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SAMSUNG– LED TV
AKASH SHARMA :: MARKETING ANALYTICS :: DM17D02
SECTOR INFORMATION:
Consumer Durables
Consumer Appliances
Brown Goods: Kitchen
Appliance
White goods: Air
conditioner, refrigerator etc.
Mobile Phones,TV,Mp3,
Camera etc.
Others: Watch,
Jewellery etc.
SHARES IN ORGANIZED RETAIL INDUSTRY
42%
16%
12%
10%
7%
3%
3%
1%
6%
Food, Groccery and Merchandise
Clothes,Textiles and Fashion
Durables and Mobiles
Food Services
Home Improvement
Jewellery & Watches
Footwear
Books,Music,Toys &Gifts
Others
GROWTH PATTERN OVER THE YEAR
3.5 3.8 4.2 4.7 5.2
6.3
7.3 7.3 7.4
9.7
12.5
20.6
0
5
10
15
20
25
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY14 FY15 FY16 FY17
PORTER’S FIVE FORCES MODEL
Competitive
Rivalry
(High)
Threat of
Substitutes
(High)
Threat of
New
Entrants
(High)
Bargaining
Power of
Suppliers
(Low)
Bargaining
Power of
Customers
(Medium)
SAMSUNG : SNAPSHOT
• Samsung Electronics Co., Ltd. was founded in
1938 and is based in Suwon, South Korea
• Samsung Electronics deals in consumer
electronics, information technology and mobile
communications, and device solutions businesses
worldwide
• Involved in the technology business; venture
capital investments; and manufacture of
semiconductor equipment
Product Portfolio
MOBILE
• Galaxy Products
• Phones
• Tablets
• Wearables
• Virtual Reality
• Audio
• Accessories
APPS
• Bixby
• SMART/OLED
Switch
• Samsung Pay
• Samsung Health
• Samsung +
• Shop Samsung App
• Samsung kids
TV AND HOME
THEATER
• TV
• Q-LED TV
• The Frame
• Premium UHD TV
• UHD TV
• SMART/OLED TV
• Sound bars
• 4K Blu-Ray players
ALL
ACCESSORIES
• TV Accessories
• Home theatre
accessories
• All TV & Home
theatres
COMPUTING
• Windows Laptop
• Windows Desktop
• Chrome book
• HMD
• Tablets
• Memory & Storage
• Memory Card
• Monitors
• Printers
HOME
APPLIANCES
• Refrigerators
• Wall Oven
• Cook tops and
Hoods
• Dish washer
• Washers
• Dryers
MARKET SHARE OF VARIOUS COMPANIES
7%
7%
9%
20%
13%
44%
TOSHIBA
Panasonic
Sony
Samsung
LGE
Others
SWOT ANALYSIS
S
• Better overall performance over any other TV brands
• Higher refresh per rate on the image quality
• Works without the use of a backlight. thus gives the thinner dimension.
W
• Price is one of the weakness of Samsung TV
• Product life Cycle.
• Current technology has the SMART/OLED display lasting about half as long as the LCD/LED
counterpart.
O
• Partnerships among online affiliates.
• Samsung has an opportunity to corner the market and create their own niche in the
SMART/OLED TV market.
• Entry into the market can end the Chinese and Japanese domination.
T
• Sony might stay out of the SMART/OLED TV market all together, and just partner with LG to
supply them with SMART/OLED TV screens.
• Samsung will have to stay focused on whatever advancements their suppliers have made in
production
MARKETING MIX
Product
• Revamped investments
into one Samsung
branding
• corporate unification in
building and improving
its branding with the
emphasis of building
customer relationship
• Mobile devices and
television are currently
Samsung’s largest
market segment
Price
• The SMART/OLED TV
will be priced at range
of Rs350000 to Rs
400000 for 46 inch
• Target market for
SMART/OLED TV is
geared towards a
demographic of
customer with incomes
of Rs70,000 and above
• The price will
substantially decrease
to a much more
affordable price
Place
• Online Companies
• Authorized Sellers
and Resellers
• Physical Retail
Store
• Online Retail
Stores
Promotion
• Digital Marketing
and the web.
• Social Media
Networking.
• Blogs, Online
Magazines and
Micro Blogs
• Web Advertising
and Web Media
• Media
Advertisement
PRODUCT LIFE CYCLE
SALES FORECAST
YEAR SALES
2012 350381
2013 331207
2014 324486
2015 292194
2016 287241
2017 282371
• Moving Average method =
(2015+2016+2017)/3 = 287268 KRW
• Naïve/Ratio method = (Actual sales
of this year/Actual Sales of last year)
*Actual sales of last year = 277584
KRW
DISTRIBUTION FORMATS AND MARKETING
CHANNELS:
• Exclusive and Selective Distribution
Strategy
• 0-level and 1-level distribution
• Sales Through (Sales to the End
Consumer) – 0-Level Channel
• Sale Out (Sales to the retailer and retailer
sales to the end consumer) – 1-Level
channel
DIGITAL MARKETING STRATEGY
• Facebook
• YouTube
• Twitter
• Focus on Conversion, Not
Just Leads
• Set the Stage for Long-Term
Value
• Double Down on Customer
Service
• Create the Ultimate Buying
Journey
• Know When and How to Go
Back and Refine Processes
FACTOR ANALYSIS
• Factors to be analyzed:
Looks Screen Size After Sales Service Discounts
Popularity Color Display Product Type Latest Technology
Word of mouth Weight Price Brand Value
Friend/Family
Recommendation
Reliability Purchase Promotional
Advertisement
Dealer
Recommendation
Energy
Consumption
Payment Mode Brand Ambassador
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .854
Bartlett's Test of Sphericity
Approx. Chi-Square 283.709
Df 190
Sig. .001
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 3.728 18.640 18.640 3.728 18.640 18.640 2.445 12.224 12.224
2 2.331 11.656 30.296 2.331 11.656 30.296 2.077 10.387 22.611
3 1.818 9.091 39.387 1.818 9.091 39.387 1.899 9.493 32.105
4 1.527 7.636 47.023 1.527 7.636 47.023 1.894 9.469 41.574
5 1.461 7.303 54.326 1.461 7.303 54.326 1.767 8.836 50.409
6 1.365 6.823 61.149 1.365 6.823 61.149 1.745 8.727 59.136
7 1.081 5.404 66.553 1.081 5.404 66.553 1.483 7.417 66.553
8
.964 4.819 71.372
9 .846 4.229 75.601
10 .816 4.081 79.682
11 .737 3.687 83.369
12 .705 3.527 86.896
13 .604 3.022 89.917
14 .492 2.459 92.376
15 .402 2.008 94.385
16 .318 1.590 95.975
17 .233 1.164 97.139
18 .227 1.134 98.273
19 .179 .895 99.168
20 .166 .832 100.000
Extraction Method: Principal Component Analysis.
FACTOR ANALYSIS(CONTD.):
• From the Total Variance Explained, it can be concluded that 66.55% of the total
variance is explained by the 7 factors
1 2 3 4 5 6 7
Looks -.059 -.065 .016 .316 .757 -.250 .006
Popularity .077 -.035 .126 .711 -.082 .131 -.054
Brand_Val
ue
.165 -.024 .122 .775 .288 -.092 .070
Word_of_
m outh
.021 .114 .127 .058 .085 -.679 .151
Friends _r
elatives _S
ugges tion
.035 .441 .179 .169 -.088 .467 .258
Dealer_R
ecom m en
dation
.076 -.061 .085 .053 .112 .707 .131
Secreen_
Size
.320 .021 .361 .398 .226 -.376 .247
Color_Dis
play
-.041 -.067 .767 .010 .181 .216 -.233
Weight .189 .423 .192 .129 -.449 -.244 .050
Reliability -.049 -.080 .750 .210 -.145 -.135 .180
Energy_C
ons um ptio
n
.541 -.138 .103 -.413 -.111 .065 .286
After_Sale
s _Service
.662 .131 .110 .264 .006 -.073 .316
Product_T
ype
.821 .071 -.066 .004 .251 .021 -.208
Price .501 .146 .571 .105 .179 -.063 .093
Purchas e
_Medium
.241 .235 .203 .045 .650 .401 .021
Paym ent_
Mode
.101 .168 .290 -.317 .438 -.056 .402
Dis counts .117 .034 -.038 .000 .019 .040 .882
Lates t_Te
chnology_
Us ed
.701 .219 -.050 .166 -.205 .127 .110
Prom otion
al_Adverti
s em ent
.080 .895 -.052 .067 .059 -.124 -.108
Brand_Am
bas s ador .147 .821 -.097 -.222 .043 .002 .144
Rotated Component Matrix
a
Com ponent
FACTOR ANALYSIS(CONTD.):
• The highlighted cells in the previous slide under the same columns are being
renamed as follows:
Customer Preference Energy Consumption, After sale service,
Product type, price, Latest Tech used
Promotion Promotional Advertisement, Brand
Ambassador
Value for Money Color display, Reliability, Price
Brand Image Popularity, Brand Value
Clarity Looks, Purchase Medium
Recommendation Dealer recommendation
Offers Discounts
CONCLUSION
• As with other devices that take you online there are fears surrounding security and
there is a point some of the time. So Samsung could work on it and be ahead of its
competitors
• Since the trend for LED is increasing a price drop in the products would cater a huge
demand
• Samsung TV could increase there distribution level and supply more numbers in the
outlets which would help increase there sales
• The promotional strategies done by Samsung should be modified and marketing
strategies involving consumer emotions should be adopted
• A better after-sales service is what is needed by Samsung which would help
increase customer loyalty
THANK
YOU

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FMCD Sector and Samsung LED TV

  • 1. SAMSUNG– LED TV AKASH SHARMA :: MARKETING ANALYTICS :: DM17D02
  • 2. SECTOR INFORMATION: Consumer Durables Consumer Appliances Brown Goods: Kitchen Appliance White goods: Air conditioner, refrigerator etc. Mobile Phones,TV,Mp3, Camera etc. Others: Watch, Jewellery etc.
  • 3. SHARES IN ORGANIZED RETAIL INDUSTRY 42% 16% 12% 10% 7% 3% 3% 1% 6% Food, Groccery and Merchandise Clothes,Textiles and Fashion Durables and Mobiles Food Services Home Improvement Jewellery & Watches Footwear Books,Music,Toys &Gifts Others
  • 4. GROWTH PATTERN OVER THE YEAR 3.5 3.8 4.2 4.7 5.2 6.3 7.3 7.3 7.4 9.7 12.5 20.6 0 5 10 15 20 25 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY14 FY15 FY16 FY17
  • 5. PORTER’S FIVE FORCES MODEL Competitive Rivalry (High) Threat of Substitutes (High) Threat of New Entrants (High) Bargaining Power of Suppliers (Low) Bargaining Power of Customers (Medium)
  • 6. SAMSUNG : SNAPSHOT • Samsung Electronics Co., Ltd. was founded in 1938 and is based in Suwon, South Korea • Samsung Electronics deals in consumer electronics, information technology and mobile communications, and device solutions businesses worldwide • Involved in the technology business; venture capital investments; and manufacture of semiconductor equipment
  • 7. Product Portfolio MOBILE • Galaxy Products • Phones • Tablets • Wearables • Virtual Reality • Audio • Accessories APPS • Bixby • SMART/OLED Switch • Samsung Pay • Samsung Health • Samsung + • Shop Samsung App • Samsung kids TV AND HOME THEATER • TV • Q-LED TV • The Frame • Premium UHD TV • UHD TV • SMART/OLED TV • Sound bars • 4K Blu-Ray players ALL ACCESSORIES • TV Accessories • Home theatre accessories • All TV & Home theatres COMPUTING • Windows Laptop • Windows Desktop • Chrome book • HMD • Tablets • Memory & Storage • Memory Card • Monitors • Printers HOME APPLIANCES • Refrigerators • Wall Oven • Cook tops and Hoods • Dish washer • Washers • Dryers
  • 8. MARKET SHARE OF VARIOUS COMPANIES 7% 7% 9% 20% 13% 44% TOSHIBA Panasonic Sony Samsung LGE Others
  • 9. SWOT ANALYSIS S • Better overall performance over any other TV brands • Higher refresh per rate on the image quality • Works without the use of a backlight. thus gives the thinner dimension. W • Price is one of the weakness of Samsung TV • Product life Cycle. • Current technology has the SMART/OLED display lasting about half as long as the LCD/LED counterpart. O • Partnerships among online affiliates. • Samsung has an opportunity to corner the market and create their own niche in the SMART/OLED TV market. • Entry into the market can end the Chinese and Japanese domination. T • Sony might stay out of the SMART/OLED TV market all together, and just partner with LG to supply them with SMART/OLED TV screens. • Samsung will have to stay focused on whatever advancements their suppliers have made in production
  • 10. MARKETING MIX Product • Revamped investments into one Samsung branding • corporate unification in building and improving its branding with the emphasis of building customer relationship • Mobile devices and television are currently Samsung’s largest market segment Price • The SMART/OLED TV will be priced at range of Rs350000 to Rs 400000 for 46 inch • Target market for SMART/OLED TV is geared towards a demographic of customer with incomes of Rs70,000 and above • The price will substantially decrease to a much more affordable price Place • Online Companies • Authorized Sellers and Resellers • Physical Retail Store • Online Retail Stores Promotion • Digital Marketing and the web. • Social Media Networking. • Blogs, Online Magazines and Micro Blogs • Web Advertising and Web Media • Media Advertisement
  • 12. SALES FORECAST YEAR SALES 2012 350381 2013 331207 2014 324486 2015 292194 2016 287241 2017 282371 • Moving Average method = (2015+2016+2017)/3 = 287268 KRW • Naïve/Ratio method = (Actual sales of this year/Actual Sales of last year) *Actual sales of last year = 277584 KRW
  • 13. DISTRIBUTION FORMATS AND MARKETING CHANNELS: • Exclusive and Selective Distribution Strategy • 0-level and 1-level distribution • Sales Through (Sales to the End Consumer) – 0-Level Channel • Sale Out (Sales to the retailer and retailer sales to the end consumer) – 1-Level channel
  • 14. DIGITAL MARKETING STRATEGY • Facebook • YouTube • Twitter • Focus on Conversion, Not Just Leads • Set the Stage for Long-Term Value • Double Down on Customer Service • Create the Ultimate Buying Journey • Know When and How to Go Back and Refine Processes
  • 15. FACTOR ANALYSIS • Factors to be analyzed: Looks Screen Size After Sales Service Discounts Popularity Color Display Product Type Latest Technology Word of mouth Weight Price Brand Value Friend/Family Recommendation Reliability Purchase Promotional Advertisement Dealer Recommendation Energy Consumption Payment Mode Brand Ambassador
  • 16. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .854 Bartlett's Test of Sphericity Approx. Chi-Square 283.709 Df 190 Sig. .001 Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative % 1 3.728 18.640 18.640 3.728 18.640 18.640 2.445 12.224 12.224 2 2.331 11.656 30.296 2.331 11.656 30.296 2.077 10.387 22.611 3 1.818 9.091 39.387 1.818 9.091 39.387 1.899 9.493 32.105 4 1.527 7.636 47.023 1.527 7.636 47.023 1.894 9.469 41.574 5 1.461 7.303 54.326 1.461 7.303 54.326 1.767 8.836 50.409 6 1.365 6.823 61.149 1.365 6.823 61.149 1.745 8.727 59.136 7 1.081 5.404 66.553 1.081 5.404 66.553 1.483 7.417 66.553 8 .964 4.819 71.372 9 .846 4.229 75.601 10 .816 4.081 79.682 11 .737 3.687 83.369 12 .705 3.527 86.896 13 .604 3.022 89.917 14 .492 2.459 92.376 15 .402 2.008 94.385 16 .318 1.590 95.975 17 .233 1.164 97.139 18 .227 1.134 98.273 19 .179 .895 99.168 20 .166 .832 100.000 Extraction Method: Principal Component Analysis.
  • 17. FACTOR ANALYSIS(CONTD.): • From the Total Variance Explained, it can be concluded that 66.55% of the total variance is explained by the 7 factors
  • 18. 1 2 3 4 5 6 7 Looks -.059 -.065 .016 .316 .757 -.250 .006 Popularity .077 -.035 .126 .711 -.082 .131 -.054 Brand_Val ue .165 -.024 .122 .775 .288 -.092 .070 Word_of_ m outh .021 .114 .127 .058 .085 -.679 .151 Friends _r elatives _S ugges tion .035 .441 .179 .169 -.088 .467 .258 Dealer_R ecom m en dation .076 -.061 .085 .053 .112 .707 .131 Secreen_ Size .320 .021 .361 .398 .226 -.376 .247 Color_Dis play -.041 -.067 .767 .010 .181 .216 -.233 Weight .189 .423 .192 .129 -.449 -.244 .050 Reliability -.049 -.080 .750 .210 -.145 -.135 .180 Energy_C ons um ptio n .541 -.138 .103 -.413 -.111 .065 .286 After_Sale s _Service .662 .131 .110 .264 .006 -.073 .316 Product_T ype .821 .071 -.066 .004 .251 .021 -.208 Price .501 .146 .571 .105 .179 -.063 .093 Purchas e _Medium .241 .235 .203 .045 .650 .401 .021 Paym ent_ Mode .101 .168 .290 -.317 .438 -.056 .402 Dis counts .117 .034 -.038 .000 .019 .040 .882 Lates t_Te chnology_ Us ed .701 .219 -.050 .166 -.205 .127 .110 Prom otion al_Adverti s em ent .080 .895 -.052 .067 .059 -.124 -.108 Brand_Am bas s ador .147 .821 -.097 -.222 .043 .002 .144 Rotated Component Matrix a Com ponent
  • 19. FACTOR ANALYSIS(CONTD.): • The highlighted cells in the previous slide under the same columns are being renamed as follows: Customer Preference Energy Consumption, After sale service, Product type, price, Latest Tech used Promotion Promotional Advertisement, Brand Ambassador Value for Money Color display, Reliability, Price Brand Image Popularity, Brand Value Clarity Looks, Purchase Medium Recommendation Dealer recommendation Offers Discounts
  • 20. CONCLUSION • As with other devices that take you online there are fears surrounding security and there is a point some of the time. So Samsung could work on it and be ahead of its competitors • Since the trend for LED is increasing a price drop in the products would cater a huge demand • Samsung TV could increase there distribution level and supply more numbers in the outlets which would help increase there sales • The promotional strategies done by Samsung should be modified and marketing strategies involving consumer emotions should be adopted • A better after-sales service is what is needed by Samsung which would help increase customer loyalty