International Marketing - Samsung
Assignment I
Master of Marketing Management 2017 - 18
Jamnalal Bajaj Institute of Management Studies

Team
Nilesh Belokar – 409
Nikita Devrukhkar – 416
Sapna Jadhav – 427
Priti Makwana – 445
Shraddha Shinde – 530

About Samsung
• On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea
• Samsung-which means "three stars" in Korean
• Samsung Electronics commenced its operations in India in December 1995
• Samsung India is the Market leader in product categories like Mobile Phones, Smart Phones, Panel TVs, Side By
Side Refrigerators, Frost Free Refrigerators and Microwaves
• Samsung India is the Regional Headquarters for Samsung’s Southwest Asia operations, which provides
to over 45,000 employees

Samsung’s Strategies - Impacting Volumes
• Became so attuned to consumer characteristics and values
• Different-strokes-for-different-folks strategy
• Affordability for masses
• Offered one or two smartphone models in every successive screen size-
3.5 inch, 4.3 inch, 4.7 inch, 5 inch, etc.
• Launching differentiated products for mid- and low-priced markets.
• Launched Galaxy S series for premium market
• Galaxy J7 Prime and J5 Prime designed keeping Indian consumers in
mind.
• Brand Ambassadors : Aamir Khan & Shahid Kapoor

Samsung’s Strategies - Impacting Margins
• In 2009,Opens US$ 700 million mobile phone factory in
Vietman
• Reduced operating cost
• Samsung to double mobile phone capacity at main Indian
factory
• Strengthen its distribution network
• Signed an exclusive agreement with 40 distributors
• Cut down 25% to 30% of its smartphone portfolio during
2015.
• Samsung's strategy of "throw everything at the wall,
something will stick"

Samsung’s Strategies - Impacting PLCs

Samsung’s Strategies - Impacting PLCs
Introduction (2001 -2006)
Product Price Place Promotion
 Entered India in
2001.
 Launched very few
models due to
lesser demand &
innovation
 Launched 1st
model Samsung
R220 with Simple
blue display.
 Competed with the
then market leader
Motorola & Nokia
 Followed
Penetration
strategy
 Launched
R220 of Rs.9000/-
(apx.)
 Launched phones
in the range of Rs.
8000 to 20000
South Korea
Mother
Warehouse(Delhi)
Sub Distributors (All
the States)
Samsung Dealers/
Organized Retail
Customer
 Samsung follow
discounting policy.
(as per mobile
phone)
 Offered a good
amount of
profit to retailers
 Advertisement in
Print Media

Samsung’s Strategies - Impacting PLCs
Growth Stage (2006-2011) - Growth Rate 14.80%
Product Price Place Promotion
 Launched phones
without external
antenna
 Had better features
games, alarm
ergonomic keypad,
display etc
 Wide range of simple
or Dual sim mobile
marked beginning of
growth stage (GURU)
 Launched wide range
of touch screen mobile
phones to compete
Nokia
 Followed Price
penetration‘
strategy in
beginning of
growth stage‘
 Launch simple
mobiles with
price of Rs.
– 4000
 Touch screen
(9000 – 22000)
South Korea
Mother
Warehouse(Delhi)
Sub Distributors (All
the States)
Samsung Dealers/
Organized Retail
Customer
 Pre-paid
connections(Idea,
airtel, vodafone)
given free with select
any Samsung models
 Gifts ( Kitchen ware)
 Dealers & retailers
got a large amount
‗backend profit‘ to
increase the sales &
drive growth
 TVC, Sales
, Print media

Samsung’s Strategies - Impacting PLCs
Maturity Stage (2011- till now) Growth rate 67%
Product Price Place Promotion
 Launched Smart
phones with android
 Galaxy series
 Launched Windows
phones to compete
Nokia Windows
mobile
 Focused on Galaxy S
series phones to
compete with all the
competitors
 Followed Price
penetration‘
strategy to sustain
growing
competition
 Launched models
ranging from Rs.
1000 to Rs. 30000
 Frequently
reduced prices of
popular & low
models to
compete with
Micromax,
Samsung, LG, etc.
South Korea
Mother
Warehouse(Delhi)
Sub Distributors (All
the States)
Samsung Dealers/
Organized Retail
Customer
 Special Offers on
Credit card
payment for above
price of
Rs. 20000
 TVC for Galaxy
Series
 Discount Coupons
 Print Media
(Business
Magazines)

Samsung’s Market Segmentation Strategy in India
GEOGRAPHIC
• It has Samsung Guru Segment for Rural areas as well as Galaxy segment for Urban
areas. It has something for everyone.
• North, East, South and West regions ( Language wise)
DEMOGRAPHIC
• Samsung has mobile phones for Students, Businessmen, Employees and
Enterprises
PSYCHOGRAPHIC
• Samsung mobile is available for those customers too who have their choice
based on their Lifestyle and Personalities. Samsung came with some so fancy
mobile phones
BEHAVIORAL
• How often customer uses his device or which apps he tends to use more

Samsung’s Guru
Segment : Tier-2 city and Village
Consumers from lower income
Price : Rs. 1150/-
Galaxy J Series
Segment : Mass-Mid Segment
Price : Rs.6890 - Rs.20900
Galaxy A Series
Segment : 20 to 30 year, first job
holders and the one who doesn't
want to spend money on flagship
devices
Price : Rs.22900 - Rs.25900
Evaluation of Market Segmentation strategies – Samsung’s
models

Galaxy C Series
Segment : Selfie-centric
audience
Price : Rs.24900 - Rs.31900
Galaxy S Series
Segment : Premium
Price : Rs.39400 - Rs.48900
Galaxy Note Series
Segment : Premium
Price : Rs. 25,000 - Rs.
75,999/-

Why Samsung selected these segments in India
• Cultural diversity in India
• Different occupation required different set up
• Lifestyle defines uses and design
• Age shows need of different apps and usage
Samsung makes use of several segmentation methods in order to adapt best to all their customers needs
and give them a feeling of being individually taken care of.

Recommendations on Wealth Creation in India
• Future technologies in personal tech - Nano technology,
Augmented reality and virtual reality
• Flexible and Wearable Smartphones
• Internet of Things and Mobile-connected Smart Objects
• Reading emotions and reading thoughts - The Brain-
Computer Interface: When Your Thoughts Become Commands
• New Battery Technologies and Improvements in Battery
Capacity
• Environment scan / alerts

Evaluation of Business Architecture in India and competencies
against Local Competition
Glocalisation = Globalization + Localization - Think Globally and Act Locally
Parameters Political Economical Socio-cultural Technological Legal
compliance
Environmental
Product Stable Govt.
FDI policy
Essential
& Business
Style
Stay Connected
Infotainment
Multimedia
Convenience
TRAI
SAR limit
ICNIRP compliant
Go green
Price Affordable Affordable Low - High Low - High Affordable Low - High
Place India Efficient
distribution
Efficient
distribution
e-commerce NA NA
Promotion CSR
activities
Common
Man’s phone
Regional ads -
Support 9
regional
languages
Technical ads-
IRIS scanner
NA Planet first

Samsung’s competencies
• Samsung is now an established brand world-wide
• New technology and better features
• First-mover advantage in Android smartphones and
touchscreen
• Nurtured 3G phones
• Spends more on marketing campaigns
• Technology standardisation and secure IPR
• Cater to the entire market – Low – High income groups

Areas of Innovation

As usual, the South Korean Electronics giant is still in the lead, and it recorded a
market share of 28.1%. There was a whopping 21.7% of increase compared to same
quarter in the last year1. Samsung wear the crown again. Samsung has replaced
Apple as the top premium smartphone brand in India.

India Smartphone Market Report : Recent Trends
• For the first time, the highest shipped smartphone is Redmi
Note 4 (from Xiaomi) which dethroned Samsung Galaxy J2
[from Q4 2016]
• The average selling price of a smartphone in India has
increased from $131 to $155
• The impact created by Jio has led to the increase in 4G-
based mobile shipments. Almost 94.5% of smartphones
shipped in Q1 2017 were 4G-enabled devices
• 9 out 10 smartphones shipped by China-based mobile
vendors were of >5′ inch screen
• 62.2% of smartphones shipped by Chinese mobile vendors
have a rear camera of 13MP
• Besides e-commerce stores like Flipkart, most of the Chinese
vendors have started their store for selling their products.
This quarter, they captured a market share of 4%

Low Cost strategy to beat competitors
The Samsung strategy: Better, faster, cheaper
• The High-Quality Low-Price Business Strategy
• Samsung may lack in innovation, but right now, no one can beat Samsung in playing catch-
up. Why to reinvent wheels ? Upgrade smarter
• Less people know that Samsung makes not only hardware but also its components; it is
Apple’s biggest parts supplier and its fiercest competitor in the completed smartphone
market
• Is Samsung NEW NOKIA in India ?

Areas of Excellence
• External Marketing – Promoting, Pricing and distributing services
• Internal Marketing – Training and Motivating employees
• Interactive marketing- Employees’ skill in serving the client

USPs against competitors
• First Mover advantage for Android Platform
• High quality product valued for Money
• Multiple Models and options for every price range
• Product Mix Strategy
• Use of Innovative technology and keep moving the market
• Recycling of the products
• Customer support and help

Samsung’s Mobile phone’s Slogans - USPs
Do bigger things

Consumer Connect
• Samsung has a wide coverage from Samsung shop, online websites, mobile center, electronics
shopping center to other mobile phones retail stores, bring more convenience to customer
• Established Many Samsung service app to increase the visibility of brand
• Samsung Community Club for better customer relationship
• Indian consumer’s life revolves around his or her life family Eg. Family centric services like
family
• Festivals are part of any Indian man or woman Eg. Festivals related offers
• Identifying high sensitive areas where communication needed without interruption Eg.
Highways and public places Eg: Campaign can be created on “Be there when no one is there “
“ this concept ( Brand Positioning as pillar )
• Samsung Pay and Reward programme
• Samsung smart club
• Expansion of service network to rural consumers

Samsung India has launched a nationwide television and digital campaign showcasing its initiative to take
customer service to the doorsteps of consumers in the hinterlands.
the Samsung service network is now over 3,000 strong from around 2,000 service points earlier. With this,
Samsung’s reach will extend to customers in over 6,000 talukas across 29 states and 7 union territories, making
Samsung’s service network the largest in this industry in India.
The new campaign showcases the journey of a young Samsung engineer, who is on his way to provide the
services in a remote village in India. The commercial underlines Samsung’s vision of creating a long lasting
relationship with its consumers through timely service.
This ad campaign won Best Short Film 2017
Samsung India Service (SVC) – We’ll take care of you, wherever you are.
#SamsungService

Big Kurukshetra War in Mobile world
Apple iPhone 8
VS Samsung Galaxy Note 8
on September 12

Bibliography
http://indianexpress.com/article/technology/mobile-tabs/samsung-remains-on-top-in-
indian-smartphone-market-for-q2-cmr/
http://www.ibtimes.co.in/top-10-smartphone-price-cuts-india-recently-samsung-galaxy-s8-
lg-g6-more-740067
http://telecom.economictimes.indiatimes.com/news/samsung-topples-apple-as-no-1-in-
indias-premium-smartphone-market-counterpoint/58418938
http://economictimes.indiatimes.com/industry/services/retail/samsung-expands-service-
network-to-touch-rural-consumers/articleshow/54834449.cms
https://htqvn.wordpress.com/
https://news.samsung.com/in/category/products/tv-audio
http://www.samsung.com/us/aboutsamsung/sustainability/productservices/download/Custo
mer_delight_service.pdf
http://images.samsung.com/is/content/samsung/p5/in/aboutsamsung/2015_Sustainability_R
eport_01.pdf
http://www.business-standard.com/article/companies/how-samsung-dislodged-nokia-from-
the-top-113090600009_1.html