Transcript
SAMSUNG
• Samsung Electronics Company (Samsung Electronics), a part of the Samsung group, is one of the leading consumer electronics brands in the world.
• Manufactures and markets consumer electronic products such as televisions and home appliances,semiconductors, information technology products and telecommunication infrastructure system.
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• The company operates in Asia, Europe and America. It is headquartered in Seoul, South Korea and employed about 150,000 people as of financial year (FY) 2007.
• The company recorded revenues of approximately $106,388.4 million during FY2007, an increase of 14.8% over FY2006. The operating profit of the company was approximately $9,691.1 million
SAMSUNG-TOP BRAND
• SAMSUNG-World’s leading brand in electronics and digital industry.
• This achievement is closely related to its sponsorship strategies. Samsungassociate its name to the “TOP” plan, which is “The Olympic Partner”
• It is a plan which leads Samsung to be the top brand in the world.
Olympic Games sponsor for the Seoul 1988 Olympic Games.
Nagano 1998 Olympic Winter Games
Sydney 2000 Olympic Games
Salt lake 2002 Olympic Winter Games and Athens 2004 Olympic Games.
This status as a global partner in the wireless telecommunications equipment category in the Torino 2006 Olympic Winter Games and Beijing 2008 Olympic Games.
• The TOP plan helped Samsung increase its brand awareness and enhance marketposition considerably.
• Compared to the results of the survey held before the Sydney Olympic Games, the amount of consumers that became aware that Samsung Electronics was one of the 9 sponsors of the Games approximately tripled.
• Unaided awareness of Samsung’s “Olympic sponsorship” was 6.0%, it placed 2nd after Coca Cola.
• Samsung's sponsorship of the Sydney Olympic Game in 2000 raised awareness of the brand by 5% to 16.2 %.
• The first year after the Sydney 2000Olympic Games, sales of the telecommunications products have increased by 44%.
• Four years later in Athens, its brand awareness was raised to 62%.
• The Olympic Games as the world’s biggest sports event requires enormous and sophisticated communication system.
• Samsung, an official sponsor in Wireless Olympic Works (WOW), to support and guarantee the smooth and efficient running of the event.
• Wireless communication devices to athletes, which played a vital role in contributing to the successful operation of the Games.
• This enhanced its market leader image and revealed its status of a global organization through the prestigious Olympic Games.
• Samsung’s success in US market played an important role in its success in other markets.
• Samsung successfully integrated its product strategy, technology strategy and branding strategy into the TOP plan.
• TOP plan provides Samsung a road to be the top brands in the world.
• Samsung focused on semiconductors, telecommunication devices and home appliances field, which made Samsung a most competitive total solution provider in digital convergence.
• Samsung’s most fun and stylish models ranging from cell phones to flat-panel plasma TVs, digital technology products, monitors, MP-3 players, and printers allowed the company to be mostly independent from main component suppliers.
• With the Olympic Games Samsung gained quick, cost-effective global exposure.
• Its brand awareness increased after each Olympics about 2% and had a huge impact on the quick rise of the brand.
• Brand value increased since 2000 until 2004 about 100%.
Marketing strategies of Samsung in India
• Consumer Durables sector in India was restricted to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas.
• Together, they controlled nearly 90% of the market
• Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt. Ltd (RCSPL), owned by Venugopal Dhoot of the Videocon group
• In spite of being a latecomer to India, Samsung was able to become one of the top consumer electronic companies in India.
• The three-pronged objectives of Samsung are: -
1) Strengthening their channel relationships,
2) Enhancing their product portfolio and
3) Creating the best service infrastructure, to gain more mindshare."
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, “wide product range of Samsung” is one of the main reasons for its success in the Indian market.
• 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
• To sell a consumer durable, a company has to provide unique features i.e. features which other companies are not able to provide.
• 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.
Super X Flow technology• This technology sets up a smart cold air
distribution system to maintain an even temperature throughout the refrigerator
• Samsung's Twin Cooling System
• 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)
WASHING MACHINES
• SUPER DRY• I-CONTROL SYSTEM • HYDROJET WASHING TECHNOLOY• BIO WASH TECHNOLOYG • Clothes washed in Samsung Washing
machines are not only dirt free, they are also 'germ free'. Samsung has developed this unique Bio-Wash Technology to ensure just that.
PRODUCTS WITH LATEST TECHNOLOGY
• Microwave Oven:-
• Television:-
• India’s first wireless home theater (Bluetooth technology):
• Bio Colour Televisions:-
• Silver Nano Technology:-
• DNIe Technology:-
After Sales Service :-
• With a focus on strengthening the satisfaction level, Samsung has launched its 3S — Speed, Smile and Sure — campaign.
• Improving the service infrastructure by setting up customer service plazas in key metro locations.
• improving the skill levels of technicians by setting up a training school
• Promotion:-• 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
• 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).
• Its latest ambassador is John Abraham for its mobile phone and Rahul Dravid for its Television range.
Sales Promotion:
• Phod ke Dekho: 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.
• This offer instantly boosted the sales of the company generating sales of Rs. 2.75 bn
• Phir Se Phod Ke Dekho . • 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.
• 'Samsung Rang De Kismat Offer' for Frost Free Refrigerators which entitled a customer to Lucky Gifts worth Rs 4 Crores
• The Company’s market share went up to 21% in the Frost free refrigerator market after the offer
Sponsorship:-
• Samsung used sponsorship of events like Olympic series to boost its sales
• Samsung & MTV Youth Icon 2005 on June10, 2005. Samsung Mobiles were targeted at the fun loving, lifestyle oriented and trendy youth of today.
• Samsung was even the sponsor of Samsung IIFA Awards held on June 13, 2005
• Distribution Channels:-• To minimize time overruns, Samsung
delivered its products directly from its factories to its Regional Dispatch Centers (RDCs),
• 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.
• 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.
• Shop-in-shop: Samsung is ensuring a presence in most big malls and multiplexes.
• The exclusive showrooms: Samsung India has set up a widespread network of over 80 exclusive showrooms comprising Samsung Digital Zone
• Pricing:
• 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 20% growth from the year 2001.
• Future Prospects:- • 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.
• The presence of only one service centre makes it very difficult to give timely response as the complaints come throughout India.
• Samsung has planned to develop more service centres through out India.
• Marketing Strategy:-
• Samsung has to improve its after sales service in order 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.
• Strategy To Expand Market Share:-
• 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.
• The concept of marketing mix consists of 4p’s (price,place,promotion and product). Out of these, the “promotion” factor has mainly contributed to the success of Samsung.
THANKS
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