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Letter of Transmittal
November 25, 2015
Dewan Golam Yazdani Showrav (DYS)
Lecturer
Department of Business Administration
Daffodil International University
Re: Submission Of final Report on” An Evaluation of Samsung’s mobile Marketing
Strategies in Bangladesh.
Dear Sir,
It is our privilege to submit the final report on”An Evaluation of Samsung’s mobile Marketing
Strategies in Bangladesh’’ to you, which we prepared by working on 2 weeks.
We earnestly believe & hope that this report would help us to utilize our reporting skills and also
enrich my marketing research abilities. We tried our best to look deep within the matters and
make full use of our capabilities in making the study meaningful and worthwhile. Please
consider all mistakes and shortcomings as a result of human limitations.
Now we have placed this report before you for your kind approval. we hope that our report will
satisfy you. For Any kind of queries, we would be available at your convenience.
Thank you
Sincerely yours,
38th
Batch Sec- A
Department of Business Administration
Daffodil International University
2
Acknowledgement
In this project we have made an honest and dedicated attempt to make the research material as
authentic as it could. And we earnestly hope that it provides useful and workable information and
knowledge to any person reading it.
During this small time frame the project reached its completion, there were a few people whom
we would like to make a mention of and without whose help the project would have never seen
the light of the day.
At first we express our 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 we express our sincere gratitude and intentness to our internal guide, my honorable teacher
Dewan Golam Yazdani Showrav (DYS) Lecturer. Department of Business Administration
Daffodil International University, under whose supervision and proper guidelines, this report has
been prepared. During preparation of this report, we 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-
We would like to thank the Samsung Product Consultant team, who helped me by their friendly
cooperation in providing so much information within the limited time.
We have also received guidelines and assistance from various persons and institutions during
preparing the report.
3
4
Executive 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
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. 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.
5
Introduction
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.
History
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.
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
6
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.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. ces 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.
7
Mission
Samsung’s mission seems focused in building its brand and
Becoming a creative leader in new markets. It looks like Samsung is set to change its reputation
of being fast followers, a company that succeeds through watching others pioneer new
technologies and markets and then rush in behind. This was seen when Samsung lost a
High profile case to phone after being accused of the company’s phones were phone’s rip
-offs that violated a number of patents
Vision
Inspire the world, create the future”, Is Samsung mission
Statement in its vision 2020. With this new vision, Samsung commitment is to inspire its
communities by taking advantage of its key strength, creative solutions, innovative products and
new technology, as they continue to promote its new values for Samsung core networks. This
includes industry, partners and employees. Samsung hopes to contribute a better world and rich
experience for all, using this efforts. Also as part of its vision, Samsung has a plan to reach $400
billion in
Revenue and be classified as worlds’ top five brands by 2020.
8
PESTELAnalysis
P for Political factors
In most markets, the political environment is favorable to Samsung’s operations. Still, there are
minor problems. The proposed budget for the current fiscal year has put the value added tax
(VAT) on smartphone imports to 15% and Advanced Income Tax (AIT) to 5%, making the total
cost of importing a smartphone subject to a tax of 20%, which is a 5% increase from the
incumbent fiscal year’s regulations. This is highly problematic for manufacturers of Samsung
and LG. Samsung faces political pressures. The political environment is unstable in these
locations.
E for Economic Factors
PESTEL
Political
Economic
Social forces
Technologycal
Enviromental
Legal
9
The Bangladesh telecoms industry has witnessed rapid growth over the years and is dominated
by foreign investors. The government has emphasized the development of software services and
hi-tech industries under the Digital Bangladesh scheme. n 2015, per-capita income stood at USD
1,314. While achieving significant macroeconomic stability, Bangladesh continues to face
challenges such as infrastructure deficits and energy shortages. Samsung mobile manufacturers
will benefit from a surge in demand as the economy recovers and consumer sentiment rises, and
increasing demand from downstream industries. Moreover, as the unemployment rate decreases
and per capita disposable income rises, consumers are expected to increase discretionary
spending, particularly on electronics such as smart phones. Growing consumer demand and d for
high-definition broadcasting technology and the expansion of 3G and 4G handset has helped
reverse downward revenue trends. This factor is very critical for Samsung. The opening up of
some developing markets meant it had to re-think the economic factor. While the company could
expand its global footprint, it also had to worry about the ongoing economic crisis. The reduced
purchasing power of buyers in many markets forced to find a profitable solution.
S for Social and Cultural Factors
Samsung is a South Korean Chaebol. This means it is a family-owned multinational. Despite its
global image, the firm still operates as a Korean company from within. For this reason, they
change many aspects of global operations according to the local conditions. In simpler words,
global company Samsung has had to act locally in many emerging markets.
Moreover, Samsung had to change its products to match the rapidly changing consumer
preferences in certain markets. Samsung operates in a market niche influenced by the consumers’
lifestyle preferences. Socio-cultural factors vary in each country. So, it has to reorient itself
accordingly.
T for Technological
10
Samsung is among the world’s leading innovative companies. The company has an advantage in
using the power of technology. It can drive innovation for sustainable business advantage. They
have made this an obsessive mission to maintain leading position. The aim is to always stay
ahead of the technological and innovation curve. They aim to dominate competitors by being the
first to offer latest products to the market.
E for Environmental
All businesses impact its environment. Some have a positive impact while others have a negative
effect. The degree of impact varies too. Samsung must keep pollution or waste in mind. It can
also have a positive impact on the environment by processing and cleaning waste. These factors
will affect the company, but they will not have an immense toll on its trade and profit generation.
This is because environmental factors have a direct effect on agricultural businesses only.
L for Legal Factors
Samsung had to pay heavy penalties for charges that it imitated. This accusation led public
perceptions of the company to worsen. The consumer approval of its strategies was also
hampered. Everyone waited how the start-up would squeeze out of the legal maze.
There were concerns that the event hampered Samsung’s reputation permanently.
Many even concluded that the team expanded markets because of the range of lawsuits
11
SWOT Analysis
Samsung mobile SWOT analysis
Strengths Weaknesses
1. Hardware integration with many open source
OS and software
2. Excellence in engineering and producing
hardware parts and consumer electronics
3. Innovation and design
4. Focus on environment
5. Low production costs
6. Largest share in mobile phones and 2 place in
smart phones sales
7. Ability to market the brand
1. Patent infringement
2. Too low profit margin
3. Main competitors are also largest
buyers
4. Lack its own OS and software
5. Focus on too many products
12
Opportunities Threats
1. Growing India’s smartphone market
2. Growing mobile advertising industry
3. Growing demand for quality application
processors
4. Growth of tablets market
5. Obtaining patents through acquisitions
1. Saturated smartphone markets in
developed countries
2. Rapid technological change
3. Declining margins on hardware
production
4. Breached patents
5. Apple’s TV launch
6. Price wars
13
STP analysis
MarketSegment:
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.
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.
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.
14
Value Maximizes: 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.
DesignEssentials: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.
Simplicity Seekers:the people of this segment like to keep it simple and use phones as a
basic mean of communication.
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 maximizes and Music essentials.
Consumer Markets Segments o Geographic:
World region – Asia, China Country – Bangladesh Cities – Reach out maximum places
Demographic:
Age – All age group Gender – Male, Female Income – All income groups Occupation – Every
sector Religion – Irrespective of religion
Psychographic: Social class – All class of people
Lifestyles – Urban, rural, and even far villages
Behavioral: Benefits – Technology
Loyalty Status: Moderate
Price Segments
Range 1: (1000tk – 5000tk) Entry level
VGA camera, Bluetooth, 2GB memory card slot as well as FM radio
Range2: (5100tk – 15000tk) middle level
Memory, MP camera, 3G, Wi-Fi, SNS and push email.
Range 3: (15000 above) High-end users
15
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.
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.
16
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
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.
Price
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
Target
marketing
product
Place
price
Promotion
17
adopted from a competitive pricing and penetration pricing strategy- entry level, Mid-level, high
end.
Distribution 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
distributor’s are-
Electra International Ltd
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.
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.
18
Promotion
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,
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.
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.
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.
19
Customer Care
All three categories are focused on providing customer care whether it is after sales or post
sales.
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.
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.
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.
20
Poter’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
21
Five forces Strength
Entry Barriers Low
Bargaining power of Customers high
Bargaining power of Suppliers low
Availability of Substitutes high
Existing competitive pressure Moderate
Conclusion
From all the analysis made it could be said that Samsung certainly is in the right track to become
market leaders in Bangladesh. As they are doing market studies so all the plans are still in the
initial level require a long period of time to be implemented. Samsung has a strict policy of
operating very small units as they think that big company losses market sensitivity and customer
expectation level. Nevertheless, Samsung is huge company operating in more than 130 countries
in the world.
22
Our learning:
1. We gather practical experience from this report
2. We get opportunity to do field work
3. We learn about communication with others.
4. We also learn practical knowledge in the context of our text books.
Bibliography
Book
1. Philip Kotler & Kevin Lane Keller , Marketing Management, 12th edition, India: Asoke K.
ghosh, Prentice Hall of India Private Limited.
Internet
1. Samsung Mobile
2. CIA World Fact Book 2010
3. http://www.scribd.com/
4. Bangladesh Mobile Phone Importers Association (BMPIA)
5. Slide share
23
Report
1. Md. Mehedi Hasan & people (2010) Customer Driven Marketing Strategy of Nokia,
[Assignment], Dhaka: EWU.
2. Mir Hossain Ekram (2010) Possibilities Of Foreign Direct Investment in Bangladesh
Mobile Telecom Industry: an Analysis, [Report], Dhaka: IUB
3. MEHRAB A. ISLAM. Bachelors of Business Administration. Daffodil International
University interne report 2011.
Direct information:
Name : Contract numbers :
1. Md. Ashek Mahmud 01723464000
2. Manash Shaha 01670910067
3. Sabina Yesmin 01855950612
4. Tanvir Ahamed 0191228899
24
Some pictures of our group work:
25
Thank you
Contents
Introduction.......................................................................................................................................5
26
History...............................................................................................................................................5
Mission..............................................................................................................................................7
Vision.................................................................................................................................................7
PESTEL Analysis ..................................................................................................................................8
SWOT Analysis..................................................................................................................................11
Samsung mobile SWOT analysis................................................................................................11
Strengths...................................................................................................................................11
Weaknesses..............................................................................................................................11
Opportunities ............................................................................................................................12
Threats.....................................................................................................................................12
STP analysis......................................................................................................................................13
Marketing Mix..................................................................................................................................16
Customer Care.................................................................................................................................19
Poter’s Five Forces............................................................................................................................20
Conclusion.......................................................................................................................................21

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Samsungmobile in bangladesh report

  • 1. 1 Letter of Transmittal November 25, 2015 Dewan Golam Yazdani Showrav (DYS) Lecturer Department of Business Administration Daffodil International University Re: Submission Of final Report on” An Evaluation of Samsung’s mobile Marketing Strategies in Bangladesh. Dear Sir, It is our privilege to submit the final report on”An Evaluation of Samsung’s mobile Marketing Strategies in Bangladesh’’ to you, which we prepared by working on 2 weeks. We earnestly believe & hope that this report would help us to utilize our reporting skills and also enrich my marketing research abilities. We tried our best to look deep within the matters and make full use of our capabilities in making the study meaningful and worthwhile. Please consider all mistakes and shortcomings as a result of human limitations. Now we have placed this report before you for your kind approval. we hope that our report will satisfy you. For Any kind of queries, we would be available at your convenience. Thank you Sincerely yours, 38th Batch Sec- A Department of Business Administration Daffodil International University
  • 2. 2 Acknowledgement In this project we have made an honest and dedicated attempt to make the research material as authentic as it could. And we earnestly hope that it provides useful and workable information and knowledge to any person reading it. During this small time frame the project reached its completion, there were a few people whom we would like to make a mention of and without whose help the project would have never seen the light of the day. At first we express our 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 we express our sincere gratitude and intentness to our internal guide, my honorable teacher Dewan Golam Yazdani Showrav (DYS) Lecturer. Department of Business Administration Daffodil International University, under whose supervision and proper guidelines, this report has been prepared. During preparation of this report, we 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- We would like to thank the Samsung Product Consultant team, who helped me by their friendly cooperation in providing so much information within the limited time. We have also received guidelines and assistance from various persons and institutions during preparing the report.
  • 3. 3
  • 4. 4 Executive 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 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. 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.
  • 5. 5 Introduction 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. History 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. 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
  • 6. 6 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.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. ces 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.
  • 7. 7 Mission Samsung’s mission seems focused in building its brand and Becoming a creative leader in new markets. It looks like Samsung is set to change its reputation of being fast followers, a company that succeeds through watching others pioneer new technologies and markets and then rush in behind. This was seen when Samsung lost a High profile case to phone after being accused of the company’s phones were phone’s rip -offs that violated a number of patents Vision Inspire the world, create the future”, Is Samsung mission Statement in its vision 2020. With this new vision, Samsung commitment is to inspire its communities by taking advantage of its key strength, creative solutions, innovative products and new technology, as they continue to promote its new values for Samsung core networks. This includes industry, partners and employees. Samsung hopes to contribute a better world and rich experience for all, using this efforts. Also as part of its vision, Samsung has a plan to reach $400 billion in Revenue and be classified as worlds’ top five brands by 2020.
  • 8. 8 PESTELAnalysis P for Political factors In most markets, the political environment is favorable to Samsung’s operations. Still, there are minor problems. The proposed budget for the current fiscal year has put the value added tax (VAT) on smartphone imports to 15% and Advanced Income Tax (AIT) to 5%, making the total cost of importing a smartphone subject to a tax of 20%, which is a 5% increase from the incumbent fiscal year’s regulations. This is highly problematic for manufacturers of Samsung and LG. Samsung faces political pressures. The political environment is unstable in these locations. E for Economic Factors PESTEL Political Economic Social forces Technologycal Enviromental Legal
  • 9. 9 The Bangladesh telecoms industry has witnessed rapid growth over the years and is dominated by foreign investors. The government has emphasized the development of software services and hi-tech industries under the Digital Bangladesh scheme. n 2015, per-capita income stood at USD 1,314. While achieving significant macroeconomic stability, Bangladesh continues to face challenges such as infrastructure deficits and energy shortages. Samsung mobile manufacturers will benefit from a surge in demand as the economy recovers and consumer sentiment rises, and increasing demand from downstream industries. Moreover, as the unemployment rate decreases and per capita disposable income rises, consumers are expected to increase discretionary spending, particularly on electronics such as smart phones. Growing consumer demand and d for high-definition broadcasting technology and the expansion of 3G and 4G handset has helped reverse downward revenue trends. This factor is very critical for Samsung. The opening up of some developing markets meant it had to re-think the economic factor. While the company could expand its global footprint, it also had to worry about the ongoing economic crisis. The reduced purchasing power of buyers in many markets forced to find a profitable solution. S for Social and Cultural Factors Samsung is a South Korean Chaebol. This means it is a family-owned multinational. Despite its global image, the firm still operates as a Korean company from within. For this reason, they change many aspects of global operations according to the local conditions. In simpler words, global company Samsung has had to act locally in many emerging markets. Moreover, Samsung had to change its products to match the rapidly changing consumer preferences in certain markets. Samsung operates in a market niche influenced by the consumers’ lifestyle preferences. Socio-cultural factors vary in each country. So, it has to reorient itself accordingly. T for Technological
  • 10. 10 Samsung is among the world’s leading innovative companies. The company has an advantage in using the power of technology. It can drive innovation for sustainable business advantage. They have made this an obsessive mission to maintain leading position. The aim is to always stay ahead of the technological and innovation curve. They aim to dominate competitors by being the first to offer latest products to the market. E for Environmental All businesses impact its environment. Some have a positive impact while others have a negative effect. The degree of impact varies too. Samsung must keep pollution or waste in mind. It can also have a positive impact on the environment by processing and cleaning waste. These factors will affect the company, but they will not have an immense toll on its trade and profit generation. This is because environmental factors have a direct effect on agricultural businesses only. L for Legal Factors Samsung had to pay heavy penalties for charges that it imitated. This accusation led public perceptions of the company to worsen. The consumer approval of its strategies was also hampered. Everyone waited how the start-up would squeeze out of the legal maze. There were concerns that the event hampered Samsung’s reputation permanently. Many even concluded that the team expanded markets because of the range of lawsuits
  • 11. 11 SWOT Analysis Samsung mobile SWOT analysis Strengths Weaknesses 1. Hardware integration with many open source OS and software 2. Excellence in engineering and producing hardware parts and consumer electronics 3. Innovation and design 4. Focus on environment 5. Low production costs 6. Largest share in mobile phones and 2 place in smart phones sales 7. Ability to market the brand 1. Patent infringement 2. Too low profit margin 3. Main competitors are also largest buyers 4. Lack its own OS and software 5. Focus on too many products
  • 12. 12 Opportunities Threats 1. Growing India’s smartphone market 2. Growing mobile advertising industry 3. Growing demand for quality application processors 4. Growth of tablets market 5. Obtaining patents through acquisitions 1. Saturated smartphone markets in developed countries 2. Rapid technological change 3. Declining margins on hardware production 4. Breached patents 5. Apple’s TV launch 6. Price wars
  • 13. 13 STP analysis MarketSegment: 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. 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. 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.
  • 14. 14 Value Maximizes: 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. DesignEssentials: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. Simplicity Seekers:the people of this segment like to keep it simple and use phones as a basic mean of communication. 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 maximizes and Music essentials. Consumer Markets Segments o Geographic: World region – Asia, China Country – Bangladesh Cities – Reach out maximum places Demographic: Age – All age group Gender – Male, Female Income – All income groups Occupation – Every sector Religion – Irrespective of religion Psychographic: Social class – All class of people Lifestyles – Urban, rural, and even far villages Behavioral: Benefits – Technology Loyalty Status: Moderate Price Segments Range 1: (1000tk – 5000tk) Entry level VGA camera, Bluetooth, 2GB memory card slot as well as FM radio Range2: (5100tk – 15000tk) middle level Memory, MP camera, 3G, Wi-Fi, SNS and push email. Range 3: (15000 above) High-end users
  • 15. 15 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. 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.
  • 16. 16 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 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. Price 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 Target marketing product Place price Promotion
  • 17. 17 adopted from a competitive pricing and penetration pricing strategy- entry level, Mid-level, high end. Distribution 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 distributor’s are- Electra International Ltd 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. 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.
  • 18. 18 Promotion 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, 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. 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. 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.
  • 19. 19 Customer Care All three categories are focused on providing customer care whether it is after sales or post sales. 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. 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. 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.
  • 20. 20 Poter’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
  • 21. 21 Five forces Strength Entry Barriers Low Bargaining power of Customers high Bargaining power of Suppliers low Availability of Substitutes high Existing competitive pressure Moderate Conclusion From all the analysis made it could be said that Samsung certainly is in the right track to become market leaders in Bangladesh. As they are doing market studies so all the plans are still in the initial level require a long period of time to be implemented. Samsung has a strict policy of operating very small units as they think that big company losses market sensitivity and customer expectation level. Nevertheless, Samsung is huge company operating in more than 130 countries in the world.
  • 22. 22 Our learning: 1. We gather practical experience from this report 2. We get opportunity to do field work 3. We learn about communication with others. 4. We also learn practical knowledge in the context of our text books. Bibliography Book 1. Philip Kotler & Kevin Lane Keller , Marketing Management, 12th edition, India: Asoke K. ghosh, Prentice Hall of India Private Limited. Internet 1. Samsung Mobile 2. CIA World Fact Book 2010 3. http://www.scribd.com/ 4. Bangladesh Mobile Phone Importers Association (BMPIA) 5. Slide share
  • 23. 23 Report 1. Md. Mehedi Hasan & people (2010) Customer Driven Marketing Strategy of Nokia, [Assignment], Dhaka: EWU. 2. Mir Hossain Ekram (2010) Possibilities Of Foreign Direct Investment in Bangladesh Mobile Telecom Industry: an Analysis, [Report], Dhaka: IUB 3. MEHRAB A. ISLAM. Bachelors of Business Administration. Daffodil International University interne report 2011. Direct information: Name : Contract numbers : 1. Md. Ashek Mahmud 01723464000 2. Manash Shaha 01670910067 3. Sabina Yesmin 01855950612 4. Tanvir Ahamed 0191228899
  • 24. 24 Some pictures of our group work:
  • 26. 26 History...............................................................................................................................................5 Mission..............................................................................................................................................7 Vision.................................................................................................................................................7 PESTEL Analysis ..................................................................................................................................8 SWOT Analysis..................................................................................................................................11 Samsung mobile SWOT analysis................................................................................................11 Strengths...................................................................................................................................11 Weaknesses..............................................................................................................................11 Opportunities ............................................................................................................................12 Threats.....................................................................................................................................12 STP analysis......................................................................................................................................13 Marketing Mix..................................................................................................................................16 Customer Care.................................................................................................................................19 Poter’s Five Forces............................................................................................................................20 Conclusion.......................................................................................................................................21