitive pressures from growing consumer interest in laser surgery. Newspaper firms are feeling competitive force of the general public turning to cable news channels for late-breaking news and using Internet sources to get information about sports results, stock quotes, and job opportunities. A firm faces intense competition from substitute product producing firms, when the customer cost of switching is lower, substitute products are better in quality and functionality , end users grow more comfortable when using the substitutes. The competitive strength can be determined by market share, sales pattern, producers adding capacity for more production, and rise in profits. Bargaining Power of Suppliers Supplier and producer relation always matters specially in manufacturing industries. Suppliers play an important role in the production of goods and services, making the raw material better and till the final product is made. Bargaining power of suppliers affect the intensity of competition especially if there are huge number of suppliers, less availability of raw material and the cost of switching between suppliers or raw material is high. These attributes in the industry give power to the supplier to enforce terms and conditions on manufacturers and charge high cost on raw materials. For Examples, The bargaining power of Microsoft and Intel in more because they are the huge suppliers of software and hardware. Microsoft enforce computer manufacturers to load Windows in their computers and place their logo on laptops, desktops and server machines. Intel on the other hand also demands computer manufacturers to place their logo on machines using Intel processor. Intel and Microsoft enforcing their terms and conditions also charging high cost from the computer manufacturing companies. Manufacturer needs to build relationship with the supplier in order to improve the quality and reduce the prices of the product by working together for improvement in processes and reduce time to market by implementing just-in-time inventory. For Example, Dell computer known for low cost and best quality computer, laptop and server manufacturer in the industry. The key behind dell’s success is maintaining good relationship and collaboration with the supplier of computer hardware and software. To gain control or ownership over its suppler, backward integration strategy is adopted by most of the companies. This strategy will help both suppliers and companies to work together for improvement in product quality, reduce cost, reduce time to market and earn good reputation in the industry. Bargaining Power of Consumers Consumers are the final users of the product; performance of the companies totally depend upon the consumers. Bargaining power of consumers is more especially when they are huge in number and consumers purchase in large quantity. Rival firms offer discounts, warranty and services to switch the consumer from one brand to another in the same industry. The bargaining power of consumers is also more when products are undifferentiated and widely available. In this case consumer can ask for more discounts, extended warranty and services. As the satisfaction level of consumer goes up more the intensity level of competition increases. Firms should monitor the competitors strategies and also take care of the consumer’s likes and dislikes by maintaining good relationship with the consumer by implementing CRM processes in the company. For Example, P & G has an online portal to ask the customer about their views, opinions and new ideas about the products of their desire. Criticism on Porter Five Forces Model In the previous few years, other forces like globalization, technology and deregulation are introduced; these factors have a deep impact on the organization as well. The strategists should consider all the internal and external environmental variables into consideration in order to formulate fine-tuned strategies PORTER’S FIVE FORCES In this section, I analyze Samsung using Porter’s Five Forces model. As stated in the instructions, the model is not explained but the model is applied to Samsung. The five forces are analyzed with an additional element “The impact of Stakeholders” on the business prospects of the company. Each of the forces is analyzed in detail and presented with respect to the company’s macro and micro environment. Samsung Industry Rivarly 100 Stakeholders 50 0 Power of Suppliers Power of Buyers Market Entry Threat of Substitutes Suppliers: The bargaining power of suppliers is relatively limited as there are a number of suppliers in the market for consumer electronics. For instance, there are well over a thousand suppliers in South Korea and across the world for the kinds of parts that Samsung needs for making its electronic appliances. However, the fact that the suppliers make parts that are unique for each appliance maker gives the suppliers an advantage that is hard to ignore. The point here is that like in any other industry, the consumer electronics industry needs a wide network of suppliers for the vendors to function effectively. Hence, Samsung depends on its suppliers for timely delivery of the components and hence any disruption to the supply chain can be troublesome. Market Entry: The impact of Market Entry is high as Samsung has found it easy to enter markets where it desires to do business. For instance, Samsung has entered Chin and India, two emerging markets that provide the much needed volumes for its expanding business. The fact that Samsung has entered these markets with relative ease makes this a force that can be harnessed for the company’s good. However, it might not be easy for Samsung to capture markets with ease as it has done previously because of the rise of protectionist tendencies in the wake of the global financial crisis. The rivalry from existing players is a factor that needs to be considered when deciding upon the market entry into foreign companies. This is something that Samsung needs to take into account when deciding upon its foreign market entry strategy. Power of Buyers: The power of buyers is indeed an element that is something of a mixed bag. This is because of the fact that the buyers have a wide variety of choices and a range of products to choose from. There are many models of mobile phones and other consumer electronics gadgets in the market and the buyers can easily switch to alternatives. Hence, the impact of this element on the company is a bit high. The bargaining powers of buyers are high since the market for consumer electronics is essentially a buyer’s market with so many players in the fray to sell consumer electronics to the consumers. This is reflected in the endless price wars that Samsung is engaged in with respect to the mobile phones and other electronic goods. However, the factor that is to Samsung’s advantage is because buyers cannot switch brands immediately and they take their time to adjust and adapt and only when they are completely dissatisfied with the company do they switch brands. This is the decline of the so-called “repeat customers” when they lose faith in the brand’s ability to deliver the goods. Threat of Substitutes: The threat of substitutes is indeed high for a company like Samsung. Given the fact that the consumer durables market is characterized by intense competition with competitors introducing products similar to those of Samsung’s with regular frequency, it is no wonder that the company needs to be on its toes to keep pace with the blistering pace of new products entry. Further, there are many “me-too” products that are introduced that are the clones of the products that established brands like Samsung introduce in the market and this leads to a situation where the company constantly needs to innovate to be ahead of the pack. The threat of substitutes is indeed high for Samsung given these facts and this is one element of the Five Forces that pose a significant threat to the company. However, the buyers who switch to the substitutes are the price conscious segment and those who prefer price over quality. Hence, this puts Samsung at an advantage over other competitors as the quality conscious customers stay loyal to the company. Industry Rivalry: The impact of this element is certainly high because of the presence of other competitors like LG, Ben Q, Motorola and Nokia. The competition is so fierce and intense, particularly in the emerging markets like India, where the wars between these competitors are akin to the equivalent of “cola wars” between Coke and Pepsi. To give an example, both LG and Samsung spend huge amounts of money in India on sponsorship of sports events (cricket championships) and teams. Though the advent of these companies has certainly altered the landscape of sports partnerships, sometimes the rivalry is taken too far resulting in lot of bad blood between the rivals. Stakeholders: The impact of this element has been evident in recent times because of the rise of the environmentally conscious movement and the drive towards CSR (Corporate Social Responsibility) that has seen the likes of Samsung receptive towards the concerns of these groups. The fact that the shareholders are increasingly demanding more accountability and transparency following the recent scandals is proof of their growing power in making the management of Samsung accountable and responsible. PESTEL ANALYSIS In this section, I analyze the company’s strategy by the PESTEL analysis. Each of the elements of this framework is analyzed in detail. Political: Samsung faces significant political risks in the countries where it operates though in the majority of the countries, the political situation is conducive for the operation of the country. In recent times, the political climate in South Korea has become a worrying factor for Samsung and the country faces political instability at home as well. However, the situation is not that serious as compared to some of the other countries where it operates. This is particularly the case in countries in the African continent and the South East Asian countries where Samsung is at a distinct disadvantage because of the hostile business environment. In countries like China and India, the company has a conducive political environment which allows it to concentrate on the markets in a better way. (Yu, 1998, 57-60) Socio-Cultural: Despite being a South Korean based company, Samsung has managed to integrate itself well in the emerging markets where it does business. This has resulted in a think global, act local mindset that has effectively bridged the cultural and social gap between its home country’s business landscape and the markets where it operates. One troubling aspect has been the company’s attitude towards local officials in the matters concerning bribing them to get its business done. The company tries to strike a balance between the aspiration values of the consumer classes and the levels of income that they possess. Technological: As has been mentioned elsewhere in this paper, the company prides itself on its innovative approach to technology and harnessing the same for rolling out products that use cutting edge technologies in their design and features. The technological capabilities of Samsung are well known and the company is especially strong on this element. The company’s innovation drive is its biggest strength and the company can take pride in the fact that it is a pioneer for many of the technological innovations that it has introduced through its products in the global marketplace. Economic: Samsung certainly follows good strategies in the markets it operates based on the economic size and the strength of the consumers in terms of variables like disposable income. Given the fact that the company needs high levels of disposable income from its consumers to buy the products that it makes, the company has followed a targeted marketing strategy aimed at the middle classes in the countries in which it operates. Further, the company enters markets where the business cycle for the products that it sells is in the initial stages unlike the developed countries where the product lifecycle for its range of products is in the decline or the maturation phase. This strategy of entering countries where the products find a readymade market has indeed paid off. Environmental: The Company has started to be conscious of its environmental and social obligations as evidenced in its approach to CSR and “green policies”. Many of the manufacturing facilities of the company are built on environmentally sustainable designs and the company is adopting other practices as well in this regard. Growth of Consumer Durable Market Comparative Analysis A comparative Analysis of Samsung Electronics vis-à-vis competitor’s (LG, Haier, Videocon, Sony, Bluestar) in Amritsar, Batala & Surroundings What is comparative Analysis? In comparative Analysis we take our competitor’s products and make comparison through consumer with our own products. Why Comparative Analysis? Comparative Analysis comprises one of the most important tasks of marketing. It provides information for marketing decisions. Problems are identified and investigated further by using problem solving techniques with the objective of arriving at solution. The most important innovation in the new approach is to study simultaneously different organizational forms of business interest representation. The aim of the study is to point out the best among the Variables that are being studied. The study will also include the survey which will be targeting about 100 dealers in the area of Amritsar, Batala & Surroundings. The main emphasis in the survey will be given on the sales of Samsung in comparison to its competitors in CTV & AC segment, the consumer perception about the brand will also be taken into consideration while conducting this survey. The analysis of the buying behavior in respect to AC& CTV will be another important component of my study. Buying behavior of the consumer is a study of how individuals make decisions to spend their available resources (time, money & effort) on consumption related items (what they buy, why they buy, where they buy, how often they buy and use a product or service). The heterogeneity among people across the world makes understanding consumer buying behavior an intricate and challenging task. The consumers’ identity, his beliefs, specific needs, attitudes and the kind of product and brand available in that product category influence his buying behavior. The marketing efforts of a firm have a profound impact on the buying decisions of customers. Therefore the attempt of my survey will be to obtain an in- depth knowledge of the customers buying behavior. The effect of external variables on purchasing pattern of customer will also be considered here the external variables refer to all those factors which will be affecting the consumer purchasing decisions, these can be price of the goods and on its attitude to respond to functional needs. The critical variable under this approach is the availability of adequate information about purchase alternatives (price, product functionalities) to support the decisional process. • The external conditioning approach, according to which the purchase decision is a response to external stimuli. The critical variable under this approach is which kind of external stimuli can influence purchase decision. • The experience and the social interaction - based approach, according to which the present consumer decision aims at the construction of personal identity. Another component of my study will be the analysis of the brand (Samsung) on four P’s i.e. • • • • Product Pricing Promotion Placement. These are the four factors which help an organization to understand the market and help in taking future decisions relating to the launch & the strengthening of the market for the brand. Benefit to company: 1. Display Share Tracking: Display share tracking will help us to find out these information I. II. It will be used to revealed potential demand of each product. With the help of display tracking we will find out the highest and lowest selling product in the market. selling product III. It will help in taking decision during the line expansion and line pruning. 2. Consumer perception: This is done with the aim of capturing the true words and emotions of consumer, and in turn using this information to improve or developed products or to determine people attitude toward the products. I. II. It will help company to get feedback from consumer. It will prevent the undervaluation of competitor and we can find the strength and Weakness of our product. III. IV. V. VI. VII. This will help us to stay ahead in competition It will encourage value creating investment. It will help in maximizing the consistency of value creation Measuring performance It will help us for market share analysis. So I can say this study is more suitable for Samsung to compete and survive in lobal market. Consumer perception As it is well known proverb of marketing that “Consumer is the king” it is mandatory for any researcher to know the opinion of the consumer regarding the products on which he is going to conduct the study. This research work will include a consumer questionnaire on the consumer goods which has been taken as the part of the study the questionnaire mainly aims at . • • • • Awareness of the consumer about the brand His decisions whether dependent or independent Purchase pattern Brand loyalty level • • Current consumer durables in home What is the impression of consumer about Samsung This questionnaire will mainly help out in reaching at the actual consumer perception of the consumers about the brand. This is done with the aim of capturing the true words and emotions of consumer, and in turn using this information to improve or developed products or to determine people attitude toward the products. 2.1 It will help company to get feedback from consumer. 2.2 It will prevent the undervaluation of competitor and we can find the strength and Weakness of our products 2.3 This will help us to stay ahead in competition. 2.4 It will encourage value creating investment. 2.5 It will help in maximizing the consistency of value creation. 2.6. Measuring performance 2.7 It will help us for market share analysis. So I can interpret, this study is more suitable for Samsung to compete and survive in global market. Positioning:- Many multinational companies adopt a “less developed countries” mindset, assuming that these markets are at an earlier stage of the same development path followed by the developed countries. To take the example of the automobile industry, Ford and GM launched their outdated models like Ford Ikon and Opel Astra in the Indian market. When these models did not sell well, the companies changed course and decided to launch newer models in India. In the case of Samsung, the company from the very beginning launched its whole range of high technology products, which included CTVs, audio and video products, information technology products, mobile phones and home appliances in India. It introduced products such as the ‘Bio’ range in CTVs, high-powered Woofer series of colour televisions in 21inch and 29-inch conventional and 21-inch flat TV segments. And not to forget the lateset DNie television. By positioning itself on the technology platform, Samsung was able to differentiate itself from its competitors. Differentiation today is the key for a brand to be preferred by the consumers, when there are so many other brands within the same product category. Without differentiation, its loyal customer base cannot be created or sustained. But to be a true differentiator, a company must provide features that are meaningful to customers. Which is what exactly Samsung has been doing Marketing mix Products: - Samsung’s product range in India includes CTVs, video products, information technology products, mobile phones and home appliances. Its product range covers all the categories in the consumer’s electronics and home appliances. According, to the analyst’s wide product range of Samsung is one of the main reasons for its success in the Indian market. The wide range products are as follows: - • • • • • Home appliances Microwave Oven Refrigerator Air Conditioner Washing Machine • TV, video & audio • • • • • • • TV DVD Player Camcorder Audio Home Theater Digital Audio Player Digital Still Camera • • • Mobile Phones GSM CDMA • Information technology products • • • • • • • Note PC HDD CD Rom & DVD Rom Drive CD & DVD Read & Write Solution Monitors Laser Printers & Laser Based MFPs Fax Samsung by launching innovative products and using proprietory technology was able to gain market share. Samsung has therefore set up Samsung India Software Centre (SISC) and Samsung India Software operations unit (SISO) for software development at Noida and Bangalore respectively. While the Samsung India Software Centre in developing software solutions in Samsung’s global software requirements for hi-end television like Plasma and LCD TVs. 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 Samung India’s CDMA business by focusing on product customization for the Indian market. Market Share: - Products Brand 2004 2005 Refrigerator LG Whirlpool Godrej 21.6 19.8 23.2 16.3 Washing Machine Samsung Videocon 14.6 14.8 13.4 35.1 31.9 LG 29.4 25.16 13.9 TV LG Samsung Videocon 16.4 10.1 15.4 11.00 26.7 24.2 Product features: To sell a consumer durable product a company has to provide unique features i.e. features which other companies are not able to provide. Samsung has been using the same strategy to boost their sales. Samsung provides its consumers with wide range of products with unique features. For example, Samsung was the only company offering a 1000 watts PMPO sound output in the 21-inch flat TV segment. It also introduced a new 5.5 kg, top loading fully automatic washing machine with features like ‘saree course’ keeping in mind that the majority of the Indian women wear sarees. Refrigerator:• Bio Ceramic Technology(Bio Fresh Refrigerators) BIO FRESH prevents evaporation of moisture, cell activation; supports antibacterial function and also prevent the alteration of proteins. This keeps the food fresher for a longer time. At the heart of Bio-Fresh refrigerators is Bio Ceramic technology. Ceramics form a part of the raw materials used in the manufacturing of the Vegetable compartment. Ceramics have the unique property of emitting 'Far Infrared Rays' (FIR). The FIR helps retain the moisture content in the vegetables, fruits and other natural products as they are in the natural resonant frequency of water molecules. The 'FIR', in combination with technologies like the Bio-Deodorizer, Dynamic Super X Flow cooling system with i-cool and Humidity Controller makes the Samsung Bio-Fresh refrigerator one of the most unique products in the Indian market today. Bio-Vegetable Box is made of the newest Bio-Ceramic material. Bio-Ceramic material radiates far-infrared rays, which help retain the moisture content in vegetables, fruits and other natural products, keeping them rich in nutrients and essential vitamins for a longer period of time. • Super X Flow technology The Samsung 250 NMB incorporates the Dynamic Super X Flow technology. This technology sets up a smart cold air distribution system to maintain an even temperature throughout the refrigerator! This effectively achieves three clear benefits: Even Temperature, Quick Cooling and Energy Savings. • Samsung's Twin Cooling System Samsung's Twin Cooling System controls and generates cooling air for the refrigerator and freezer independently with two separate evaporators and precise electronic control, thus maintaining each compartment at their optimal cooling conditions. This results in a more efficient refrigerator with powerful performance! Electricity Consumption Comparison These features reduce energy consumption by 30%, compared to previous models, with a high efficiency compressor and better insulation (A class: ISO standard) Another Freezer in Refrigerator Compartment The Twin Cooling System allows the CoolSelect Zone to maintain -5ºC (Soft Freeze mode) in the refrigerator compartment. While food stored in the freezer is not easy to handle, the Soft Freeze mode sets the temperature low enough for easy slicing and allows medium-term storage. This is only possible by the Twin Cooling System. • i-cool TM The i-cool system is an intelligent cooling system with three cold air outlets-at the back, on the right and left sides of the refrigerator interior. Cold air is evenly distributed with multiple outlets on every shelf level. I-cool multi-flow has more air outlets than the general multi flow technologies. This further ensures that as compared to conventional frost-free refrigerators the Samsung i-cool is more efficient both in terms of cooling and power consumption. With cold air flowing from three sources, the i-cool system cools 40% faster and 50% more improved even cooling than a conventional cooling system. Washing Machine:- • TORNADO PULSATOR:- SUPER DRY: -Samsung introduced India's first Semi Automatic Washing machine with a SUPER DRY Feature. The SUPER DRY Feature provides a 10 minute Spin Dry Timer, which gives you the power to ensure that your clothes get the BEST POSSIBLE DRYING. SUPER DRY is great value; especially for the Monsoon and winter months, when clothes don't dry easily. This powerful feature is available on the latest models launched recently - WT9300, WT9200, and WT7800. While all other brands will provide the standard 5 minutes Spin Dry Timer, these models give you EXTRA DRYING for full 10 minutes. I-CONTROL SYSTEM:- The Samsung Washing technology is designed to put you in control of the washing process, and the machine action. Samsung Washing Machines are packed with an array of incredible features that come together to make the I - control system. These include the ‘ECO Wash - that saves water and detergent’, ‘Child Lock - To limit small children with tampering settings and getting hurt’, ‘Auto Restart - that saves you the bother of restarting the washing machine each time the power fails’, ‘Memory backup- enables the washing machine to remember programmed wash cycles and settings’, ‘Delay Start- To enable you to time the washing machine with your water supply and other chores’ and ‘Fuzzy Logic - that makes the washing machine intelligent to adjust automatically to wash loads, water and detergent levels’ etc. These 6 amazing technologies come together to put you in total control and command of the washing machine and the wash process HYDROJET WASHING TECHNOLOYG: Samsung Hydrojet gives you a combination of three powerful washing actions: Waterfall Flow: Strong flow of water that streams down from the top. Pushing heavy and light clothes towards the pulsator. CentreJet: A strong gush of water formed right at the center of the washing machine, forcing the dirt out of clothes. This also ensures that the clothes do not get entangled at the center. Water Pores:- Saves water and detergent and washes clothes from all sides. BIO WASH TECHNOLOYG: Clothes washed in Samsung Washing machines are not only dirt free, they are also 'germ free'. Samsung has developed this unique BioWash Technology to ensure just that. The Bio-Pulsator is made from some percentage of Bio - Resin, which destroys germs and keeps the environment inside the washing machines, pure and germ free, wash after wash. Air conditioners:- • Turbo power: {BRINGS INSTANT RELIEF FROM HEAT} The Turbo function makes the AC operate under full power for 30 minutes, irrespective of the set temperature, which leads to quick change of the room temperature, instantly bringing the air-conditioning comfort in the room. Turbo operates faster than the conventional system. The new compact range of Samsung Window ACs not only occupies lesser window space but also are more aesthetically appealing. • Quick power optimizer: {ENSURES LOW ELECTRICITY BILLS} The Samsung Split Air conditioner’s 5-Step Heat Exchangers have 122% larger surface area. Samsung Window Air conditioners are equipped with a 3-row cooling coil and L bent condenser coil that provide a larger surface area helping the refrigerant to dissipate heat faster. This results in faster chilling and lesser strain on the compressor resulting in lower electricity bills. Micro Oven:Bio Ceramic Technology: Only Samsung Microwave Ovens come with a unique Bio Ceramic Enamel coating. Bio ceramic enamel produces less oxidation, which helps retain essential vitamins while cooking. The ceramic enamel retains 2.5 times more heat than stainless steel, leading to faster cooking. High scratch resistance: Bio Ceramic Enamel’s durability and protective qualities make it far more scratch resistant than other microwave interiors. When scratched with equal force, the roughness of the ceramic enamel surface increases only 7.5% compared to 106% for the stainless steel. Higher nutrient retention: Food cooked in Bio Ceramic enamel cavity microwave ovens retains significantly greater amounts of vitamin C and F (an essential fatty acid that helps reduce cholesterol and blood pressure) than food cooked in conventional stainless steel cavity microwave ovens. Exclusive Feature: 3D Showerwave Unlike other Microwave Ovens, only Samsung Microwave Ovens come with the unique 3D Showerwave System, which helps to distribute heat evenly, enabling uniform cooking horizontally and vertically. Television:- The Samsung 70-inch PDP TV (Plasma Display Panel) and at 54 inches is the world's largest thin film transistor liquid crystal display (TFT-LCD) television and offers the highest picture resolution available anywhere in the world. The 70-inch PDP delivers high-definition imaging from over two million pixels - a resolution twice the clarity of other models on the market today. Samsung has also applied its proprietary Digital Natural Image engine image-enhancement technology to ensure the highest quality possible image in terms of picture brightness and contrast. Samsung's 54-inch TFT-LCD TV features a crisp, high-resolution image and excels in performance that ensures a smooth playback of the most action-packed visual content. The 1920 x 1080 resolution and 16:9 aspect ratios can accommodate future changes in high definition broadcasting. These advanced features and unprecedented screen size, combined with inherent crisp display characteristics of TFT-LCD, make this 54-inch TFT-LCD TV one of the most advanced display products available today. India’s first wireless home theater (Bluetooth technology): Samsung India Electronics Ltd. has introduced India’ s first wireless home theater, Model No. HTDB390 in the Indian market. The wireless Home Theater in Box (HTiB) uses bluetooth technology to provide a wireless connection to the rear speakers of the 5.1 channel speaker setup - eliminating the need for rear wires, and giving the user total freedom to setup the rear speakers. Wireless HTiB - rear speakers totally remove the hassles of wiring up the home theater. Extremely convenient they embody the concept of HTiB (Home Theater In Box) - since a user can literally take the system out of the box and place the speakers around his/her room to create a Home Theater. Add to the feature of "nowires", the Samsung exclusive sDSM feature that calibrates sound from each speaker at the touch of a button to give the best sweet spot - and this Home Theater provides a never-heard-before audio experience. DVD:The highlight of the Samsung DVD Range is the Hypervision DVD, HD 938, which is the world’s first and only HDTV compliant DVD Player. The Hypervision DVD utilizes the world’s first digital visual interface (DVI) output to transmit uncompressed digital video signals without any analogue conversion, preventing image quality loss. This results in viewers being able to enjoy high definition quality picture quality even for standard DVDs. Bio Colour Televisions:Samsung India Electronics Ltd. has launched a new, advanced Bio Range of colour televisions in the Indian Market. Termed as the Only Healthy TV, the Samsung Bio TV has Samsung's internationally patented Bio Ceramic Coating on the Picture tube that emits Far Infra Red rays when switched on. The FIR rays are known as "Light of Life", since they have been used for centuries by medical practitioners for their therapeutic and curative properties. The FIR Rays penetrate the skin of the viewer and get absorbed by the human body, leading to the release of body toxins, enhanced metabolization and increased micro blood circulation. Thereby, improving the immunity and protecting the entire body. The Bio TV has also been physiologically tested to increase alpha ray emission from the brain, which indicates a state of relaxation. The Health benefits of the Samsung Bio TVs have been certified by the Indian Board of Alternative Medicine. Silver Nano Technology:-: Silver Nano has been developed by Samsung Electronics researchers who worked for three years to perfect the technology. With over US$10 million invested in R&D, Silver Nano is the first technology that combines the disinfectant and antibiotic properties of electrolytic silver nano-particles (Ag+) in washing machines to remove 99.9% of bacteria. Set on "Silver Wash", the washer's sterilization system generates silver particles that kill off bacteria and mold in the laundry load without bringing the water to a boil. Thus, less electricity is needed to achieve a hygienic effect. This process also treats the inside of the washing machine tub to kill bacteria and mold, suppressing the odor and contamination that accompanies their formation. When the machine is set on "Silver Sterilization" mode, the laundry load is covered with Silver Nano particles during the rinse cycle. After the washing is complete, the clothes have been found to be totally devoid of bacteria and will remain so for up to 30 days, earning the "Sterilization Mark" from the Korea Testing & Research Institute for the Chemical Industry. Silver Nano is incorporated into refrigerators by coating the inner surface to keep germs from growing. By keeping the cooling environment germ-free, food stays fresher for up to 15 days longer and a Silver Nano deodorizer keeps bad odors from affecting food taste. Air conditioners have a Silver Nano filter that keeps germs from growing inside the machine and prevents allergy-causing bacteria from being blown into the air. Silver Nano coatings greatly reduce the presence of fungi and bacteria within five minutes of operation. DNIe Technology:Digital technology leader, Samsung India Electronics Ltd. today announced the launch of its revolutionary ‘Samsung DNIe Vision’ range of Flat colour televisions on 7th April, 2005. The Samsung ‘DNIe Vision’ range comprises of 15 new models in 15’’, 21’’ and 29’’ size categories. The DNIe Vision Range from Samsung delivers performance that is much superior to conventional televisions on account of the DNIe technology. The new technology produces complete image quality; any signal input comes out cleaner and more natural. DNIe can completely eliminate blurring from movement or image prolongation. A deep contrast can also be achieved. What is more, the finest detail appears sharp, while the vivid natural color is most pleasing to the eye. DNIe Technology in a Nutshell Samsung’s unique DNIe technology encompasses four functions that analyze all signal input, from analog to high definition, in stages. The volume of noise in the signal is detected and the signal level is classified according into analog, SD or HD and then optimized accordingly. Motion Optimizer: Processes Noise More Completely than Ever Before This noise processing technology integrates temporal and spatial concepts to ensure clear images even when the motion is very fast. Contrast Enhancer: For a Deeper Contrast This technology employs a contrast ratio of one million or more and a new algorithm that can reproduce the optimal contrast to provide a deep and rich image quality. Detail Enhancer: Complete Images, True to the Finest Detail A vastly improved technology for automatically analyzing the picture signal reproduces images in amazing detail, resulting in more lifelike video. Color Optimizer: Vivid, Natural Colors The video signals being generated are analyzed and the quantities of reds, greens and blues are calculated to provide the colors most natural to the human eye. After Sales Service :Offering advanced technology products and positioning itself on the technology platform will not help a company sell its products if it fails to give proper after-salesserfvice. With a focus on strengthening the satisfaction level of the consumer, Samsung India Electronics Ltd (SIEL) has launched its 3S — Speed, Smile and Sure — campaign. As part of this customer service program, the company is working on a two-pronged strategy. This involves: one, improving the service infrastructure by setting up customer service plazas in key metro locations; and two, improving the skill levels of technicians by setting up a training school with a technical evaluation system for after sales service engineers. Till now, most of the players in the sector have been professing that it's the relationship with the customer that matters. However, with the competition increasing, customer satisfaction is fast becoming a core issue,'' an industry analyst pointed out. He further stated that Samsung's current effort ``will also strengthen its customer base as most of the players claim that 60 per cent of their sales is repeat purchase.'' Promotion:Offering advanced technology products and positioning itself on the technology platform will not help a company sell its products if it fails to communicate properly with the potential customers. To raise brand awareness and create strong, favorable and unique brand associations, Samsung adopted various marketing strategies like celebrity endorsements, corporate advertisements, highlighting its technological superior goods and many promotional schemes. Advertising: Samsung is involved in aggressive marketing and advertising of its product to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. Their main advertising channels include 'media' such as newspapers (local, national, free, trade), magazines and journals, television (local and national) cinema, outdoors advertising (such as posters, bus sides). The initial advertisements communicated presence of Samsung in worldwide markets and its dominance in those markets. To increase its brand awareness, Samsung went in for celebrity endorsements. Initially, the company signed Hindi film actress, Tabu, to endorse its brand. Till 2002, Samsung’s ads focused on the technological supremacy of its products. But by late 2002, in addition to the technology plank, the company started advertising on the plank of ‘passion for country’ and sports (cricket and football). Its latest ambassador is John Abraham for its mobile phone and Rahul Dravid for its Television range. Sales Promotion: Along with advertisements, Samsung also focuses on promotional schemes to increase its sales. In October 2001, Samsung launched its highly successful promotional scheme, the Samsung Phod ke Dekho Offer. This offer instantly boosted the sales of the company generating sales of Rs. 2.75 bn from this offer. The campaign was launched on an all India basis during the festival season. Under the scheme, consumers who bought any Samsung product were given a tamper proof plastic coconut with three coins in it. One out of every 10 coconuts had a lucky coin with a gift printed on it. As a part of the campaign, Samsung’s brand ambassador, Tabu interacted with the customers and dealers of Samsung in Bangalore and Chennai and handed over the lucky coconuts to select Samsung customers. The prizes included products from the Samsung range. The Phod ke Dekho offer was followed by another promotion scheme in May 2002, Dabake Jeeto offer coinciding with the football World Cup. During the promotion every customer who purchased company’s electronics or home appliances product got plastic football with an alarm clock in it. The customer had to press the football from the top, and was given the free etched on the tamper-proof anodized sticker. Under this campaign, Samsung gave out gifts worth Rs. 100 mn, which included Samsung digital flat TVs, frost free refrigerators, microwave ovens, Karisma washing machines, mobile phones, cameras and Soccer 2002 official licensed Tshirts from Adidas. This campaign notched up sales worth Rs.310 Crores during the period of the Promotion. The next major promotional campaign was the Phir Se Phod Ke Dekho offer. The offer was launched during October-November 2002 generating a sales of Rs. 380 crores. It was a repeat of the earlier ‘Phod Ke Dekho’ campaign. On March 20, 2003 Samsung Launched 'Samsung Rang De Kismat Offer' for Frost Free Refrigerators which entitled a customer to Lucky Gifts worth Rs 4 Crores, with the purchase of any Samsung Frost free Refrigerator. This Promotion derives its name from the 'Rang de Kismat' glass, which was handed over to a customer with the purchase of any Samsung Frost Free Refrigerator. The Customer needed to pour chilled water into the glass and wait for the 'Bio' logo on the Glass to change colour to find out the gift won by him/her. There were Colour Codes for types of Gifts won by the Customer - For example, a Green 'Bio' entitled a customer to a Samsung Microwave oven while a Red 'Bio' gets the Lucky winner a Gift Voucher from Tanishq worth Rs 30,000. This offer was launched to capitalize on the sales of its Frost free refrigerators in the summer months. The Company’s market share went up to 21% in the Frost free refrigerator market after the offer. Following its success with its 'Samsung Rang De Kismat Offer' Samsung India come up with another innovative Consumer Offer “Samsung's Bundling Offer with Reliance IndiaMobile” for the buyers of its Consumer Electronics and Home Appliance Products in the Delhi and NCR Region on 25 July, 2003. A buyer of any Samsung Consumer Electronics or Home Appliance products gets the option of walking away with a sleek, advanced Samsung Mobile Phone N191 model along with a Reliance IndiaMobile connection, without having to pay any activation charges. Furthermore, the user gets free talk time worth Rs.600 over a 6-month period. All other payment terms are the standard billing terms and conditions offered by Reliance IndiaMobile depending on the package taken up by the customer. On 6 October 2003 Samsung India Electronics Ltd launched its mega festival promotion called ‘Samsung Pinning Toh Winning Offer’ on an all India basis. In this Promotion, where the consumer stood to win an assured gift on the purchase of any Samsung product, have gifts worth Rs. 100 crores to offer as prizes. The offer entitled the buyer of a Samsung product, a card with a unique 16 digit alphanumeric code. All the consumer had to do is SMS “SAM” followed by the 16 character code to 8888 and s/he would immediately get a message showing what gift has been won. The Gifts won in the Promotion include; Samsung Projection TVs, Samsung Mobile Phones, Samsung Yepp Disc Players, Samsung DVD players, Titan Fast Track Glares, Touch Screen Landline Phone, Trendy Portable Travel Iron and Britannica Encyclopedia 3 pack CDs.This offer was basically launched to maximize its sales during the festival season. Following its success with its ‘Samsung Pinning Toh Winning Offer’ Samsung India Electronics Ltd launched ‘The $-DOLLAR Program’ for its IT Reseller and System Integrator fraternity on June9, 2004. The program meant for the System Integrators (SI) was applicable on Samsung monitors, Hard Disk Drives (HDD) and Optical Media Storage (OMS) products. Each time a SI/reseller purchases Samsung products from a Samsung Star Elite or Samsung Storage Preferred Partner (SSPP), the SI was issued a cheque. The cheque was of one of the four colors – White, Blue, Silver, Gold – depending upon the products bought. Samsung believes that its SIs and re-sellers play a pivotal role in business growth. They are the ones who provide them the edge that they need in today’s competitive marketplace. This is why they have spearheaded revolutionary programs for them ensuring healthy growth in revenues and profitability. The last sales promotion offer was launched on Feb 3, 2005 called “Fastest Finger First” which was a nation wide contest to find India’s fastest SMSer. The message to be typed reads as follows: “The razor-toothed piranhas of the genera Serrasalmus and Pygocentrus are the most ferocious freshwater fish in the world. In reality they seldom attack a human". This SMS had to be typed on the cellphone keypad, complete with punctuation marks and lower & upper case. No predictive text (T9 Dictionary), QWERTY keyboards/ any keyboard was allowed. Sponsorship:- Samsung used sponsorship of events like Olympic series to boost its sales. Samsung was the global wireless communications sponsors at the Athens Olympics. Samsung used the strategy of relating itself directly with the values of the Olympic games, which included attributes like world class, global, excellence, fair competition and peace. The Olympic series of August5, 2004 was Samsung’s salute to the Olympic values. Samsung was the sponsor of Lakme India Fashion Week held on April21, 2005. Team Samsung cricketers - Irfan Pathan, Mohd. Kaif and Virendra Sehwag launched the World’s Best Handset, Samsung D500 during the Samsung Show at the Lakme India Fashion Week. The theme for the Samsung Show was ‘The Best Thing Says Everything’ in keeping with the positioning of Samsung D500 - Samsung’s latest and path-breaking mobile phone which has been rated as the ‘World’s Best Mobile phone’ by the 3GSM Association World Congress held at Cannes in February 2005. Samsung sponsored Samsung & MTV Youth Icon 2005 on June10, 2005. The idea behind the sponsorship was that the Samsung Mobiles were targeted at the fun loving, lifestyle oriented and trendy youth of today. By associating with the Samsung & MTV Youth Icon, they are seeking to further strengthen their relationship with the youth. Samsung mobiles make a style statement and by partnering with the Youth Icon, this positioning is further re-inforced. Samsung was even the sponsor of Samsung IIFA Awards held on June 13, 2005. Popular film actress, Preity Zinta was awarded the ‘Samsung Diva’ award while Hrithik Roshan was conferred the prestigious ‘Samsung Style Icon’ award at the Samsung IIFA Awards 2005. Samsung India had carried out an online voting process on the Samsung India website between May 20th - June 5th 2005 for selecting the recipient of the ‘Samsung Style Icon’ and ‘Samsung Diva’ awards. The same was also promoted extensively on other sites like indya.com and msn.com as well. The Company received a phenomenal response to this online voting contest. “The ‘Samsung Style Icon’ and ‘Samsung Diva’ awards which have been growing in popularity year on year, the company uses the response level received every year as its popularity indicator. Direct Mail:- Samsung even uses Direct Mail concept for its product promotion. Samsung sends mail to target consumers depending on the database i.e. the frequency of site visit and on their purchases. Samsung is very actively involved in e- commerce. Distribution Channels:Samsung uses supply chain to enhance differentiation, increase sales and penetrate new markets and channels. Its supply chain is beneficial in several ways. It helps the company to deliver products to the customer faster. It efficient supply chain is transparent, so that all the players in the supply chain have the right information at the right time about the movement of the products within the chain. This means lower inventories, elimination of waste, and reductions of costs. In addition to the intangible benefits like quick feedback from customers help in launching new products. Samsung has 24 state-level distribution offices and a direct dealer interface. The direct dealer interface helps the company to get quick feedback from dealers, and enables it to launch products according to consumer needs. To minimize time overruns, Samsung delivered its products directly from its factories to its Regional Dispatch Centers (RDCs), and from there to dealers. Samsung has sales and service networks all over India and 650 service points. Samsung has implemented an innovative logistics system – Global Logistics Network Systems (GLONETS). GLONET application is used on the B2B i.e. Business to Business front for the vendors. This involved linking the key vendors, which form the bulk of Samsung’s sourcing (26 domestic and 30 international) through Samsung’s GLONET. This system enables Samsung to connect its purchase department with the Samsung headquarters and international procurement offices through integrated ERP systems. The integrated ERP system enables Samsung to purchase its requirements from its international procurement offices and also from its Indian vendors. This application is also extended to order placement, production plan sharing and invoicing, resulting in shorter business cycles and reduced inventory levels and low waste. In addition to GLONETS, Samsung also believes in JIT (Just-in-Time) concept to its dealers. To make delivery of products within 48 hours of the expected date of delivery, the company has setup four RDCs, one at each regional location of the country. The distribution channel is structured very systematically wherein all the transactions and business conducted is documented. The program is based on incentives so that dealer payments can be made on time. The Company supplies its goods to the Star Elite who supplies goods to the distributor who in turn sell the goods via their own channel of retailers and distributors. 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. They consider the Star Elite partner as their actual product champion as their link with the end customer. As, they have been adding value to the sale to the customer and guiding him to the right purchase decision at a fair price. Shop-in-shop: Samsung is ensuring a presence in most big malls and multiplexes; even in the multi-brand outlets, as the focus there is to create a shop-in-shop atmosphere. The exclusive showrooms: Keeping its target customer 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 over 80 exclusive showrooms comprising Samsung Digital Zone (focusing on high-end digital audio-video products such as MP3 players, camcorders and LCD/plasma TVs). The Samsung DigitAllhome goes beyond the concept of a Digital Plaza or a Brand Shop because in the DigitalAllhome, they are trying to create a more interactive environment and providing a more lifestyle orientation to the display, so that the customer can visualize the products in his/her own home settings. The Company plans to supplement its existing Samsung Digital Plazas' (Brand Shops) by setting up 'Samsung DigitAllhomes' in select cities. The Company will also be creating exclusive Samsung corners in multibrand outlets this year. The demands and needs within the distribution channel lead to the establishment of MyMemoryStore.com. The site is more than an ordinary selling site, infact it is an industry portal that allows the business partner to come in and track the relevant industry information within the channel, meaning minimizing the inventory overhead. Samsung is also planning to invest over $1 million in setting up a chain of exclusive outlets called `Samsung Talkies'. The entire Samsung mobile range including the latest handsets will be displayed at the outlets, which will be set up in more than 10 cities across India, including Bangalore, Mumbai and Hyderabad. Distribution Channel in 2005: Post VAT they have modified in their policies a bit. The most important step was to bring down channel inventory post the Budget impact and the VAT impact. They made a conscious decision to bring down channel inventory, which was at that point of time 60 days, today it is reduced to 11 days, which entails total inventory among dealers, distributors, star elite and SI. This has been done to ensure that the channel stays profitable. Samsung India tied up with PlanetM for displaying its new audio range at the PlanetM Outlets in Delhi, Mumbai, Kolkata, Pune, Chandigarh and Bangalore. Pricing: Pricing also seemed to have played a significant role in Samsung’s success. Differentiation is the key for a brand to be preferred by consumers, when there are so many brands within the same product category. Samsung believes in providing good products at reasonable prices to its customers. Samsung’s technology plank communications helped the company to gain market share, even though it did not offers any discounts or exchange scheme when it entered India. Samsung focuses on cost-cutting measures to keep its price low which helps to combat the discount schemes of the local companies. For e.g.- In 2001, due to high competition in the 20”CTV segment, Samsung had to resort to price cuts. The company said that value engineering, new product lines and new chassis development had contributing in combating price erosion. Samsung negotiated with its vendors to reduce costs on cabinets, plastics, speakers, harness coils, remote controls, etc. Samsung’s Brand image seemed to have helped it survive the price erosion. Dealers also agreed to lower margins owing to company’s brand image. Samsung in the year 2002, drastically reduced its operational costs which enabled the company to keep low prices for certain products and extract higher profit margin from premium products. This helped Samsung to post a turnover of Rs.30bn, a 2 growth from the year 2001. Samsung is very transparent in functioning. It has a fixed MoP (Marketing Operating Price) whereby the goods are sold to the distributors and to the customer’s at a fixed market price only. The focus of its competitors is to penetrate in the rural and semi-urban mass markets. But Samsung insists that it's a high end technology driven player. That's why the urban areas are still a focus area for it and only 30 per cent of revenue comes from rural and semi-urban India. They have always been a hi-end technology driven player and want to keep that equity. Not surprisingly, the target customer for Samsung products won’t be found in the price-sensitive mass market. Adopting the lifestyle product platform, Samsung’s aiming for the high-end premium market. Hence Samsung has always been keeping premium prices. Samsung claims it’s never been a price warrior — its focus has always been on the premium market, which is why it has remained a steady No. 2 or No. 3 player in most product categories. It is difficult to achieve the ambitious targets keeping in mind the pricing strategy of Samsung. But, they believe that it takes time to ensure your supremacy in market share. Once you get your brand perception right in the minds of the consumers as a brand that delivers the best technology and gives you value for money, then ultimately market share goes up. Later on Samsung changed its policy a bit and instead of just remaining a high-end technology driven brand it tried to change its image to sell products to the huge number of middle income families in India. It started pricing its products on the “value for money” concept, keeping in mind the price sensitivity of Indian consumers. But still Samsung has the repute of being a premium brand, aggressive in launching newer models with the latest technology and at economic costs throughout the world Pricing Strategy Post VAT Post Budget, they have ensured that there is no discounting in the market and also the prices of OMS had to be increased by 4 percent since price stability is of fundamental importance in channel business. This is the biggest marketing stand that the brand could have taken as the brand stands above individuals and the transactions that happen. Price range: - SAMSUNG LG • Mobile Phones:GSM – 3,649-21,399 4,800-28,000 • TV, video & audio:- TV:Projection TV LCD Projection TV 69,000- 109,000 89,990-99,990 Flat Panel Plasma 7,50,000 LCD TV1,69,900 265,000- 9,0,000 59,990- 265,000 2,95,00075,000- Flat TV 29 inches37,990 21 inches11,990 15 inches10,500 19,990- 31,990 8,990- 17,690 6,890- 8190 20,2909,1907,990- Conventional TV 21 inches20 inches13490 7690- 8990 7,990-8,990 7,890-8,890 DVD Player:- 3,990 – 5,000 3,990-4,990 Audio:VCD System 26,990 9,900- 26,990 8,500- DVD System 29,990 16,200- 25,990 13,990- Home Theater: - 12,990- 68,000 15,990-19,990 • Information technology products:- Note PC - 69,990- 159,990 79,500-1,70,000 CD Rom & DVD Rom Drive CD Rom DrivesDVD Rom Drives750 1,600- 1,900 1,600 3,300 CD & DVD Read & Write Solution CD WritersCombo DrivesDVD Writers1,600 3,000-5,000 4,600 4,250 6,500 7,800 Monitors CRT Monitors 17” magic Bright Range15” Entry Level Range8,000 5,450 13,750 5,750 LCD Monitors 46,800 15,000- 34,000 19,500- • Home appliances Microwave Oven Solo Grill 13,990 Convection 18,990 4,990-6,990 5,990- 10,590 12,990- 15,590 5,490-7,990 6,99012,990- Refrigerator:- Direct Cool 11,400 7,500- 10,200 9,950- Frost Free Side by side system1,25,000 68,000- 1,20,000 69,000- Air Conditioner:- Insta Chill Window - 14,990- 23,990 15,490-20,990 Insta Chill Split - 24,790- 41,990 26,750-42,500 Washing Machine:- Front Loading 40,500 Top Loading 18990 Semi Automatic 9,490 . 6,690- 34,900 11490- 25,900 6,990- 8,990 12,99012,7907,090- Future Prospects:- We have done a survey at retail outlets selling Samsung products and one thing that we found out common is that Samsung lacks in after sales service. The drawback in their after sales service strategy is that they have only one customer service centre throughout India which is situated in Delhi. When a customer has a complaint he approaches his retailer who in turn registers the complaint in the Delhi service centre from where the complaints are processed and replacements are made. The presence of only one service centre makes it very difficult to give timely response as the complaints come throughout India. The complaints are not entertained for a period of 10 -15 days. Hence the customer is not satisfied with the after sales service of Samsung. Marketing Strategy:- Samsung has to improve its after sales service inorder to retain customer and create brand loyalty. The current policy adopted by Samsung is aggressive spending more on advertising and marketing and less on retaining customers that is after sales service. So the corrective strategy to be adopted by Samsung must be to spend more on retaining customer rather than acquiring them as it costs 5 times more to the company to get to a new customer rather than pleasing existing ones. Moreover it costs 16 times to take the new customer to the loyalty stage. They should have regional service centres in North, South, East, West where the complaints can be received and processed quickly. Moreover they should employ and train the technicians to provide quality and timely sales service. Strategy To Expand Market Share:- Currently Samsung ranks second in the Indian consumer durable market whereas LG ranks first. The problem with Samsung is that it is a premium brand and focuses only on urban and semi-urban markets whereas the rural market is neglected to a great extent which is why LG is dominating in that market. Samsung earns a revenue of only 30% from rural areas. India being a country of villages, Samsung should focus more in the rural market in order to increase its market share. Samsung should come out with new economic products like LG had taken out “Sampurna” television range aimed only for the rural market. Hence Samsung could have come up with a conventional range of television models which although are no very technologically advanced but fulfills the basic needs. All these strategies are very practical promising higher gains with less cost pains. Strengths o New product concept to rollout in five months. o Catching the pulse of the consumer, offering good designs & understanding Emotions. o Heavy investments in technology, product design, and human resources. o Focus on innovative products for the high-end market. Weaknesses o o o o o Not proactively coming out with newer models. Lack in product differentiation. Different models at different price points. Focus on mass market instead of niche market. Not very user friendly designs. Opportunities o Distinguish its service from competitors. o Of Samsung Strategies in India  Aggressively hawking flip-tops and clamshells with polyphonic ring tones and color screens.  Nationwide distributor and retail presence in the domestic consumer durables market.  Samsung has been associated with the Lakme India Fashion Week (LIFW) for its mobile phones. The company used the LIFW-2005 as a platform to launch its D-500, World’s Best Mobile Phone in Indian market.  Set up a handset manufacturing facility in India