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