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PREPARED FOR
MR. MOHAMMED MASUM IQBAL
Assistant Professor and Head
Department of Business Administration
Daffodil International University
Email: masum@daffodilvarsity.edu.bd
PREPARED BY
MEHRAB A. ISLAM
Bachelors of Business Administration
Daffodil International University
ID: 062-11-1172
Email: mehrab.a.islam@gmail.com
LLetter of Transmittal
April12, 2011
Mr. Mohammed Masum Iqbal
Assistant Professor and Head
Department of Business Administration
Daffodil International University
Re: Submission Of Internship Report on” An Evaluation of Samsung’s mobile Marketing
Strategies in Bangladesh: A study on of Samsung Electronics Ltd.”
Dear Sir,
It is my privilege to submit the internship report on ”An Evaluation of Samsung’s mobile
Marketing Strategies in Bangladesh: A study on of Samsung Electronics Ltd“ to you, which I
have prepared by working four months at Samsung Electronics Ltd. as a product consultant, to
fulfill the requirement of BBA program in the & Department of Business Administration, Daffodil
International University.
I earnestly believe & hope that this internship would help me utilize my reporting skills and also
enrich my marketing research abilities. I have tried my best to look deep within the matters and
make full use of my capabilities in making the study meaningful and worthwhile. Please consider
all mistakes and shortcomings as a result of human limitations.
Now I have placed this report before you for your kind approval. I hope that my report will
satisfy you. For Any kind of queries, I would be available at your convenience.
Thank you
Sincerely yours,
MEHRAB A. ISLAM
ID. 062-11-1172
BBA 14th Batch, Sec- A
Department of Business Administration
Daffodil International University
LStudent Declaration
I hereby declare that this intern report titled “An Evaluation of Samsung’s mobile Marketing
Strategies in Bangladesh: A study on of Samsung Electronics Ltd” in Samsung Electronics
Ltd. is executed as per course requirement for the post graduate program in marketing. It has yet
never been submitted by me or any other person to any other university or institution for degree
or diploma until now. It‘s my own work, and confront to be subjected to any queries or liable for
any miss interpretation of the data presented. Most of the information and data presented has
been collected from primary sources as the market as well as related personnel and the rest was
partially collected through net browsing and further studies of texts, articles and journals. I will
not take any responsibilities for the errors attained for various sources. It will be my humble
request to see them as statistical errors.
Place: Dhaka, Bangladesh
Date: 12 -April -2011
Mehrab A. Islam
Bachelors of Business Administration
Daffodil International University
(2006-2010)
LAcknowledgement
In this project I have made an honest and dedicated attempt to make the research material as
authentic as it could. And I earnestly hope that it provides useful and workable information and
knowledge to any person reading it.
During this small time frame of four months in which the project reached its completion, there
were a few people whom I would like to make a mention of and without whose help the project
would have never seen the light of the day.
At first I express my gratitude to the Department of Business Administration of the faculty of
Business & Economics of Daffodil International University for arranging such an interpretive
practical field related study to overcome the deficiency of experience.
Also I express my sincere gratitude and intentness to my internal guide, my honorable teacher &
Assistant Professor Mr. Mohammed Masum Iqbal, under whose supervision and proper
guidelines, this report has been prepared. During preparation of this report, I got many creative
thoughtful suggestions and advices on a continuing basis.
For cordial behavior and better suggestion in preparing the report thanks also goes to-
I would like to thank the whole Samsung Product Consultant team, who helped me by their
friendly cooperation in providing so much information within the limited time. A special thanks
goes to my colleague SPC Huzzatul Islam Hasib, SPC supervisor Yasser Tamim Haque, SPC
Manager Dewan Samshul Alam.
I have also received guidelines and assistance from various persons and institutions during
preparing the report.
I dedicate this report to the Samsung Product Consultant team who were extremely kind and
who at times went out of the way to help me. Without their co-operation it would have perhaps
not been possible to research a few places, which I did, within the stipulated time frame.
LExecutive Summary
Samsung is a company which is operated more than 130 countries in the world. The company is
very big but it keeps its unit very small because they think that big company losses market
sensitivity and customer expectation level. This company gives priority to customer of the whole
world and its MOTO is innovation to reach customer expectations.
As in any company in order to attain market leadership a full proof marketing strategy is
required to be implemented in current times with visions of a better tomorrow which in any
company view is measured in higher rate of return on investment or as we can say it in more
simpler terms as profit.
In this report an attempt was made to uphold the various marketing strategies of Samsung
mobile in Bangladesh to first understand then analyze and finally recommend on the possible
remedies. In order to do so, a research methodology known as questionnaire survey was
conducted on retailers/ dealers and customers picked by simple random method from 4 districts total
24 areas. Further information and data was collected from primary sources such as officials and practical
experience as far as secondary data they were all collected form net and articles, journals and news.
Samsung currently occupies the market as the challenger with 15% share of the whole market
whereas Nokia has 27%. As we go deep into the analysis we come to find why it is that customer
prefer Nokia instead of Samsung. We also came to know what advantages Samsung has against
Nokia. For starters Nokia has the upper hand in user friendliness, set durability but Samsung
outranks Nokia in greater picture and sound quality, state of the art dual stand by technology,
SOS sms, mobile tracker and so on.
After a depth survey analysis showed that customer retention is very much possible if the
Bangladesh market is treated individually and not as a third world country rather as potential
market to establish Greenfield for labor economy and cost economy. As Samsung is still in its
early years in Bangladesh it is going through some major construction to build its position in the
market as concrete as wall. Recommendations were made based on current situations while
ignoring the fact that many of the strategies are still in the sketch book or but a part of the blue
print of becoming market leaders in Bangladesh.
LTable of Contents
Chapter-1
INTRODUCTION...................................................................................................................1-12
Introduction.....................................................................................................................................1
Origin of the study...........................................................................................................................2
Objectives of the study .............................................................................................................2
Scope of the study....................................................................................................................3
Methodology ...........................................................................................................................4
Research design...............................................................................................................................4
Data source ..............................................................................................................................4
Method of data collection.........................................................................................................4
Sampling method .....................................................................................................................4
Research Area ..........................................................................................................................4
Limitations of study ..................................................................................................................5
Company background ..............................................................................................................6
History..............................................................................................................................................7
Samsung mobile .......................................................................................................................8
Organogram ...........................................................................................................................11
Wings.....................................................................................................................................12
LTable of Contents
Chapter-2
ANALYSIS ..........................................................................................................................13-56
Country snapshot ...................................................................................................................13
Mobile industry in Bangladesh................................................................................................14
Entry Strategy.........................................................................................................................15
Market segment.....................................................................................................................16
Target market.........................................................................................................................19
Market positioning .................................................................................................................20
Operating strategy..................................................................................................................21
Strategic alliances...................................................................................................................23
Marketing strategy ................................................................................................................24
Product...........................................................................................................................................25
Price.......................................................................................................................................28
Distribution channel ......................................................................................................................29
Promotion..............................................................................................................................30
Customer care........................................................................................................................31
SWOT analysis ........................................................................................................................32
Ansoff matrix .................................................................................................................................36
Poter’s five forces...................................................................................................................38
Survey analysis.......................................................................................................................39
Problem..........................................................................................................................................56
LTable of Contents
Chapter-3
CONCLUSION ....................................................................................................................57-60
Recommendations..................................................................................................................57
Conclusion......................................................................................................................................58
Bibliography ...........................................................................................................................59
Appendix........................................................................................................................................60
LIllustrations
INTRODUCTION
Figure-1: Samsung’s new moto .................................................................................................8
Figure-2: Samsung’s vission.......................................................................................................9
Figure-3: Samsung’s Business principle....................................................................................10
Figure-4: Organogram.............................................................................................................11
ANALYSIS
Figure-5: Current market share...............................................................................................15
Table-1: Price .........................................................................................................................28
Figure-6: Distribution channel.................................................................................................29
Figure-7: Ansoff matrix ...........................................................................................................36
Figure-8: Poters five factror ....................................................................................................38
Table-1: Poters five factor analysis..........................................................................................38
Graph-1:Gender based purchase............................................................................................39
Graph-2: Age based purchase .................................................................................................40
Graph-3: Occupation of respondents ......................................................................................41
Graph-4: Preferred brands......................................................................................................42
Graph-5: Frequency of purchase.............................................................................................43
Graph-6: Preferred features....................................................................................................45
Graph-7: Brand loyalty issue ...................................................................................................46
Graph-8:Brand and price.........................................................................................................47
Graph-9: Switching .................................................................................................................47
Graph-10: Brand faith.............................................................................................................47
Graph-11: Brand Satisfaction ..................................................................................................49
Graph-12: Preferred services ..................................................................................................51
Graph-13: Brand perception ...................................................................................................53
Graph-7: Brand preference (Samsung) ....................................................................................54
LGlossary
AMOLED: Active Matrix Organic Light Emitting Diode
ATL: Above the Line
BMPA: Bangladesh Mobile Phone Importers Association
BTL: Below the Line
CIA: Central Intelligence Agency
EDGE: Enhanced Data rates for GSM Evolution
FM: Frequency Modulation
GB: Giga Byte
GHz: Gigahertz
GPRS: General Packet Radio Service
GSM: Global System for Mobile Communication
LCD: Liquid Crystal Display
MP: Mega Pixel
NW: Non-Warranty
OS: Operating System
PI: Parallel Import
POSM: Point of Sales Material
RAM: Random Access Memory
RDS: Re-Distribution Stockiest
SIM: Subscriber Identity Module
SMS: Short Messaging System
SOS: Save Our Soul
SPC: Samsung Product Consultants
TFT: Thin Film Transistor
TXT: Text
USP: Unique Sales Point
WAP: Wireless Application Protocol
CHAPTER-1
introduction
Introduction
The age we are living in is an age of science indeed. Every footstep of our lives is being carried
forward by the modern innovations of science. There is not a single activity of our life which is
not influenced by it and our communication network is of no exception. Communication means
exchange of thoughts, messages, or information, as by speech, signals, writing, or behavior. It is
the process of sharing information. In a simplistic form, information is sent from a sender or
encoder to a receiver or decoder. This requires a symbolic activity, sometimes via a language
and sometimes via electronic media. In the electronic world, communication refers to the
transmission of data and information from one location to another. And nothing does it better
than the mobile phones. In today’s world, mobile phones are probably the most accessible and
user friendly gazettes human beings can carry to communicate to each other. The revolution of
the mobile phone industry has been astonishing for the last two decades. There are several
mobile phone companies who are competing to each other in providing better services to its
consumers. Samsung is one of them.
Samsung is one of the leading mobile phone companies in the world which believes in its value
proposition towards its consumers. Samsung mobile phone is a part of Samsung electronics
which is one of the key segments of Samsung group. Being from a strong background, Samsung
mobile phone industry added a new dimension in each and every mobile phone markets in the
world and Bangladesh is also one of them. As Bangladesh is a developing country, the need for
these modern communication means is always there. Though our country is poor and less
developed still because of some foreign investors and Bangladeshi entrepreneurs this new era of
information technology also has become available in Bangladesh. After a slow start, because of
the prices charged both by the cell phone manufacturers and cell service providers, the growth
rate of the cell phone market in the early years in Bangladesh has been very high. In fact, it was
higher than the countries that are manufacturing it or the developed countries. The consumers of
Bangladesh accept the telecommunication industry heartedly. More over Bangladesh has very
little involvement with the worldwide crisis, has cheap work force, less infrastructural barriers
and being a developing country a lot of scope to start new made Bangladesh a profitable market
and a possible location for Greenfield establishment. Under these considerations mobile
companies started entering Bangladesh first through imports, then some through strategic
alliances and some through green field. Samsung came into the market through import at first
then some strategic alliances and now finally in 2009 with a vision of green field establishment it
established its first R&D at Gulshan.
Objective
Origin of the Study
This report is an individual task work assigned under a supervisor as a part of the BBA program
at Daffodil International University. The report has been done on Samsung Mobile Bangladesh, a
multinational electronics company which has a Hand held Product (HHP) wing under its
Telecommunications division. I have been assigned this report by Mr. Mohammed Masum Iqbal,
who will be my institutional supervisor throughout the completion of the report. The title of the
report is “An Evaluation of Samsung’s mobile Marketing Strategies in Bangladesh: A study on of
Samsung Electronics Ltd”. This report is prepared during the fall 2010 and will be submitted in the
same semester.
Objectives of the Study
o The study has been undertaken with the following objectives:
o To describe current scenario through country snapshot and mobile industry in
Bangladesh.
o To describe the entry strategy, market segment, target market, positioning, operating
strategies and strategic alliances of Samsung Mobile in Bangladesh.
o To illustrate the current scenario of the marketing mix and do a SWOT analysis, Poter’s
five factor analysis, Ansoff matrix of Samsung Mobile.
o To identify problems related to marketing strategies of Samsung Mobile in Bangladesh.
o To make some suggestions to solve the problems.
LScope of the study
This report will give great exposure to the mobile market because it includes product knowledge and
market survey from mobile outlets in Dhaka district as well as other districts and information gathered
from fellow colleagues and superiors.
o While working and visiting the shops I:
o Calculated the display share of the Samsung mobile in shop.
o Collected the data of actual monthly sale of the Samsung mobile in few shop.
o Tried to find out the problems that the outlet owners and RDS were facing while
selling the Samsung mobile.
o Tried to seek out the customer response for Samsung mobile by asking the owner
of the shop, the customers themselves as well as checking with the service center.
o Checked whether presence of POSM materials were adequate or not.
o Scope:
o Bangladesh has a population of 156,050,883 and purchasing power parity (PPP)
$241.1 billion.
o The total number of cellular customer is 65.14 million with a GDP per capita ($) of
690 and 32% mobile penetration making 4.7% real GDP growth.
o Bangladesh has the youngest population amongst the South Asian countries. There
are a lot of people in the different income categories nearly the two third
population is below the age of 35 and nearly 65% is below 25.
o There are 117038162 people which is about 75% of the total population living in
the rural areas and mostly working as wage earners. And only 1o% of the total
population is rich households.
LMethodology
Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any conclusion. The
project was based on the survey plan. The main objective of survey was to collect appropriate
data, which work as a base for drawing conclusion and getting result.
o Research design: Research design specifies methods and procedures for study. In this
study my key concern was to know the demand of different mobile phones, about
competitors, and potential for Samsung procedures to be used for the study among
retailers/dealer and customer. However it was purely personal survey and interviews.
o Data Source: This report was prepared after collecting data from the retailers/ dealers,
customers.
o Primary Data: Primary data were collected by personal surveillance and interview
with retailers/ dealer as well as surveying the customers based on a questionnaire.
o Secondary Data: Information regarding the project was collected from various
studies conducted in last few years and various other records of company.
o Method of Data Collection: Personal surveillance, In-depth interview and survey.
o Sampling Method: a simple random sampling method was used to choose the
respondents.
o Sample Size: a sample of 10 from a population of 50 SPC outlets to collect their share of
data and information about sales, market, and customer.
o Research tools: a Questionnaire survey was used as a research tool.
o Research area: a total 10 areas from 4 districts were covered in this research.
Comprising of Dhaka Dist. : (Panthopoth, Science lab, Uttara, Shadarghat, Mirpur,
Shantinagra, Gulshan), Comilla dist. : (Kandirpar), Narayangonj Dist. :(Chashara) and
Chittagong Dist. :( Nasirabad).
Llimitation of Study
Although I tried my best in preparation of this project, but this study is prone to some limitation.
The market is a vast thing to properly explain and understand any marketing strategies success
or failure is somewhat erroneous. Some limitations acquainted with this report are as depicted
beneath:
o Time limitation: restriction of time appeared due to the fact that I had collect data
within my working hours and it was not easy get in touch with necessary personnel as
per my convenience and moreover, I had a deadline of submission.
o Limitation of data: Some trade secrets and confidential data were omitted as to
protect the privacy of the company and its strategic plans.
o Real situation: it is hard to assure that all the information and data provided by the
customers, retailers, distributors and my fellow colleagues as well as appointed
personnel were unbiased and their perception was not influenced by any other
relating incident, event or factor.
o Gap of communication: Many customer and dealers/retailers showed less interest in
providing information and haven‘t cooperated.
LCompany Background
The Samsung group is Conglomerate Corporation headquartered in Samsung Town, Seoul South
Korea. It is the world’s largest conglomerate by revenue with annual revenue of $117.4 billion in
2009 and is South Korea’s largest chaebol. The meaning of the Korean word Samsung means
‘Tri-star’ or ‘three stars’. The Samsung Group is compressed of a numerous international
affiliated businesses, most of them united under the Samsung brand including Samsung
electronics, the world’s largest electronics company. Samsung Heavy Industries, the world’s
second largest shipbuilder & Samsung C&T, a major global construction company. Samsung has
been the world’s most popular consumer electronics brand since 2005 and is the best known
South Korean brand in the world. Samsung Group accounts for more than 20% of South Korea’s
total exports and is the leader of domestic industries, such as financial, chemical, retail and
entertainment industries.
All this was possible for Samsung to diversify into many areas as Lee sought to establish
Samsung as an industry leader in a wide range of enterprises, moving into businesses such as
insurance, securities, and retail. Lee placed great importance on industrialization, and focused
his economic development strategy on a handful of large domestic conglomerates, protecting
them from competition and assisting them financially. He later banned several foreign companies
from selling consumer electronics in South Korea in order to protect Samsung from foreign
competition.
LHistory
in 1938,Lee Byung-chull (1910–1987) of the large landowning family in the Uiryeong county came
to the nearby Daegu city and founded Samsung Sanghoe (삼성상회), a small trading company
with forty employees located in Su-dong (now Ingyo-dong). It dealt in groceries produced in and
around the city and produced noodles itself. The company prospered and Lee moved its head
office to Seoul in 1947. When the Korean War broke out, however, he was forced to leave Seoul
and started a sugar refinery in Busanas a name of Cheil Jedang. After the war, in 1954, Lee
founded Cheil Mojikand built the plant in Chimsan-dong, Daegu. It was the largest woolen mill
ever in the country and the company took on an aspect of a major company.
In the late 1960s, Samsung Group began the electronics industry. It formed several electronics-
related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co.,
Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and made the
facility in Suwon. Its first product was a black-and-white television set. In 1980, the company
acquired Hanguk Jeonja Tongsin in Gumi, and started to build telecommunication devices. Its
early products were switchboards. The facility was developed into the telephone and fax
manufacturing systems and became the center of Samsung's mobile phone manufacturing. They
have produced over 800 million mobile phones to date. The company grouped them together
under Samsung Electronics Co., Ltd. in the 1980s.
In the late 1980s and early 1990s, Samsung Electronics invested heavily in research and
development, investments that were pivotal in pushing the company to the forefront of the
global electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a
plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and another facility in
Austin in 1996. In total, Samsung has invested about $5.6 billion in the Austin location – by far
the largest foreign investment in Texas and one of the largest single foreign investments in the
United States.
Samsung started to rise as an international corporation in the 1990s. Samsung's construction
branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101
in Taiwan and the Burj Khalifa in United Arab Emirates. In 1993, Lee Kun-hee sold off ten of
Samsung Group's subsidiaries, downsized the company, and merged other operations to
concentrate on three industries: electronics, engineering, and chemicals. In 1996, the Samsung
Group reacquired the Sung kyunkwan University foundation.
LSamusng Mobile
Samsung Electronics Co. Ltd is a global leader in semiconductors, telecommunications, digital
media and digital convergence technologies, with consolidated sales of US $96 billion in 2008.
Employing approximately 164,600 people in 179 locations across 61 countries, the company
consists of two business units - Digital Media & Communications, and Device Solutions.
Recognized as one of the fastest growing global brands, Samsung Electronics is a leading
provider of digital televisions, memory chips, mobile phones and TFT LCDs.
Samsung Telecommunications is one of five business units within Samsung Electronics,
belonging to the Samsung Group, and consists of the Mobile Communications Division,
Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution
Centre and Telecommunication R&D Centre. The Hand Held Product division basically looks after
the Samsung Mobile. All Samsung mobile phones can divided into 6 major categories: Style,
Infotainment, Multimedia, Connected, Essential and Business. Headquarters is located in Suwon,
South Korea. In 2007 Samsung Telecommunication Business reported over 40% growth and
became the second largest mobile device manufacturer in the world. Its market share was 14%
in Q4 2007, growing up from 11.3% in Q4 2006. In Q1 2008 Samsung strengthened its second
position on the market and achieved 15.6% world handset market share.
o Vision: As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire
the World, Create the Future. “This new vision reflects Samsung Electronics’ commitment to
inspiring its communities by leveraging Samsung's three key strengths: "New Technology,"
"Innovative Products," and "Creative Solutions" - and to promoting new value for Samsung's
core networks -- Industry, Partners, and Employees. Through these efforts, Samsung hopes to
contribute to a better world and a richer experience for all.
Figure-1: Samsung’s new motto
Figure-2: Samsung’s vision
LSamusng Mobile
As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in
revenue and becoming one of the world’s top five brands by 2020. To this end, Samsung has
also established three strategic approaches in its management: "Creativity," "Partnership,"
and "Talent."
Samsung is excited about the future. As it builds on its previous accomplishments, with looking
forward to explore new territories, including health, medicine, and biotechnology. Samsung is
committed to being a creative leader in new markets and becoming a truly No. 1 business going
forward.
o Philosophy: Samsung follows a simple business philosophy: to devote its talent and
technology to creating superior products and services that contribute to a better global
society. Every day, its people bring this philosophy to life. Its leaders search for the brightest
talent from around the world, and give them the resources they need to be the best at what
they do. The result is that all of the products—from memory chips that help businesses store
vital knowledge to mobile phones that connect people across continents— have the power to
enrich lives. And that’s what making a better global society all is about.
o Values: Samsung believes that living by strong values is the key to good business. At
Samsung, a rigorous code of conduct and these core values are at the heart of every decision
we make.
People: Quite simply, a company is its people. Samsung is dedicated to give its
people a wealth of opportunities to reach their full potential.
Excellence: Everything done Samsung is driven by an unyielding passion for
excellence—and an unfaltering commitment to develop the best products and
services on the market.
LSamusng Mobile
Change: In today’s fast-paced global economy, change is constant and innovation
is critical to a company’s survival. As Samsung has done for 70 years, setting sights
on the future, anticipating market needs and demands to steer towards long-term
success.
Integrity: Operating in an ethical way is the foundation of Samsung’s business.
Everything done guided by a moral compass that ensures fairness, respect for all
stakeholders and complete transparency.
Co-prosperity: A business cannot be successful unless it creates prosperity and
opportunity for others. Samsung is dedicated to being a socially and
environmentally responsible corporate citizen in every community where it
operates around the globe
Samsung is comprised of companies that are setting new standards in a wide range of
businesses, from consumer electronics to petrochemicals, from advertising to life insurance.
They share a commitment to creating innovative, high quality products that are relied on every
day by millions of people and businesses around the world.
Figure-3: Samsung’s Business Principles
LOrganogram
Founded in 1969 in Suwon, Gyeonggi-do, Korea, Samsung Electronics Co., Ltd. manufactures and
sells a wide variety of electronic products, communication devices, and semiconductors. The
company has been realigned into a new organizational structure with eight divisions reporting to
headquarters’ CEO, from the previous framework of two business units and ten divisions. The
overhaul paves the way for enhancing global competitiveness, efficiency and synergy. The
restructuring also led to the formation of a Middle East/Africa Regional Headquarters, which
took the total number of regional headquarters to ten. In line with global business practices,
Samsung Electronics has a Chief Operating Officer (COO) and Chief Financial Officer (CFO)
directly reporting to the CEO, which facilitates systematic and efficient management of our vast
organization.
Figure-4: Organogram
Samsung believes that a big company has a possible risk of losing market sensitivity and
customer expectation level. So it operates in a very small unit. As here we can see with three
personnel on top the rest is divided into departments or division not like marketing, finance, and
accounting seen in other companies but in regard manufacturing divisions. There are about eight
of them each of them working individually and sharing innovations and new technologies with
each other in order to keep a follow of fresh idea generation on a continuous process.
LSamsungs Wing
Samsung Electro-Mechanics Samsung Networks
Samsung SDI Samsung Techwin
Samsung Corning Precision Glass Samsung Mobile Display
Samsung SDS Samsung Digital Imaging
Samsung Heavy Industries
Samsung Total Petrochemicals
Samsung Petrochemicals
Samsung Fine Chemicals
Samsung BP Chemicals
Samsung Life Insurance Samsung Securities
Samsung Fire & Marine Insurance Samsung Investment Trust Management
Samsung Card Samsung Venture Investment
Samsung Venture Investment Samsung C&T Corporation
Samsung Lions Samsung Engineering
The Ho-Am Foundation Cheil Industries
Samsung Foundation of Culture Samsung Everland
Samsung Welfare Foundation The Shilla Hotels & Resorts
S1 Corporation Samsung Life Public Welfare Foundation
Cheil Worldwide Samsung Medical Center
Samsung Human Resources Development Center Samsung Economics Research Institute
CHAPTER-2
anaLYSIS
LCountry Snapshot
Bangladesh is a developing semitropical and monsoonal type of country with a hot and rainy summer and
a dry winter. The total land area is about 144,000 sq. km where 133,910 sq. km is covered by land and
10,090 sq. km is covered by water. It has 4,246 km of land boundaries where 4,053 km is with India and
193 km with Burma. Bangladesh has a coast line of 580 km
o Population: Total population- 156,050,883
Growth rate- 1.55%
Age structure-
0-14years: 34.6% (male 27,065,625/female 26,913,961)
15-64years:61.4% (male 45,222,182/female 50,537,052)
65years and over:4% (male 3,057,255/female 3,254,808)
Median age - 22.9 years (male: 22.4 years/female: 23.4 year)
o Communication systems: Telephone user- 1.522 million
Internet users - 556,000
Mobile/cellular user- 50.4 million
o Economic statistics and activity: GDP- $336.1 billion
Purchasing power parity- $241.1 billion
Real growth rate of GDP- 5.6%
GDP per capita- $1,500
Sector based GDP Composition:
Agriculture- 18.6%
Industry- 28.6%
Service sectors- 52.8%
o Economical Strength for Doing Business: Ease of doing business- 107
Starting a business- 92
Dealing with license- 116
Paying Taxes- 81
Closing a business- 102
Inflation rate - 5.4% (est.)
o Investment Incentives:
o Tax exemption – 5 to 7 years depending on the area of investment
o Duty – in case of mobile phones it is 12%.
o Tax law – double taxation could be avoided (bilateral agreement).
O Remittance – whole profit and dividend is transferable to investor’s native land.
o Ownership – 100% self-owning is allowed.
o Labor force and working conditions:
Total size- 69.4 mill
Industry- 45%
Services- 30%
Agriculture- 25%
Unemployment rate- 5.1%
Industrial product growth rate- 5.9% est.
LMobile Industry in Bangladesh
The mobile indusrtry in Bangladesh is on da verge of a massive boom as statstistics showed that
the recent world wide recession had no such effect onbanglacdesh as it has not much FDIexisting
in its boundaries wehich makes it a very profiatable ground to start an establishment.
Siemens was the first company to hit the ground in Bangladesh.But Siemens did not last long.
Soon Nokia as well as other brands like Sony Ericsson, LG, Motorola and Samsung came to play.
Although Siemens did make a come back as BenQ-Siemens but cud not do much good. At first
most of the phones were imported as lugguage. No authentic dealer or importer was present for
nany of the phones. Except for Siemens alkthough Siemens phones had a lot of problems still
people is to prefer it due to its Superb after sales service. Then later on Came Nokia which
provided one of the most durable and user friendly sets. In competition wid Nokia stood Sony
Ericsson which had the superiority in Camera and Music Features But was a bit expensive then
nokia. There was also existance of Motorola and Samsung which was known for its range of
folding stylish phones.
Later on in the late 20’s Nokia and other brands stated opening their operations here through
dealerships. Currently Nokia was the leading brands inBangl;adesh until the sudden emerge of
chineese phones which wa primarily a niche took over and captured a lot of its market as they
offer the cheapest phones with full multimedia features. Recently Samsung also emtered the
scene with its own establishment and sole propiertorship where Samsung will be responsible for
making all the marketing strategies and the distribution channels and dealers re to impliment
and follow them through with proper communication.
Figure-5: Current Market share
Entry Strategy
Many companies successfully operate in a niche market without ever expanding into new
markets. Some businesses achieve increased sales, brand awareness and business stability by
entering a new market. Developing a market entry strategy involves a thorough analysis of
potential competitors and possible customers. Some of the relevant factors that are important in
deciding the viability of entry into a particular market include Trade barriers, localized
knowledge, price localization, Competition, and export subsidies. Some of the most common
market entry strategies are: directly exporting products, indirect exporting using a middleman,
and producing products in the target market. But also:
o Licensing
o Greenfield Strategy
o Franchising
o Alliances
Samsung Mobile entered the Bangladesh market in the fall of 2009. It entered Bangladesh as a
sole propertiership with vissions to make greenfield establishments here. So far they have only
established an office or SBRC ( Samsung Bangladesh research Center) and a Its 1st Brand shop in
Bangladesh.
With the entry of Samusng Mobiles research team in Bangladesh they plan on to bedcome the
mobile market leaders of Bangladsh witin 2015. Currently Samsung Mobile has designated
certain third partioes to perform certain marketing operations such as distrtibution a, promotion
and after sales service. For now saamsung is more concentrated on market study to fully
understand the trend nad consumer demand as the emerge of chineese amrket has shown some
radical changes in the buying behavior of overall mobile users in Bangladesh. This market
studies incude coinducting various surveys, awareness campaigns,market intelligence gathering,
market promotion and communication etc.
LMarket Segment
o Market Segment: Samsung is a world leader of technology in mobile communications, driving
the growth and sustainability of the broader mobility industry. Samsung works with the tag
beyond future providing the world with high tech and innovative products like mobile phones,
devices and solutions for imaging, games, media and businesses.
The market can be divided into segments by using four "segmentation basis": Psychographic,
behaviorist, geographic, and demographic basis. The basic criteria for segmenting a market is
are customer needs. To find the needs of the customers in the market it is important to
undergo market research. Psychographic and behaviorist bases are used to determine
preferences and demand for a product and advertising content, while geographic and
demographic criteria are used to determine product design and regional focus.
Samsung arguably the biggest player in the world has divided the market into three target
groups which are then divide into nine segments:
o Tech Enthusiast: early adopters are tech wiz people who are enthusiastic about the
latest technology and apps to hit the ground and become trendsetters to have a beyond
future experience.
o Pioneers: the people to whom every new thing is a must have experience where
money is not a fact. They are receptive to advance models and adapt to any emerging
technology.
o Social contact: the upwardly mobile, socially conscious segment that uses a mobile to
stay in touch. Today's youth and affluent housewives constitute two major chunks of
the segment.
o Media tribe: this segment strives about the media features and wants the sharpest
and finest camera, music and display quality above anything as well as internet
connectivity to get in touch with the latest news about what’s happening.
o Business Professional: a segment comprising of CEOs, high-profile officials,
industrialists and other high "net worth" individuals who use a mobile phone to
increase productivity at work. Aged between 25 to 45 years, this segment looks for
data transmission and other business-related features to give them maximum
flexibility to their tight scheduled work and make it as simpler and convenient as
possible.
Market Segment
o Value Maximizers: this segment brings forth full multimedia phones perfect for the
urban people with camera, internet connectivity, FM radio and music in a very
affordable price to get maximum value in a limited cost.
o Design Essentials: this segment includes people for whom its all about style. They
want a basic phone but it has to be stylish. Mostly female teens fall into this segment.
o Simplicity Seekers: the people of this segment like to keep it simple and use phones
as a basic mean of communication.
o Music Essentials: This segment contains cell phones for music lovers. These mobile
phones are specifically optimized for entertainment, music and games in a minimal
cost range.
Currently in Bangladesh mostly four among the nine segments are selected. The selected
segments are tech enthusiasts, Social contacts, Value maximizers and Music essentials.
o Consumer Markets Segments
o Geographic: World region – Asia, China
Country – Bangladesh
Cities – Reach out maximum places
o Demographic: Age – All age group
Gender – Male, Female
Income – All income groups
Occupation – Every sector
Religion – Irrespective of religion
o Psychographic: Social class – All class of people
Lifestyles – Urban, rural, and even far villages
o Behavioral: Benefits – Technology
Loyalty status – Moderate
Market Segment
o Price Segments
o Range 1: (1000tk – 5000tk) Entry level
o The Samsung phones falling in this range are mostly used by the manual Workers
because they cannot afford a high price mobile phone, some students also use cell
phone from this range as they have the fear of snatch of mobile phone.
o Mobile phones falling in this category are simple phones who only meet the
purpose of basic messaging and calling features and some have additional features
such as VGA camera, Bluetooth, 2GB memory card slot as well as FM radio
o Range2: (5100tk – 15000tk) middle level
o The main users of this segment are middle managers, students, housewives
because they have limited and average salary and cannot afford to spend it on
unnecessary expenses.
o The core feature of this segment is Audio Video Player, FM Radio, Camera, EDGE,
GPRS and Expandable Memory, MP camera, 3G, Wi-Fi, SNS and push email.
o Range 3: (15000 above) High-end users
o The cell phones falling in this range are mostly used and popular among the tech-
savvy young and energetic business men fall into this category of age 30 –40.
o These cells have a stylish look and have all the essential features such as well as
advanced functions such as Audio Video Player, FM Radio, Bluetooth, High
resolution Camera, EDGE, GPRS, Expandable Memory, 8Gb and above memory
card slot, Amoled touch screens, HSDPA, Wi-Fi, think free office etc.
LTarget Market
o Target Market: Through the consistent releasing of new technolo9gically enhanced units of
the mobile phones with different services and difference feature, the company has its target
market that expected to support the kind of products and services. The company is very
optimistic that their new line of products will going to support by the target market as the
sports enthusiast persons for the sports services that the phone is offering. To the specified
fashion fanatic for the latest trend and for the updated fashion design suitable for every their
daily lives. The music driven consumers segment is also the company top target market due
to the music service that the new products have offering. Including in the said music services
are the radio, the mp3, the Champ, and the music player. In market targeting we have two
jobs:
During market targeting Nokia consider two types targeting job
o Evaluation the market segments
o Selecting Target market segment
As Samsung has newly started its operations here and still performing market studies it has not
stated any fixed target market for our country. But according to existing situation three target
group could be outlined-
o Innovative: targeting the tech enthusiasts and trendsetters to give them beyond future
experience with the latest techs and apps in the technology adoption cycle. This category
brings the premium series phones of Samsung and targets the high income group.
o Sensible: This target market comprises of the average income middle class people
consisting of students, service holders and housewife’s who cannot afford to make
expenses unless necessary.
o Essentials: targeting the low income group people mostly workers with a vision to
provide them with basic mobile functions and some additional features at lowest cost
possible.
In Bangladesh according to the product line it is found the teens age ranging from 13 to 20 are
target market of Samsung Mobile.
LMarket Positioning
o Market positioning :Currently Samsung has penetrated the market as a challenger to Nokia
but the main target is to gain market leadership with in 2013. In many cases, market
positioning is represented by the tag line, "Beyond Future", giving consumers a sense of trust
and consideration by the company, as though to say that Samsung understand what they
want in life, and how it can help. And it knows that technology is really only an enabler so
that you-the customer-can enjoy a better life. Samsung thus uses a combination of aspiration,
benefit-based, emotional features, and competition-driven positioning strategies. It owns the
"human" dimension of mobile communications, leaving its competitors wondering what to
own (or how to position themselves), having taken the best position for itself.
o Brand Personality: Samsung has detailed many personality characteristics for its brand,
but employees do not have to remember every characteristic. They do, however, have to
remember the overall impression of the list of attributes, as you would when thinking
about someone you have met. As the focus is on customer relationships, the Samsung
personality is like a high-tech gadget in your pocket and the human dimension created
by the brand personality carries over into the positioning strategy for the brand.
o Positioning – Product: The product of the Samsung goes to the high end quality controls to
give its client state of the art technology and quality worth of a product. Including in the top-
end devices of the company is the new release number of unit which is considered safe and
has the quality of the materials as well as the design and together its features. Mobile phones
accessories as the headset, the memory card and its features as the camera and video were
some of the clients want in their mobile phones. To be able to keep abreast to the faster
world, it is much important to determine the updated phones so that the company will also
be up to date and cannot overcome by its competitors and give its consumers a truly beyond
future experience.
o Product Design: Samsung always thrives for innovation in reference to product design
Samsung has a theory it calls touch feel experience. Every design is based on human emotions
which are converted into shape of agronomics to give the user a more soothing feel for the
actual experience. Emperio Armany does a lot of designing of the outlook but the real concept
comes from the innovation teams working in the VIP center.
Operation Strategy
Companies and organizations making products and delivering, be it for profit or not for profit
rely on a handful of processes to get their products manufactured properly and delivered on
time. Each of the process acts as an operation for the company. To the company this is essential.
That is why managers find operations management more appealing. Every company has an
ultimate goal of delivering goods to a client, but the processes of designing, manufacturing,
analyzing and then finally being delivered are the driving forces for any company's success. All
the chunks of work processes collectively define a bigger purpose, the operations for that
particular organization. The more effective these processes or operations would be, the more
productive and profitable the business would be. Operations strategy is the tool that helps to
define the methods of producing goods or a service offered to the customer
Samsung Bangladesh R&D Center Ltd (SBRC) is the eighteenth and newest Research &
Development center of Samsung Electronics Co. Ltd., housed in Gulshan, Dhaka. Its operation
started in 2010 and officially inaugurated in February 2011. It is also the first IT R&D hub of a
multinational company in Bangladesh.
SBRC incepted with more than a hundred intellects in early 2011 with a plan to expand its
workforce into a thousand engineers. This center develops mobile devices for Asia, Africa and
Australia. It also focuses on advanced technology and conducts other IT researches. According to
its management; SBRC is going to use the immense potential of Bangladeshi IT industry and
software engineers. This center will have a synergy effect as the company will train the engineers
and market its products in the region
Divisions / Groups
o Advanced R&D Group
o Mobile Development Group
o Software Engineering Group
So far SBRC is the only office and sole proprietorship in Bangladesh for Samsung’s HHP. The rest
of the operations are carried out through alliances made through strategic negotiations.
LStrategic Alliances
At first Samsung use to sell its mobiles though export to our country then afterwards it came up with
a new idea of making strategic alliances with some of the leading companies to ensure its sales.
o Logistics Alliance: Samsung made some strategic alliances for logistic purpose dividing them
into two categories, Distribution channel and trade marketing.
o Distribution Channel: The distribution Channels are responsible for ensuring product
flow through their RDS (retail distributor stockiest) and convey the offers that are
announced in time By Samsung as well as the distribution channel itself. Currently there
are to distributors-
o Electra International Ltd
o Transcom Electronics Ltd
o Trade Marketing: trade marketing deals with providing POSM ( point of Sales Materials)
to the outlets having a signage or somehow related to the sales of Samsung Products.
POSM’s include posters, danglers, broacher’s etc. trade marketing agency also has the
responsibility of ensuring proper branding and capturing more outlets and convert or
encourage them in to selling Samsung products.
o Promotional Alliances: To take care of its promotional activities three more groups have been
assigned ne for ATL Campaigns meaning all advertising activities,
o ATL campaigns: the campaigns under BTL or commonly known as promotion and
advertisement. Adcom Ltd. Mostly does these works
o BTL campaigns: for the ATL campaigns Windmill Advertising Ltd was assigned and a
project called SPC( Samsung Product Consultants )were recruited to generate sales create
brand awareness, customer conversion, upholding features, customer service, conducting
surveys, providing market intelligence about corresponding brands and all the
necessaries.
o Event Management: Another group Expressions Ltd. is assigned to organize the various
events such as product launching, Inauguration ceremony, providing Brand promoters
etc.
o Service Alliances: After sales service is one of the crucial parts of any company to serve the mass
volume of customer as soon as possible with the best service quality is no doubt quiet hard.
o Customer Service: all the customer care and after sales services are provided by
Discovery Communications Ltd. They receive and service sets in terms of hardware,
software and technical support
Target
Market
Prdoduct
Place
Price
Promotion
Marketing Strategy
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Time horizons
covered by the marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment increases.
Samsung is always looking for new ways to understand the needs that will satisfy its customers.
Part of the marketing strategy of the company is giving solutions to its consumers on its demand
regarding the mobile services they need not just in home but also in their business and to the
other aspect of their lives.
In order to accelerate the purchasing cycle as well as to divert the versatility of the mobile
phones the company recently launched the Galaxy series had released it new innovation in the
mobile phones industry. With the mission of becoming the ultimate manufacturer of converged
mobile devices offering rich applications and innovative technology that your make work
experience easier, smoother and simpler whether it’s in your daily day life or in the business
services. The company doesn’t stop there and it has still the planned of moving forward and meet
the expectations of not just the company but also its consumers
o Marketing mix: The marketing mix refers to the combination of elements within a
company’s marketing strategy; these are designed to give the customer what they want and
in the long term are designed to maximize profits.
The marketing mix is based around the idea of the 4 P's:
Product Place
Price Promotion
LProduct
Samsung mobile provides high-tech phones to all consumers. These phones or products can be
categorized under certain criteria such as for, price range, net, unique features as well as series.
As product is the 1st mix element so here the existing products are being upheld. According to
unique feature here products have been divided as entry level, FM touch, QWERY, dual SIM, slide,
folding, 3G.
o Guru Series: The entry level phones are known as the GURU series. The GURU series denotes
the term as master. The main concept of this theme is to bring low range phones each
mastering at some unique features. The features are torch, FM, music, camera. But all these
are accumulated in a basic phone with low cost so it is unlikely to expect high end experience
but all the elements are put together to give a splendid experience for a reasonable price.
There are 6 phones under these categories in the product line but only the running products
are disclosed here.
E-1081T (Keystone T (F/C)): E-1081 is the entry level phone with just
basic features as calling n text messaging along with Samsung’s minimal
USP’s. This phone belongs to a series named GURU which is basically an
entry level or low range series. The unique sales point of this product is that
it has a torch. And thus the tag line-‘Slim and Sleek in Your Hand’.
E-1175T (Kai T-FM): E-1175T is also another GURU series phones which
has a unique sales point like torch and FM. It is a very stylish basic phone in
black with a very satisfying talk time. It has been recorded to go on for the
days in any average usage condition. The tag line for this phone was –‘Play
Non Stop. FM Music’.
E-2120i Zinnia VE (Zinnia VE): E-2120i is basic phone with the a memory
card option enabling to enjoy music not only from FM but from a mp3
tracks that are stored in your memory card so you don’t have to listen to
unwanted tracks on the radio and can enjoy the tracks that you want to
hear. The memory card slot is expandable up to 2GB. Other than that also
have wireless FM, torch and also Bluetooth.
o Mid-Range: The mid-range products fall under a wide variety of series, Metro, Corby, Touch
and Dual Series. Metro series is concept versioned at providing all the necessary daily
applications embedded in a single phone that falls in to the buying capability of middle class
people. Corby on the other hand is South Korean word which means friendship. The basic
concept of Corby was to stay in touch with your friends through messages or SNS. There are
some phones belonging to the mid range but not accumulated with any series.
LProduct
o Metro Series: These multimedia marvels have the perfect mix of entertainment, functionality
and style for a new novel and trendy mobile experience. Slim and tough design, bigger screen,
full multimedia and their dazzling metallic finish, that’s the Metro series, perfect for urban
living.
S-3310(Metro/Avila VE): S-3310 is the most effective phone in Metro series. It is
stylish, slim, cheap, got 2MP camera, expandable memory up to 8GB, net
accessibility and it comes in two colors- warm silver with balk and another with
red. It is packed all the necessaries required within a metro life for the mediocre
people.
C-3200 (Metro Power/ Madras): C-3200 or even known as Monte bar is a very
great stylish phone with comfortable grip. It fits so perfectly in to your grip giving
a touch and feel experience. This phone is equipped with 2MP camera, expandable
memory up to 8 GB, net accessibility, mobile tracker, SOS sms and unique music
quality.
S-3600 (Clifford VE): S-3600 is folding phone with 1.3Mp camera. It is a very
strong and stylish set belonging to the Metro series. It is a complete multimedia
phone equipped with all that you need. It has an expandable memory of 4GB. The
tag line for this phone was “connected with style”.
S-5200 (Pine): A stylish red and black sliding phone released to charm the Metro
life of the people. It is equipped with 3.2MP camera with flash, mp3 player,
expandable memory up to 8GB, internet connectivity and all that is desired. In line
it could be said that-‘Impressive Style, Impressive Features”.
o Corby Series: Sporting youth designs with bright colors, Samsung Corby Messaging Series
empowers user with unique messaging features to connect with friends, stay updated and be
in constant touch. While the QWERTY keypad enables fast texting, Chat style SMS brings the
fun of chatting to messaging. Plus quick access to Social Networking Sites ensures that the
excitement never ends.
S-3653 (Corby colors): S-3653 or commonly known as Corby is a touch phone
developed for SNS connectivity to stay in touch with all your friends. One other
unique thing about this phone is that it has 5 attachable back covers so you could
match it to your tone. This phone is packed with 2MP camera which has smile shot
enabling to take pictures only when the person smiles. The other features are
almost same.
B-5310 (Corby Pro/Brooklyn): A full 3G side sliding QWERTY keypad phone
equipped with Wi-Fi, 3MP camera, 16GBexpandable memory, full multimedia
functions. It is a hybrid technology of touch and button. This is the best messaging
phone of Corby series and hence the tag line-“I Touch, I Text, I Do it All’.
LProduct
o Dual Series: a mobile lifestyle that offers two times the power to manage work and life perfectly.
With the dynamic Dual Standby Technology, users have the amazing convenience of 2 SIM cards
(that are always on) in on phone- in order to switch between the best of both worlds in a snap.
B-5722 (Rushmore): B5722 is one of Samsung’s unique touch phones which
supports 2SIM cards at the same time and provides you dual stand by feature which
means you can instantly switch from line 1 to line 2 within seconds. Other than this
phone is packed with 3.2 MP camera and all the other multimedia functions as well as
net connectivity.
o Touch Series: the touch provides the greatest and most natural access to mobile. Through
intuitive movements, simplified menus, and easy controls users are able to access a whole range
of incredible applications from social networking site connections to instant messaging, web
surfing, cameras, music play and FM radio.
C-3303 (Champ): Champ is a low range touch phone focusing on music. It has dual
loud speaker, 2MP camera, a stylus, expandable memory up to 8GB, accessibility to
SNS and mail through net, applicable modem facility. It is compact with all most
everything and thus the punch-‘Be a champion with Samsung Champ’
S-5620 (Monte): S5620 is a very stylish phone with 3G and Wi-Fi, GPS support, 3.2MP
camera, Google sync, 3.5 mm Ear jack and an expandable memory of 16GB. It also has
multi touch zoomingall together its –‘The Perfect Fit to Your Stylish and Connected
Life’.
o Premium Series: the Samsung Premium Touch Series. These one-of-a-kind mobiles offer world
class features for perfect balance of- smart working and fascinating entertainment. A futuristic
phone to make a world winning statement by expressing ones distinguished lifestyle
S-3600 (Wave): A very classy phone with the unique Super Amoled touch screen, 1
GB processor, 5MP camera with flash, excellent multimedia features, GPS,3G, Wi-Fi
and internet connectivity. It is one of Samsung’s prides with an OS (Operating System)
Bada which happens to be one of Samsung’s own developments.
I-9000 (Galaxy S): I-9000 is a premium phone with 1 GB processor, 5 MP camera,
Google synchronization, layer, txt n go, e-book, GPs, 3G, Wi-Fi, think-free office, Super
Amoled display and an OS of Android 2.1(éclair). It is Samsung’s one of the finest.
P-1000 (Galaxy TAB): P-1000 is the latest buzz world wild including Bangladesh. It is
a hybrid phone cum pc. A tablet pc and smart phone put together so that you can do all
your office work, pc work and not to mention all the calling and receiving. It has a 5MP
camera with 3G, Wi-Fi, net connectivity, think-free office and all that is required your
office cubicle.
LPrice
The pricing of Samsung mobile phones are made depending on market movement of all the
corresponding brands as well as organizational goals and certain marketing strategies. But if a
categorization is to be made of the products by price then it could be divided into three groups
adopted from a competitive pricing and penetration pricing strategy- entry level, Mid-level, high end.
Seg1 Model Project Name
MRP
(BDT)
Entry
BGT-E1081T Keystone T(F/C) 1,870
BGT-E1175T Kai T-FM 2,100
BGT-E1160i Dholak VE 2,600
BGT-E2120i Zinnia VE 3,500
BGT-E2130 Tabla 3,950
BGT-E2152 Pampas 4,890
BGT-C3010S Stratus B 4,990
BGT-E2370 Mega cell 5,200
Mid
BGT-C3200 Madras 5,590
BGT-E2550 Pine 5,690
BGT-S3310i Avila VE 5,990
BGT-C3212i Sling VE 6,490
BGT-C3300 Champ 6,490
BGT-S3600I Clifford VE 6,790
BGT-B3313 Nox 7,890
BGT-C3510 Genoa 8,990
BGT-S5200 Scotney 9,700
BGT-S3653S Corby colours 9,990
High-
end
BGT-S5350 Duras 10,500
BGT-B3410 Delphi 10,990
BGT-B5722 Rushmore 13,490
BGT-S5620 Monte 14,990
BGT-B5310 Brooklyn 17,000
BGT-S8500 Wave (2GB) 32,500
BGT-I9000/M16 Galaxy S (16GB) 46,900
BGT-P1000 Galaxy TAB 53,000
Table-1: Price
Samsung’s pricing strategy has proven very effective, penetration pricing strategy for the
premium phones and competitive pricing strategy for the rest. In most cases they first sell their
products for high prices and have very limited sales but make big profits on each sale, they then
lower the price of their product and have lots more sales but they make less profit, but they still
make a large profit due to the amount of sales, but a drawback of these strategy is that Samsung is
not making much market growth as for high quality products they sell them for slightly high price
compared to competitors and that’s why Samsung has a very stable market share 15-17% for the
past 3 years of the mobile phone market share in Bangladesh and are the biggest selling mobile
phone company in the world.
LDistribution Channel
The term place refers to means of transportation; how the product will be made available. For
these a medium is required. That’s where distribution channel comes into playas one of the most
important tool for any mobile industry. If the products are not delivered to the outlets to the
customer as per their demand and in due time it tends to lose a big amount of sale and customer
faith towards the brand. For Samsung means of distributions was ensured through a logistic
alliance with some local distributors to ensure the product flow in a smooth manner. The
distributors are-
o Electra International Ltd
o Transcom Electronics Ltd
These two distributors give requisition to the national distributor for the products they require
then after shipment they disperse them to the showrooms and to the RDS. Then the RDs provide
the products to the outlets.
Figure-6: Distribution Channel
So from the Graph we can see that first the national distributor brings the products then the
regional distributors assigned geographically whether it is Transom(A) or Electra(B) pass it
through to their showrooms and RDS’s. Then the RDS’s ensure the products to the outlets and
the outlets sale them to the customers.
LPromotion
Promotions do not necessarily refer only to advertisement in mass media. In a highly competitive
business world a company has to go beyond usual promotional strategy and look for new
methods to attract customers. As Samsung believes in specification; for promotional activities it
made some promotional alliances promotional activities three more groups have been assigned
ne for ATL Campaigns meaning all advertising activities,
o ATL campaigns: the campaigns under BTL or commonly known as promotion and
advertisement. Adcom Ltd. Mostly does these works making posters, leaflets, brochures
and other printable ads as well as mass media ads.
o BTL campaigns: for the ATL campaigns Windmill Advertising Ltd was assigned and a
project called SPC( Samsung Product Consultants )were recruited to generate sales
through creating brand awareness, customer conversion, demonstrating features,
customer service, conducting surveys, providing market intelligence about corresponding
brands and all the necessaries.
o The campaigns done through BTL are a new concept in the promotion strategy.
The introducement of SPC has proven to be very successful and now being
implemented in other countries as well. SPC’s work as the eyes of the company, a
mobile surveillance and brand awareness process all integrated to a single entity
in order to generate sales.
o Event Management: A big company like Samsung has to host a lot of events inviting the
high profile individuals, celebrities and CEO’s as guests to announce or and share some
news, such events works as both a relationship management tool as well as promotion as
news and press briefings. A group named Expressions Ltd. is assigned to organize the
various events such as product launching, Inauguration ceremony, providing Brand
promoters etc.
LCustomer Care
The element ‘people’ of the marketing mix refers to the service and other privileges provided to
the customers. After sales service is one of the crucial parts of any company to serve the mass
volume of customer as soon as possible with the best service quality is no doubt quiet hard. To
ensure best customer service Samsung made and Service alliance with Discovery
Communications Ltd. who receive and service sets in terms of hardware, software and technical
support
The customer care service of Samsung can be divided into three categories. After sales service,
helpline, and online complain or suggestion box. All three categories are focused on providing
customer care whether it is after sales or post sales.
o After Sales: after sales services are provided by Discovery. Any hardware,
software, technical difficulties or malfunctions are solved under the service center.
In case of warranty products are serviced free of cost for up to 1 year upon
purchase. But for non-warranty or parallel import products services are provided
for a charge including cost of parts and service charge.
o Helpline: Helpline provides 24 hrs. services to the customer over the phone. A
dedicated call center is equipped with trained people with vast product knowledge
to service the customer with the information’s they query.
o Email: there is a dedicated email address for those who like to leave comments,
complains or suggestion about the products they have used or queries about the
products they want to use
Putting these three together Samsung tries its heart and soul to meet the customer satisfactory
service demand. But fact to be noted is that as because Samsung is still new to the market so It is
yet to establish adequate amount of service centers and helpline support as demanded by the
rapidly customers.
LSWOT Analysis
Strength
There is no doubt Samsung mobile as brand is one of the world’s sophisticated technologically
advanced brands. It has unique technologies in built within most of their mobile phones which
are known as USP (Unique Sale Point). Such as mobile tracker, internationally standard camera,
reject list, SOS sms and most unique of them all a dual stand by dual SIM technology which no
other mobile industry currently possess here in Bangladesh.
o Technology: Samsung is known throughout the world for its superior technology. They
are technological leaders with very few too match. Being originally and electronics
company works as an extra advantage as any R&D of any of the industries leads to
opportunities for all the other integrated industries under the wing of Samsung. It has
been pioneers for so many technologies that it’s hard to count. In case of recent mobile
industry news Samsung is the first company to come up with Super Amoled display
Technology.
o USP (Unique Sales Point): Every Samsung mobile is equipped with some or all the USP.
Such USP consists of Advance Mobile Tracker, SOS sms, voice recorder (without beep),
rainbow color font, Google sync etc.
o Advance Mobile Tracker: Mobile tracker is an option embedded in almost all
Samsung phones which enables the user to track his/her phone if it gets stolen. If
the mobile tracker is activated then every time the stolen phone is switched on the
no. and network location will be automatically texted to two denoted no’s set by
the user. In Advance Mobile tracking you can even cut copy or delete everything or
anything as per your choice from phone memory.
o SOS sms: SOS sms is a unique feature which is a life saver. This feature enables you
to set 5 emergency contact no’s(friends or family), in case of danger by pressing
the volume key down 5 times SOS sms are send to the 5 nominated persons and
the phone automatically goes silent. Any incoming calls are auto received and
multiple calls are conferenced in loudspeaker mode with a radius of 50 meters
where the caller can hear and consult or come up with a rescue plan.
o Rainbow Color Forts: This feature is very handy for people with narrow vision.
Every Digit is represented in different color and in bold Fonts so it easy to read or
to understand.
o Core competency: The core competency of Samsung mobile is its dual SIM (dual
standby) technology. In recent day’s dual SIM phones has become one of must haves of all
spheres of people in Bangladesh. There are a lot of Brands and non-brands providing dual
SIM facilities too. But Samsung has something that no one else does. Dual stand by which
means that when you are talking on line 1 if another call comes on lin2 you can easily
switch calls. In most other phones if you are talking on line 1 then your line 2 is shown
busy.
LSWOT Analysis
Weakness
While being the leader in technology like all brands Samsung also lags back in certain criteria.
For instance the graphical visualization and the outlook of the phones are often not found that
alluring to the customers. The under construction supply chain, service center and Brand shops
adds up to another big weakness to overcome.
o Graphical visualization: The graphical visualization of mass sets is very old fashioned.
No matter how stylish or smart the phones look if the visualization of the inside is need so
overwhelming than that may become a turn off to many customers.
o Under constructions: Samsung has started its operations in Bangladesh more than a
year ago hence most of its system and processes are yet under constructions which may
give an upper hand to its competitors.
o Supply chain: The whole supply chain is still under going fine tuning due to which
the proper flow of product is not yet established.
o Service center: Samsung mobile has only established a handful of service centers
which is not yet sufficient to meet the ever increasing customers in such rapid rate.
o Brand shop: Samsung has recently launched its first Brand shop in Bangladesh
situated at Gulshan-2. More brand shop is undergoing construction.
o Originality: Original accessories are not yet been started to be imported by Samsung due
to which Samsung phones cannot perform at its best in synchronization to the cheap
Chinese accessories.
o Versatility: Bangladesh is a highly populated country which means a lot of customers
with a wide array of demand. It is hard for any Company to meet all the demand and as
majority people are of low or middle income rate so the price consideration is top priority
for most.
o
LSWOT Analysis
Opportunity
As it is all about for Samsung there is lot of opportunities to explore the local trend and implement
techy stuffs accordingly. Most people are unaware of the technologies that are embedded within the
sets. But in a country of over 16 crore and 80% of them being poor to whom mobile is a must
indicates a greater market than anywhere else in the world.
o Market capture: Bangladesh mobile market is still booming so there are a lot of
opportunities to move and capture. But as time goes it is getting more and more competitive
and difficult to capture the whole market unless a strong and aggressive marketing strategy is
implemented.
o Patronage: in case of every growing market it is usual for competitors to rushing trying to get
grip of some of the action. Samsung has been providing many companies with electronic raw
materials such as conductors, chips, motherboards, transistors, battery etc.
o Technological leadership: In Bangladesh the penetration level of smart phones and cellular
phones is lower as compared to other developing countries. Samsung being the worldwide
leaders of technology has the opportunity to empower the technological advancement of
mass people
o Green Field establishment: So far all the companies are just importing products from their
convenient production plants. But in a country where labor cost is low and land is cheap with
less legal barriers it’s suitable to start a green field establishment and set up a plant.
o Pioneering: Overlooking all the criticism and pessimism Samsung has established its R&D
center in Bangladesh. No other mobile company has yet any R&D’s in Bangladesh. The
combination of A R&D and its own production plant may lead to untold opportunities as
pioneers in Bangladesh.
o Multiple niches: The lucrative mobile market is drawing competitors every day and getting
harder to penetrate every bit of the way. But on the other hand Samsung is worldwide leader
so does not need to worry or think of them as a threat rather see them as an opportunity for
Samsung to patch up the loose ends and start in full swing while others are kept busy
struggling and competing with niches.
o Unexploited rural market: There are 117038162 people which is about 75% of the total
population living in the rural areas and mostly working as wage earners. Recent statistics has
shown they are one of the biggest customers of entry level mobile phones. So far no company
has included them in their market segment.
LSWOT Analysis
Threat
To ensure technologies Samsung faces a threat from corresponding brands as they can enjoy a
bigger price cut and put the pressure on Samsung. Moreover, most of the advanced technologies
are not applicable in Bangladesh so the cost effectiveness of the product is a bit of a turn off. The
existence of PI (parallel Import) products poses the greatest threat of them all. Getting the same
product without a warranty card may save some money and money is of value to all specially to
the struggling people for whom originality is not a fact it’s rather the price cut that matters.
o Price pressure: the presence of so many competitors and multiple niches creates a
very sharp price pressure. Price is forced to be set s low as possible as because the
niches are following market captures strategies with low price with cheap multimedia
products.
o Developing country: as Bangladesh is yet a developing country most of Samsung’s
technologies are unadoptable at this moment so Samsung can’t truly flourish its charm
and excellence in full swing.
o Illegal entries: Around 0.2 million mobile phone sets is illegally entering the country
every month a significant amount of which consists of Samsung products getting
shipped through luggage or some other media known as non-warranty or parallel
import. Such imports re sold at cheaper price as because no taxes are added to their
price and in many cases they are used or reconditioned. This causes a major threat as
it triggers a bad impact in consumer mind about brand image.
o Mass competition: Competition is huge here in Bangladesh with more and more
interested companies entering the market every day. With a gross target customer of
12-14 crore people it has become like a gold mine as no foreign inflation or world
crisis has much effect here as we have very few direct foreign investments in our
country.
o Higher import duties: As per government rules everyone has pay 12% tax on every
mobile set imported in to our country whereas, it takes only Tk. 100-150 to bring a
handset into the country through illegal way. Such heavy taxes on mobile phones have
led to uneven competition with smuggled phones.
o Cheap imports: About 35% of the total market share is owned by brand and non-
brand cheap imports from china. Chinese phones offer full multimedia phones in a
very cheap price compare too quality brand phones. For this very reason Nokia lost
10% of its market share.
LAnsoff Matrix
The Ansoff Matrix approaches product mix or portfolio management from a different point of
view to Product Life Cycle Analysis and the Boston Matrix. Instead of focusing on profitability or
sales, the Ansoff Matrix outlines the options open to firms if they wish to grow, improve
profitability and revenue. These options indicate to how to manage the development of the
product range. The objectives of these matrix is to-
o outlining the range of marketing options open to a firm
o managing the marketing of a product or brand over its life cycle
Here in this matrix the possible options available for Samsung to increase sales and create
growth, our shown in four choices of action
Figure-7: Ansoff matrix
PRODUCT
NewExisting
MARKET
ExistingNew
o Market Penetration: Focusing on existing products for existing markets, means that the firm
aims to increase sales within its present market place. To be successful at market penetration
firms must be aware of what has made the product a success in the first place. The firms
marketing strategy should be based on this existing relationship. The penetration strategies
open to Samsung are-
LAnsoff Matrix
o Attract customers who have not yet become regular users, but are occasional users.
o Attack competitor’s sales.
o Increase consumption amongst existing users
o Market Development: taking the option of market development, the objective will be to find
new markets (female) for the firms existing products (Lady Phones). There are two broad
market development strategies-
o Identify users in different markets with similar needs to existing customers.
o Identify new customers who would use a product in a different way.
o Product Development: in an attempt to increase profitability and growth by introducing
new products (basic phones) targeted at the existing customer (rural) base the option of
product Development are-
o Examining the purchasing habits of customers and then expanding the product range
to match these habits.
o Diversification: developing new products corporate phones) for new markets (corporates,
business people etc.) maybe attempted if the new opportunity is cost effective with the
investment funds available or as an alternative action to reduce pressures in existing markets
or on existing product ranges.
The final decisions, new markets, new products etc. are of course down to the firms involved, but
the role of the matrix is not to make decisions but to provide an outline of alternative methods of
achieving the final goal- growth.
LPoter’s Five Forces
Michael Porter provided a framework that models an industry as being influenced by five forces.
The strategic business manager seeking to develop an edge over rival firms can use this model to
better understand the industry context in which the firm operates.
Figure-10: Poter’s Five Factors
On this basis the elements of each of the five factors a short table is made showing the strength
or effect of each factors on Samsung Mobile as well as any other mobile company in Bangladesh.
Strength referring to their influence is shown as high, moderate and Low.
Five Forces Strength
Entry Barriers Low
Bargaining power of Customers High
Bargaining power of Suppliers Low
RIVALRY
Availability of Substitutes High
Existing competitive pressure Moderate
Table-2: Poter’s five force analysis
Findings suggest that there exist a positive environment to run business and make Greenfield
Establishment.
LSurvey Analysis
A big part of the analysis is based on survey conducted on respected sources which was
afterwards interpreted through software generated graphs for better understanding. In order to
understand the nature and rationale behind such analysis a brief explanation of the procedure is
explained below.
o Data Source: This report was prepared after collecting data from the retailers/ dealers,
customers.
o Primary Data: Primary data were collected by personal surveillance and interview
with retailers/ dealer as well as surveying the customers based on a questionnaire.
o Secondary Data: Information regarding the project was collected from various
studies conducted in last few years and various other records of company.
o Method of Data Collection: Personal surveillance, In-depth interview and survey.
o Sampling Method: a simple random sampling method was used to choose the
respondents.
o Sample Size: a sample of 10 from a population of 50 SPC outlets to collect their share of
data and information about sales, market, and customer.
o Research tools: a Questionnaire survey was used as a research tool.
o Research area: a total 10 areas from 4 districts were covered in this research.
Comprising of Dhaka Dist.: (Panthopoth, Science lab, Uttara, Shadarghat, Mirpur,
Shantinagra, Gulshan), Comilla dist.: (Kandirpar), Narayangonj Dist. : (Chashara) and
Chittagong Dist.:( Nasirabad).
LSurvey Analysis
o Survey Question: Gender of Respondent:
o Male o Female
o Survey Result: male = 57
Female = 43
Graph-1: Gender based purchase
o Purpose and Explanations: The main purpose this question was to know the ratio of the
consumer’s gender to understand the buying behavior of them. This behavior pattern of the
customers can give Samsung a key indication of whether the company should consider introducing
Lady Phones to the current product line. According to the survey, it shows that about 57% of the
people are male and the rest 43% are female. From which it can be said, that there is substantial
amount of female consumers who purchase Samsung and will find the range of Samsung’s Lady
Phones very attractive.
LSurvey Analysis
o Survey Question: Age of Respondent:
O 15-24 age o 25-34 age o 35-44 age o 45-54 age o 55 above
o Survey Result:
o 15-24 age = 23
o 25-34 age = 30
o 35-44 age = 25
o 45-54 age = 14
o 55 above = 8
Graph-2: Aged based purchase
o Purpose and Explanations: The main purpose this question was to know the effect of age of
the consumer’s on their buying behavior and understand the concentration. This behavior
pattern of the customers can give Samsung a key indication on a possible product line.
According to the survey, it shows that about 23% of the people are within the age cap of 15-
24, 30% belonging to the age cap of 25-34, 25% of them are in the age group of 35-44, 14%
falls into age group of 45-54, and the rest8% are of age 55 and above. From which it can be
said, that the teens and the late thirties are the main mobile customers. So it is necessary to
understand their need want and demand so that they can be added to the set features.
LSurvey Analysis
o Survey Question: Occupation of Respondent:
o Student o Businessman o Service holder
o house wife o Wage earner o NRB
o Survey Result: o Student = 18
o Businessman =30
o Service holder = 24
o House wife = 10
o Wage earner = 13
o NRB = 5
Graph-3: Occupation of respondents
o Purpose and Explanations: The main purpose this question was to know the Occupation of the
consumer’s and how if effects buying behavior. This behavior pattern of the customers can give
Samsung a key indication on a possible product line. According to the survey, it shows that about
18% of the customer is student, 30% belonging to the businessman group, 24% of them are service
holder, 10% are house wife, 13% are wage earner and the rest 5% are NRB (Non Resident
Bangladeshi). From which it can be said, that the businessmen, service holders and the students are
the main mobile customers of Samsung. So it is necessary to understand their need want and
demand so that they can be added to the set features. For the students it could be net and music, for
the businessman and service holder’s corporate phones, dual SIM, office etc.
LSurvey Analysis
o Survey Question: Brand preference of Respondent:
o Nokia o Sony Ericsson o Symphony o Maximus
o Micromax o iphone o Samsung o Others
o Survey Result:
o Nokia = 43 o iphone = 1
o Sony Ericsson = 21 o Samsung = 17
o Symphony = 9 o others = 1
o Maximus = 3
o Micromax = 5
Graph-4: Preferred brand
o Purpose and Explanations: The main purpose this question was to know the buying
preference of the consumer’s. This behavior pattern of the customers can give Samsung a key
indication of their competitor’s current mindshare and customers demand. According to the
Preferred Brand
survey, it shows that about 43% of the people prefer Nokia, 21% seems to prefer Sony
Ericsson, 9% of them prefer Symphony, 3% prefer Maximus, 5% prefer Micromax, 1%
prefers iphone, 17% prefer Samsung, and the rest 1% prefer other brands. From which it can
be said, that most prefer Nokia due to its user friendliness and durability and some prefer
Sony Ericsson due to its superb Camera and music features. In order to capture their market
Samsung will have come up with features that can match or compete with them.
LSurvey Analysis
o Survey Question: Frequency of purchase of Respondent:
o in every one year or less o in every 1-2 year
o in 2- 3 year o in 3-4 years o never changed yet
o Survey Result:
o in every one year or less: 11 responses
o in every 1-2 years: 17 responses
o in every 2-3 years: 8 responses
o in every 3-4 years: 3 responses
o never changed yet: 1 response
Graph-5: Frequency of purchase
o Purpose and Explanations: The main purpose of ours behind this question was to know
that how frequently consumers change their mobile sets. This behavior pattern of the
customers can give Samsung a key indication of when the company should precede its selling
strategies. According to the survey, the findings were that about 25% of the people change
0
5
10
15
20
<1 year
1-2 years
2-3 years
3-4 years
never
changed
11
17
8
3
1
Nnumberofpeople
Periods
Number of
responses
their sets within one year. 40% of them change their sets within 1-2 year. 20% of the people
change their sets within 2-3 years. From these findings we can say that, most of the people
usually change their sets in 1-3 years of time and from the demographic profile we can find
out the different age group of the customers who are showing different usage pattern in
terms of their loyalty.
LSurvey Analysis
o Survey Question: While buying mobile phone, the most valuable feature to me is (please
rank in order of preference)
o Price o Size/weight
o Packaging facilities o Shape/style
o Durability o Extra added features
o Availability o Visual and sound quality
o Survey Result:
o 1st preference: Price-14 responses, durability- 8 responses, visual and sound quality- 6
responses, shape/style- 5 responses, extra added features- 5 responses, packaging
facilities- 2 responses.
o 2nd preference: durability- 13 responses, price- 9 responses, visual and sound quality- 8
responses, shape/style- 5 responses, extra added feature- 4, availability-1 response.
o 3rd preference: visual and sound quality- 9 responses, price- 9 responses, size/weight- 7
responses, shape/style- 5 responses, extra added features- 3 responses, durability- 3
responses, packaging facilities- 3 responses, availability- 1 response.
o 4th preference: shape/style- 9 responses, size/weight- 8 responses, visual and sound
quality- 6 responses, availability- 6 responses, durability- 5 responses, extra added
features- 3 responses, price- 2 response, packaging facilities- 1 response.
o 5th preference: availability- 1response, packaging facilities- 6 responses, size/ weight- 3
responses, extra added features- 10 responses, price- 1 response, shape/ style- 3
responses.
o 6th preference: availability- 9 responses, packaging facilities- 6responses, size/ weight- 6
responses, extra added features- 3 responses, price- 2 responses, shape/ style- 8
responses.
o 7th preference: availability- 13 response, packaging facilities- 10 response, size/ weight-
6 responses, extra added features- 4 responses, price- 1 response, shape/ style-
1response.
o 8th preference/ least preferred: availability- 11 response, packaging facilities- 8
response, size/ weight- 8 responses, extra added features- 8 responses, price- 3
responses, shape/ style-2 responses.
LSurvey Analysis
Graph-6: Preferred features
o Purpose and Explanations: The rationale behind asking this question to the people was to
know, while buying mobile sets which features are important to them and which features are
less likely to influence in their purchase behavior. From the survey result we can see that, the
most important feature to the people is the price where we have got 14 responses out of 40
people. So this is nearly about 35% of the total sample. Durability also doesn’t lack behind.
From our survey we came to know people like to buy sets which are long-lasting. Durability
has been preferred second by 32.5% of the respondents. Also, visual and sound quality of the
sets is important features to the consumers while buying mobile sets. Visual and sound
quality got 9 responses which is 22.5% of the total response as being the third most
important feature that influences consumer purchase behavior. From the survey, it also came
up that the least important features to the customers in buying sets are their availability,
packaging facilities and size/weight. About 25% of the people thought that these features can
0 10 20 30 40 50
price
packaging facilitie
durability
availability
size/weight
shape/style
extra added features
visual & sound quality
14
2
8
5
5
6
9
13
1
5
4
8
9
3
3
1
7
5
3
9
2
1
5
6
8
9
3
6
1
6
8
1
3
3
10
8
2
9
2
9
6
8
3
1
1
10
1
13
6
1
4
4
3
8
11
8
2
8
Number of Responses
ValuableFeatures
1st preference
2nd preference
3rd preference
4th preference
5th preference
6th preference
7th preference
8th preference
least influence their decision making. Other features like shape/style and extra added
features of the mobile sets are important to the customers who have already bought several
mobile sets and never afraid of trying out new products. They are least affected by the price
and may be durability. So, from all these analysis Samsung can draw out its product
development and positioning strategies that could benefit the company in the long run.
LSurvey Analysis
o Survey Question: Put a tick mark in the appropriate box.
[1= strongly agree 2=agree 3= neutral 4=disagree 5= strongly disagree]
1 2 3 4 5
a. I like to consume the same brand each time
b. If the price is slightly high than competing brands, I would still buy it
c. If I get better services from other brand then I would switch to that
brand even though I am a regular consumer of the current brand
d. There is no guarantee that a leading brand will always provide me
with higher safety
o Survey Result:
o a: [1] 12 responses, [2] 9 responses, [3] 8 responses, [4] 5 responses, [5] 6 responses.
o b: [1] 14 responses, [2] 11 responses, [3] 10 responses,[5] 5 responses.
o c: [1] 12 responses, [2] 9 responses, [3] 8 responses, [4] 5 responses, [5] 6 responses.
o d: [1]14 responses, [2]7 responses, [3] 8 responses, [4] 5 responses, [5] 6 responses.
Graph-7: Brand loyalty issue
LSurvey Analysis
Graph-8: Brand and price
Graph-9: Switching
12
98
5
6
a. I like to consume the same brand each time:
agree
strongly agree
neutral
disagree
strongly disagree
14
11
10
0 5
b. If the price is slightly high than competing brands, I would
still buy it
agree
strongly agree
neutral
disagree
strongly disagree
12
98
5
6
c. If I get better services from other brand then I would switch to that
brand even though I am a regular consumer of the current brand
agree
strongly agree
neutral
disagree
strongly disagree
Graph-10: Brand faith
o Purpose and Explanations: The purpose of the first question is to know whether the
consumer is brand loyal or not by looking at his/her consumption behavior. 12 people out of
40 agree to purchase the same brand of mobile. So, it is nearly 30% of the total population
and among other 70% of population, 22.5% of them (8 people out of 40) strongly agree in
buying the same brand each time of their consumption. So, total 52.5% of the population
seems to be brand loyal although in the later cases we will see this number to fluctuate in
different aspects.
LSurvey Analysis
In the second case, it was asked that if the price is slightly high of their preferred brand than its
competing brands would they still buy it or not. From the survey it was found that got 30% of
the total population who agree and 27.5% of the total population who strongly agree to keep
buying the brand that they prefer even though the price gets slightly high. From this analysis we
can say, price change has a very little effect on brand loyalty. But 10 people which are the 25% of
the total population are neutral in this aspect. So, this one fourth of the population either may
stick to their brands or they will switch to other brands. In this regard, company has to be very
careful of categorizing its customers while applying its price change strategies.
In the third case, the intention was to know whether the people would switch to other brand if
they get better services from them. Among 40 people only 6 people which are only 15% of the
total population have strongly disagreed to switch their brands even though they get better
services from other brands. So, the number of loyalist decreased from 52.5% to 15% when there
is better service available from other brands. 12.5% of them also disagreed and they may also
stick to the brand that they are already consuming. But 12 people which is 30% and 9 people
which is 22.5% of the total population have agreed and strongly agreed respectively to switch
14
78
5
6
d. There is no guarantee that a leading brand will always provide me
with higher safety
agree
strongly agree
neutral
disagree
strongly disagree
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh
Samsung Mobile Marketing Strategies in Bangladesh

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Samsung Mobile Marketing Strategies in Bangladesh

  • 1.
  • 2. PREPARED FOR MR. MOHAMMED MASUM IQBAL Assistant Professor and Head Department of Business Administration Daffodil International University Email: masum@daffodilvarsity.edu.bd PREPARED BY MEHRAB A. ISLAM Bachelors of Business Administration Daffodil International University ID: 062-11-1172 Email: mehrab.a.islam@gmail.com
  • 3. LLetter of Transmittal April12, 2011 Mr. Mohammed Masum Iqbal Assistant Professor and Head Department of Business Administration Daffodil International University Re: Submission Of Internship Report on” An Evaluation of Samsung’s mobile Marketing Strategies in Bangladesh: A study on of Samsung Electronics Ltd.” Dear Sir, It is my privilege to submit the internship report on ”An Evaluation of Samsung’s mobile Marketing Strategies in Bangladesh: A study on of Samsung Electronics Ltd“ to you, which I have prepared by working four months at Samsung Electronics Ltd. as a product consultant, to fulfill the requirement of BBA program in the & Department of Business Administration, Daffodil International University. I earnestly believe & hope that this internship would help me utilize my reporting skills and also enrich my marketing research abilities. I have tried my best to look deep within the matters and make full use of my capabilities in making the study meaningful and worthwhile. Please consider all mistakes and shortcomings as a result of human limitations. Now I have placed this report before you for your kind approval. I hope that my report will satisfy you. For Any kind of queries, I would be available at your convenience. Thank you Sincerely yours, MEHRAB A. ISLAM ID. 062-11-1172 BBA 14th Batch, Sec- A Department of Business Administration Daffodil International University
  • 4. LStudent Declaration I hereby declare that this intern report titled “An Evaluation of Samsung’s mobile Marketing Strategies in Bangladesh: A study on of Samsung Electronics Ltd” in Samsung Electronics Ltd. is executed as per course requirement for the post graduate program in marketing. It has yet never been submitted by me or any other person to any other university or institution for degree or diploma until now. It‘s my own work, and confront to be subjected to any queries or liable for any miss interpretation of the data presented. Most of the information and data presented has been collected from primary sources as the market as well as related personnel and the rest was partially collected through net browsing and further studies of texts, articles and journals. I will not take any responsibilities for the errors attained for various sources. It will be my humble request to see them as statistical errors. Place: Dhaka, Bangladesh Date: 12 -April -2011 Mehrab A. Islam Bachelors of Business Administration Daffodil International University (2006-2010)
  • 5. LAcknowledgement In this project I have made an honest and dedicated attempt to make the research material as authentic as it could. And I earnestly hope that it provides useful and workable information and knowledge to any person reading it. During this small time frame of four months in which the project reached its completion, there were a few people whom I would like to make a mention of and without whose help the project would have never seen the light of the day. At first I express my gratitude to the Department of Business Administration of the faculty of Business & Economics of Daffodil International University for arranging such an interpretive practical field related study to overcome the deficiency of experience. Also I express my sincere gratitude and intentness to my internal guide, my honorable teacher & Assistant Professor Mr. Mohammed Masum Iqbal, under whose supervision and proper guidelines, this report has been prepared. During preparation of this report, I got many creative thoughtful suggestions and advices on a continuing basis. For cordial behavior and better suggestion in preparing the report thanks also goes to- I would like to thank the whole Samsung Product Consultant team, who helped me by their friendly cooperation in providing so much information within the limited time. A special thanks goes to my colleague SPC Huzzatul Islam Hasib, SPC supervisor Yasser Tamim Haque, SPC Manager Dewan Samshul Alam. I have also received guidelines and assistance from various persons and institutions during preparing the report. I dedicate this report to the Samsung Product Consultant team who were extremely kind and who at times went out of the way to help me. Without their co-operation it would have perhaps not been possible to research a few places, which I did, within the stipulated time frame.
  • 6. LExecutive Summary Samsung is a company which is operated more than 130 countries in the world. The company is very big but it keeps its unit very small because they think that big company losses market sensitivity and customer expectation level. This company gives priority to customer of the whole world and its MOTO is innovation to reach customer expectations. As in any company in order to attain market leadership a full proof marketing strategy is required to be implemented in current times with visions of a better tomorrow which in any company view is measured in higher rate of return on investment or as we can say it in more simpler terms as profit. In this report an attempt was made to uphold the various marketing strategies of Samsung mobile in Bangladesh to first understand then analyze and finally recommend on the possible remedies. In order to do so, a research methodology known as questionnaire survey was conducted on retailers/ dealers and customers picked by simple random method from 4 districts total 24 areas. Further information and data was collected from primary sources such as officials and practical experience as far as secondary data they were all collected form net and articles, journals and news. Samsung currently occupies the market as the challenger with 15% share of the whole market whereas Nokia has 27%. As we go deep into the analysis we come to find why it is that customer prefer Nokia instead of Samsung. We also came to know what advantages Samsung has against Nokia. For starters Nokia has the upper hand in user friendliness, set durability but Samsung outranks Nokia in greater picture and sound quality, state of the art dual stand by technology, SOS sms, mobile tracker and so on. After a depth survey analysis showed that customer retention is very much possible if the Bangladesh market is treated individually and not as a third world country rather as potential market to establish Greenfield for labor economy and cost economy. As Samsung is still in its early years in Bangladesh it is going through some major construction to build its position in the market as concrete as wall. Recommendations were made based on current situations while ignoring the fact that many of the strategies are still in the sketch book or but a part of the blue print of becoming market leaders in Bangladesh.
  • 7. LTable of Contents Chapter-1 INTRODUCTION...................................................................................................................1-12 Introduction.....................................................................................................................................1 Origin of the study...........................................................................................................................2 Objectives of the study .............................................................................................................2 Scope of the study....................................................................................................................3 Methodology ...........................................................................................................................4 Research design...............................................................................................................................4 Data source ..............................................................................................................................4 Method of data collection.........................................................................................................4 Sampling method .....................................................................................................................4 Research Area ..........................................................................................................................4 Limitations of study ..................................................................................................................5 Company background ..............................................................................................................6 History..............................................................................................................................................7 Samsung mobile .......................................................................................................................8 Organogram ...........................................................................................................................11 Wings.....................................................................................................................................12
  • 8. LTable of Contents Chapter-2 ANALYSIS ..........................................................................................................................13-56 Country snapshot ...................................................................................................................13 Mobile industry in Bangladesh................................................................................................14 Entry Strategy.........................................................................................................................15 Market segment.....................................................................................................................16 Target market.........................................................................................................................19 Market positioning .................................................................................................................20 Operating strategy..................................................................................................................21 Strategic alliances...................................................................................................................23 Marketing strategy ................................................................................................................24 Product...........................................................................................................................................25 Price.......................................................................................................................................28 Distribution channel ......................................................................................................................29 Promotion..............................................................................................................................30 Customer care........................................................................................................................31 SWOT analysis ........................................................................................................................32 Ansoff matrix .................................................................................................................................36 Poter’s five forces...................................................................................................................38 Survey analysis.......................................................................................................................39 Problem..........................................................................................................................................56
  • 9. LTable of Contents Chapter-3 CONCLUSION ....................................................................................................................57-60 Recommendations..................................................................................................................57 Conclusion......................................................................................................................................58 Bibliography ...........................................................................................................................59 Appendix........................................................................................................................................60
  • 10. LIllustrations INTRODUCTION Figure-1: Samsung’s new moto .................................................................................................8 Figure-2: Samsung’s vission.......................................................................................................9 Figure-3: Samsung’s Business principle....................................................................................10 Figure-4: Organogram.............................................................................................................11 ANALYSIS Figure-5: Current market share...............................................................................................15 Table-1: Price .........................................................................................................................28 Figure-6: Distribution channel.................................................................................................29 Figure-7: Ansoff matrix ...........................................................................................................36 Figure-8: Poters five factror ....................................................................................................38 Table-1: Poters five factor analysis..........................................................................................38 Graph-1:Gender based purchase............................................................................................39 Graph-2: Age based purchase .................................................................................................40 Graph-3: Occupation of respondents ......................................................................................41 Graph-4: Preferred brands......................................................................................................42 Graph-5: Frequency of purchase.............................................................................................43 Graph-6: Preferred features....................................................................................................45 Graph-7: Brand loyalty issue ...................................................................................................46 Graph-8:Brand and price.........................................................................................................47 Graph-9: Switching .................................................................................................................47 Graph-10: Brand faith.............................................................................................................47 Graph-11: Brand Satisfaction ..................................................................................................49 Graph-12: Preferred services ..................................................................................................51 Graph-13: Brand perception ...................................................................................................53 Graph-7: Brand preference (Samsung) ....................................................................................54
  • 11. LGlossary AMOLED: Active Matrix Organic Light Emitting Diode ATL: Above the Line BMPA: Bangladesh Mobile Phone Importers Association BTL: Below the Line CIA: Central Intelligence Agency EDGE: Enhanced Data rates for GSM Evolution FM: Frequency Modulation GB: Giga Byte GHz: Gigahertz GPRS: General Packet Radio Service GSM: Global System for Mobile Communication LCD: Liquid Crystal Display MP: Mega Pixel NW: Non-Warranty OS: Operating System PI: Parallel Import POSM: Point of Sales Material RAM: Random Access Memory RDS: Re-Distribution Stockiest SIM: Subscriber Identity Module SMS: Short Messaging System SOS: Save Our Soul SPC: Samsung Product Consultants TFT: Thin Film Transistor TXT: Text USP: Unique Sales Point WAP: Wireless Application Protocol
  • 13. Introduction The age we are living in is an age of science indeed. Every footstep of our lives is being carried forward by the modern innovations of science. There is not a single activity of our life which is not influenced by it and our communication network is of no exception. Communication means exchange of thoughts, messages, or information, as by speech, signals, writing, or behavior. It is the process of sharing information. In a simplistic form, information is sent from a sender or encoder to a receiver or decoder. This requires a symbolic activity, sometimes via a language and sometimes via electronic media. In the electronic world, communication refers to the transmission of data and information from one location to another. And nothing does it better than the mobile phones. In today’s world, mobile phones are probably the most accessible and user friendly gazettes human beings can carry to communicate to each other. The revolution of the mobile phone industry has been astonishing for the last two decades. There are several mobile phone companies who are competing to each other in providing better services to its consumers. Samsung is one of them. Samsung is one of the leading mobile phone companies in the world which believes in its value proposition towards its consumers. Samsung mobile phone is a part of Samsung electronics which is one of the key segments of Samsung group. Being from a strong background, Samsung mobile phone industry added a new dimension in each and every mobile phone markets in the world and Bangladesh is also one of them. As Bangladesh is a developing country, the need for these modern communication means is always there. Though our country is poor and less developed still because of some foreign investors and Bangladeshi entrepreneurs this new era of information technology also has become available in Bangladesh. After a slow start, because of the prices charged both by the cell phone manufacturers and cell service providers, the growth rate of the cell phone market in the early years in Bangladesh has been very high. In fact, it was higher than the countries that are manufacturing it or the developed countries. The consumers of Bangladesh accept the telecommunication industry heartedly. More over Bangladesh has very little involvement with the worldwide crisis, has cheap work force, less infrastructural barriers and being a developing country a lot of scope to start new made Bangladesh a profitable market and a possible location for Greenfield establishment. Under these considerations mobile companies started entering Bangladesh first through imports, then some through strategic alliances and some through green field. Samsung came into the market through import at first then some strategic alliances and now finally in 2009 with a vision of green field establishment it established its first R&D at Gulshan.
  • 14. Objective Origin of the Study This report is an individual task work assigned under a supervisor as a part of the BBA program at Daffodil International University. The report has been done on Samsung Mobile Bangladesh, a multinational electronics company which has a Hand held Product (HHP) wing under its Telecommunications division. I have been assigned this report by Mr. Mohammed Masum Iqbal, who will be my institutional supervisor throughout the completion of the report. The title of the report is “An Evaluation of Samsung’s mobile Marketing Strategies in Bangladesh: A study on of Samsung Electronics Ltd”. This report is prepared during the fall 2010 and will be submitted in the same semester. Objectives of the Study o The study has been undertaken with the following objectives: o To describe current scenario through country snapshot and mobile industry in Bangladesh. o To describe the entry strategy, market segment, target market, positioning, operating strategies and strategic alliances of Samsung Mobile in Bangladesh. o To illustrate the current scenario of the marketing mix and do a SWOT analysis, Poter’s five factor analysis, Ansoff matrix of Samsung Mobile. o To identify problems related to marketing strategies of Samsung Mobile in Bangladesh. o To make some suggestions to solve the problems.
  • 15. LScope of the study This report will give great exposure to the mobile market because it includes product knowledge and market survey from mobile outlets in Dhaka district as well as other districts and information gathered from fellow colleagues and superiors. o While working and visiting the shops I: o Calculated the display share of the Samsung mobile in shop. o Collected the data of actual monthly sale of the Samsung mobile in few shop. o Tried to find out the problems that the outlet owners and RDS were facing while selling the Samsung mobile. o Tried to seek out the customer response for Samsung mobile by asking the owner of the shop, the customers themselves as well as checking with the service center. o Checked whether presence of POSM materials were adequate or not. o Scope: o Bangladesh has a population of 156,050,883 and purchasing power parity (PPP) $241.1 billion. o The total number of cellular customer is 65.14 million with a GDP per capita ($) of 690 and 32% mobile penetration making 4.7% real GDP growth. o Bangladesh has the youngest population amongst the South Asian countries. There are a lot of people in the different income categories nearly the two third population is below the age of 35 and nearly 65% is below 25. o There are 117038162 people which is about 75% of the total population living in the rural areas and mostly working as wage earners. And only 1o% of the total population is rich households.
  • 16. LMethodology Research methodology is considered as the nerve of the project. Without a proper well- organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. o Research design: Research design specifies methods and procedures for study. In this study my key concern was to know the demand of different mobile phones, about competitors, and potential for Samsung procedures to be used for the study among retailers/dealer and customer. However it was purely personal survey and interviews. o Data Source: This report was prepared after collecting data from the retailers/ dealers, customers. o Primary Data: Primary data were collected by personal surveillance and interview with retailers/ dealer as well as surveying the customers based on a questionnaire. o Secondary Data: Information regarding the project was collected from various studies conducted in last few years and various other records of company. o Method of Data Collection: Personal surveillance, In-depth interview and survey. o Sampling Method: a simple random sampling method was used to choose the respondents. o Sample Size: a sample of 10 from a population of 50 SPC outlets to collect their share of data and information about sales, market, and customer. o Research tools: a Questionnaire survey was used as a research tool. o Research area: a total 10 areas from 4 districts were covered in this research. Comprising of Dhaka Dist. : (Panthopoth, Science lab, Uttara, Shadarghat, Mirpur, Shantinagra, Gulshan), Comilla dist. : (Kandirpar), Narayangonj Dist. :(Chashara) and Chittagong Dist. :( Nasirabad).
  • 17. Llimitation of Study Although I tried my best in preparation of this project, but this study is prone to some limitation. The market is a vast thing to properly explain and understand any marketing strategies success or failure is somewhat erroneous. Some limitations acquainted with this report are as depicted beneath: o Time limitation: restriction of time appeared due to the fact that I had collect data within my working hours and it was not easy get in touch with necessary personnel as per my convenience and moreover, I had a deadline of submission. o Limitation of data: Some trade secrets and confidential data were omitted as to protect the privacy of the company and its strategic plans. o Real situation: it is hard to assure that all the information and data provided by the customers, retailers, distributors and my fellow colleagues as well as appointed personnel were unbiased and their perception was not influenced by any other relating incident, event or factor. o Gap of communication: Many customer and dealers/retailers showed less interest in providing information and haven‘t cooperated.
  • 18. LCompany Background The Samsung group is Conglomerate Corporation headquartered in Samsung Town, Seoul South Korea. It is the world’s largest conglomerate by revenue with annual revenue of $117.4 billion in 2009 and is South Korea’s largest chaebol. The meaning of the Korean word Samsung means ‘Tri-star’ or ‘three stars’. The Samsung Group is compressed of a numerous international affiliated businesses, most of them united under the Samsung brand including Samsung electronics, the world’s largest electronics company. Samsung Heavy Industries, the world’s second largest shipbuilder & Samsung C&T, a major global construction company. Samsung has been the world’s most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world. Samsung Group accounts for more than 20% of South Korea’s total exports and is the leader of domestic industries, such as financial, chemical, retail and entertainment industries. All this was possible for Samsung to diversify into many areas as Lee sought to establish Samsung as an industry leader in a wide range of enterprises, moving into businesses such as insurance, securities, and retail. Lee placed great importance on industrialization, and focused his economic development strategy on a handful of large domestic conglomerates, protecting them from competition and assisting them financially. He later banned several foreign companies from selling consumer electronics in South Korea in order to protect Samsung from foreign competition.
  • 19. LHistory in 1938,Lee Byung-chull (1910–1987) of the large landowning family in the Uiryeong county came to the nearby Daegu city and founded Samsung Sanghoe (삼성상회), a small trading company with forty employees located in Su-dong (now Ingyo-dong). It dealt in groceries produced in and around the city and produced noodles itself. The company prospered and Lee moved its head office to Seoul in 1947. When the Korean War broke out, however, he was forced to leave Seoul and started a sugar refinery in Busanas a name of Cheil Jedang. After the war, in 1954, Lee founded Cheil Mojikand built the plant in Chimsan-dong, Daegu. It was the largest woolen mill ever in the country and the company took on an aspect of a major company. In the late 1960s, Samsung Group began the electronics industry. It formed several electronics- related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and made the facility in Suwon. Its first product was a black-and-white television set. In 1980, the company acquired Hanguk Jeonja Tongsin in Gumi, and started to build telecommunication devices. Its early products were switchboards. The facility was developed into the telephone and fax manufacturing systems and became the center of Samsung's mobile phone manufacturing. They have produced over 800 million mobile phones to date. The company grouped them together under Samsung Electronics Co., Ltd. in the 1980s. In the late 1980s and early 1990s, Samsung Electronics invested heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and another facility in Austin in 1996. In total, Samsung has invested about $5.6 billion in the Austin location – by far the largest foreign investment in Texas and one of the largest single foreign investments in the United States. Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates. In 1993, Lee Kun-hee sold off ten of Samsung Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering, and chemicals. In 1996, the Samsung Group reacquired the Sung kyunkwan University foundation.
  • 20. LSamusng Mobile Samsung Electronics Co. Ltd is a global leader in semiconductors, telecommunications, digital media and digital convergence technologies, with consolidated sales of US $96 billion in 2008. Employing approximately 164,600 people in 179 locations across 61 countries, the company consists of two business units - Digital Media & Communications, and Device Solutions. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading provider of digital televisions, memory chips, mobile phones and TFT LCDs. Samsung Telecommunications is one of five business units within Samsung Electronics, belonging to the Samsung Group, and consists of the Mobile Communications Division, Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre and Telecommunication R&D Centre. The Hand Held Product division basically looks after the Samsung Mobile. All Samsung mobile phones can divided into 6 major categories: Style, Infotainment, Multimedia, Connected, Essential and Business. Headquarters is located in Suwon, South Korea. In 2007 Samsung Telecommunication Business reported over 40% growth and became the second largest mobile device manufacturer in the world. Its market share was 14% in Q4 2007, growing up from 11.3% in Q4 2006. In Q1 2008 Samsung strengthened its second position on the market and achieved 15.6% world handset market share. o Vision: As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future. “This new vision reflects Samsung Electronics’ commitment to inspiring its communities by leveraging Samsung's three key strengths: "New Technology," "Innovative Products," and "Creative Solutions" - and to promoting new value for Samsung's core networks -- Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all. Figure-1: Samsung’s new motto
  • 21. Figure-2: Samsung’s vision LSamusng Mobile As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the world’s top five brands by 2020. To this end, Samsung has also established three strategic approaches in its management: "Creativity," "Partnership," and "Talent." Samsung is excited about the future. As it builds on its previous accomplishments, with looking forward to explore new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward. o Philosophy: Samsung follows a simple business philosophy: to devote its talent and technology to creating superior products and services that contribute to a better global society. Every day, its people bring this philosophy to life. Its leaders search for the brightest talent from around the world, and give them the resources they need to be the best at what they do. The result is that all of the products—from memory chips that help businesses store vital knowledge to mobile phones that connect people across continents— have the power to enrich lives. And that’s what making a better global society all is about. o Values: Samsung believes that living by strong values is the key to good business. At Samsung, a rigorous code of conduct and these core values are at the heart of every decision we make. People: Quite simply, a company is its people. Samsung is dedicated to give its people a wealth of opportunities to reach their full potential. Excellence: Everything done Samsung is driven by an unyielding passion for excellence—and an unfaltering commitment to develop the best products and services on the market.
  • 22. LSamusng Mobile Change: In today’s fast-paced global economy, change is constant and innovation is critical to a company’s survival. As Samsung has done for 70 years, setting sights on the future, anticipating market needs and demands to steer towards long-term success. Integrity: Operating in an ethical way is the foundation of Samsung’s business. Everything done guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency. Co-prosperity: A business cannot be successful unless it creates prosperity and opportunity for others. Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where it operates around the globe Samsung is comprised of companies that are setting new standards in a wide range of businesses, from consumer electronics to petrochemicals, from advertising to life insurance. They share a commitment to creating innovative, high quality products that are relied on every day by millions of people and businesses around the world. Figure-3: Samsung’s Business Principles
  • 23. LOrganogram Founded in 1969 in Suwon, Gyeonggi-do, Korea, Samsung Electronics Co., Ltd. manufactures and sells a wide variety of electronic products, communication devices, and semiconductors. The company has been realigned into a new organizational structure with eight divisions reporting to headquarters’ CEO, from the previous framework of two business units and ten divisions. The overhaul paves the way for enhancing global competitiveness, efficiency and synergy. The restructuring also led to the formation of a Middle East/Africa Regional Headquarters, which took the total number of regional headquarters to ten. In line with global business practices, Samsung Electronics has a Chief Operating Officer (COO) and Chief Financial Officer (CFO) directly reporting to the CEO, which facilitates systematic and efficient management of our vast organization. Figure-4: Organogram Samsung believes that a big company has a possible risk of losing market sensitivity and customer expectation level. So it operates in a very small unit. As here we can see with three personnel on top the rest is divided into departments or division not like marketing, finance, and accounting seen in other companies but in regard manufacturing divisions. There are about eight of them each of them working individually and sharing innovations and new technologies with each other in order to keep a follow of fresh idea generation on a continuous process.
  • 24. LSamsungs Wing Samsung Electro-Mechanics Samsung Networks Samsung SDI Samsung Techwin Samsung Corning Precision Glass Samsung Mobile Display Samsung SDS Samsung Digital Imaging Samsung Heavy Industries Samsung Total Petrochemicals Samsung Petrochemicals Samsung Fine Chemicals Samsung BP Chemicals Samsung Life Insurance Samsung Securities Samsung Fire & Marine Insurance Samsung Investment Trust Management Samsung Card Samsung Venture Investment Samsung Venture Investment Samsung C&T Corporation Samsung Lions Samsung Engineering The Ho-Am Foundation Cheil Industries Samsung Foundation of Culture Samsung Everland Samsung Welfare Foundation The Shilla Hotels & Resorts S1 Corporation Samsung Life Public Welfare Foundation Cheil Worldwide Samsung Medical Center Samsung Human Resources Development Center Samsung Economics Research Institute
  • 26. LCountry Snapshot Bangladesh is a developing semitropical and monsoonal type of country with a hot and rainy summer and a dry winter. The total land area is about 144,000 sq. km where 133,910 sq. km is covered by land and 10,090 sq. km is covered by water. It has 4,246 km of land boundaries where 4,053 km is with India and 193 km with Burma. Bangladesh has a coast line of 580 km o Population: Total population- 156,050,883 Growth rate- 1.55% Age structure- 0-14years: 34.6% (male 27,065,625/female 26,913,961) 15-64years:61.4% (male 45,222,182/female 50,537,052) 65years and over:4% (male 3,057,255/female 3,254,808) Median age - 22.9 years (male: 22.4 years/female: 23.4 year) o Communication systems: Telephone user- 1.522 million Internet users - 556,000 Mobile/cellular user- 50.4 million o Economic statistics and activity: GDP- $336.1 billion Purchasing power parity- $241.1 billion Real growth rate of GDP- 5.6% GDP per capita- $1,500 Sector based GDP Composition: Agriculture- 18.6% Industry- 28.6% Service sectors- 52.8% o Economical Strength for Doing Business: Ease of doing business- 107 Starting a business- 92 Dealing with license- 116 Paying Taxes- 81 Closing a business- 102 Inflation rate - 5.4% (est.) o Investment Incentives: o Tax exemption – 5 to 7 years depending on the area of investment o Duty – in case of mobile phones it is 12%. o Tax law – double taxation could be avoided (bilateral agreement). O Remittance – whole profit and dividend is transferable to investor’s native land. o Ownership – 100% self-owning is allowed. o Labor force and working conditions: Total size- 69.4 mill Industry- 45% Services- 30%
  • 27. Agriculture- 25% Unemployment rate- 5.1% Industrial product growth rate- 5.9% est. LMobile Industry in Bangladesh The mobile indusrtry in Bangladesh is on da verge of a massive boom as statstistics showed that the recent world wide recession had no such effect onbanglacdesh as it has not much FDIexisting in its boundaries wehich makes it a very profiatable ground to start an establishment. Siemens was the first company to hit the ground in Bangladesh.But Siemens did not last long. Soon Nokia as well as other brands like Sony Ericsson, LG, Motorola and Samsung came to play. Although Siemens did make a come back as BenQ-Siemens but cud not do much good. At first most of the phones were imported as lugguage. No authentic dealer or importer was present for nany of the phones. Except for Siemens alkthough Siemens phones had a lot of problems still people is to prefer it due to its Superb after sales service. Then later on Came Nokia which provided one of the most durable and user friendly sets. In competition wid Nokia stood Sony Ericsson which had the superiority in Camera and Music Features But was a bit expensive then nokia. There was also existance of Motorola and Samsung which was known for its range of folding stylish phones. Later on in the late 20’s Nokia and other brands stated opening their operations here through dealerships. Currently Nokia was the leading brands inBangl;adesh until the sudden emerge of chineese phones which wa primarily a niche took over and captured a lot of its market as they offer the cheapest phones with full multimedia features. Recently Samsung also emtered the scene with its own establishment and sole propiertorship where Samsung will be responsible for making all the marketing strategies and the distribution channels and dealers re to impliment and follow them through with proper communication.
  • 28. Figure-5: Current Market share Entry Strategy Many companies successfully operate in a niche market without ever expanding into new markets. Some businesses achieve increased sales, brand awareness and business stability by entering a new market. Developing a market entry strategy involves a thorough analysis of potential competitors and possible customers. Some of the relevant factors that are important in deciding the viability of entry into a particular market include Trade barriers, localized knowledge, price localization, Competition, and export subsidies. Some of the most common market entry strategies are: directly exporting products, indirect exporting using a middleman, and producing products in the target market. But also: o Licensing o Greenfield Strategy o Franchising o Alliances Samsung Mobile entered the Bangladesh market in the fall of 2009. It entered Bangladesh as a sole propertiership with vissions to make greenfield establishments here. So far they have only established an office or SBRC ( Samsung Bangladesh research Center) and a Its 1st Brand shop in Bangladesh. With the entry of Samusng Mobiles research team in Bangladesh they plan on to bedcome the mobile market leaders of Bangladsh witin 2015. Currently Samsung Mobile has designated certain third partioes to perform certain marketing operations such as distrtibution a, promotion and after sales service. For now saamsung is more concentrated on market study to fully understand the trend nad consumer demand as the emerge of chineese amrket has shown some radical changes in the buying behavior of overall mobile users in Bangladesh. This market studies incude coinducting various surveys, awareness campaigns,market intelligence gathering, market promotion and communication etc.
  • 29. LMarket Segment o Market Segment: Samsung is a world leader of technology in mobile communications, driving the growth and sustainability of the broader mobility industry. Samsung works with the tag beyond future providing the world with high tech and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. The market can be divided into segments by using four "segmentation basis": Psychographic, behaviorist, geographic, and demographic basis. The basic criteria for segmenting a market is are customer needs. To find the needs of the customers in the market it is important to undergo market research. Psychographic and behaviorist bases are used to determine preferences and demand for a product and advertising content, while geographic and demographic criteria are used to determine product design and regional focus. Samsung arguably the biggest player in the world has divided the market into three target groups which are then divide into nine segments: o Tech Enthusiast: early adopters are tech wiz people who are enthusiastic about the latest technology and apps to hit the ground and become trendsetters to have a beyond future experience. o Pioneers: the people to whom every new thing is a must have experience where money is not a fact. They are receptive to advance models and adapt to any emerging technology. o Social contact: the upwardly mobile, socially conscious segment that uses a mobile to stay in touch. Today's youth and affluent housewives constitute two major chunks of the segment. o Media tribe: this segment strives about the media features and wants the sharpest and finest camera, music and display quality above anything as well as internet connectivity to get in touch with the latest news about what’s happening. o Business Professional: a segment comprising of CEOs, high-profile officials, industrialists and other high "net worth" individuals who use a mobile phone to increase productivity at work. Aged between 25 to 45 years, this segment looks for data transmission and other business-related features to give them maximum
  • 30. flexibility to their tight scheduled work and make it as simpler and convenient as possible. Market Segment o Value Maximizers: this segment brings forth full multimedia phones perfect for the urban people with camera, internet connectivity, FM radio and music in a very affordable price to get maximum value in a limited cost. o Design Essentials: this segment includes people for whom its all about style. They want a basic phone but it has to be stylish. Mostly female teens fall into this segment. o Simplicity Seekers: the people of this segment like to keep it simple and use phones as a basic mean of communication. o Music Essentials: This segment contains cell phones for music lovers. These mobile phones are specifically optimized for entertainment, music and games in a minimal cost range. Currently in Bangladesh mostly four among the nine segments are selected. The selected segments are tech enthusiasts, Social contacts, Value maximizers and Music essentials. o Consumer Markets Segments o Geographic: World region – Asia, China Country – Bangladesh Cities – Reach out maximum places o Demographic: Age – All age group Gender – Male, Female Income – All income groups Occupation – Every sector Religion – Irrespective of religion o Psychographic: Social class – All class of people Lifestyles – Urban, rural, and even far villages o Behavioral: Benefits – Technology
  • 31. Loyalty status – Moderate Market Segment o Price Segments o Range 1: (1000tk – 5000tk) Entry level o The Samsung phones falling in this range are mostly used by the manual Workers because they cannot afford a high price mobile phone, some students also use cell phone from this range as they have the fear of snatch of mobile phone. o Mobile phones falling in this category are simple phones who only meet the purpose of basic messaging and calling features and some have additional features such as VGA camera, Bluetooth, 2GB memory card slot as well as FM radio o Range2: (5100tk – 15000tk) middle level o The main users of this segment are middle managers, students, housewives because they have limited and average salary and cannot afford to spend it on unnecessary expenses. o The core feature of this segment is Audio Video Player, FM Radio, Camera, EDGE, GPRS and Expandable Memory, MP camera, 3G, Wi-Fi, SNS and push email. o Range 3: (15000 above) High-end users o The cell phones falling in this range are mostly used and popular among the tech- savvy young and energetic business men fall into this category of age 30 –40. o These cells have a stylish look and have all the essential features such as well as advanced functions such as Audio Video Player, FM Radio, Bluetooth, High resolution Camera, EDGE, GPRS, Expandable Memory, 8Gb and above memory card slot, Amoled touch screens, HSDPA, Wi-Fi, think free office etc.
  • 32. LTarget Market o Target Market: Through the consistent releasing of new technolo9gically enhanced units of the mobile phones with different services and difference feature, the company has its target market that expected to support the kind of products and services. The company is very optimistic that their new line of products will going to support by the target market as the sports enthusiast persons for the sports services that the phone is offering. To the specified fashion fanatic for the latest trend and for the updated fashion design suitable for every their daily lives. The music driven consumers segment is also the company top target market due to the music service that the new products have offering. Including in the said music services are the radio, the mp3, the Champ, and the music player. In market targeting we have two jobs: During market targeting Nokia consider two types targeting job o Evaluation the market segments o Selecting Target market segment As Samsung has newly started its operations here and still performing market studies it has not stated any fixed target market for our country. But according to existing situation three target group could be outlined- o Innovative: targeting the tech enthusiasts and trendsetters to give them beyond future experience with the latest techs and apps in the technology adoption cycle. This category brings the premium series phones of Samsung and targets the high income group. o Sensible: This target market comprises of the average income middle class people consisting of students, service holders and housewife’s who cannot afford to make expenses unless necessary. o Essentials: targeting the low income group people mostly workers with a vision to provide them with basic mobile functions and some additional features at lowest cost possible. In Bangladesh according to the product line it is found the teens age ranging from 13 to 20 are
  • 33. target market of Samsung Mobile. LMarket Positioning o Market positioning :Currently Samsung has penetrated the market as a challenger to Nokia but the main target is to gain market leadership with in 2013. In many cases, market positioning is represented by the tag line, "Beyond Future", giving consumers a sense of trust and consideration by the company, as though to say that Samsung understand what they want in life, and how it can help. And it knows that technology is really only an enabler so that you-the customer-can enjoy a better life. Samsung thus uses a combination of aspiration, benefit-based, emotional features, and competition-driven positioning strategies. It owns the "human" dimension of mobile communications, leaving its competitors wondering what to own (or how to position themselves), having taken the best position for itself. o Brand Personality: Samsung has detailed many personality characteristics for its brand, but employees do not have to remember every characteristic. They do, however, have to remember the overall impression of the list of attributes, as you would when thinking about someone you have met. As the focus is on customer relationships, the Samsung personality is like a high-tech gadget in your pocket and the human dimension created by the brand personality carries over into the positioning strategy for the brand. o Positioning – Product: The product of the Samsung goes to the high end quality controls to give its client state of the art technology and quality worth of a product. Including in the top- end devices of the company is the new release number of unit which is considered safe and has the quality of the materials as well as the design and together its features. Mobile phones accessories as the headset, the memory card and its features as the camera and video were some of the clients want in their mobile phones. To be able to keep abreast to the faster world, it is much important to determine the updated phones so that the company will also be up to date and cannot overcome by its competitors and give its consumers a truly beyond future experience. o Product Design: Samsung always thrives for innovation in reference to product design Samsung has a theory it calls touch feel experience. Every design is based on human emotions which are converted into shape of agronomics to give the user a more soothing feel for the actual experience. Emperio Armany does a lot of designing of the outlook but the real concept comes from the innovation teams working in the VIP center.
  • 34. Operation Strategy Companies and organizations making products and delivering, be it for profit or not for profit rely on a handful of processes to get their products manufactured properly and delivered on time. Each of the process acts as an operation for the company. To the company this is essential. That is why managers find operations management more appealing. Every company has an ultimate goal of delivering goods to a client, but the processes of designing, manufacturing, analyzing and then finally being delivered are the driving forces for any company's success. All the chunks of work processes collectively define a bigger purpose, the operations for that particular organization. The more effective these processes or operations would be, the more productive and profitable the business would be. Operations strategy is the tool that helps to define the methods of producing goods or a service offered to the customer Samsung Bangladesh R&D Center Ltd (SBRC) is the eighteenth and newest Research & Development center of Samsung Electronics Co. Ltd., housed in Gulshan, Dhaka. Its operation started in 2010 and officially inaugurated in February 2011. It is also the first IT R&D hub of a multinational company in Bangladesh. SBRC incepted with more than a hundred intellects in early 2011 with a plan to expand its workforce into a thousand engineers. This center develops mobile devices for Asia, Africa and Australia. It also focuses on advanced technology and conducts other IT researches. According to its management; SBRC is going to use the immense potential of Bangladeshi IT industry and software engineers. This center will have a synergy effect as the company will train the engineers and market its products in the region Divisions / Groups o Advanced R&D Group o Mobile Development Group o Software Engineering Group So far SBRC is the only office and sole proprietorship in Bangladesh for Samsung’s HHP. The rest of the operations are carried out through alliances made through strategic negotiations.
  • 35. LStrategic Alliances At first Samsung use to sell its mobiles though export to our country then afterwards it came up with a new idea of making strategic alliances with some of the leading companies to ensure its sales. o Logistics Alliance: Samsung made some strategic alliances for logistic purpose dividing them into two categories, Distribution channel and trade marketing. o Distribution Channel: The distribution Channels are responsible for ensuring product flow through their RDS (retail distributor stockiest) and convey the offers that are announced in time By Samsung as well as the distribution channel itself. Currently there are to distributors- o Electra International Ltd o Transcom Electronics Ltd o Trade Marketing: trade marketing deals with providing POSM ( point of Sales Materials) to the outlets having a signage or somehow related to the sales of Samsung Products. POSM’s include posters, danglers, broacher’s etc. trade marketing agency also has the responsibility of ensuring proper branding and capturing more outlets and convert or encourage them in to selling Samsung products. o Promotional Alliances: To take care of its promotional activities three more groups have been assigned ne for ATL Campaigns meaning all advertising activities, o ATL campaigns: the campaigns under BTL or commonly known as promotion and advertisement. Adcom Ltd. Mostly does these works o BTL campaigns: for the ATL campaigns Windmill Advertising Ltd was assigned and a project called SPC( Samsung Product Consultants )were recruited to generate sales create brand awareness, customer conversion, upholding features, customer service, conducting surveys, providing market intelligence about corresponding brands and all the necessaries. o Event Management: Another group Expressions Ltd. is assigned to organize the various events such as product launching, Inauguration ceremony, providing Brand promoters etc. o Service Alliances: After sales service is one of the crucial parts of any company to serve the mass volume of customer as soon as possible with the best service quality is no doubt quiet hard. o Customer Service: all the customer care and after sales services are provided by Discovery Communications Ltd. They receive and service sets in terms of hardware, software and technical support
  • 36. Target Market Prdoduct Place Price Promotion Marketing Strategy Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Samsung is always looking for new ways to understand the needs that will satisfy its customers. Part of the marketing strategy of the company is giving solutions to its consumers on its demand regarding the mobile services they need not just in home but also in their business and to the other aspect of their lives. In order to accelerate the purchasing cycle as well as to divert the versatility of the mobile phones the company recently launched the Galaxy series had released it new innovation in the mobile phones industry. With the mission of becoming the ultimate manufacturer of converged mobile devices offering rich applications and innovative technology that your make work experience easier, smoother and simpler whether it’s in your daily day life or in the business services. The company doesn’t stop there and it has still the planned of moving forward and meet the expectations of not just the company but also its consumers o Marketing mix: The marketing mix refers to the combination of elements within a company’s marketing strategy; these are designed to give the customer what they want and in the long term are designed to maximize profits. The marketing mix is based around the idea of the 4 P's: Product Place Price Promotion
  • 37. LProduct Samsung mobile provides high-tech phones to all consumers. These phones or products can be categorized under certain criteria such as for, price range, net, unique features as well as series. As product is the 1st mix element so here the existing products are being upheld. According to unique feature here products have been divided as entry level, FM touch, QWERY, dual SIM, slide, folding, 3G. o Guru Series: The entry level phones are known as the GURU series. The GURU series denotes the term as master. The main concept of this theme is to bring low range phones each mastering at some unique features. The features are torch, FM, music, camera. But all these are accumulated in a basic phone with low cost so it is unlikely to expect high end experience but all the elements are put together to give a splendid experience for a reasonable price. There are 6 phones under these categories in the product line but only the running products are disclosed here. E-1081T (Keystone T (F/C)): E-1081 is the entry level phone with just basic features as calling n text messaging along with Samsung’s minimal USP’s. This phone belongs to a series named GURU which is basically an entry level or low range series. The unique sales point of this product is that it has a torch. And thus the tag line-‘Slim and Sleek in Your Hand’. E-1175T (Kai T-FM): E-1175T is also another GURU series phones which has a unique sales point like torch and FM. It is a very stylish basic phone in black with a very satisfying talk time. It has been recorded to go on for the days in any average usage condition. The tag line for this phone was –‘Play Non Stop. FM Music’. E-2120i Zinnia VE (Zinnia VE): E-2120i is basic phone with the a memory card option enabling to enjoy music not only from FM but from a mp3 tracks that are stored in your memory card so you don’t have to listen to unwanted tracks on the radio and can enjoy the tracks that you want to hear. The memory card slot is expandable up to 2GB. Other than that also have wireless FM, torch and also Bluetooth. o Mid-Range: The mid-range products fall under a wide variety of series, Metro, Corby, Touch and Dual Series. Metro series is concept versioned at providing all the necessary daily applications embedded in a single phone that falls in to the buying capability of middle class people. Corby on the other hand is South Korean word which means friendship. The basic
  • 38. concept of Corby was to stay in touch with your friends through messages or SNS. There are some phones belonging to the mid range but not accumulated with any series. LProduct o Metro Series: These multimedia marvels have the perfect mix of entertainment, functionality and style for a new novel and trendy mobile experience. Slim and tough design, bigger screen, full multimedia and their dazzling metallic finish, that’s the Metro series, perfect for urban living. S-3310(Metro/Avila VE): S-3310 is the most effective phone in Metro series. It is stylish, slim, cheap, got 2MP camera, expandable memory up to 8GB, net accessibility and it comes in two colors- warm silver with balk and another with red. It is packed all the necessaries required within a metro life for the mediocre people. C-3200 (Metro Power/ Madras): C-3200 or even known as Monte bar is a very great stylish phone with comfortable grip. It fits so perfectly in to your grip giving a touch and feel experience. This phone is equipped with 2MP camera, expandable memory up to 8 GB, net accessibility, mobile tracker, SOS sms and unique music quality. S-3600 (Clifford VE): S-3600 is folding phone with 1.3Mp camera. It is a very strong and stylish set belonging to the Metro series. It is a complete multimedia phone equipped with all that you need. It has an expandable memory of 4GB. The tag line for this phone was “connected with style”. S-5200 (Pine): A stylish red and black sliding phone released to charm the Metro life of the people. It is equipped with 3.2MP camera with flash, mp3 player, expandable memory up to 8GB, internet connectivity and all that is desired. In line it could be said that-‘Impressive Style, Impressive Features”. o Corby Series: Sporting youth designs with bright colors, Samsung Corby Messaging Series empowers user with unique messaging features to connect with friends, stay updated and be in constant touch. While the QWERTY keypad enables fast texting, Chat style SMS brings the fun of chatting to messaging. Plus quick access to Social Networking Sites ensures that the excitement never ends. S-3653 (Corby colors): S-3653 or commonly known as Corby is a touch phone developed for SNS connectivity to stay in touch with all your friends. One other unique thing about this phone is that it has 5 attachable back covers so you could match it to your tone. This phone is packed with 2MP camera which has smile shot enabling to take pictures only when the person smiles. The other features are almost same. B-5310 (Corby Pro/Brooklyn): A full 3G side sliding QWERTY keypad phone equipped with Wi-Fi, 3MP camera, 16GBexpandable memory, full multimedia
  • 39. functions. It is a hybrid technology of touch and button. This is the best messaging phone of Corby series and hence the tag line-“I Touch, I Text, I Do it All’. LProduct o Dual Series: a mobile lifestyle that offers two times the power to manage work and life perfectly. With the dynamic Dual Standby Technology, users have the amazing convenience of 2 SIM cards (that are always on) in on phone- in order to switch between the best of both worlds in a snap. B-5722 (Rushmore): B5722 is one of Samsung’s unique touch phones which supports 2SIM cards at the same time and provides you dual stand by feature which means you can instantly switch from line 1 to line 2 within seconds. Other than this phone is packed with 3.2 MP camera and all the other multimedia functions as well as net connectivity. o Touch Series: the touch provides the greatest and most natural access to mobile. Through intuitive movements, simplified menus, and easy controls users are able to access a whole range of incredible applications from social networking site connections to instant messaging, web surfing, cameras, music play and FM radio. C-3303 (Champ): Champ is a low range touch phone focusing on music. It has dual loud speaker, 2MP camera, a stylus, expandable memory up to 8GB, accessibility to SNS and mail through net, applicable modem facility. It is compact with all most everything and thus the punch-‘Be a champion with Samsung Champ’ S-5620 (Monte): S5620 is a very stylish phone with 3G and Wi-Fi, GPS support, 3.2MP camera, Google sync, 3.5 mm Ear jack and an expandable memory of 16GB. It also has multi touch zoomingall together its –‘The Perfect Fit to Your Stylish and Connected Life’. o Premium Series: the Samsung Premium Touch Series. These one-of-a-kind mobiles offer world class features for perfect balance of- smart working and fascinating entertainment. A futuristic phone to make a world winning statement by expressing ones distinguished lifestyle S-3600 (Wave): A very classy phone with the unique Super Amoled touch screen, 1 GB processor, 5MP camera with flash, excellent multimedia features, GPS,3G, Wi-Fi and internet connectivity. It is one of Samsung’s prides with an OS (Operating System) Bada which happens to be one of Samsung’s own developments. I-9000 (Galaxy S): I-9000 is a premium phone with 1 GB processor, 5 MP camera, Google synchronization, layer, txt n go, e-book, GPs, 3G, Wi-Fi, think-free office, Super Amoled display and an OS of Android 2.1(éclair). It is Samsung’s one of the finest. P-1000 (Galaxy TAB): P-1000 is the latest buzz world wild including Bangladesh. It is a hybrid phone cum pc. A tablet pc and smart phone put together so that you can do all your office work, pc work and not to mention all the calling and receiving. It has a 5MP camera with 3G, Wi-Fi, net connectivity, think-free office and all that is required your office cubicle.
  • 40. LPrice The pricing of Samsung mobile phones are made depending on market movement of all the corresponding brands as well as organizational goals and certain marketing strategies. But if a categorization is to be made of the products by price then it could be divided into three groups adopted from a competitive pricing and penetration pricing strategy- entry level, Mid-level, high end. Seg1 Model Project Name MRP (BDT) Entry BGT-E1081T Keystone T(F/C) 1,870 BGT-E1175T Kai T-FM 2,100 BGT-E1160i Dholak VE 2,600 BGT-E2120i Zinnia VE 3,500 BGT-E2130 Tabla 3,950 BGT-E2152 Pampas 4,890 BGT-C3010S Stratus B 4,990 BGT-E2370 Mega cell 5,200 Mid BGT-C3200 Madras 5,590 BGT-E2550 Pine 5,690 BGT-S3310i Avila VE 5,990 BGT-C3212i Sling VE 6,490 BGT-C3300 Champ 6,490 BGT-S3600I Clifford VE 6,790 BGT-B3313 Nox 7,890 BGT-C3510 Genoa 8,990 BGT-S5200 Scotney 9,700 BGT-S3653S Corby colours 9,990 High- end BGT-S5350 Duras 10,500 BGT-B3410 Delphi 10,990 BGT-B5722 Rushmore 13,490 BGT-S5620 Monte 14,990 BGT-B5310 Brooklyn 17,000 BGT-S8500 Wave (2GB) 32,500 BGT-I9000/M16 Galaxy S (16GB) 46,900 BGT-P1000 Galaxy TAB 53,000 Table-1: Price Samsung’s pricing strategy has proven very effective, penetration pricing strategy for the premium phones and competitive pricing strategy for the rest. In most cases they first sell their products for high prices and have very limited sales but make big profits on each sale, they then lower the price of their product and have lots more sales but they make less profit, but they still make a large profit due to the amount of sales, but a drawback of these strategy is that Samsung is not making much market growth as for high quality products they sell them for slightly high price compared to competitors and that’s why Samsung has a very stable market share 15-17% for the
  • 41. past 3 years of the mobile phone market share in Bangladesh and are the biggest selling mobile phone company in the world. LDistribution Channel The term place refers to means of transportation; how the product will be made available. For these a medium is required. That’s where distribution channel comes into playas one of the most important tool for any mobile industry. If the products are not delivered to the outlets to the customer as per their demand and in due time it tends to lose a big amount of sale and customer faith towards the brand. For Samsung means of distributions was ensured through a logistic alliance with some local distributors to ensure the product flow in a smooth manner. The distributors are- o Electra International Ltd o Transcom Electronics Ltd These two distributors give requisition to the national distributor for the products they require then after shipment they disperse them to the showrooms and to the RDS. Then the RDs provide the products to the outlets. Figure-6: Distribution Channel So from the Graph we can see that first the national distributor brings the products then the regional distributors assigned geographically whether it is Transom(A) or Electra(B) pass it
  • 42. through to their showrooms and RDS’s. Then the RDS’s ensure the products to the outlets and the outlets sale them to the customers. LPromotion Promotions do not necessarily refer only to advertisement in mass media. In a highly competitive business world a company has to go beyond usual promotional strategy and look for new methods to attract customers. As Samsung believes in specification; for promotional activities it made some promotional alliances promotional activities three more groups have been assigned ne for ATL Campaigns meaning all advertising activities, o ATL campaigns: the campaigns under BTL or commonly known as promotion and advertisement. Adcom Ltd. Mostly does these works making posters, leaflets, brochures and other printable ads as well as mass media ads. o BTL campaigns: for the ATL campaigns Windmill Advertising Ltd was assigned and a project called SPC( Samsung Product Consultants )were recruited to generate sales through creating brand awareness, customer conversion, demonstrating features, customer service, conducting surveys, providing market intelligence about corresponding brands and all the necessaries. o The campaigns done through BTL are a new concept in the promotion strategy. The introducement of SPC has proven to be very successful and now being implemented in other countries as well. SPC’s work as the eyes of the company, a mobile surveillance and brand awareness process all integrated to a single entity in order to generate sales. o Event Management: A big company like Samsung has to host a lot of events inviting the high profile individuals, celebrities and CEO’s as guests to announce or and share some news, such events works as both a relationship management tool as well as promotion as news and press briefings. A group named Expressions Ltd. is assigned to organize the various events such as product launching, Inauguration ceremony, providing Brand promoters etc.
  • 43. LCustomer Care The element ‘people’ of the marketing mix refers to the service and other privileges provided to the customers. After sales service is one of the crucial parts of any company to serve the mass volume of customer as soon as possible with the best service quality is no doubt quiet hard. To ensure best customer service Samsung made and Service alliance with Discovery Communications Ltd. who receive and service sets in terms of hardware, software and technical support The customer care service of Samsung can be divided into three categories. After sales service, helpline, and online complain or suggestion box. All three categories are focused on providing customer care whether it is after sales or post sales. o After Sales: after sales services are provided by Discovery. Any hardware, software, technical difficulties or malfunctions are solved under the service center. In case of warranty products are serviced free of cost for up to 1 year upon purchase. But for non-warranty or parallel import products services are provided for a charge including cost of parts and service charge. o Helpline: Helpline provides 24 hrs. services to the customer over the phone. A dedicated call center is equipped with trained people with vast product knowledge to service the customer with the information’s they query. o Email: there is a dedicated email address for those who like to leave comments, complains or suggestion about the products they have used or queries about the products they want to use Putting these three together Samsung tries its heart and soul to meet the customer satisfactory service demand. But fact to be noted is that as because Samsung is still new to the market so It is yet to establish adequate amount of service centers and helpline support as demanded by the rapidly customers.
  • 44. LSWOT Analysis Strength There is no doubt Samsung mobile as brand is one of the world’s sophisticated technologically advanced brands. It has unique technologies in built within most of their mobile phones which are known as USP (Unique Sale Point). Such as mobile tracker, internationally standard camera, reject list, SOS sms and most unique of them all a dual stand by dual SIM technology which no other mobile industry currently possess here in Bangladesh. o Technology: Samsung is known throughout the world for its superior technology. They are technological leaders with very few too match. Being originally and electronics company works as an extra advantage as any R&D of any of the industries leads to opportunities for all the other integrated industries under the wing of Samsung. It has been pioneers for so many technologies that it’s hard to count. In case of recent mobile industry news Samsung is the first company to come up with Super Amoled display Technology. o USP (Unique Sales Point): Every Samsung mobile is equipped with some or all the USP. Such USP consists of Advance Mobile Tracker, SOS sms, voice recorder (without beep), rainbow color font, Google sync etc. o Advance Mobile Tracker: Mobile tracker is an option embedded in almost all Samsung phones which enables the user to track his/her phone if it gets stolen. If the mobile tracker is activated then every time the stolen phone is switched on the no. and network location will be automatically texted to two denoted no’s set by the user. In Advance Mobile tracking you can even cut copy or delete everything or anything as per your choice from phone memory. o SOS sms: SOS sms is a unique feature which is a life saver. This feature enables you to set 5 emergency contact no’s(friends or family), in case of danger by pressing the volume key down 5 times SOS sms are send to the 5 nominated persons and the phone automatically goes silent. Any incoming calls are auto received and multiple calls are conferenced in loudspeaker mode with a radius of 50 meters where the caller can hear and consult or come up with a rescue plan. o Rainbow Color Forts: This feature is very handy for people with narrow vision. Every Digit is represented in different color and in bold Fonts so it easy to read or to understand. o Core competency: The core competency of Samsung mobile is its dual SIM (dual standby) technology. In recent day’s dual SIM phones has become one of must haves of all spheres of people in Bangladesh. There are a lot of Brands and non-brands providing dual SIM facilities too. But Samsung has something that no one else does. Dual stand by which
  • 45. means that when you are talking on line 1 if another call comes on lin2 you can easily switch calls. In most other phones if you are talking on line 1 then your line 2 is shown busy. LSWOT Analysis Weakness While being the leader in technology like all brands Samsung also lags back in certain criteria. For instance the graphical visualization and the outlook of the phones are often not found that alluring to the customers. The under construction supply chain, service center and Brand shops adds up to another big weakness to overcome. o Graphical visualization: The graphical visualization of mass sets is very old fashioned. No matter how stylish or smart the phones look if the visualization of the inside is need so overwhelming than that may become a turn off to many customers. o Under constructions: Samsung has started its operations in Bangladesh more than a year ago hence most of its system and processes are yet under constructions which may give an upper hand to its competitors. o Supply chain: The whole supply chain is still under going fine tuning due to which the proper flow of product is not yet established. o Service center: Samsung mobile has only established a handful of service centers which is not yet sufficient to meet the ever increasing customers in such rapid rate. o Brand shop: Samsung has recently launched its first Brand shop in Bangladesh situated at Gulshan-2. More brand shop is undergoing construction. o Originality: Original accessories are not yet been started to be imported by Samsung due to which Samsung phones cannot perform at its best in synchronization to the cheap Chinese accessories. o Versatility: Bangladesh is a highly populated country which means a lot of customers with a wide array of demand. It is hard for any Company to meet all the demand and as majority people are of low or middle income rate so the price consideration is top priority for most.
  • 46. o LSWOT Analysis Opportunity As it is all about for Samsung there is lot of opportunities to explore the local trend and implement techy stuffs accordingly. Most people are unaware of the technologies that are embedded within the sets. But in a country of over 16 crore and 80% of them being poor to whom mobile is a must indicates a greater market than anywhere else in the world. o Market capture: Bangladesh mobile market is still booming so there are a lot of opportunities to move and capture. But as time goes it is getting more and more competitive and difficult to capture the whole market unless a strong and aggressive marketing strategy is implemented. o Patronage: in case of every growing market it is usual for competitors to rushing trying to get grip of some of the action. Samsung has been providing many companies with electronic raw materials such as conductors, chips, motherboards, transistors, battery etc. o Technological leadership: In Bangladesh the penetration level of smart phones and cellular phones is lower as compared to other developing countries. Samsung being the worldwide leaders of technology has the opportunity to empower the technological advancement of mass people o Green Field establishment: So far all the companies are just importing products from their convenient production plants. But in a country where labor cost is low and land is cheap with less legal barriers it’s suitable to start a green field establishment and set up a plant. o Pioneering: Overlooking all the criticism and pessimism Samsung has established its R&D center in Bangladesh. No other mobile company has yet any R&D’s in Bangladesh. The combination of A R&D and its own production plant may lead to untold opportunities as pioneers in Bangladesh. o Multiple niches: The lucrative mobile market is drawing competitors every day and getting harder to penetrate every bit of the way. But on the other hand Samsung is worldwide leader so does not need to worry or think of them as a threat rather see them as an opportunity for Samsung to patch up the loose ends and start in full swing while others are kept busy struggling and competing with niches.
  • 47. o Unexploited rural market: There are 117038162 people which is about 75% of the total population living in the rural areas and mostly working as wage earners. Recent statistics has shown they are one of the biggest customers of entry level mobile phones. So far no company has included them in their market segment. LSWOT Analysis Threat To ensure technologies Samsung faces a threat from corresponding brands as they can enjoy a bigger price cut and put the pressure on Samsung. Moreover, most of the advanced technologies are not applicable in Bangladesh so the cost effectiveness of the product is a bit of a turn off. The existence of PI (parallel Import) products poses the greatest threat of them all. Getting the same product without a warranty card may save some money and money is of value to all specially to the struggling people for whom originality is not a fact it’s rather the price cut that matters. o Price pressure: the presence of so many competitors and multiple niches creates a very sharp price pressure. Price is forced to be set s low as possible as because the niches are following market captures strategies with low price with cheap multimedia products. o Developing country: as Bangladesh is yet a developing country most of Samsung’s technologies are unadoptable at this moment so Samsung can’t truly flourish its charm and excellence in full swing. o Illegal entries: Around 0.2 million mobile phone sets is illegally entering the country every month a significant amount of which consists of Samsung products getting shipped through luggage or some other media known as non-warranty or parallel import. Such imports re sold at cheaper price as because no taxes are added to their price and in many cases they are used or reconditioned. This causes a major threat as it triggers a bad impact in consumer mind about brand image. o Mass competition: Competition is huge here in Bangladesh with more and more interested companies entering the market every day. With a gross target customer of 12-14 crore people it has become like a gold mine as no foreign inflation or world crisis has much effect here as we have very few direct foreign investments in our country. o Higher import duties: As per government rules everyone has pay 12% tax on every mobile set imported in to our country whereas, it takes only Tk. 100-150 to bring a handset into the country through illegal way. Such heavy taxes on mobile phones have led to uneven competition with smuggled phones.
  • 48. o Cheap imports: About 35% of the total market share is owned by brand and non- brand cheap imports from china. Chinese phones offer full multimedia phones in a very cheap price compare too quality brand phones. For this very reason Nokia lost 10% of its market share. LAnsoff Matrix The Ansoff Matrix approaches product mix or portfolio management from a different point of view to Product Life Cycle Analysis and the Boston Matrix. Instead of focusing on profitability or sales, the Ansoff Matrix outlines the options open to firms if they wish to grow, improve profitability and revenue. These options indicate to how to manage the development of the product range. The objectives of these matrix is to- o outlining the range of marketing options open to a firm o managing the marketing of a product or brand over its life cycle Here in this matrix the possible options available for Samsung to increase sales and create growth, our shown in four choices of action Figure-7: Ansoff matrix PRODUCT NewExisting MARKET ExistingNew
  • 49. o Market Penetration: Focusing on existing products for existing markets, means that the firm aims to increase sales within its present market place. To be successful at market penetration firms must be aware of what has made the product a success in the first place. The firms marketing strategy should be based on this existing relationship. The penetration strategies open to Samsung are- LAnsoff Matrix o Attract customers who have not yet become regular users, but are occasional users. o Attack competitor’s sales. o Increase consumption amongst existing users o Market Development: taking the option of market development, the objective will be to find new markets (female) for the firms existing products (Lady Phones). There are two broad market development strategies- o Identify users in different markets with similar needs to existing customers. o Identify new customers who would use a product in a different way. o Product Development: in an attempt to increase profitability and growth by introducing new products (basic phones) targeted at the existing customer (rural) base the option of product Development are- o Examining the purchasing habits of customers and then expanding the product range to match these habits. o Diversification: developing new products corporate phones) for new markets (corporates, business people etc.) maybe attempted if the new opportunity is cost effective with the investment funds available or as an alternative action to reduce pressures in existing markets or on existing product ranges. The final decisions, new markets, new products etc. are of course down to the firms involved, but the role of the matrix is not to make decisions but to provide an outline of alternative methods of achieving the final goal- growth.
  • 50. LPoter’s Five Forces Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Figure-10: Poter’s Five Factors On this basis the elements of each of the five factors a short table is made showing the strength or effect of each factors on Samsung Mobile as well as any other mobile company in Bangladesh. Strength referring to their influence is shown as high, moderate and Low. Five Forces Strength Entry Barriers Low Bargaining power of Customers High Bargaining power of Suppliers Low RIVALRY
  • 51. Availability of Substitutes High Existing competitive pressure Moderate Table-2: Poter’s five force analysis Findings suggest that there exist a positive environment to run business and make Greenfield Establishment. LSurvey Analysis A big part of the analysis is based on survey conducted on respected sources which was afterwards interpreted through software generated graphs for better understanding. In order to understand the nature and rationale behind such analysis a brief explanation of the procedure is explained below. o Data Source: This report was prepared after collecting data from the retailers/ dealers, customers. o Primary Data: Primary data were collected by personal surveillance and interview with retailers/ dealer as well as surveying the customers based on a questionnaire. o Secondary Data: Information regarding the project was collected from various studies conducted in last few years and various other records of company. o Method of Data Collection: Personal surveillance, In-depth interview and survey. o Sampling Method: a simple random sampling method was used to choose the respondents. o Sample Size: a sample of 10 from a population of 50 SPC outlets to collect their share of data and information about sales, market, and customer. o Research tools: a Questionnaire survey was used as a research tool. o Research area: a total 10 areas from 4 districts were covered in this research. Comprising of Dhaka Dist.: (Panthopoth, Science lab, Uttara, Shadarghat, Mirpur, Shantinagra, Gulshan), Comilla dist.: (Kandirpar), Narayangonj Dist. : (Chashara) and Chittagong Dist.:( Nasirabad).
  • 52. LSurvey Analysis o Survey Question: Gender of Respondent: o Male o Female o Survey Result: male = 57 Female = 43 Graph-1: Gender based purchase o Purpose and Explanations: The main purpose this question was to know the ratio of the consumer’s gender to understand the buying behavior of them. This behavior pattern of the customers can give Samsung a key indication of whether the company should consider introducing Lady Phones to the current product line. According to the survey, it shows that about 57% of the people are male and the rest 43% are female. From which it can be said, that there is substantial
  • 53. amount of female consumers who purchase Samsung and will find the range of Samsung’s Lady Phones very attractive. LSurvey Analysis o Survey Question: Age of Respondent: O 15-24 age o 25-34 age o 35-44 age o 45-54 age o 55 above o Survey Result: o 15-24 age = 23 o 25-34 age = 30 o 35-44 age = 25 o 45-54 age = 14 o 55 above = 8 Graph-2: Aged based purchase o Purpose and Explanations: The main purpose this question was to know the effect of age of the consumer’s on their buying behavior and understand the concentration. This behavior pattern of the customers can give Samsung a key indication on a possible product line. According to the survey, it shows that about 23% of the people are within the age cap of 15-
  • 54. 24, 30% belonging to the age cap of 25-34, 25% of them are in the age group of 35-44, 14% falls into age group of 45-54, and the rest8% are of age 55 and above. From which it can be said, that the teens and the late thirties are the main mobile customers. So it is necessary to understand their need want and demand so that they can be added to the set features. LSurvey Analysis o Survey Question: Occupation of Respondent: o Student o Businessman o Service holder o house wife o Wage earner o NRB o Survey Result: o Student = 18 o Businessman =30 o Service holder = 24 o House wife = 10 o Wage earner = 13 o NRB = 5 Graph-3: Occupation of respondents o Purpose and Explanations: The main purpose this question was to know the Occupation of the consumer’s and how if effects buying behavior. This behavior pattern of the customers can give Samsung a key indication on a possible product line. According to the survey, it shows that about 18% of the customer is student, 30% belonging to the businessman group, 24% of them are service holder, 10% are house wife, 13% are wage earner and the rest 5% are NRB (Non Resident Bangladeshi). From which it can be said, that the businessmen, service holders and the students are
  • 55. the main mobile customers of Samsung. So it is necessary to understand their need want and demand so that they can be added to the set features. For the students it could be net and music, for the businessman and service holder’s corporate phones, dual SIM, office etc. LSurvey Analysis o Survey Question: Brand preference of Respondent: o Nokia o Sony Ericsson o Symphony o Maximus o Micromax o iphone o Samsung o Others o Survey Result: o Nokia = 43 o iphone = 1 o Sony Ericsson = 21 o Samsung = 17 o Symphony = 9 o others = 1 o Maximus = 3 o Micromax = 5 Graph-4: Preferred brand o Purpose and Explanations: The main purpose this question was to know the buying preference of the consumer’s. This behavior pattern of the customers can give Samsung a key indication of their competitor’s current mindshare and customers demand. According to the Preferred Brand
  • 56. survey, it shows that about 43% of the people prefer Nokia, 21% seems to prefer Sony Ericsson, 9% of them prefer Symphony, 3% prefer Maximus, 5% prefer Micromax, 1% prefers iphone, 17% prefer Samsung, and the rest 1% prefer other brands. From which it can be said, that most prefer Nokia due to its user friendliness and durability and some prefer Sony Ericsson due to its superb Camera and music features. In order to capture their market Samsung will have come up with features that can match or compete with them. LSurvey Analysis o Survey Question: Frequency of purchase of Respondent: o in every one year or less o in every 1-2 year o in 2- 3 year o in 3-4 years o never changed yet o Survey Result: o in every one year or less: 11 responses o in every 1-2 years: 17 responses o in every 2-3 years: 8 responses o in every 3-4 years: 3 responses o never changed yet: 1 response Graph-5: Frequency of purchase o Purpose and Explanations: The main purpose of ours behind this question was to know that how frequently consumers change their mobile sets. This behavior pattern of the customers can give Samsung a key indication of when the company should precede its selling strategies. According to the survey, the findings were that about 25% of the people change 0 5 10 15 20 <1 year 1-2 years 2-3 years 3-4 years never changed 11 17 8 3 1 Nnumberofpeople Periods Number of responses
  • 57. their sets within one year. 40% of them change their sets within 1-2 year. 20% of the people change their sets within 2-3 years. From these findings we can say that, most of the people usually change their sets in 1-3 years of time and from the demographic profile we can find out the different age group of the customers who are showing different usage pattern in terms of their loyalty. LSurvey Analysis o Survey Question: While buying mobile phone, the most valuable feature to me is (please rank in order of preference) o Price o Size/weight o Packaging facilities o Shape/style o Durability o Extra added features o Availability o Visual and sound quality o Survey Result: o 1st preference: Price-14 responses, durability- 8 responses, visual and sound quality- 6 responses, shape/style- 5 responses, extra added features- 5 responses, packaging facilities- 2 responses. o 2nd preference: durability- 13 responses, price- 9 responses, visual and sound quality- 8 responses, shape/style- 5 responses, extra added feature- 4, availability-1 response. o 3rd preference: visual and sound quality- 9 responses, price- 9 responses, size/weight- 7 responses, shape/style- 5 responses, extra added features- 3 responses, durability- 3 responses, packaging facilities- 3 responses, availability- 1 response. o 4th preference: shape/style- 9 responses, size/weight- 8 responses, visual and sound quality- 6 responses, availability- 6 responses, durability- 5 responses, extra added features- 3 responses, price- 2 response, packaging facilities- 1 response. o 5th preference: availability- 1response, packaging facilities- 6 responses, size/ weight- 3 responses, extra added features- 10 responses, price- 1 response, shape/ style- 3 responses. o 6th preference: availability- 9 responses, packaging facilities- 6responses, size/ weight- 6 responses, extra added features- 3 responses, price- 2 responses, shape/ style- 8 responses.
  • 58. o 7th preference: availability- 13 response, packaging facilities- 10 response, size/ weight- 6 responses, extra added features- 4 responses, price- 1 response, shape/ style- 1response. o 8th preference/ least preferred: availability- 11 response, packaging facilities- 8 response, size/ weight- 8 responses, extra added features- 8 responses, price- 3 responses, shape/ style-2 responses. LSurvey Analysis Graph-6: Preferred features o Purpose and Explanations: The rationale behind asking this question to the people was to know, while buying mobile sets which features are important to them and which features are less likely to influence in their purchase behavior. From the survey result we can see that, the most important feature to the people is the price where we have got 14 responses out of 40 people. So this is nearly about 35% of the total sample. Durability also doesn’t lack behind. From our survey we came to know people like to buy sets which are long-lasting. Durability has been preferred second by 32.5% of the respondents. Also, visual and sound quality of the sets is important features to the consumers while buying mobile sets. Visual and sound quality got 9 responses which is 22.5% of the total response as being the third most important feature that influences consumer purchase behavior. From the survey, it also came up that the least important features to the customers in buying sets are their availability, packaging facilities and size/weight. About 25% of the people thought that these features can 0 10 20 30 40 50 price packaging facilitie durability availability size/weight shape/style extra added features visual & sound quality 14 2 8 5 5 6 9 13 1 5 4 8 9 3 3 1 7 5 3 9 2 1 5 6 8 9 3 6 1 6 8 1 3 3 10 8 2 9 2 9 6 8 3 1 1 10 1 13 6 1 4 4 3 8 11 8 2 8 Number of Responses ValuableFeatures 1st preference 2nd preference 3rd preference 4th preference 5th preference 6th preference 7th preference 8th preference
  • 59. least influence their decision making. Other features like shape/style and extra added features of the mobile sets are important to the customers who have already bought several mobile sets and never afraid of trying out new products. They are least affected by the price and may be durability. So, from all these analysis Samsung can draw out its product development and positioning strategies that could benefit the company in the long run. LSurvey Analysis o Survey Question: Put a tick mark in the appropriate box. [1= strongly agree 2=agree 3= neutral 4=disagree 5= strongly disagree] 1 2 3 4 5 a. I like to consume the same brand each time b. If the price is slightly high than competing brands, I would still buy it c. If I get better services from other brand then I would switch to that brand even though I am a regular consumer of the current brand d. There is no guarantee that a leading brand will always provide me with higher safety o Survey Result: o a: [1] 12 responses, [2] 9 responses, [3] 8 responses, [4] 5 responses, [5] 6 responses. o b: [1] 14 responses, [2] 11 responses, [3] 10 responses,[5] 5 responses. o c: [1] 12 responses, [2] 9 responses, [3] 8 responses, [4] 5 responses, [5] 6 responses. o d: [1]14 responses, [2]7 responses, [3] 8 responses, [4] 5 responses, [5] 6 responses.
  • 60. Graph-7: Brand loyalty issue LSurvey Analysis Graph-8: Brand and price Graph-9: Switching 12 98 5 6 a. I like to consume the same brand each time: agree strongly agree neutral disagree strongly disagree 14 11 10 0 5 b. If the price is slightly high than competing brands, I would still buy it agree strongly agree neutral disagree strongly disagree 12 98 5 6 c. If I get better services from other brand then I would switch to that brand even though I am a regular consumer of the current brand agree strongly agree neutral disagree strongly disagree
  • 61. Graph-10: Brand faith o Purpose and Explanations: The purpose of the first question is to know whether the consumer is brand loyal or not by looking at his/her consumption behavior. 12 people out of 40 agree to purchase the same brand of mobile. So, it is nearly 30% of the total population and among other 70% of population, 22.5% of them (8 people out of 40) strongly agree in buying the same brand each time of their consumption. So, total 52.5% of the population seems to be brand loyal although in the later cases we will see this number to fluctuate in different aspects. LSurvey Analysis In the second case, it was asked that if the price is slightly high of their preferred brand than its competing brands would they still buy it or not. From the survey it was found that got 30% of the total population who agree and 27.5% of the total population who strongly agree to keep buying the brand that they prefer even though the price gets slightly high. From this analysis we can say, price change has a very little effect on brand loyalty. But 10 people which are the 25% of the total population are neutral in this aspect. So, this one fourth of the population either may stick to their brands or they will switch to other brands. In this regard, company has to be very careful of categorizing its customers while applying its price change strategies. In the third case, the intention was to know whether the people would switch to other brand if they get better services from them. Among 40 people only 6 people which are only 15% of the total population have strongly disagreed to switch their brands even though they get better services from other brands. So, the number of loyalist decreased from 52.5% to 15% when there is better service available from other brands. 12.5% of them also disagreed and they may also stick to the brand that they are already consuming. But 12 people which is 30% and 9 people which is 22.5% of the total population have agreed and strongly agreed respectively to switch 14 78 5 6 d. There is no guarantee that a leading brand will always provide me with higher safety agree strongly agree neutral disagree strongly disagree