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International Marketing - Samsung

  1. International Marketing - Samsung Assignment I Master of Marketing Management 2017 - 18 Jamnalal Bajaj Institute of Management Studies
  2. Team Nilesh Belokar – 409 Nikita Devrukhkar – 416 Sapna Jadhav – 427 Priti Makwana – 445 Shraddha Shinde – 530
  3. 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
  4. 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
  5. 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"
  6. Samsung’s Strategies - Impacting PLCs
  7. 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
  8. 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
  9. 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)
  10. 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
  11. 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
  12. 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/-
  13. 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.
  14. 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
  15. 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
  16. 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
  17. Areas of Innovation
  18. 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.
  19. 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%
  20. 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 ?
  21. Areas of Excellence • External Marketing – Promoting, Pricing and distributing services • Internal Marketing – Training and Motivating employees • Interactive marketing- Employees’ skill in serving the client
  22. 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
  23. Samsung’s Mobile phone’s Slogans - USPs Do bigger things
  24. 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
  25. 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
  26. Big Kurukshetra War in Mobile world Apple iPhone 8 VS Samsung Galaxy Note 8 on September 12
  27. Bibliography indian-smartphone-market-for-q2-cmr/ lg-g6-more-740067 indias-premium-smartphone-market-counterpoint/58418938 network-to-touch-rural-consumers/articleshow/54834449.cms mer_delight_service.pdf eport_01.pdf the-top-113090600009_1.html

Notes de l'éditeur

  1. Samsung Electronics duly recognizes the importance of developing strategic suppliers and about 72.7% of total economic value was shared with suppliers in 2014.Moreover, Samsung maintains an extensive with its suppliers within the scope of various programs and initiative such as Shared Growth Day, Supplier Dialogue ²air,Hot Line and informal meetings with suppliers On the retail front, it was taking initiatives to increase the number of retailers enrolled as Samsung Mobile Privilege Partners (SMPPs) from around 100 in 2007 to around 400 by the end of the year. According to Dutt, many single and multi-brand retailers had shown interest in becoming an SMPP. The SMPP retailers were around 100 last year, which is expected to grow four-fold this year,��� said Mr Dutt. 
  3. India perhaps is the most heterogeneous of all markets, what with its multiple languages, multiple Socio Economic Classes (SECs), diverse demographics, and psychographics. It is also not uncommon to find an SEC A in a village and SEC B or C in a Metro, making it challenging for brands to sell here. Understandably, companies bring out different models of phones at different price points and adopt audience and market-specific marketing strategies in different territories.
  4. Samsung’s Guru - Guru is the lowest end product of Samsung, but is also the most important product in the brand's portfolio Galaxy J Series -Tend to be built using low cost hardware. Designed to be a low-end smartphone but with an average performance Galaxy A Series - Tend to be more like a Galaxy C series with a small drop off in specifications. Designed to be a mid-range smartphone with a good performance
  5. Galaxy C Series - Tend to be using specifications close to S series, sometimes better on paper in two or more aspects  Galaxy S Series - Tend to be samsung’s interface in smartphones world, designed with the most powerfull available hardware that samsung claims to have, uesd to show off the company’s best smartphones industrial design Galaxy Note Series: Tend to be a pumped up S series with an overall improvements, an all-new stylus: S Pen, a better hardware, bigger screen size, slightly updated UI.