This ppt helps out to loacte the samsung smartphone plans in india for the past decade 2004-2014.Hope it helps

1. SAMSUNG SMARTPHONES
INDIA
Market Report Analysis
SHAMLYN S. FERNANDES
ASAD HOOSAIN
MBA
FROM TO

2. MARKET STRUCTURE
“Markets are judged by performance, not by performance”
• OLIGOPOLY MARKET
• Only a few sellers of a standardized or differentiated product
• Affects the companies price and output
• Similar products differ only by the brand and some features.
• The differences are proved to the USP
for each firm.

3. FIRMS THAT DOMINATE THE MARKET
• Market capitalization of over 50% in the industry.
• SAMSUNG
• NOKIA
• HTC
• MOTOROLA
• LG
• MICROMAX

4. CONTROL OVER PRICE
• Control over price – the firms are price makers. Which means
freedom to MAKE or FIX their own price without losing some or most
of their profits.
• The pricing is not uniform which is why we see that smart phones
are sold at a higher price when they are launched a compared to later
in the future.

5. HIGH BARRIER OF ENTRY
• Firms require a large amount of capital investment to carry out work
such as RESEARCH & DEVELOPMENT, ADVERTISNG, MARKETING
AND SO ON.
• OLIGOPOLY is characterized by MUTUAL INDEPENDENCE and
STRATEGIC BEHAVIOUR.
• Each firm anticipates each others moves closely.

6. CONTESTABLE MARKET
• Samsung India chooses to be in contestable market,
where there is no/very less collusion chances.
• The profits are determined by the firms MARKET SHARE.

7. PRICE ELASTICITY OF DEMAND
• The degree of responsiveness of the quality demanded of
a good to changed in price of a good.
• A product is known to be elastic if the consumers are
sensitive towards changes in price.
• Smart phones – ELASTIC DEMAND

8. CROSS – PRICE ELASTICITY
• Measurement of a good demanded got a change in price of another
related good.
• A survey conducted by O&M was used where the price of non –
smartphones decreases by 50% to determine the behavior.
• Out of 15 respondents 73% will not consider to switch from a
smartphone to a cheaper phone even the price of non
smartphone decreases 50%.

9. INCOME ELASTICITY
• Measure of degree of responsiveness of demand to the changes in
income.
• It indicates that the smartphone is a luxury good.
• The demand for smartphones is higher than changes in income.
• Consumers will not buy a non-smartphone.

10. DEMAND & SUPPLY
• Report by BGR INDIA about 2 fierce competitors IPHONE 5 AND
SAMSUNG S4 case.
• To beat iPhone 5 Samsung has to decrease the price of S4 in order to
attract customers.
• Deadweight loss
• Opportunity Cost of both.

11. CHANGES IN PRICE OF
SUBSTITUTES INDIAN MARKET

12. CHANGES IN PRICE OF SUBSTITUTES INDIAN
MARKET
2004
41 million feature phone shipments
NOKIA share :- 67.4%
SAMSUNG share:- NA
2005
57 million feature phone shipments
NOKIA share:- 65.7%
Samsung:- NA
2006
66 million feature phone shipments
Nokia share:- 61.4%
Samsung: NA

13. 2007
73 million feature phone shipments
Nokia share:- 59%
Samsung:- NA
2008
85 million feature phone/ smart phone shipments
Nokia share:- 55%
Samsung: NA
APPLE:- NA
2009
93 million feature phone shipments
5 million smartphones
Nokia share – 54%
Samsung :- NA
Apple:- NA
2010
103 million feature phone shipments
6 million smartphones
Nokia share:- 41%
Samsung :- NA
Apple :- NA

14. 2011
155 million feature phone shipments
12.1 million smartphones
Nokia share:- 38.2%
Samsung:- 25.3%
Apple :- NA
2012
206.4 million feature phone shipments
15.2 million smartphones
Nokia share 13.3%
Samsung 43.1%
SONY 8.2%
2013
261.2 million feature phone shipments
21.4% million smartphones
Nokia share:- 7%
Samsung:- 38.7%
Micromax:- 22.1

15. FEATURE PHONE AND SMART PHONES

16. Cont..
• Samsung maintained its leadership followed by Micromax and karbonn.
• Remarkable migration from feature phones to smartphones last year,
primarily because of the narrowing price gaps between the 2 product
categories.
• 5 – 6.99 inch tablet screen size smartphones accounted for about 20% of the
markets overall in Q4 out of which SAMSUNG has 9.7% of their own.
• Samsung has always been experiencing difficulty in boosting supply in the
short term because of the pre – order demand being far stronger than
expected.

17. AD. CAMPAIGN ANALYSIS
• Samsung ad is seen on TV every 15 minutes!
• IGN.COM says that Samsung advertisements from a ratio of 100, 91 are
global based with an estimated budget of nearly $8 billion out of which
9.3% is allotted for expenditure in the Indian market scenario (REUTERS)
• They focus on both ‘high end’ and ‘rest of the pack’.
• Samsung has cultivated the elite brand image through their
advertisements.

18. • Advertising doesn’t just increase sales but to a
point where the consumer listens and demands
that brand product only avoiding the rest.
• Focuses on broad appeal for innovation,
targeting millions in its advertising with
messages positioning its devices as offering the
latest and greatest features.
• Samsung products make news because they
have the biggest screens, fastest processors.
• 2008 – 09 – Samsung made Aamir Khan their
brand ambassador which was very fruitful for
the company as their distributions doubled.
• Aamir khan was the brand ambassador for 3
years and now Samsung has part-time
ambassadors such as Nargis Fakhri.

19. Cont..
• Samsung has global integrated
marketing communication
(IMC) for the past 6 years.
• Samsung has started a new ad
trend with the zero – plan to
focus on extending support to
the less income generation
audience to attract them in
buying the top models.
• Segmenting in psychological
positioning

20. TWO IMPORTANT ADS
• Low – end Samsung product under the galaxy Y
series.
• Targets the Indian consumers through its middle
level product which is the mid galaxy series.
• The ad is based on youthful group where they
wanted to convey that if you are a Samsung galaxy
user then you are by default smarter than the rest.
• Galaxy note 3 and Galaxy Gear – the
advertisements are in collaboration with Vodafone
focusing on its connect with the far reaches of the
country.
• The ad captures the element of re unions.
• S3 was advertised saying that It’s the human
companion, made for humans.

21. ADVERTISING EXPENSES

22. PRICE - POINT STRATEGY
Rupees 6000 – 12000
Focus group – low income
The entire galaxy Y series. Ex – DUOS
Rupees 12000 – 18000
Focus group – middle income group
Products like ACE PLUS
HIGH INCOME GROUPS
Rs 18000 – 25000
Dominated by most of its tablets
Products like galaxy beam, note 1, 2
Above Rs 25000
Can be called as the niche market
Products like note 3, s3, s4

23. PRICE RANGE OF VARIOUS
SMARTPHONES IN THE MARKET

24. POINT-OF-VIEW
BIGGEST WINNERS
SAMSUNG (2004 -2014)

25. CAPITAL EXPENDITURE
Samsung can produce more production as they are
more advanced in technology.

26. SERVING THE TARGET MARKET
40 million smartphones sold
in 2013.
Half of the users are younger
than 25 years which is the
focus group Samsung has
been targeting for the past 5
years.

27. ELITE CIRCLE CHANNEL PROMOTION
INITIATIVE
Segregating the market first
Multiple distributors

28. PRODUCT DIVERSIFICATION
• New strategies and risk takers
• Militaristic attitude

29. GREAT CUSTOMER ACQUISITION
COST
• Has communicated strong thoughts and
substitutes.
• In the ‘playing XI’ rather than the
‘substitute’

30. FLAGSHIP PRODUCT ‘GALAXY’
SERIES
Innovative and sustained ace products

31. HORIZONTAL INTEGRATION
More profitable

32. PRICE POINT STRATEGY
The lowest in the elite circle range at around
$100 in 2013 and apple is $800, HTC $540,
SONY $500

33. BETTER RECALL
Better recall in Tier-2 cities.
Cities like Lucknow, Pune and Ahmedabad

34. SALES PROMOTION AND
DISTRIBUTION
Marketing strategies and incentives to boost
sales. Marketing budget is $ 14 billion.
$4 billion spent on marketing 2012.

35. MARKETING TACTICS
Zero plan initiative :- also
known as STAY NEW.
EMI scheme will 0% interest
will be extended to till June
30th 2014
Buyback scheme:- with one
time free display replacement

36. NEGOTIATIONS
Samsung in the past 3 – 4 years has acquired
companies and their integrative technologies, 2 of
them are Tizen and Corning.

37. RETAIL STRATEGY
Micromax cannot compete very well with the well
established Samsung.

38. POINT-OF-VIEW
WEAK LINKS AND POINTS

39. HIGH COST PLACING PRODUCTS
Price is quit high for
Indian standards

40. COMPLIMENTARY
GALAXY GEAR hasn’t been successful.
Grey-market Invasion

41. NO BRAND AMBASSADOR IN
INDIA?!
• Aamir khan in 2010 which increased the distribution share of the product in the market.
• Its unfair as they are spending millions worldwide having global brand ambassadors
such as LIONEL MESSI.

42. LESS COLLABRATION
• Haven’t focused on regional market.
• The competition has indulged in collaborations with
Micromax, Lenovo and even iPhone 5S (with Airtel and
Aircel)

43. FOCUS ON NEW MARKET
DEVELOPMENT
Samsung has the tendency to go after new avenues rather
than sticking to its contained markets and building it.

44. PROBLEM WITH THE AVERAGE
SELLING PRICE
• Brought down their average
selling price
• Constant fluctuations in the
market where Samsung is not
able to cope up.

45. LACK OF DEMAND
• Criticism for high pricing.
• Substitutes like Micromax and karbonn are
available at low prices.

46. SHELF LIFE SUSTAINANCE
• Extended shelf life. Eg- S2
• Industry average is 1 year, Samsung has 2
yrs.
• Samsung S4 experienced price drop of
nearly 30%.

47. LOCAL AGGRESSIVENESS
• Chinese players like GIONEE and XIALOU.
• Local players.

48. APPLE’S AGGRESSIVENESS
• Have launched a buy and try scheme.
• Samsung was caught off guard with Apples
aggressiveness in India.

49. INSTABLE LEADERSHIP
• Samsung India has 3 different
country heads for smartphone
business importantly in 3 ½
years between November 2009
and March 2013!
• No country head for over 6
months!

50. CUT – THROAT PRICE WARS
• Due to competitors
• Local players
• Micromax and karbonn

51. OPERATING SYSTEM
• Problems regarding Samsung's OS.
• Leads to many bugs and glitches disturbing many preferences.

52. CANNABILISM
New products introduced where these
products are already established.

53. HIGH CAPITAL EXPENSES
Declining prices on smartphones creates a pressure
on profit margins for components that go into
mobile devices such as memory chips, display
panels and so on.

54. SAMSUNGS BIGGEST COMPETITORS

55. TOP SELLING PHONES IN INDIA (2004 – 14)
2004
Nokia 2600
Motorola RAZR
Nokia 6010
2005
Nokia 1110
Motorola C139
Nokia N 70, 72, 73
2006
Nokia 1600
Nokia 6070
Nokia 7360
2007
Nokia 1200
Nokia N95
Nokia 5130
2008
Apple IPhone 3G
Nokia 1680
Nokia 2330
2004
Nokia 2600
Motorola RAZR
Nokia 6010
2005
Nokia 1110
Motorola C139
Nokia N 70, 72, 73
2006
Nokia 1600
Nokia 6070
Nokia 7360
2007
Nokia 1200
Nokia N95
Nokia 5130
2008
Apple IPhone 3G
Nokia 1680
Nokia 2330

56. 2009
Apple IPhone 3GS
Nokia 2700
Nokia 6303
Samsung STAR
2010
Nokia 5230
Apple IPHONE 4
Samsung galaxy S
2011
Apple iPhone 4S
Samsung galaxy s2
Samsung galaxy Y
2012
Samsung galaxy s3
Apple iPhone 5
2013
Apple iPhone 5s
Samsung galaxy s4

57. TOP SELLING SMARTPHONE BRANDS IN INDIA (2013)

58. CONCLUSION
• Samsung equation can be summed as :-
AFFORDABILITY GROWTH INCOME GROWTH
BEHAVIOUR ATTITUDE
• Samsung sold more than 12 million galaxy smartphones.
• Samsung is quit profitable in the smartphone division which is their biggest
cash flow with more than 2/3rd profits (FORBES).

59. • End of 2013, MICROMAX was the 2nd largest
smartphone player with a rough 16% market share,
according to IDC less than half of Samsung 38%.
• Highly-focused King-lomerate!
• Consumption comfort.
• Product diversification .

60. “THERE’S A STORM COMING IN…”
-Sarah Connors.

61. SOURCES
1. POSITIONING – The battle of minds by TROUT & RIES.
2. www.bgr.in
3. REUTERS
4. THE FINANCIAL TIMES
5. ECONOMIC TIMES
6. WWW.WORDPRESS.COM
7. Mc Connell, Brue, Flynn & Grant, 2012
8. Muhd Iqbal., 2013
9. IDC India
10. Bloomberg
11. FORBES India
12. Winning the story wars – Jonah Sachs
and so on…

62. RESPONSIBILITIES
Shamlyn S. Fernandes – Head Editing, Developer.
Asad Hoosain – Head Data Compilation, Research
and Interpretation.