Introduction • From the late 1980s, India has now emerged as the world’s second largest mobile market with 262 million users, after China. • A brand that has grown over the past 8yrs and has come to be called the leading economic smart phone maker is Samsung. • Clothing industry to semiconductor-based product market.
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Introduction
• From the late 1980s, India has now emerged as the world’s second largest mobile market with 262 million users, after China.
• A brand that has grown over the past 8yrs and has come to be called the leading economic smart phone maker is Samsung.
• Clothing industry to semiconductor-based product market.
About Samsung- Birth, Entry into Indian market and Growth
• The Korean-based company Samsung was founded on March 1st, 1938 by Byung Chull Lee .
• Samsung’s blue colored logo is representative of stability and reliability
• Samsung’s mission is to achieve "Economic contribution to the nation", "Priority to human resources," and "Pursuit of rationalism.“
• It is a brand that has been formed by the conglomeration of numerous subsidiaries and affiliated businesses
• It had assembly plants and distribution networks across nearly 61 countries and employs about 200,000 people.
• Samsung’s vision is "Leading the Digital Convergence Revolution“
• Samsung Galaxy S, Android-powered Samsung Galaxy Tab, I9000 Galaxy S and S8500 Wave smartphones were Samsung’s key players in the market.
• Strategy: Introducing cutting-edge products to the market ahead of competitors, and charging competitive rates in the premium segment.
SWOT Analysis• Strengths
– Frequency of Product Rollout as compared with Apple and Nokia
– Strong market position
– Exhaustive R&D (over 9% of the company’s global expenditure is spent on R&D)
– Little outsourcing to reduce delivery times as compared with competitors
– Extended product line with tons of features on all the products.( Samsung has over 50 handset models in India, ranging from entry-level to mid-range and high-end Smartphones)
• Weaknesses
– Unable to completely penetrate the lower segment of the market due to the local players being dominant.
– Customers see the image quality to be lower when compared to Sony-one of its major competitors
– Lack of wide range of apps in the Bada os app store (e.g. Samsung wave- it doesn’t boast of popular apps like Opera mobile and Google Maps.)
– Low rural penetration as compared to local players.
• Opportunities
– Potential growth markets in China and India by using smart marketing tactics
– Indian phone market is growing at about 40% giving Samsung scope to push more products into the market
– Growth in the Indian mobile handset market is likely to be driven by the replacement handset market rather than new user additions.( the replacement market is expected to grow from 118 million handsets for the 12-month period ended December 31, 2010, to 359 million handsets for the 12-month period ending December 31, 2014)
– 3G market in India is growing at approximately 5% and most smart phones manufactured by Samsung being 3G enabled have a tremendously potent market laid for them.
Threats
– Company being accused of Anti-competition breaches by Apple. This has had a negative impact on its brand image. Damage control has become important.
– Observable increasing market share of local players in semi urban/rural and dual sim markets
Segment Range of phones in Rupees SeriesLower income 999-5999 Guru, Champ, Star
Middle income 5999-10999 Corby
Upper middle income 10999-16999 Wave
Higher income 16999-34499 Galaxy
Marketing Mix- 4Ps
PRODUCT-
Segmentation and Targeting
• Guru Series:
Positioning – A value for money, sturdy handset
“Dil toh jeb mein rakha hai”
USP – Effective but inexpensive phones.
• Wave series:
Positioning – Attractive sleek android phone.
“Born smart”
USP- Better operating system phones in the range offered by competitors for a good hardware package.
• Corby series:
Positioning- Cool, colourful and affordable touch screen phones for the youth
“What colour is your life, Touch and fun”
USP- Changeable colourful back covers- Customisation
• Galaxy series:
Positioning- Vivid fast slim
“Unleash your fingers”
USP- Cutting edge technology and features
PRICE
SERIES PRICE RANGE
GURU Rs. 990 – Rs.2415
CHAMP Rs.3399- Rs.3990
CORBY Rs.3990- Rs. 5760
STAR Rs.3599-Rs.5599
WAVE Rs.5990- Rs.15990
GALAXY Rs.5794- Rs.39990
PLACE- Physical distribution
• Samsung mobiles privilege partners (SMPP)
• Shop-in-shop (SIS)
• Multi-Brand outlets(MBO)
Promotion
• Brand ambassador
• New launch
• User branded counters
• Kiosks and Interactive Units
Ansoff’s matrix
• Market Penetration strategy– With the aim to increase their market share, Samsung began a campaign of
launching new phones targeted at different segments of the market and positioned specifically. The diversity in their features were limited, however their customization options enabled them to reach to a wide customer base.
– Samsung launched phones at low prices with all basic features desirable in a phone and pushed them to regional stores. This helped the company to gain credibility and the attention of the masses. Customers began to look at Samsung as a mobile phone manufacturer with a knack for providing the exact product that the market needed.
– In Q3-07, global Samsung mobile phones shipped 42.6 million units while in Q2-12, it shipped 153 million units. Observably their product usage has increased manifold.
• Product Development– The need for branded dual-sim phones was sensed in the market. Samsung
responded to this need majestically by rolling out a range of phones, under the name – ‘Star’ series, that facilitated customers to use multiple networks on the same phone.
– The launch of Windows and Android phones by Samsung marked the extension of their phone line. The Android phones are the stars of the brand. Windows phones are gradually gaining popularity with their new user interface.
– Samsung launched a Phone-Tablet hybrid with the Samsung Galaxy Note. The product has created a whole new segment. With pre-launch advertising and promotional offers, Samsung made its product a market sensation.
– With their incessant will to grow, Samsung develops new series of phones every year and launches them keeping in mind their target customers. Samsung has been rewarded well for its precise positioning.
• Market Development– Samsung has reached the semi-urban population of India with the Guru
Series of phones by their sturdy form and user friendliness. Mainly, the low pricing of this series appeals to the customers who look for essentially a simple communication device.
– Samsung only recently, in 2008, began rolling out phones that cater to the premium segment. These phones were priced above Rs.25000 and were designed to meet the needs of the customers who sought elegance and appeal.
• Diversification– Samsung entered the Tablet market in 2010 and established itself when the
market was in its infancy and has been a strong competitor for Apple’s iPad ever since.
– Tizen, a new OS is being developed and adopted by Samsung. They hope to release a new line of phones with their own operating system which has easier user interface and greater speed than Android.
The Future
• There are three areas where possibly it is most likely to concentrate its efforts
– Interface in display
– Mobile navigation
– Technology convergence and memory
Recommendations• Samsung mobile store
• Hybrid phones line should be focused on in both Android and Windows platforms
• Festive and seasonal releases for the benefit of Indian consumers
• Advertising and promotional offers for the phones that cater to the premium segment
• Need to come up with a longer line of phones in the sturdy and simple phone category which appeal to the basic mobile users- Zero complexity models
Thank You
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