4. 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
5. 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
6. 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"
8. 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
9. 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
10. 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)
11. 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
12. 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
13. 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/-
14. 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.
15. 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
16. 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
17. 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
19. 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.
20. 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%
21. 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 ?
22. Areas of Excellence
• External Marketing – Promoting, Pricing and distributing services
• Internal Marketing – Training and Motivating employees
• Interactive marketing- Employees’ skill in serving the client
23. 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
25. 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
26. 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
27. Big Kurukshetra War in Mobile world
Apple iPhone 8
VS Samsung Galaxy Note 8
on September 12
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.
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.
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
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.
