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  • 8/9/2019 IM - Samsung



    International Marketing of Samsung


    International Marketing


    NAME: Aman ShethROLL NO.: 043


    PRO . Pa!"een Na#$a%







    YEAR: *0+4(+,

    S&-M S


    &ILE PARLE ' )1 MUMBAI 2 4000, .


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    This is to certify that the undersigned have assessed and

    evaluated the project on “ International Marketing of Samsung ”

    submitted by Aman Sheth, student of M.Com. – Part !!

    "Semester – !!!# $usiness Management, for the academic

    year %&'( '). This project is original to the best of our

    *no+ledge and has been accepted for !nternal


    ame - Signature of !nternal /aminer

    ame - Signature of /ternal /aminer



    Sunil B.Mantri


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    !, Aman Sheth, student of M.Com. "Part – !!# $usiness

    Management, 0oll o.1 &(2, hereby declare that the

    project titled “ International Marketing of Samsung ” for the

    subject ntrepreneurship Management submitted by me

    for Semester – !!! of the academic year %&'( '), is based

    on actual +or* carried out by me under the guidance and

    supervision of PROF. Parveen Nagpal, I further state that this

    +or* is original and not submitted any+here else for any


    Place1 Mumbai

    3ate1 %4th

    September, %&'(

    ame - Signature of Student


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    I would also like to thank the college li(rary and staff for helping and guiding

    me) the class representatives and my family and friends who supported me in

    this project.

    &H*$" +,


    S!. N . PARTICULARS Pa#e N .

    Cha$te! IInt! 567t8 n

    Cha$te! IIH89t ! +0

    Cha$te! IIISam96n# Ma!;et8n# M8< +0

    Cha$te! I&S OT Ana% 989 **


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    Cha$te! &C nt! "e!98e9 *4

    Cha$te! &IC m$et8t8"e En"8! nment *,

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    Cha$te! I: Int! 567t8 n

    Sam96n# E%e7t! n879 C .1 Lt5. is a outh "orean multinational electronics companyhead uartered in uwon ) outh "orea. It is the flagship su(sidiary of the amsung /roup andhas (een the world0s largest information technology company (y revenues since 1223. amsung%lectronics has assem(ly plants and sales networks in 44 countries and employs around 562)222

    people. 7or 1281 the C%, is "won ,h-Hyun .

    amsung has previously (een known for its position as a manufacturer of components such aslithium-ion (atteries ) semiconductors ) chips ) flash memory and hard drive devices for clientssuch as *pple ) ony) H&C and $okia . In recent years) amsung %lectronics has e9panded uponits manufacturing roots and diversified into consumer markets leading to an ever increasing

    portfolio of products and revenue stream.


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    amsung %lectronics currently stands as one of the world0s largest vendors in the mo(ile phoneand smartphone markets fueled (y the popularity of its amsung /ala9y line of devices. &hecompany is also one of the largest vendors in the ta(let computer market thanks to its *ndroid -

    powered amsung /ala9y &a( collection and is generally regarded as pioneering the pha(letmarket through the amsung /ala9y $ote family of devices.

    amsung has (een the world0s largest maker of :C; panels since 1221) the world0s largesttelevision manufacturer since 122

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    &he semiconductor-(usiness area includes semiconductor chips such as ;R*M ) R*M ) $*$; flash memory > smart cards > mo(ile application processors > mo(ile &! receivers> R7transceivers> CM, Image sensors) mart Card IC) MP5 IC) ;!;?'lu-ray ;isc?H; ;!;Player ,C and multi-chip package @MCPA> and storage devices such as optical disc drives andformerly hard disk drives .

    &he telecommunication-network-(usiness area includes multi-service ; :*Ms and fa9machines> cellular devices such as mo(ile phones) P;* phones) and hy(rid devices calledmo(ile intelligent terminals @MI&sA> andsatellite receivers .

    &he :C; (usiness area focuses on producing &7&-:C; and organic light-emitting diode@,:%;A panels for laptops) desktop monitors) and televisions.

    amsung Print was esta(lished in 1223 as a separate entity to focus on '1' sales and hasreleased a (road range of multifunctional devices and printers and more.

    Vision Statement:

    amsung %lectronics0 vision for the new decade is to BInspire the orld) Create the 7uture.B

    &hey are committed to inspiring communities around the world (y developing new technologies)innovative products and creative solutions. &hey are also committed to creating a (righter future

    (y developing new value for our core networks= industry) partners and employees. &hrough theseefforts) they hope to contri(ute to a (etter world and a richer e9perience for all.


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    *s part of their new vision) they have mapped out a specific plan of reaching DE22 (illion inrevenue and (ecoming one of the world#s top five (rands (y 1212. &o this end) they have alsoesta(lished three strategic approaches in our management= creativity) partnership and talent.

    &hey are e9cited a(out the future. *s they (uild on our previous accomplishments) they look forward to e9ploring new territories) including health) medicine and (iotechnology. &hey arecommitted to (eing a creative leader in new markets and (ecoming a truly $o. 8 (usiness goingforward.

    The Samsung Philosophy:

    *t amsung) they follow a simple (usiness philosophy= to devote their talent and technology tocreating superior products and services that contri(ute to a (etter glo(al society.


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    %very day) their people (ring this philosophy to life. &heir leaders search for the (rightest talentfrom around the world and give them the resources they need to (e the (est at what they do. &heresult is that all of our productsFfrom memory chips that help (usinesses store vital knowledgeto mo(ile phones that connect people across continentsF have the power to enrich lives. *ndthat#s what making a (etter glo(al society is all a(out.

    &a%6e9&hey (elieve that living (y strong values is the key to good (usiness. &hat#s why these corevalues) along with a rigorous code of conduct) are at the heart of every decision they make.

    Pe $%e

    Guite simply) a company is its people. *t amsung) they are dedicated to giving its people awealth of opportunities to reach their full potential.


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    +? ? TO +?@ ( EARLY YEARS

    amsung %lectric Industries was esta(lished as a su(sidiary of amsung /roup in 83

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    amsung had a num(er of technological (reakthroughs particularly in the field of memory whichare commonplace in most electrical products today. &his includes the world0s first

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    In the first uarter of 1281) the company (ecame the highest-selling mo(ile phone companywhen it overtook $okia) selling 35.K million units compared to $okia0s 41.6 million units.

    amsung also (ecame the largest smartphone vendor as a result of strong sales of its /ala9y IIand /ala9y $ote devices.

    In May 1285) amsung announced that it had finally managed to test speed-enhanced fifth

    generation@,G A technology successfully.

    In *pril 1285) amsung %lectronics0 new /ala9y smartphone the /ala9y E was madeavaila(le for retail. Released as the upgrade of the (est-selling /ala9y III) the E was sold insome international markets with the company#s %9ynos processor.

    In uly 1285) amsung %lectronics forecasted weaker than e9pected profits for its *pril to uneuarter. hile analysts e9pected around 82.8 trillion won) amsung %lectronics estimated an

    operating profit of 3.K trillion won @D4.5 (illionA. ;uring the same month) amsung ac uired themedia streaming device manufacturer 'o9ee for a reported D52 million.

    ,n *ugust K) 1285) invitations were received for the B amsung npacked 1285 %pisode 1B eventon eptem(er E) 1285 in 'erlin) /ermany during the annual I7* conference. hile the invitationdoes not present any details of the event) industry figures stated that the launch of the /ala9y

    $ote III device is e9pected) as amsung used the 1281 I7* conference to launch the /ala9y $oteII.

    Cha$te! III: Sam96n# Ma!;et8n# M8

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    1) PRODU T STR!T"#$:


    'y 122E amsung was the world0s-largest manufacturer of ,:%;s) with a E2 percent marketshare worldwide) and as of 1282 has a 34L share of the glo(al *M,:%; market. &he companygenerated D822.1 million out of the total DE6K million revenues in the glo(al ,:%; market in122

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    hile many other handset makers tend to focus on supporting one @or at most twoA operatingsystem) amsung has kept supporting a wide range of operating systems in the market. *lthoughthe /ala9y adopts /oogle *ndroid as the operating system> amsung also supports other competing operating systems such as ym(ian ) indows Phone) :inu9-(ased :iMo ) and

    amsung0s proprietary 'ada .

    amsung sold 15K million mo(ile handsets in the year 1223. *t the end of the third uarter of 1282) the company had surpassed the 62 million unit mark in shipped phones) giving it a glo(almarketshare of 11 percent) trailing $okia (y 81 percent. ,verall) the company sold 142 millionmo(ile phones in 1282) corresponding to a market share of 12.1 percent. Partially owing tostrong sales of the amsung /ala9y range of smartphones) the company overtook *pple inworldwide smartphone sales during the third uarter 1288) with a total market share of 15.4

    percent) compared to *pple0s 8E.

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    amsung sold more than one million 5; televisions within si9 months of its launch. &his is thefigure close to what many market researchers forecast for the year0s worldwide 5; televisionsales @8.15 million unitsA. It also de(uted the 5; Home &heater @H&-C

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    M!R%"T S&!R" O' T&" PRODU TS I( I(DI!:

    Colour &elevision forms 52L share of the sales volume.

    Refrigerators J *ir Conditioners together form 52L share of sales volume.

    ) PRI I(# STR!T"#$

    amsung uses the following Pricing strategies =-


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    7ocus on cost-cutting measures.

    $ot offer any discount and e9change offers.

    7i9ed market operating pricing@MoPA

    $ever (een a price warrior.

    *) P+! " !(D DISTIRU,TIO( STR!T"#$


    Channel 8 = Manufacturer Consumer

    Channel 1 = Manufacturer Retailer Consumer

    Channel 5 = Manufacturer holesaler Retailer Consumer

    Channel E = Manufacturer holesaler o((er Retailer Consumer


    *nalysing Consumer ervice $eeds .

    etting the channel o(jectives and constraints.

    Identifying major alternatives.

    %valuating the major alternatives.

    ;esigning distri(ution channel .



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    &here are three types of decisions that can (e taken with regards to the place where the products

    will (e availa(le =-

    *vaila(le everywhere




    Q ,ne level channel

    Q &wo level channel

    Q hop-in-shopQ %9clusive howrooms

    Q ales and ervice network all-over the world.


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    -) PROMOTIO( STR!T"#$


    amsung has e9tensively (een using Print Media *dvertising as means of its Promotional


    amsung has used $ewspapers) Maga ines and 'ill(oards e9tensively to advertise its

    products) (oth new as well as e9isting products (t way of offers)sales)etc.


    amsung has e9tensively (een using &elevision *dvertising as means of its Promotional


    mart) sensi(le and innovative advertising has (een helping it gain mass acceptance and

    consumers all over the world.

    *lso) the approach of advertising as per the different cultures of different countries has helped

    it immensely.

    3) INTERNET AD&ERTISING Internet as a medium has (een very important for amsung for advertising its consumer


    &hrough its pages on 7*C%',,") & I&&%R) ,R" &) etc it has (een a(le to guide the

    consumers a(out the various products and its uses. *lso) the *M $/ we(site has (een useful

    in education the consumers in a similar manner a(out its products.


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    *lso) amsung products are e9tensively sold on we(sites like *ma on)7lipkart)%(ay)etc.

    which helps the consumers in o(taining the products directly at home rather than goin to the

    amsung tore.

    4) OTHER TYPES O AD&ERTISING,fficial ponsor=

    8A !ancouver 1282 Paralympics inter /ames.

    1A amsung Cup.

    5A Chelsea 7oot(all Clu(.

    EA ydney Roosters.

    KA $* C*R $e9tel Cup.

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    ) POINT O SALE Point of Purchase Promotion i.e Promotional offers at the amsung howrooms itself.

    se of electronic (ill(oards)danglers)etc .

    ) RURAL PROMOTION 'IN INDIA) amsung has not only tried catering to the r(an population) (ut also the Rural masses.


    %lectricity hortage.

    *cute ater hortage.

    Poor &ransportation availa(ility.

    Consumer 7inance ,ptions.

    :iteracy rate.

    Culture and traditions.

    Rural reach.

    &oo many languages and dialects.

    Rural Promotional Strategies:

    Haat or weekly markets

    Melas @1K)222 melas> 6.

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    Cha$te! I&: S OT ANALYSIS


    8A S 8 ervice @Customer atisfaction 36LA.

    1A Premium (rand image positioning.

    5A High-end &echnology.

    EA Cultural identity.

    KA Innovative and fashiona(le design.

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    8A :/ down fall during the year.1A %9plosive increasing demand.

    5A Indian mass market.

    EA Regional market activation due to the decentrali ation .

    KA orld cup? *sian game .

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    Cha$te! &: C nt! "e!98e9


    In ;ecem(er 1282) the %uropean Commission fined si9 :C; panel producers) includingamsung) a total of T

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    Cha$te! &I: C m$et8t8"e En"8! nment


    ,n an overall (asis) the major competition faced (y amsung is from ony) Philips) $okia J :/amongst its (iggest competitors. However) amsung is a large group operating various divisionsand (usinesses including those for the cell phones) monitors) digital media devices and 5;appliances. *lthough it has a pioneering competitive position with reference to consumer 5;televisions) it has had fierce competition with its rivals in all other categories. Consider for instance) the market for :C; monitors where amsung held 8

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    Cha$te! &II: In569t! Ana% 989

    STRU TUR" . URR"(T P"R'ORM!( " %arlier on) the glo(al electronics industry was mainly a(out the electricity (ased products thatcould perform the very (asic functions. However) now the utility of the product is just notenough. ith an increasing glo(ali ation and thus greater e9posure to technologically advanced

    possi(ilities) there is greater demand for providing the same products as (efore with atechnology-intensive added value. &his makes competition in the market fiercer as a technology

    (ecomes redundant as soon as more and more rivals imitate it and start offering it at a lower price. &his pushes the companies in the electronics (usiness to continuously innovate andupgrade their products with the latest technology. &his would however mean higher costs. +et) if the value addition is significant) it may justify a premium price for the technologically advanced

    product and allow positive returns despite increase in cost.

    'UTUR" TR"(DS

    /enerally and despite the economic down turn which too is e9pected to undergo a turn- aroundsituation) the consumer electronics market in the *sia Pacific region is the one likely to e9hi(itlarge growth trends 'RNCOS E(Se!"87e9 P!8"ate L8m8te51 J6ne *0+0) . *dditionally) Chinashall (e following some (ig players in terms of the consumer electronic market growth and isshowing signs of e9pansion already due to economic development and possi(ility of low cost

    production. &he 5; technology too would soon (ecome a part of home theatres there(y allowingthe same e9perience to movie watchers at home) as is availa(le to those visiting cinemas for the

    purpose.*s a whole) the glo(al electronics market grew (y EL in 1282) reaching a value of D1

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    important value. &ae-/yun hin) the company#s managing director e9plained amsung#s HR development to (e (ased on three factors. He said in an interview)“Samsung’s HR development is based on three key words: Value, eadership, and !lobal competence"“Value# means value sharing programs which bring together all Samsung employees under one banner" “ eadership# re$ers to development programs that systematicallyidenti$y and develop ne%t-generation leaders" “!lobal# means enhancing our employees’ global

    competencies by developing their global business and $oreign language skills"# 'Tae(G 6n Sh8n1*0+0) &his very clearly points towards the company#s commitment to ensuring the personaldevelopment of its employees that in turn ensures ma9imum productivity and work uality whilethey work with it. $ot just this) amsung is strong an organi ation from the point of view of financial assets as well. In 1282 for instance) it accumulated D 64)68

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    Mo(ile phones 1KL $okia 15L G8 1281;igital cameras 88.4L ony 86.EL 1282*pplication processors 81L &e9as Instruments 86L G5)E 1288

    M!/OR +I"(TS

    Ran; 7 m$an Pa!t 5e97!8$t8 n B6 8n# 't!8%%8 n-R )

    Pe!7ent t ta% 9a%e9

    8 ony ;R*M) $*$; flash) :C; panels) etc...

    8.14 5.6

    5 ;ell ;R*M) flat-panels) lithium-ion (atteries) etc...

    2.46 1.K

    E Hewlett-Packard ;R*M) flat-panels) lithium-ion (atteries) etc...

    2.6< 1.1

    K !eri onCommunications

    Handsets) etc... 2.K 8.5

    < *&J& Inc. Handsets) etc... 2.K 8.5


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    DURABLES '*0++(*0+*)


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    Cha$te! &III: C n7%698 n

    &hus) we can conclude that amsung %lectronics has (een a very successful enterprise and is

    makin huge profits.

    $ot only does it enjoy huge profits) (ut it also has a very good reputation all over the world.

    7rom consumer dura(les like &elevision sets and *irconditioners to Mo(ile Phones) amsung has

    captured every possi(le market and is further strengthening its position.

    amsung has an e9cellent marketing strategy which involves making the right product

    availa(le at the right time in the selective markets using appropriate distri(ution channels.

    amsung has (een the world0s largest maker of :C; panels since 1221) the world0s largest

    television manufacturer since 122

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    Cha$te! I=: B8>%8 #!a$h

    International Marketing- Michael !a