1. A MAJOR PROJECT REPORT
ON
SAMSUNG LCD TELEVISION - DISTRIBUTION
CHANNEL RELATIONSHIP AND MARKET SHARE
ANALYSIS
Submitted To:- Submitted By:-
Dr. Suneyna Prabhjot Singh
Asst. Professor BBA (General) 2nd Shift
Business Administration Dept. 0262121708
2008-2011
In partial fulfillment of the
Requirements for the award of Degree of
Bachelor of Business Administration
Maharaja Surajmal Institute
Affiliated To:-
Guru Gobind Singh Indraprastha University

2. CERTIFICATION
This is to certify that Mr. Prabhjot Singh has completed his project report,
entitled‘Samsung LCD Television - Distribution Channel Relationship and Market
Share Analysis’ as a part of partial fulfillment of Bachelor of Business
Administration(General) programme from ‘Maharaja Surajmal Institute’, affiliated to
‘Guru Gobind Singh Indraprastha University’, under my guidance and his work is
original.
Dr. Suneyna
Project Guide
ii

3. ACKNOWLEDGEMENT
The present work is an effort to throw some light on ‘Samsung LCD Television -
Distribution Channel Relationship and Market Share Analysis’. The work would not
have been possible to come to the present shape without the able guidance, supervision and
help to me by number of people.
With deep sense of gratitude I acknowledge the encouragement and guidance received
by my mentor and guide, Dr. Suneyna, and other staff members. I also thank her for the
ideas and basic concepts she delivered and shared with me, as they helped me a lot in
accomplishing this project of mine.
I convey my heart full affection to my Parents, who helped and supported me during
the course, for completion of my Major Project Report.
Prabhjot Singh
Enrollment No.: 0262121708
iii

4. TABLE OF CONTENTS
1) INTRODUCTION 1-4
1.1) Objectives of the Study 2
1.2) Research Methodology 3
1.3) Limitations of the Study 4
2) PROFILE OF THE ORGANISATION 5-30
2.1) Samsung – An Overview 6
2.2) Indian Consumer Electronics Industry 19
2.3) Theoretical Background of the Study 23
3) ANALYSIS AND INTERPRETATION OF DATA 31-38
4) CONCLUSIONS AND RECOMMENDATIONS 39-42
5) BIBLIOGRAPHY 43-44
6) ANNEXURE 45-48
iv

5. CHAPTER 1
INTRODUCTION

6. OBJECTIVES OF THE STUDY
 PRIMARY OBJECTIVES
The primary objective of the study is to analyse the market share and understand the
distribution channel relationship with reference to SAMSUNG ELECTRONICS INDIA PVT
LTD.
 SECONDARY OBJECTIVES
To find out the counter share of SAMSUNG LCD TVs.
To find out the counter size of the dealer as well as the different brands kept by
different dealers.
To record who are the major players of LCD TVs.
To find out the largest selling model among all the segments.
To know whether the dealer is aware of current pricelist.
To find out whether the dealer is having brochure of the product.
To know the benefits a dealer wants so that he is satisfied by selling the products.
2

7. RESEARCH METHODOLOGY
The essential part of any report is research methodology. The field study was conducted to
analyze the market share and understand the distribution channel relationship.
SAMPLE SIZE
The sample size is 35.
COLLECTION OF DATA
Data used of this report is mainly primary data, which are collected first hand by survey in
the field. In some area secondary data may also be taken into consideration.
COLLECTION OF PRIMARY DATA
The data was collected through the primary source by survey method using structured
questionnaire and taking respondent‘s personal interview.
COLLECTION OF SECONDARY DATA
The data collected from text books, journals and internet.
3

8. LIMITATIONS OF THE STUDY
Research made was limited to the territory of Delhi region.
During the dealer study, some of the dealers did not give the exact information about
number of products sold by them in a month.
The market size of SAMSUNG LCD TVs achieved is exclusive of B2C market.
This study does not take into account the market in Kolkata as whole, but only 50
dealers.
Study was conducted with dealers selling mostly Samsung products, with most of
them selling LG, SONY etc. products in lower quantities. Therefore, this might skew
the results a bit.
The period of the project was not sufficient to study all the factors in deep.
Many consumer and dealers/retailers showed less interest in providing information
and haven‘t cooperated.
4

9. CHAPTER 2
PROFILE OF THE
ORGANISATION

10. SAMSUNG – AN OVERVIEW
The Samsung Group is a multinational conglomerate corporation headquartered
in Samsung Town, Seoul, South Korea. It is South Korea's largest chaebol and is the world's
largest private conglomerate by revenue with the annual revenue of US $172.5 billion in
2009. The meaning of the Korean word Samsung means "tristar" or "three stars". The word
"three" represents something "big, numerous and powerful"; the "stars" mean eternity.
The Samsung Group comprises numerous international affiliated businesses, most of
them united under the Samsung brand including Samsung Electronics, the world's largest
technology company by sales; Samsung Heavy Industries, the world's second largest
shipbuilder.
Samsung Group accounts for more than 20% of South Korea's total exports.In many
domestic industries, Samsung Group is the sole monopoly dominating a single market; its
revenue as large as some countries' total GDP. Many businesses today use Samsung's
international success as a role model.
HISTORY
In 1938, Lee Byung-chull founded Samsung, 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. He started a sugar refinery in Busan as a name of Cheil Jedang. After the
war, in 1954, Lee founded Cheil Mojik and 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.
6

11. Samsung diversified into many areas and Lee sought to establish Samsung as an
industry leader in a wide range of enterprises, moving into businesses such as insurance,
securities, and retail. Lee placed great importance on industrialization, and focused his
economic development strategy on a handful of large domestic conglomerates, protecting
them from competition and assisting them financially.
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 Tongsinin Gumi, and started to build
telecommunication devices. The company grouped them together under Samsung Electronics
Co., Ltd. in the 1980s.
In the late 1980s and early 1990s, Samsung Electronics invested heavily in research
and development, investments that were pivotal in pushing the company to the forefront of
the global electronics industry. Samsung started to rise as an international corporation in the
1990s. 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.Samsung manufactured a range of aircraft from the 1980s to
1990s. The company was founded in 1999 as Korea Aerospace Industries (KAI), the result of
merger between then three domestic major aerospace divisions of Samsung Aerospace,
Daewoo Heavy Industries, and Hyundai Space and Aircraft Company.
Samsung became the largest producer of memory chips in the world in 1992, and is
the world's second-largest chipmaker after Intel. In 1995, it built its first liquid-crystal
display screen. Ten years later, Samsung grew to be the world's largest manufacturer of
liquid-crystal display panels.Samsung Electronics overtook Sony as one of the world's most
popular consumer electronics brands in 2004 and 2005, and is now ranked #19 in the world
overall. Behind Nokia, Samsung is the world's second largest by volume producer of cell
phones with a leading market share in the North America and Western Europe.
7

12. ABOUT SAMSUNG ELECTRONICS
Founded in 1969 in Suwon, Gyeonggi-do, Korea, Samsung Electronics Co., Ltd.
manufactures and sells a wide variety of electronic products, communication devices, and
semiconductors. In January 2009, we restructured our organizational structure to better reflect
the respective characteristics of each business sector and the common technology, market and
customer base denominators within its businesses, thereby creating synergies. The previous
six division-based system was separated into a Digital Media & Communications (DMC)
business unit and a Device Solution (DS) business unit.
Source: Samsung Electronics Sustainability Report 2009
Figure: Global Network of Samsung Electronics
8

13. Today, its global presence includes a total of 111 subsidiaries in the form of
production subsidiaries, sales subsidiaries, distribution subsidiaries, research laboratories and
eight overseas business divisions representing North America, Europe, China, Southeast
Asia, Southwest Asia, Central and South America, CIS, the Middle East and Africa.
VISION
As stated in its new motto, Samsung Electronics' vision for the new decade is,
"Inspire the World, Create the Future."
This new vision reflects Samsung Electronics‘ commitment to inspiring its
communities by leveraging Samsung's three key strengths: ―New Technology,‖ ―Innovative
Products,‖ and ―Creative Solutions.‖ -- and to promoting new value for Samsung's core
networks -- Industry, Partners, and Employees. Through these efforts, Samsung hopes to
contribute to a better world and a richer experience for all.
As part of this vision, Samsung has mapped out a specific plan of reaching $400
billion in revenue and becoming one of the world‘s top five brands by 2020. To this end,
Samsung has also established three strategic approaches in its management: ―Creativity,‖
―Partnership,‖ and ―Talent.‖
9

14. Samsung is excited about the future. As we build on our previous accomplishments,
we look forward to exploring new territories, including health, medicine, and biotechnology.
Samsung is committed to being a creative leader in new markets and becoming a truly No. 1
business going forward.
ORGANISATION STRUCTURE
10

15. BRANDING STRATEGY OF SAMSUNG
It does not require the genius of a rocket scientist to recognize that branding is the
lifeblood of any corporation. This was well recognized by Samsung Electronics Corporation
(Samsung), way back in 1998, when the South Korea‘s leading consumer electronics giant
entered into an agreement with the International Olympic Association (IOA) to sponsor the
1998 Seoul Olympics. The message was clear. Samsung wanted to sponsor Olympics to
establish itself as a global brand. And it became successful to a great extent too.
Samsung‘s association with the Olympics helped the company increase its brand
visibility and brand recall among its consumers worldwide. In the late 1990s, Samsung
forged several marketing alliances with companies worldwide and sponsored events to
enhance its brand awareness. Due to its marketing efforts, its brand value appreciated by
more than 200 per cent from US$5.2 billion in 2001 to its current $10.8 billion. The company
was ranked twenty-fifth in Interbrands list of the world‘s top 100 brands. In 2002, Samsung
emerged as the only non-Japanese brand from Asia to be listed in the global top 100 brands
valued by Interbrand, the worlds leading brand consultant. The company was ranked as the
fastest-growing brand in the world by Interbrand.
In late 2008, Samsung emerged as the number one player in the US cell phone market
by snatching the crown from Motorola. It also emerged as the world leader in the memory
chip market. In 2007, Samsung spent more on R&D than IBM. The company has jumped to
the second place in the number of patents granted by Americas patent office (just behind
IBM).
As a result of its commitment to innovation and unique design, SEA was ranked #6 in
the electronics industry segment in the Fortune magazines ―Most Admired Companies 2008‖,
and named as one of Fast Company‘s ―Fast 50 Most Innovative Companies of 2008‖. Among
popular Business Week rankings, SEC ranked #26 in the publications ―Most Innovative
Companies of 2008‖ and #21 in the ―100 Best Global Brands‖ for 2007. SEC is also a top
patent holder, ranking second overall in the U.S. in 2007.
11

16. According to industry experts, the reason for these earnings over the years is
Samsungs holistic approach to develop several strategies for different regions, but guided by
one unified Samsung brand image building strategy. Samsungs branding strategy was
launched by its Chairman Kun Lee in 1996. It was a coordinated global programme to make
Samsung an international brand. Over the last one decade, Samsung has executed its
comprehensive brand building strategy. The company‘s annual investment in branding and
marketing is about US$3 billion, which has been spent to increase its brand awareness around
the world.
For any new company, when it makes its entry into the market, there are two ways to
stimulate growth: intensive advertising campaign, and product offerings with unique
functions. Samsung recognized the potential of both. ―In terms of products, Samsung
introduced its leading-technology display products as well as printers in the Indian market
and carried out SI meets all over the country to educate the channel community on its
newproducts,‖ saysRanjitSingh Yadav, Director; IT, Samsung India.
However, the power of brand building exercise was not lost on the company. In fact,
Samsung tilted more towards advertising and brand-making strategy; creating awareness of
its name by investing large amounts of money in million-dollar brand- making campaigns.
In India, Samsung, in order to create its brand awareness, signed seven cricket
celebrities and in doing this it aimed to cash in on the popularity of cricket in India which is
considered a religion in India. Instead of just ads featuring cricketers, Samsung launched its
―Team Samsung India‖ campaign all over India. The focus of this concept was to create
patriotism through cricketers, but under the Samsung brand name the banner reads ―With
Team Samsung‖. The campaign was a huge success and it enabled Samsung to increase
awareness of its brand. As a result, it began to make impressive growth in India.
12

17. ―In the year 2008, Samsung supported the Olympics cause in India by way of
sponsorship of the Indian team, the support for select members of the Indian team. The
company also organized the biggest-ever national level school quiz on Olympics for school
children. Consequently, its Olympic-related advertising campaign brought the companys
brand closer to customers.
It has been noted that older companies often portray their products as commodities
and generally sell their products only on the basis of brand without enhancing their quality
and lowering their price. However, Samsung has proved to be an exception to this. The
company not only invested hugely in brand creation campaigns, it also remained a cut above
the rest by introducing innovation. In order to create a somewhat different image, Samsung
has positioned itself by developing innovative products, thus becoming a leader rather than a
follower.
TheSuccessSecret being ahead of the competition is the mantra of Samsungs success.
In business, it always pays to reduce the lead-time, as being late in business means business is
over, which happened in the case of many big brands and competitors.
However, part of this success was also Samsungs openness. The company opened up
and recruited employees from a global pool of talent bringing in talent from various
countries, making these people work together at one table designing the best product. This
trend boosted the company‘s perception and made it a global brand among the consumers.
The strategy paid off and in the past five years, it has achieved the biggest gain among major
brands, even surpassing Sony.
Finally, successful branding is all about establishing a long-term vision and crafting
the company‘s operations to meet that objective‘s. In 1993, as a first step in its globalization
drive, Samsung acquired a new corporate identity. The company changed its logo and that of
the group. In the new logo, the words ―Samsung Electronics‖ were written in white colour on
a blue colour background to represent stability, reliability and warmth.
13

18. It was this sort of huge investment where millions saw the Samsung‘s message. Their
brand remained in the forefront of millions of people giving them an edge over its
competitors. It is no surprise that Samsung‘s brand building strategy overtook its competitors
in less than the expected time.
SAMSUNG IN INDIA
Samsung India is the hub for Samsung's South West Asia Regional operations. The
South West Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, looks
after the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides
India. Samsung India which commenced its operations in India in December 1995 enjoys a
sales turnover of over US$ 1Bn in just a decade of operations in the country.
Headquartered in New Delhi, Samsung India has widespread network of sales offices
all over the country. The Samsung manufacturing complex housing manufacturing facilities
for Colour Televisions, Mobile phones, Refrigerators and Washing Machines is located at
Noida, near Delhi. Samsung 'Made in India' products like Colour Televisions, Mobile phones
and Refrigerators are being exported to Middle East, CIS and SAARC countries from its
Noida manufacturing complex. In November 2007, Samsung commenced the manufacture of
Colour televisions and LCD televisions at its state–of-the-art manufacturing facility at
Sriperumbudur, Tamil Nadu. The Company is also manufacturing fully automatic front
loading washing machines at its Sriperumbudur facility.
Samsung‘s state of the art, highly automated manufacturing facilities are located at
the Company‘s sprawling Complex at Noida and its recently inaugurated Sriperumbudur
facility, near Chennai. Samsung India‘s Noida CTV Plant enjoys the Number 1 position
amongst all Samsung subsidiaries in terms of its Colour television productivity and has been
ranked as the subsidiary with the ‗Best Quality System‘.
14

19. The highly advanced Chennai Facility that has been inaugurated in November 2007
will help the Company respond better and faster to the growing demand for its products in the
Southern part of the country. The Samsung manufacturing facility at Sriperumbudur is the
Company's second manufacturing complex in the country.
Samsung India is working with and contributing to the development of the domestic
component industry in the country. The Company is working with its partners to improve
their product quality and processes. Thus, Samsung vendors are sent to different Samsung
subsidiaries to meet the Samsung overseas vendors in order to benchmark their own
processes. Samsung is also training its vendors on eco-partnership so that the components
manufactured by them are ‗eco friendly‘ as per ROHS norms.
Samsung products manufactured in India currently enjoy an average localisation level
of over 50%.From being a virtually unknown entity in the Year 1995, brand Samsung today
enjoys an awareness level of over 65% and a positive opinion of over 80% in the country
today (source: BAS 2007). The introduction of World First, Wow, leading technology
products in the Indian market coupled with the Company‘s efforts to customise products for
the Indian consumers, have contributed to the success of the brand in the Indian market.
Technology Leadership, Product design and innovative marketing have all contributed
to making Samsung a household name in the Indian market. The Company has carried out
over 170 Dream Home Road Shows - a four day exhibition of its new products and
technologies - in the metros and smaller markets to create consumer awareness.
To display Samsung products in a more lifestyle ambience and to communicate the
product benefits in a more interactive manner, Samsung India has set up a widespread
network of Samsung Digital Plazas all over the country.
15

20. The Samsung Brand shop network complements the over 8500 retail points for
Samsung products located across the length and breadth of the country. Samsung plans to
continue enhancing its penetration levels in the country to reach out to more and more Indian
consumers.
AWARDS
During its tenure of 12 years in the country, Samsung India has won several Product
Awards and recognitions across its Audio Video, Home Appliance, IT and Telecom Product
categories. The Corporate Recognitions received by the Company in the recent past include:-
'Electronics Organisation of the Year' by EFY Magazine at its 'Readers' Choice
Awards' February, 2007
Electronics Company of the Year - in 2006 by Consumer Electronics & TV
Manufacturers Association
No.1 Channel Favourite Company - in 2006 by Var India
Most preferred TV partner in Hospitality Industry by Hospitality India 2006
Best Retailer for the Year 2005 by India Retail Forum
Most Trusted Company Award 2005 by Var India
ELCINA (Electronics Industries Association of India) Awards for 'Excellence in
Electronics' instituted by the IT department of the Government of India. Samsung
India received the 1st Prize in the Consumer Electronics category for productivity,
exports, R&D and quality assurance in 2002
Golden Peacock Special commendation Certificate for Corporate Social
Responsibility (Private Sector) for the year 2004
'Special Award' by Electronic Industries Association of India for 'significant
contribution to the development and growth of India's Electronics Hardware and IT
industry.' in 2004
16

21. PRODUCT PORTFOLIO
Touch Phone Television Digital Camera Refrigerator Notebook
Style Phone Blue-ray Digital Camcorder Air Conditioner Monitor
Multimedia DVD Player Washing Machine Optical Disk
Phone Drive
Business Phone Home Theatre Microwave Oven External HDD
Guru Series Multimedia Player Smart Oven Laser Printer/
Multifunction
Dual SimPhone
CDMA Phone
Mobile Phone
Accessories 17

22. DEPTH OF THE LCD TELEVISION SEGMENT
Samsung TVs offer world-class picture quality, design and energy efficiency.
Samsung India has divided the LCD TVs in different series according to the features. Here
there is a brief review of segmentation of LCD TVs.
18

23. INDIAN CONSUMER ELECTRONICS INDUSTRY
The consumer electronics industry has been witnessing a phenomenal growth
globallyover the past few years. This growth can be attributed to the
revolutionarytechnological developments taking place in the consumer electronics industry.
Therevolution brought by the digital technology has enabled the consumer electronicssector
to profit from the growing interaction of digital applications, such ascamcorders, DVD
player/recorder, still camera, computer monitor, LCD TV, etc.
According to Consumer Electronics Market Forecast report, the global
consumerelectronics market is forecasted to grow at a CAGR of around 5% during 2009-
2012.Also, during the same period, the global consumer electronics shipment will grow at
aCAGR of around 5%.Various factors driving the future growth. On the regional front,we
found that the American region, mainly US, is driving the global consumerelectronics
industry, closely followed by Europe. In future, Asia Pacific region willconstitute the major
portion of the consumer electronics industry, mainly due to theincrease in demand from the
developed countries in the region. Also, the Americanregion along with the European region
will see a decline in their market shares becausethe markets there have attained saturation and
only the advent of new technology willboost the demand.
India‘s consumer electronics devices market, defined as the addressable market
forcomputing devices, mobile handsets and AV products, is projected at aroundUS$28.6bn in
2010. This is expected to increase to US$45.7bn by 2014, driven byrising incomes and
growing affordability. Growth in some product categories dipped in2009, but the market
recovered strongly during the festive sales season that ran untilDiwali, with many retailers
reporting 20-40% growth. Spending on consumerelectronics devices is projected to grow at
an overall CAGR of 12% through 2014,with the key segments including touch-screen
mobiles, for LCD TV sets, set-top boxesand notebook computers. Much of the growth will be
driven by growing demand fromIndia‘s rural population.
19

24. DISPLAY AS A GROWTH DRIVER
India's domestic video device market is expected to grow at a CAGR of 22% between
2009-2013, to a value of US$15.2bn in that year. Television will remain the core product in
this category, with sports events such as the India Premier League cricket and the 2010
Commonwealth Games in Delhi helping to drive demand for TV set upgrades.
Source:Display Search India
Figure: Contribution of video and audio in Consumer Electronics market
Indian market typically exhibits contradiction that there may be a unique to this
market. For instants CRT TVs are obsolete across the world; but they continue to be sold in
rural India. At the same time there is a growing demand for LCD TVs in India. In this way
video continues to drive growth in India‘s consumer electronics industry. The display
industry in India promises huge potential in the years to come. The double digit compound
annual growth over the next five years will be aided by various factors.
20

25. EMERGING LCD TV MARKET
India market and predicts that by 2012, LCD TV shipments will surpass those ofCRT
TVs in India. India has the second largest population in the world and an annualGDP growth
rate of more than 8% from 2002 to 2012. CRT TV accounts for 92.9% ofthose units
in2008,followed by LCD TV with 6.6% and PDP TV with 0.5%.
Source:Display Search India
Figure: Indian emerging LCD TV market
21

26. However, Indian LCD TV market is just at the beginning of a real growth curve,
withY/Y growth of more than 100% expected for each of the next five years. Growth willbe
driven by enhanced purchasing power, the digital broadcast (DTH, IPTV, STBcable)
transition as well as consumer awareness and affordability of LCD TVs. India‘sgrowing
upper middle class is projected to be the greatest source of LCD TVpurchasing power.
Meanwhile, major brands like Samsung, LG, Sony and Philips andIndian local brands like
Videocon and Onida are all focusing promotional effortsaround LCD TV. Several Chinese
brands are also targeting India with their firstexports. Among the imports of LCD TV into
India, approximately 25% were importedin as CBU (Complete Built Unit) and 75% were
imported as SKD (Semi-KnockDown) or CKD (Complete Knock Down). Thailand has a
special FTA (Free TradeAgreement) with India on duty benefits. Therefore, companies like
Sony andPanasonic are making LCD TVs in Thailand and then shipping them to India.
Thegrowing LCD TV market in India has encouraged Indian company Videocon group toset
up a TFT LCD panel manufacturing lab.
22

27. THEORETICAL BACKGROUND OF THE STUDY
Marketing involves satisfying consumer‘s needs and wants. The task of any businessis
to deliver customer value at a profit. The American Marketing Association offers
thefollowing formal definition: Marketing is an organizational function and a set ofprocesses
for creating, communicating, and delivering value to customers and formanaging customer
relationships in ways that benefit the organization and its stakeholders.
21
Customer Core Collaborative
Focus Competencies Network
Value Cognitive Competency Resource
Exploration Space Space Space
Value Customer Business Business
Creation Benefits Domain Partners
Customer Internal Business
Value Relationship Resource Partner
Delivery Management Management Management
Figure: Holistic Marketing Framework
According to this view, holistic marketers succeed by managing a superior value
chainthat delivers a high level of product quality, service, and speed. Holistic
marketersachieve profitable growth by expanding customer share, building customer loyalty,
andcapturing customer lifetime value.
23

28. A holistic marketing framework shows how the interaction between relevant
actors(customers, company, and collaborators) and value-based activities (value
exploration,valuecreation, and value delivery) helps to create, maintain, and renew
customervalue.
THE ROLE OF MARKETING CHANNELS
Successful value creation needs successful value delivery. Holistic marketers
areincreasingly taking a value network view of their businesses. The marketing
channelperforms the work of moving goods from producers to consumers.
Intermediariesnormally achieve superior efficiency in making goods widely available and
accessibleto target markets. Through their contacts, experience, specialization, and scale
ofoperation, intermediaries usually offer the firm more than it can achieve on its own.These
are the various roles performed by the channel partners:
Gather information about potential and current customers, competitors, and other
actors and forces in the marketing environment.
Develop and disseminate persuasive communications to stimulate purchasing.
Reach agreements on price and other terms so that transfer of ownership or possession
can be affected.
Place orders with manufacturers.
Acquire the funds to finance inventories at different levels in the marketing channel.
Assume risks connected with carrying out channel work.
Provide for the successive storage and movement of physical products.
Provide for buyers' payment of their bills through banks and other financial
institutions.
Oversee actual transfer of ownership from one organization or person to another.
All channel functions have three things in common: They use up scarce resources;
theycan often be performed better through specialization; and they can be shifted
amongchannel members. When the manufacturer shifts some functions to intermediaries,
theproducer's costs and prices are lower, but the intermediary must add a charge to coverits
24

29. work. If the intermediaries are more efficient than the manufacturer, prices toconsumers
should be lower. If consumers perform some functions themselves, theyshould enjoy even
lower prices.
CHANNEL MANAGEMENT DECISIONS
After a company has chosen a channel alternative, individual intermediariesmust be
selected, trained, motivated, and evaluated. Channel arrangements must bemodified over
time.
 SELECTING CHANNEL MEMBERS
Companies need to select their channel members carefully. To customers, the channelsare
the company. Consider the negative impression customers would get of if one ormore of their
outlets or dealers consistently appeared dirty, inefficient, or unpleasant.To facilitate channel
member selection, producers should determine whatcharacteristics distinguish the better
intermediaries. They should evaluate the numberof years in business, other lines carried,
growth and profit record, financial strength,cooperativeness, and service reputation. If the
intermediaries are sales agents,producers should evaluate the number and character of other
lines carried and the sizeand quality of the sales force. If the intermediaries are department
stores that wantexclusive distribution, the producer should evaluate locations, future growth
potential,and type of clientele.
 TRAINING CHANNEL MEMBERS
Companies need to plan and implement careful training programs for theirintermediaries.
The company must constantly communicate its view that theintermediaries are partners in a
joint effort to satisfy end users of the product.Coercive and reward power are objectively
observable; legitimate, expert, and referentpower are more subjective and dependent on the
ability and willingness of parties torecognize them.
24
25

30.  MOTIVATING CHANNEL MEMBERS
A company needs to view its intermediaries in the same way it views its end users.
Itneeds to determine intermediaries' needs and construct a channel positioning such thatits
channel offering is tailored to provide superior value to these intermediaries.Beingable to
stimulate channel members to top performance starts with understanding theirneeds and
wants. The company should provide training programs, market researchprograms, and other
capability-building programs to improve intermediaries‘performance.
 EVALUATING CHANNEL MEMBERS
Producers must periodically evaluate intermediaries' performance against suchstandards
as sales-quota attainment, average inventory levels, customer delivery time,treatment of
damaged and lost goods, and cooperation in promotional and trainingprograms. A producer
will occasionally discover that it is paying too much toparticular intermediaries for what they
are actually doing. Producers should set upfunctional discounts in which they pay specified
amounts for the trade channel'sperformance of each agreed-upon service. Underperformers
need to be counseled,retrained, motivated, or terminated.
 MODIFYING CHANNEL ARRANGEMENTS
A producer must periodically review and modify its channel arrangements.Modification
becomes necessary when the distribution channel is not working asplanned, consumer buying
patterns change, the market expands, new competitionarises, innovative distribution channels
emerge, and the product moves into later stagesin the product life cycle.
LEVELS OF MARKETING SEGMENTATIONS
ANDTARGETS
26

31. Markets are not homogeneous. A company cannot connect with all customers inlarge,
broad, or diverse .markets. Consumers vary on many dimensions and often canbe grouped
according to one or more characteristics.
 SEGMENTATION MARKETING
The starting point for discussing segmentation is mass marketing. In mass marketing,the
seller engages in the mass production, mass distribution, and mass promotion ofone product
for all buyers. The argument for mass marketing is that it creates thelargest potential market,
which leads to the lowest costs, which in turn can lead tolower prices or higher margins.
However, many critics point to the increasingsplintering of the market, which makes mass
marketing more difficult. Theproliferation of advertising media and distribution channels is
making it difficult andincreasingly expensive to reach a mass audience. Some claim that mass
marketing isdying. Most companies are turning to micromarketing at one of four levels:
segments,niches, local areas, and individuals.
 TARGET MARKETING
Once the firm has identified its market-segment opportunities, it has to decide howmany
and which ones to target. Marketers are increasingly combining several variablesin an effort
to identify smaller, better-defined target groups. Effective target marketingrequires that
marketers:
Identify and profile distinct groups of buyers who differ in their needs and preferences
(market segmentation).
Select one or more market segments to enter (market targeting).
For each target segment, establish and communicate the distinctive benefits) ofthe
company's market offering (market positioning).
COMPETITIVE STRATEGIES FOR MARKET LEADERS
The leader might spend conservatively whereas a challenger spends liberally.The
leader might misjudge its competition and find itself left behind. The dominantfirm might
look old-fashioned against new and peppier rivals. The dominant firm'scosts might rise
27

32. excessively and hurt its profits, or a discount competitor can undercutprices. Leaders can
respond to an aggressive competitor in three ways first, the firmmust find ways to expand
total market demand. Second, the firm must protect itscurrent market share through good
defensive and offensive actions. Third, the firm cantry to increase its market share, even if
market size remains constant.
 EXPANDING THE TOTAL MARKET
The dominant firm normally gains the most when the total market expands. Themarket
leader should look for new customers or more usage from existing customers.Every product
class has the potential of attracting buyers who are unaware of theproduct or who are
resisting it because of price or lack of certain features. A companycan search for new users
among three groups: those who might use it but do not(market-penetration strategy), those
who have never used it (new-market segmentstrategy) or those who live elsewhere
(geographical-expansion strategy). Usage can beincreased by increasing the level or quantity
of consumption or increasing thefrequency of consumption.
27
 DEFINING MARKET SHARE
While trying to expand total market size, the dominant firm must continuously defendits
current business. The leader leads the industry in developing new product andcustomer
services, distribution effectiveness, and cost cutting. It keeps increasing itscompetitive
strength and value to customers.
 EXPANDING MARKET SHARE
Market leaders can improve their profitability by increasing their market share. Gaining
increased share in the served market, however, does not automatically producehigher
profits—especially for labor-intensive service companies that may notexperience many
economies of scale. Much depends on the company's strategy.Because the cost of buying
higher market share may far exceed its revenue value, acompany should consider four factors
before pursuing increased market share: Thepossibility of provoking antitrust action,
28

33. economic cost, pursuing the wrongmarketing-mix strategy, the effect of increased market
share on actual and perceivedquality.
DISTRIBUTION CHANNEL OF SAMSUNG
Company's Manufacturing
Units
(Noida and Chennai)
C&F Agents
(One in each state)
Franchised
Distributor Big Retailers Retail Chains
Outlets
Small Digital Plazas Digital Homes Digital Worlds
Dealers/Retailers
Figure: Samsung’s Distribution Channel
Samsung has two manufacturing units one each in Noida and Chennai. A national
distributor takes care of the logistics associated with distributing the goods across the
country. A Carrying & Forwarding(C&F) Agent is present in each of the main states. The
C&F agent takes care of storing and transporting the goods onwards to dealers and
distributors. While warehouses for storing the products are provided by the C&F agent the
goods are still owned by the company. In big cities like Delhi the goods are shipped directly
from the C&F agents to the dealers. In some cases the smaller dealers may be supplied by
some of the larger dealers. For big retailers like e-zone and Next the goods may be shipped
from the C&F agents‘ warehouse to a warehouse owned by the retail chain. In both the cases
once the goods are transferred to the dealers the ownership is taken over by them. The
transactions are on cash basis and no goods are given on credit. In case of large retail chains
29

34. the purchasing decisions are taken at a national level and happen directly between the
company ant the head office of the retailer.
CONSUMER ELECTRONICS DISTRIBUTION
Diagram shows the distribution networks in general for a consumer durables
company. It has its own branch network acting as first level of distribution, which handles
storage and distribution of goods. The next level is direct dealers whom the company‘s
representatives visit regularly. These direct dealers help to disperse the goods to next level
where company cannot serve directly. The second diagram is where company has wholly
owned wholesale buyers who have branches countrywide for sales and after sales service.
The company sells to wholesale buyers which in turn supply to authorised dealers across the
country.
Branch Office/
Wholesaler
Godown
Godown of
Direct Dealers
Wholesaler
Only Sales, Sub
Authorised Dealer
Dealers
Figure: Distribution Network
30

35. 31

36. CHAPTER 3
ANALYSIS
AND
INTERPRETATION
OF DATA

37. Q.1) How many different brands are displayed?
60%
54%
50%
38%
40% 36% 36% 20" and less
32%
21" to 29"
28%
30% 25% 30" to 37"
20% 21% 18% 38" to 46"
20% 15%
14% 47" and above
12% 11%
10% 8%
10% 7% 6%
5% 4%
0%
Samsung LG Sony Others
INTERPRETATION: From the above chart, it is observed that of the total counter share
20% counter of Samsung, 21% counter LG, 10% counter SONY and 18% counter others
arehaving in 20‖ and less LCD TV display share. Whereas, of the total counter share 54%
counter of Samsung, 36% counter LG, 28% counter SONY and 38% counter others
arehaving in 21‖ to 29‖ LCD TV display share. In the total counter share 14% counter of
Samsung, 25% counter LG, 36% counter SONY and 32% counter others arehaving 30‖ to
37‖ LCD TV display share. In the total counter share 7% counter of Samsung, 6% counter
LG, 11% counter SONY and 8% counter others arehaving 38‖ to 46‖ LCD TV display share.
In the total counter share 5% counter of Samsung, 12% counter LG, 15% counter SONY and
4% counter others arehaving 47‖ and above LCD TV display share.
32

38. Q.2) Does customer have prior knowledge/information about particular brands of LCD?
Awareness
37%
Yes
63% No
INTERPRETATION: This chart shows the awareness of the customers towards the product.
From the above chart, it is observed that 63% of the respondents agree that people are aware
of the product prior to their approaching the dealer, and only 37% says that people are less or
not aware of the product.
Q.3) When customers mostly visit showroom for buying LCD?
Samsung
37%
40%
35% 26% 28%
30%
25%
20%
9% Samsung
15%
10%
5%
0%
During During Gift During Discount Others
Exchange Offers Option Offers Offers
INTERPRETATION: From the above chart, it is observed that 37% of the respondents
agree that most of the people visit the showroom during discount offers, 28% goes with gift
option offers, 26% goes with exchange offers, and only 9% goes with other offers.
33

39. Q.4) What are the parameters on which consumer makes his purchase decision?
Parameter
16%
24%
Price
Brand Name
Design
27%
Features
Quality
21%
12%
INTERPRETATION: From the above chart, it is observed that 24% of the respondents
agree that people choose their LCD television on the basis of price, 21% goes with brand
name, 12% goes with design, 27% with features and remaining 16% goes with quality.
Q.5) To what extents, following brands of LCD are preferred by customers?
Preference
1st
2nd
3rd
Preference
4th
Samsung LG Sony Others
INTERPRETATION: The above chart shows the preference among customers towards
different brand of LCD television. From the above chart, it is observed that customers
preferred LG at first position, followed by Samsung, Sony and then other brands.
34

40. Q.6) Which is the largest selling model?
Model Share
40% 36%
32%
30%
18%
20%
10%
7% Samsung
7%
0%
20" and
21" to 29"
less 30" to 37"
38" to 46"
47" and
above
INTERPRETATION: From the above chart, it is observed that 18% of the counter share of
Samsung LCD Television is 20‖ and less. 36% is between 21‖ to 29‖, 32% isbetween 30‖ to
37‖, 7% is between 38‖ to 46‖ and 7% is 47‖ and above.
Q.7) Where does the dealer used to get the product?
Source
14%
Distributor
9%
Wholesaler
Other sources
17% 60%
All of them
INTERPRETATION: From the above chart, it is observed that majority of 60% of the
respondents use to get the product only from distributors. Whereas, 17%, 9% and 14% used
to get the product from wholesalers, other sources, and all of distributor, wholesaler and other
sources respectively.
35

41. Q.8) Whether the dealer is satisfied with the distributor?
Satisfaction with Distributor
68%
70%
60%
50%
29%
40%
30% Satisfaction
20%
3% 0%
10%
0%
Highly Satisfied Satisfied Dissatisfied Highly
Dissatified
INTERPETATION: From the above chart, it isobserved that majority of 68% of
respondents are satisfied with their distributor, 29% are highly satisfied, and only 3% is
dissatisfied. None is highly dissatisfied.
Q.9) How often the distributor‘s sales person visit the counter (in a week)?
Visit
3%
33%
27% One time
Two times
Three times
More than three times
37%
INTERPRETATION: From the above chart, it is observed that to 33% of the respondents,
the distributor visit only one time, two times to 37% of the respondents, three times to 27% of
the respondents and more than three times to 3% of the respondents.
36

42. Q.10) Whether the dealer is satisfied with the service?
Satisfaction with Service
70%
80%
70%
60%
50%
40% 27%
30% Satisfaction with Service
20%
3% 0%
10%
0%
Good Satisfactory Average Below
Avergae
INTERPRETATION:From the above chart, it is observed that majority of the respondent
70% rated the service as good, 27% of the respondents rated the service as satisfactory, and
only 3% of the responded rated the service as average.
Q.11) What can Samsung do to help you to sell more LCD TV rather than any other brand?
Strategy
49%
50%
40%
30% 20%
17% Strategy
20% 14%
10%
0%
Advertising Branding Display Concert Salesman
INTERPRETATION:From the above chart, it is observed that 49% of the total respondents
think that branding strategy will attract customers towards Samsung. Whereas, 20% think
advertising will help in promoting Samsung, other 14% think of display concert and
remaining 17% think that salesman may help Samsung to increase its demand.
37

43. Q.12) Have you been satisfied with Samsung as a whole, during your experience
sellingSamsung products?
Satisfaction with Samsung
3%
Yes
No
97%
INTERPRETATION:The above chart shows the satisfaction of the dealer with Samsung in
selling the product. From the above chart, it is observed that with the total experience with
Samsung 97% of the respondents are satisfied and only 3% is dissatisfied.
38

44. CHAPTER 4
CONCLUSIONS
AND
RECOMMENDATIONS

45. CONCLUSIONS
From the study it is concluded that consumer durables play a major role in our day to
day life. Consumer durable has become a necessity. Now-a-days one finds it hard to survive
without them.
Samsung India electronics is one of the leading consumer durable provider and it
should also concentrate on the research and development in the country itself so as to fulfill
the demands of the local residents in the desired manner.As rapid socio-economic changes
sweep across India, the country is witnessing the creation of many new markets and a further
expansion of the existing ones. The Indian consumer durables industry has witnessed a
considerable change in the past couple of years. Changing lifestyle with access to disposable
incomes, easy finance options and a surge in advertising has been instrumental in bringing
about a sea change in the consumer behavior pattern. SAMSUNG also need to modify their
advertising strategies in order to educate thetarget audience about the product.
According to a study conducted by FICCI on the Indianconsumer durables industry, a
shift in consumer preferences towards higher-end,technologically advanced branded products
has been quite discernable. This shift canbe explained by narrowing differentials between the
prices of branded and unbrandedproducts added with the high quality of after sales service
provided by the brandedplayers.
40

46. RECOMMENDATIONS
Cataloguesof the LCD television should be available in sufficient stock at dealer
showrooms so that the dealers can show various models to the prospective customers and
guide them the strategies to convert the enquiries into orders of Samsung LCD television.
The design of showroom should be made unique so that if a customer visits a
showroom he can feel the similarity and thus giving him a confidence of visiting a good
branded showroom. Company should customize the display stands so that LCD television
can be easily fixed on the wall.
Samsung India Electronics should also target the lower end markets where their sale
is very low due to the existence of the local players.Samsung should make the market
strategy keeping in mind both the lower-end as well as the premium markets.Samsung should
also concentrate on the product category gap between the branded and the local players to
win the competition in the long run.
Smaller cities are also witnessing great changes. The dealers in smaller cities are not
getting the current price list and updates of the product as sales persons are visiting less in
these counters.Company should focus on that matter seriously.
Company should introduce high cost products to target the high income group by
introducingLCD television of 52‖ and morejust like LG and Sony.Branding and promotional
activities should be done effectively as it creates a long lasting image in the mind of the
customers.
41

47. As there is a bottle neck competition between Samsung and LG, it is necessary to take
major steps to overcome the area of downfall in Samsung. With respect to LG, the companies
should more concentrate on R&D rather than wasting their money in various Sales
promotional techniques.
Most of the people feel that advertisement is not up to the mark i.e. it does not provide
clear picture about the product being promoted and its schemes. So, proper measure should
be taken to make the advertisement more informative and creative.
42

48. BIBLIOGRAPHY

49. BOOKS
Philip Kotler & Gary Armstrong; Principles of Marketing Management, Prentice Hall of
India, 2001
T.N. Chhabra & S.K Grover; Marketing Management, Dhanpat Rai & Co., 2004
G C Beri, Marketing Research, Tata McGraw Hill, 2006
WEBSITES
www.samsung.com
www.lg.com
www.sony.co.in
www.videoconworld.com
www.sansui-india.com
www.ibef.org
www.displaysearch.com
www.varindia.com
www.ficci.com
www.researchandmarkets.com
www.google.com
en.wikipedia.org
44

50. ANNEXURE

51. QUESTIONNAIRE ON SAMSUNG LCD TELEVISON
This is a survey on ‘Samsung LCD Television’ by Prabhjot Singh for the partial
fulfillment of BACHELOR OF BUSINESS ADMINISTRATION. So kindly give your
response to these questions:-
Information in the questionnaire will be:
Used for academic purposes only
Kept strictly confidential
Name of the Dealer: __________________ Date: __/__/____
Q.1)How many different brands are displayed?
20‖ and less 21‖ to 29‖ 30‖ to 37‖ 38‖ to 46‖ 47‖ and above
Samsung
LG
Sony
Others
Q.2)Does customer have prior knowledge/information about particular brands of LCD?
Yes No
Q.3)When customers mostly visit showroom for buying LCD?
During Exchange Offers During Discount Offers
During Gift Option Offers Others (Please Specify) __________
46

52. Q.4)What are the parameters on which consumer makes his purchase decision?
Price Features
Brand Name Quality
Design
Q.5)To what extents, following brands of LCD are preferred by customers?
Very High High Low Very Low
Samsung
LG
Sony
Others
Q.6) Which is the largest selling model?
20‖ and less 21‖ to 29‖ 30‖ to 37‖ 38‖ to 46‖ 47‖ and above
Q.7) Where does the dealer used to get the product?
Distributor Other Source
Wholesaler All of them
Q.8)Whether the dealer is satisfied with the distributor?
Highly Satisfied Dissatisfied
Satisfied Highly Dissatisfied
47

53. Q.9)How often the distributor‘s sales person visit the counter (in a week)?
One time Three times
Two times More than 3 times
Q.10)Whether the dealer is satisfied with the service?
Satisfactory Average
Good Below Average
Q.11) What can Samsung do to help you to sell more LCD TV rather than any other brand?
Advertising Display Concert
Branding Salesman
Q.12)Have you been satisfied with Samsung as a whole, during your experience
sellingSamsung products?
Yes No
48