Chapter 1

Introduction

1.1 Definition
1.2Marketing proportions
1.3 Developing Marketing Strategy
1.4 Types of strategies
1.5 Strategic Model
1.6 Real-Life Marketing
INTRODUCTION

 1.1 Definition

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage.

 1.2 Marketing Proportions

Webstrategiesinc.com

CUMULATIVE
REPRESENTING
AMOUNT SPENT BY
COMPANIES ON
MARKETING AND
OTHER EXPENSES

CUMULATIVE

REPRESENTING
PROPORTION OF

Ideatovalue.com

MARKET SPENDING IS 7.9% OF COMPANY REVENUE (CMO SURVEY)

 1.3 Developing a marketing strategy

Marketing strategies serve as the fundamental underpinning of marketing plans designed

to fill market needs and reach marketing objectives. Plans and objectives are generally
tested for measurable results. Commonly, marketing strategies are developed as multi-
year plans, with a tactical plan detailing specific actions to be accomplished in the current
year. Time horizons covered by the marketing plan vary by company, by industry, and by
nation, however, time horizons are becoming shorter as the speed of change in the
environment increases. Marketing strategies are dynamic and interactive. They are
partially planned and partially unplanned.

Marketing strategy involves careful scanning of the internal and external

environments. Internal environmental factors include the marketing mix, plus
performance analysis and strategic constraints. External environmental factors include
customer analysis, competitor analysis, target market analysis, as well as evaluation of
any elements of the technological, economic, cultural or political/legal environment likely
to impact success. A key component of marketing strategy is often to keep marketing in
line with a company's overarching mission statement. Besides SWOT analysis, portfolio
analyses such as the GE/McKinsey matrix or COPE analysis can be performed to
determine the strategic focus.

Once a thorough environmental scan is complete, a strategic plan can be

constructed to identify business alternatives, establish challenging goals, determine the
optimal marketing mix to attain these goals, and detail implementation. A final step in
developing a marketing strategy is to create a plan to monitor progress and a set of
contingencies if problems arise in the implementation of the plan.

 1.4 Types of strategies

Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic strategies. A
brief description of the most common categorizing schemes is presented below:

 Strategies based on market dominance - In this scheme, firms are classified

 based on their market share or dominance of an industry. Typically there are four
types of market dominance strategies:
o Market Leader

o Market Challenger

o Market Follower

o Market Nicher

 Porter generic strategies - strategy on the dimensions of strategic scope and

strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firm’s sustainable competitive advantage. The generic
strategy framework (porter 1984) comprises two alternatives each with two
alternative scopes. These are Differentiation and low-cost leadership each with a
dimension of Focus-broad or narrow.
o Product differentiation (broad)

o Cost leadership (broad)

o Market segmentation (narrow)

 Innovation strategies - this deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on
the cutting edge of technology and business innovation. There are three types:
o Pioneers

o Close followers

o Late followers

 Growth strategies — in this scheme we ask the question, “How should the firm
grow?” There are a number of different ways of answering that question, but the
most common gives four answers:
 Horizontal integration

 Vertical integration

 Diversification

 Intensification
A more detailed scheme uses the categories

 Prospector

 Analyzer

 Defender

 Reactor

 Marketing warfare strategies - This scheme draws parallels between marketing

strategies and military strategies.

 1.5 Strategic models

Marketing participants often employ strategic models and tools to analyze marketing
decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad
understanding of the strategic environment. An Ansoff Matrix is also often used to
convey an organization's strategic positioning of their marketing mix. The 4Ps can then be
utilized to form a marketing plan to pursue a defined strategy.

There are many companies especially those in the Consumer Package Goods (CPG)
market that adopt the theory of running their business centered on Consumer, Shopper &
Retailer needs. Their Marketing departments spend quality time looking for "Growth
Opportunities" in their categories by identifying relevant insights (both mindsets and
behaviors) on their target Consumers, Shoppers and retail partners. These Growth
Opportunities emerge from changes in market trends, segment dynamics changing and
also internal brand or operational business challenges. The Marketing team can then
prioritize these Growth Opportunities and begin to develop strategies to exploit the
opportunities that could include new or adapted products, services as well as changes to
the 7Ps.

1.6 Real-life marketing

Real-life marketing primarily revolves around the application of a great deal of common-
sense; dealing with a limited number of factors, in an environment of imperfect
information and limited resources complicated by uncertainty and tight timescales. Use of
classical marketing techniques, in these circumstances, is inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the
rational development process may be used (if at all) to screen out the worst non-runners.
The design of the advertising, and the packaging, will be the output of the creative minds
employed; which management will then screen, often by 'gut-reaction', to ensure that it is
reasonable For most of their time, marketing managers use intuition and experience to
analyze and handle the complex, and unique, situations being faced; without easy
reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction';
where the overall strategy, coupled with the knowledge of the customer which has been
absorbed almost by a process of osmosis, will determine the quality of the marketing
employed. This, almost instinctive management, is what is sometimes called 'coarse
marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the
theorists.
 Chapter 2

OBJECTIVES TO STUDY
OBJECTIVES TO STUDY

Marketing objectives are goals set by a business when promoting its products or services to
potential consumers that should be achieved within a given time frame. In other words,
marketing objectives are the marketing strategy set in order to achieve the overall
organizational objectives. A company's marketing objectives for a particular product might
include increasing product awareness among targeted consumers, providing information
about product features and reducing consumer resistance to buying the product.
SMART Approach to Marketing Objectives

When setting objectives, it is very important to ensure that they are specific, measurable,
achievable, realistic and time-specific - or SMART for short. The SMART approach allows a
supervisor to effectively manage the marketing activities and be able to determine how
successful new objectives will be.
The SMART approach can help achieve your marketing objectives by asking the following
questions:
 Specific

Are the objectives stated in a way that is precise about what you are hoping to achieve?

 Measurable

Can you quantify each objective, i.e. can you use a unit of measure, such as a market share in
percentage or dollars, to provide a way to check your level of success?
 Achievable

Are your objectives reasonable in terms of what you can actually achieve, or are you setting
your sights too high?
 Realistic

Do you have sufficient employees and resources to achieve the objectives you have set? If
you don't, are they likely to be unrealistic?
 Time-specific

When are you hoping to achieve these objectives? You need to define a timing plan by using
target timing for each specific objective.
The project enables us to find out certain specific objectives like:

 How many consumers use Samsung products?

 How many consumers are aware about the Samsung ad?

 Which advertisement feature plays an important role in influencing consumers?

 Is the marketing strategy undertaken effective?

 Does the product reflect brand value?

 Are there enough service centres across the country to cater to consumer needs?

 Are consumers satisfied with the after sales services?

 Is the Samsung ad effective leaving a mark in consumer minds?

 Are Samsung merchandises a part of the marketing strategy?

 Does the ad represent actual product profile?

 Chapter 3

REVIEW OF LITERATURE
 REVIEW OF LITERATURE

 Androulidakis ; G. Kandus (2011) correlated the brand of mobile phone users’

security practices. Users show different behavior in an array of characteristics,
according to the brand of the mobile phone they are using. As such, there is
categorization of arrears, different for each brand, where users are clearly lacking
security mind, possibly due to lack of awareness. Such a categorization can help
phone manufacturers enhance their mobile phones in regards to security, preferably
transparently for the user.

 Tajzadeh Namin Aidin (2012) analysed that the process of deciding over
(choosing) a brand may be influenced by situation and content. The findings
suggest a significant relationship between the variables “brand attitude” , and
“prodect (cell phone) choice”. In addition, no significant relationship was found
between individual decision making processes (independent or mediated) and
product choice.

 Nasr Azad ; Maryam Safaei (2012)states that there are many evidences to believe
that customers select their products based on brand name. Products also maintain
their own characteristics, which make them differentiable from others. In this paper,
researchers have present an empirical study to determine important factors
influencing customers' purchasing intend for cellular phones in capital city of Iran,
Tehran. The results of the study show that there are some positive relationships
between exclusive name and quality perception, between exclusive name and word
of mouth advertisement, between quality perception and fidelity, between word of
mouth advertisement and brand name and between brand name image and brand
name.

Ozhan Karimi (2012)had presented an empirical study to investigate the effects of

different marketing efforts on brand equity in mobile industry. The results show
that there is a positive and meaningful relationship between marketing mix efforts
and brand equity. In other words, more advertisements could help better market
 exposure, which means customers will have more awareness on market
characteristics. Among all mixed efforts, guarantee influences more on brand
equity, which means consumers care more on product services than other features.
Finally, among different characteristics of brand equity, product exclusiveness
plays an important role. In other words, people are interested in having exclusive
product, which is different from others.

 Heikki Karjaluoto, Jari Karvonen et al, (2005), had analyzed that Mobile phone
markets are one of the most turbulent market environments today due to increased
competition and change. Thus, it is of growing concern to look at consumer buying
decision process and cast light on the factors that finally determine consumer
choices between different mobile phone brands. On this basis, this research deals
with consumers’ choice criteria in mobile phone markets by studying factors that
influence intention to acquire new mobile phones on one hand and factors that
influence on mobile phone change on the other are some general factors that seem to
guide the choices. The two studies show that while technical problems are the basic
reason to change mobile phone among students; price, brand, interface, and
properties are the most influential factors affecting the actual choice between brands.

 Hande Kimiloglu, V. Aslihan Nasir, Süphan Nasir, (2010), aims to discover

consumer segments with different behavioral profiles in the mobile phone market.
Pragmatic consumers are found to give high importance to the functional, physical
and convenience-based attributes of the product. The abstemious group also gives
importance to functionality along with design. While value-conscious consumers
focus strongly on price, the charismatic segment represents the want-it-all group
valuing many attributes such as technological superiority, practicality, durability,
functionality, and design. The study also includes findings and discussions about
the differences these clusters display in terms of their involvement and loyalty
styles.
 Fred Robins, (2003) analyzed that the marketing of the next generation of mobile
phones. It begins with comments on the state of the telecom industry and draws
attention to elements of technological and product convergence, highlighting the
point that while industry convergence on digital technology is a fact, today’s mobile
telephony marketplace is nonetheless characterized by three generations of
technology and the latest generation, 3G, embraces three related but competing
standards. The research examines 2G, 2 and a half G and 3G developments around
the world and identifies factors relevant to the marketing of 3G, including
recognition of geographical and user diversity and the consequent need for
marketers to keep these various user perspectives in mind. However, customer
desire for personalisation, including personalised 3G services, are important
features of the marketplace, as will be the availability of simple, secure payment
systems.

 Jaakko Sinisalo, Jari Salo, Heikki Karjaluoto, Matti Leppäniemi, (2007) states
that the purpose of their study is twofold. First, in order to guarantee a coherent
discussion about mobile customer relationship management (mCRM), this paper
presents a conceptualization of mCRM delineating its unique characteristics.
Second, the authors develop the empirically grounded framework of the underlying
issues in the initiation of mCRM. Researchers have identifies issues that can be
divided into three categories (exogenous, endogenous and mCRM-specific) the
company has to take into account when moving towards mCRM.
CHAPTER 4

Research Methodology
4.1 Marketing Research

Marketing research is the function, which links the consumer, customer and public to the
marketer through information.

Information used to identified and define marketing opportunities and problems: generate,
refine and evaluate marketing action, monitor marketing performance, and improve
understanding of market as a process.
Marketing strategies of Samsung vary in their specific objectives. They may be used to
correct new customer, to reward loyal customer’s ad to increase the repurchase rates of
occasional users. Sales promotion usually targets brand switchers because non-users of other
brands do not always notice a promoting

4.2 Sources of Data

In this study the for most data collection instrument used is the questioners method.
The questioner has been designed with both open ended and close ended questions. Apart
from this, the research instrument consists of primary and secondary data collected for the
study.

 Primary Data

Here first hand information is obtained by distributing printed questioners to

the marketing executives of the company. Data was also obtained from the observation
and interviews techniques adopted by the researchers. Moreover, information was
disseminated by the departmental heads.

 Secondary Data

Here the information is obtained from the brochure of Samsung group , books,
websites, newsletter, generals, magazines, newspaper, etc.
Chapter 5

COMPANY PROFILE

5.1 The Samsung Philosophy

5.2 Mission of Company
5.3 Values
5.4 Vision 2020
5.5 Key Products
5.6 Competitors Of Samsung
 COMPANY PROFILE

 5.1 The SAMSUNG Philosophy

At Samsung, they follow a simple philosophy: “NEVER SETTLE” which

illustrates their will to disrupt the way companies design and build mobile
devices

Unlike other manufacturers, they don’t see a smartphone as a list of tech specs
and features. They focus on delivering the best end-user experience on a day-to-
day basis. To do so, their approach integrates three main elements: people
(desirability), technology (feasibility) and business (viability).

Every day, their people bring this philosophy to life. The leaders search for the
brightest talent from around the world, and give them the resources they need to
be the best at what they do. The result is that all of its products—from memory
chips that help businesses store vital knowledge to mobile phones that connect
people across continents have the power to enrich lives. And that’s what making
a better global society all is about.
 5.2 Mission of Company

“Everything we do at Samsung is guided by our mission: Our mission is to share

the best technology, built hand-in-hand with you.”

 5.3 Values of SAMSUNG

We believe that living by strong values is the key to good business.

 It is our commitment to bring the best possible technology to users around

the world, reaffirmed by our personal experiences as smartphone geeks.
Only a few devices available on the market satisfy tech lovers. We believe
that consumers shouldn’t choose between performance, quality and price.
Our motto – Never Settle – illustrates our will to disrupt the way
companies design and build mobile devices.

 At Samsung, a rigorous code of conduct and these core values are at the
heart of every decision we make.

 Engage with users

 Designing the best smartphone experience requires a full understanding of

people’s expectations and desires. We believe that engaging with
costumers would provide us with the best insights on tech scene, as seen
by avid users, as well as excellent feedback on existing devices.

 Design the best combination

 A smartphone is more than the sum of its parts. It is the combination of

complementary components that offer an overall experience. Some
companies make believe that a particular spec can totally transform a
device. However, specs frequently conflict with each other. A powerful
battery lets the device run for longer, but frequently increases its thickness
and weight. At Samsung we believe that a mobile experience has to take a
holistic approach in order to be optimal
 Partner with the experts

 Samsung simply aims to create the best products that we can for
consumers. Partnering with the OS experts like Cyanogen Inc. is not only
a disruptive way to deliver our promises but allows us to leverage
Samsung high performance hardware.

 Maximize the consumer value

 Companies generally focus on retail price first when defining phone

specs. The better the phone specs, the more expensive the product. We
believe that there are new ways to incorporate more technology with no
extra cost

 Samsung doesn’t compromise on product quality and plans to offer

greater value to consumers through innovative design and outline strategy.

 5.4 Vision 2020

 As stated in its motto, Samsung’ vision for the new decade is, "to pursue
excellence, in other words Never Settle."

 The goal for Samsung is to become a respected, global brand.

 This new reflects Samsung’ commitment to inspiring its communities by

leveraging its three key elements: : people (desirability), technology
(feasibility) and business (viability).

 Through these efforts, Samsung hopes to contribute to a better world and

a richer experience for all.

 To this end, Samsung has also established three strategic approaches in its
management: “Creativity,” “Partnership,” and “Talent.”
Vow to become better

1 stands for the status quo, + represents our desire to do better

A good product

1 stands for our users, + stands for sharing

Premium quality beautiful design

Samsung builds only beautifully designed devices with the highest quality, because our users
would never settle for anything less.
Samsung is excited about the future.Samsung is now finally going to chase the ultra-premium
market.
The idea is that not just to be a flagship killer. It also wants to be a flagship phone. The
company along with its goal of launching more than one phone, plans to launch a phone with
cutting edge technologies.

 5.5 Key Products

 NEW. Galaxy S23 Ultra.
 NEW. Galaxy S23 | S23+
 NEW. Galaxy Book3 Ultra.
 Galaxy Z Fold4.
 NEW. Galaxy A54 5G.
 Galaxy Z Flip4.
 Galaxy Watch5 Pro.
 Galaxy Buds2 Pro.

 5.6 Major Competitors Of Samsung

 Xiomi

 ASUS

 Huawei

 One plus

 Sony

 Apple

 Lenovo

 Nokia

 Ericsson
  OPPO

CHAPTER 6

SAMSUNG

6.1 Samsung in India

6.2 Samsung the Future
6.3 Effective Advertisement
6.4 SWOT analysis
6.5 Marketing strategy of Samsung
6.6 After sales service
6.7 Future prospects
  6.1. Samsung in India
In December 2014, alongside the release of Samsung in India exclusively through Amazon,
Samsung also announced plans to establish a presence in the country, with plans to open 25
official walk in service centres across India. As of today there are 52 walk in service centres
in India.

India will become home to Samsung’ second global headquarters as a R&D centre which has
been proposed to be set up in Banglore or Hyderabad, either of the two cities.

Samsung has recorded a sales of Rs 500 cr in India which makes it a 100% growth rate than
what it earned the last year (Rs 250 cr). Almost all users seem to be satisfied with the brand,
with more than 90% of them rating their phones 4 or higher on a scale of 5 when it comes to
‘value for money’. During the first half of the year 2018, it surpassed rivals Samsung and
Apple to become India’s bestselling smartphones brand in the premium (Rs30000 plus)
segment

 6.2. SAMSUNG: The Future

From its inception in, Samsung has grown to become one of the world’s leading electronics
companies and a leading global digital technology brand. The company officially serves 74
countries and regions around the world as of July 2018.
In 2014, Samsung made more than $300 million in revenue. Its steady ascent in brand value
has placed Samsung shoulder to shoulder with the most trusted global companies.
In 2017, Samsung achieved a remarkable 55 per cent growth rate here, reporting a sales
turnover of $1.4 billion. Back in the mid-year of 2019, Samsung launched its Samsung 7T
which became the best phone of the year. Samsung recorded Rs 500 cr sales in just twodays
in 2019 during the great amazon festive sale, achieving a 100% growth rate.
 Samsung will come up with three new Samsung 8 series phones this year.

 The Samsung 8 Lite will be the entry-level model using a MediaTek chipset.

 The Samsung 8 Pro might get a 120Hz refresh rate display and a 64-megapixel rear camera.

 Samsung has also launched its tv QLED series which has been termed as “imagination
and intelligence”
 6.3 Effective Advertisement

 6.3.1. Effective Advertisement and Consumer Attitude

The following model exemplifies the attitude or response of a consumer to an

advertisement and a glance through the following pictorial presentation would simplify
our understanding of the advertisement’s effects on thinking response and it also
magnifies the peripheral and associative effect of an advertisement.

A Model of the Feeling – Response to Advertisement

Decreases amount of total

thinking

Raises product attribute Increases ratio of positive to

valuation negative thoughts

Increase positive product

Transform use attribute attitude

Advertising
-Evoked Increases Attitude towards the
Positive Advertisement
Affective
Response

Increase Evaluation of
Advertisement
characteristics

A rather simple explanation of how a feeling – response advertisement works is that

people like it or dislike it is an advertisement, and this attitude gets transformed to or
associated with the product in the advertisement. There is thus the potential for a
direct casual link between the attitude towards an advertisement and the attitude and
behavior towards a product. As noted in the diagram, feelings engendered by an
advertisement can create or influence an attitude towards the advertisement directly,
as well as indirectly, through assessment of the quality of the advertisement’s
exceptional characteristics. In fact, some researchers believe that attitude to the
advertisement really has two different components; an effective one, reflecting the
direct effect of the feelings evoked by the advertisement, and a second more cognitive
one, reflecting how well is the advertisement made and how useful is the
advertisement.
It is important, in understanding how an advertisement ultimately affects consumer
attitude; to see what kind of attitude people develop toward the advertisement itself. If
the feeling that the advertisement creates are positive, and if the way the
advertisement is made is evaluated favorably, then the advertisement should elicit a
favorable attitude towards itself and vice-versa.

In respect of the viewers of the advertisement, the matter of concern is that, how far
does it influence them and how should it influence them in the right direction.
Viewers of advertisement, who are the mass, have got their own outlook and their
own way of understanding. The customers are to depend on the advertisements, only
till he gets the product. After buying and using the product for the first time, comes
the response to the advertisement. This can be in three different levels viz.

At the first level, when the consumers are fully satisfied, they will respond favorably
to use the product continuously, subject to the price and the availability of the
product. Continuous advertisement in various media further influences the listeners to
build up a positive attitude towards the product. This leads to the change in the
consumption behaviour of the society, which leads to a great level of social and
cultural change among the people in general.

The next level is the stage of getting dis-satisfaction by the consumers on the use of
the product, on persuasion by the advertisement. This will lead to consumer resistance
to the product. The dissatisfaction at this state means that the quality or the contents of
the utility value of the product might not have reached the height expectations
created by
 the advertisement. If the product or service at this stage is able to satisfy at least a
section of the people, then it can service higher and thus will serve as forbidding
factor. As far as the attitude formation is concerned, this stage can be considered as a
formative stage. But if the product fails to reach, not even a section of the society in
total, it will lead to the product withering away from the market in course of time.

The third situation leads to a stage, when the viewers understanding that the
advertisement misguides them or giving a wrong information deliberately. Under this
situation the viewer loses confidence on the advertiser, producer and the seller. This
leads to a negative attitude on the marketing of the products of the company in
general. The defects are to be brought to the knowledge of the producer to give a
chance for him to correct the mistakes, if it is so. When there is no proper response for
this complaint, then it leads to earning discredit from the customers.

 6.3.2. An Ideal Consumer Feeling

In order to ensure that the advertisements reach the target consumers in a most effective
way and begets right response from, it has to be ensuring that such advertisements are
presented in the right way. The following steps on the part of consumer may ensure that
the advertisements are on the right track.

 Getting attracted towards the advertisements.

 Listening and observing the contents of the advertisements in full.

 Continuous watching of the same over a period.

 Comparing the advertisements of similar products.

 Learning more about the product, the producer and the advertiser.

 Making a trail purchase as follow up activity. Using the product as per the instructions.

 Assessing the level of utility of the product individually.

 Assessing the level of utility derived with other similar consumers.

 Comparing the level of utility of the product with similar products.

 Decision-making regarding the continuous use of the product, and to recommend to

others, positively or negatively.
 If not satisfied with the product discrepancy regarding the quality and the
characteristics of the product are to be taken to the knowledge of the producer and the
advertiser.
 6.4 SWOT ANALYSIS

o Strength

o Weakness

o Opportunity

o Threat

 Strength

 Accessory to necessary

 A smart tv are no longer perceived to be a item of luxury

 Advancement of technology which gives companies ability to introduce new

products and new product features
 High growth key driver being urban and rural

 Government policies in favor of infrastructure development and reduction in

excise duty and so on
 Weakness

 Supply continuous to outstrip demand.

 Demand cyclical and seasonal

 Volatile performance of the seasonal industrial sector has negative impact on

demand. The sectors performance is highly dependent on supply of material.


 Opportunity

 Diversification and Developing new products for new market.

 Easy availability of finance has stimulated consumers to buy durables.

 Changes in Consumer outlook from spend now-save later mentality leading to

high disposable income
 Threat

 Dozen companies operating in the white goods segment. Prices would continue to
remain depressed and margins will be under pressure.
 Threats of cheaper imports from South East Asian countries.


 6.5 Marketing strategy of Samsung

 6.5.1 Background

Prior to liberalization, the consumer durable sector in India was restricted to a handful of
domestic players like Godrej, Alwyn, Kelvinator, Voltas. Together, they control
nearly 90% of the market. They were first superseded by the players like Videocon in
the early 1990, who invested in brand building and in enhancing distribution and
service channels. Then with the liberalization came aspect of foreign players from LG
Electronics to Sony to Aiwa.

Rs.23000cr consumer durable industry can be divided in to two types, consumer

electronics and consumer utilities. Consumer electronics is basically is entertained
 system like Television, VCR’s, and Audio System and Home theater systems.
Consumer utilities are other household appliances like Refrigerator, Washing
Machine, Air-Conditioners, food processors, and vacuum cleaner. On most third
world countries, consumer durables like Refrigerator and Television are most popular.
Out of this, the television segment is undoubtedly the largest segment. Products in the
white good segments come next to the CTV’s in the purchasing hierarchy of the
Indian consumer.

Over the years demand of consumer durables has increased with rising income levels,
durable double income families, changing lifestyle, availability of credit, increasing
consumer awareness and introduction of new model. Products like Air-Conditioner
are no longer perceived as luxury product, while TV draws its share from both Urban
and Rural refrigerator and washing machine are still inclined towards Urban.
However, good affordable smartphones have now become an urban necessity.

 6.5.2 Current Scenario

Most of the segments in this sector are characterized by intense competition,

emergence of companies (especially MNCs), introduction of state-of-the-art models,
price discounts and change schemes. MNCs continue to dominate the Indian
consumer durable segment, which is apparent from the fact that these companies
command more than 65% market share in the color television (CTV) segment.
Refrigerators constitute the second largest product segment within the Indian
consumer durables sector in India, with an estimated annual turnover of Rs 39 bn
during FY2011 with an estimated sale of 4.1m units. The size of the room Air-
conditioners industry is estimated at 1.1 m in volume terms, and Rs 24 bn in value
terms. Washing machines sales in India aggregated an estimated 1.37m during
FY2013 or around Rs 11 bn in value terms. The size or the demand of smartphones in
India has been the second highest in terms of world demand. This however can be
attributed to certain number of factors being high population, high working
population, increase in standard of living and influence by the western culture. These
all factors have contributed to the growth of demand for electronics.
 6.5.3 Demand/Supply

Supply growth is high across all the segments. But the organized sector has gained
substantial market share from the unorganized segment in recent years. However,
there are fewer players in segments like dishwashers and vacuum cleaners.

Cyclical and seasonal-Demand is high during festive season and is generally

dependent on good monsoons. There are certain factors in the consumer durables
industry, which are considered as demand drivers. They are:
o The degree of distribution network in the market.

o The advertising and marketing strategy adopted by the players in the industry.

o The brand image of the product as perceived by the consumer.

o The technology used by the company viz. state-of-art technology or an older

version.
o The ability of the company to introduce newer products and newer product
features The capability of the company to service its products 'The discount
schemes and consumer finance facility available
o The market positioning of the product

o The cost competitiveness and pricing strategy of the company

o The financial strength of the players

 6.5.4 Consumer Durable: Urban and rural India

 In the top 5 million households, in affluence terms, 96 percent of households have

color televisions, 82 percent own refrigerators, and 44 percent own washing
machines.
 In the next 7 million households, penetration of color TVs is 69 percent, 58
percent for refrigerators, and 19 percent for washing machines.
  In the next tier of affluent households - numbering approximately 12 million - 50
percent own color TVs, 35 percent own refrigerators, and 8 percent own washing
machines.

Rural India too is set to see an increase in the number of high-income households. An
additional 4.6 million high-income households and 13 million middle-income
households by 2011 to 2012 will take the number of rural households from 122.8
million to 139 million. This constitutes a huge opportunity for marketers - 60 million
households or 300 million consumers with the capacity to buy consumer appliances
and other products is an attractive market for any global player. And it seems that
global appliance players who have established brands in the Indian market are likely
to benefit from this great big push towards consumerism.

 6.5.5 Success Factor for Consumer Durable Industry

Indian consumer durables industry is going through a consolidation phase with MNC
companies going in for strategies to increase market share. Certain success factors for
this industry are identified follows:

1. Technology: Rising competition has resulted in major competitors introducing

technologically superior products at competitive prices. This means the technology
input is gaining more and more importance. In this regard, the large MNC players
score over their Indian counterparts as they can always source technology from their
parents. On the other hand, Indian companies rely on the outside sources for their
technology requirements

2. Knowledge of the local market: Indian consumer durables market is different

from other markets. Hence understanding these peculiarities is important for the long-
term survival. For example, Samsung launched the 'wireless Bluetooth earphones"
after it discovered that Indian consumers prefer loud good quality music. Indian
companies are better placed in this regard as they know the market pretty well.
 3. Strong distribution network: Tough competition means that a proper mindshare
of the consumer has to be maintained and the product has to be made visible.
Volumes in this business are narrow and profitability comes from volumes. To
achieve volumes, deep penetration of the market is necessary. Indian companies score
a point here as being in the market for a longer time; they have developed strong
distribution channels.

4. Good brand image: Perception of a particular brand plays an important role in

purchase decision. A typical Indian consumer looks for value for money when he
makes purchase of white goods, as the price involved is significant and unlike
developed markets, Indians do not have the buy, use and throw mindset. Hence,
consumer also looks for reliability of the product. All this is conveyed through strong
brand awareness.

 6.5.6 Consumer Outlook

The Change in Consumer Outlook. India is a country in a hurry - changing

continuously and also trying hard to keep pace with these changes. The 'me too'
syndrome is no longer valid as consumers seek customized products. 'The Indian
consumer consumer's evolution in the last decade has thrown up some interesting
trends:
 Consumer base becoming younger. Nearly a third of the country's population is
under the age of 14 years.
 Kids graduating from pester power to decision makers.

 People with buying power living longer and developing distinct health needs.

 Multi-tasking consumers fighting paucity of time and new consumer trends.

 Huge increase in High Income Groups and spend now-save later mentality leading
to high disposable income.
 Consumer wants to be treated as an individual not as part of a large physical mass
and the consumer looks for a 'post buy' relationship to enhance the value of her
brand decision making.
  6.5.7 Entry of Samsung in India

Emerging Markets (EMs) with large consumer bases and untapped demand constitute
the major growth opportunities for the multinationals and global companies.
However, not all companies are successful in establishing a foothold, leave alone
operating profitably, in such markets. For most, it takes years of struggle before they
can even breakeven. Marketing is difficult in such EMs because of little or no market
data, non- existent or poorly developed distribution systems, lack of regulatory
discipline, and where regulations exist, a propensity to change them frequently and
unpredictably.

Samsung entered India in December 2013 , owned by Pete Lau and Carl Pei. As of
July 2018, it officially serves 34 countries.It is majority owned by Oppo as its only
shareholder, which is a subsidiary of BBK electronics along with Vivo and Realme.
However, both are independent companies but Samsung uses the manufacturing line
of oppo and even share’s a part of its supply chain.

Positioning

The company unveiled its first device in April 2014, which was intended to capture the
market from google nexus series.

Samsung in India exclusively through amazon, Samsung also announced plans to establish a
presence in the country, with plans to open 25 official walk in service centres in the country.

 In April 2014, Samsung hired Han Han to help market its products in Mainland China.

 On 9 March 2014, the company expanded its operations to the European union.

 On 23 January 2015, Samsung made its products available for the first time
Southeast Asia.
 In June 2016, Samsung decided to pull out of the Indonesian market due to local
regulations.
Products

Name Codename Unveiled International Release

Samsung One bacon 23 April 2014 6 June 2014

Samsung 2 Samsung2 27 July 2015 11 August 2015

Samsung X onyx 29 October 2015 5 November 2015

Samsung 3 Samsung3 14 June 2016 14 June 2016

Samsung 3T Samsung3t 15 November 2016 28 November 2016

Samsung 5 cheeseburger 20 June 2017 27 June 2017

Samsung 5T dumpling 16 November 2017 21 November 2017

Samsung 6 enchilada 16 May 2018 22 May 2018

Samsung 6T fajita 29 October 2018 6 November 2018

Samsung 7 guacamole

14 May 2019 25 May 2019

Samsung 7 Pro guacamole

Samsung 7T hotdog 26 September 2019 28 September 2019

Samsung 7T Pro hotdog 10 October 2019 12 October 2019

Samsung has revealed its Q1 and Q1 pro tv in September 2019.
Samsung is planning to reveal its new smart tv sometime in
2020.

 6.5.8 Marketing Strategy of Samsung Products

Product Features

To sell a consumer durable product a company has to provide unique features i.e. features
which other companies are not able to provide. Samsung has been using the same strategy
to boost their sales. Samsung provides its consumers with wide range of products with
unique features.
For example, Samsung was the only company offering 1000 watts PMPO sound output in
the 21-inch flat TV segment. It also introduced a new 5.5 kg, top loading fully automatic
washing machine with features like ‘saree course’ keeping in mind that the majority of
the Indian women wear sarees.

Invitation system

Early phones were only available through a system whereby costumers had to sign up for
an invite to purchase the phone at irregular intervals.The system was claimed to be
necessary for the young company to manage huge demand. Samsung ended the invite
system with the launch of Samsung 3 on 14 June 2016. Announced via an interactive VR
launch event, the Samsung 3 initially went on sale withing the VR app itself. Samsung
touted the event as the world’s first VR shopping experience. The phone was made
available for sale later that day day inChina, North America and the European Union on
the Samsung website, and in India on Amazon.

Smash the past

On 23 April 2014, Samsung began its “Smash the Past” campaign. The promotion asked
selected participants to destroy their phones on video in an effort to purchase Samsung
One for$1. Due to confusion, several videos were published by unselected users
misinterpretating the promotion and destroying their phones before the promotion start
 date. Samsung later revised the rules of their promotion by allowing consumers to donate
their old phones. There were 140,000 entrants in the contest with 100 winners.

Ladies First

On 13 August 2014, Samsung hosted a contest to give invites, which were hard to come by at
the time, to their female forum members. Users were asked to post a photo of themselves
with the Samsung logo, images would be shared in the forum and could be “liked” by other
forum members.

Costumer support

The costumer support at Samsung was once the subject of strong criticism. In 2017, the
company increased the number of costumer service staff and set-up costumer service and
repair centers in Asia, Europe and the United States, greatly improving turnaround times for
repairs and other issues.

Samsung USB-C cable

After several weeks of costumer complaints on Samsung forums and on Reddit, google
engineer Benson Leung showed that the USB-C cable and USB-C-to-Micro-USB adapter
offered by Samsung at that time did not conform to the USB specification. Onepus co-
founder Carl Pei on 26 Nov 2015 admitted that the cable and adapter did not conform to the
USb application,and offered refunds (although not for the cables bunded with the Samsung 2
phones).
 Comparative study.

It’s the smartphone that’s managed to dominate the market in a very short amount of time, an
impressive feat accomplished largely due to a clever marketing plan. Samsung One has
earned a title as the new king of mid-range smartphones, and the buzz surrounding the
product is still growing at an unprecedented rate.

The demand for the invite-only smartphone was so great that traffic to the website
skyrocketed, reaching 25.6M visits on December 2014- just one year after the
Samsung website was launched.

The Samsung craze: How the company did it

Samsung’ aggressive marketing strategy has three main elements, all of which are
innovative in themselves. Combine them together, and you’ve got a triple threat three-
pronged marketing strategy that has thus been highly successful in fueling the hype- and
demand- for this new smartphone.

1. The phone is cheap, but without compromising quality. It’s relatively

low priced with a high specification ratio.
2. It’s invite-only. This has been the driving force in creating the craze
behind the phone, as the manufacturers are appealing to basic human
nature: we
always want what we can’t have. The buy by invitation only system allows the
manufacturer to gradually fulfill the demand while costumers are kept in a
 constant state of anticipation. This also adds to the phone’s appeal as a “VIP
product” for only a “select” group of people.
3. It’s something of a niche product. In opposition to all their existing
competitors, the Samsung One has the reputation of being the phone for
tech geeks.
Add these three elements to a very clever ad campaign- complete with its own

trending hashtag, and you’ve got the receipt for a smartphone poised to tske over
the market.

Take a look at some of Samsung’ effective ads. They’re clean, concise, and
most importantly, poke a little fun at the competition
Gobbling up the market share

Samsung’ marketing strategy was so effective that they managed to grab the
world’s attention, as traffic to the product’s website came from all corners of the
world.
Here’s a look at the top 15 countries directing the most traffic share to the website:

While the United states is undoubtedly the leading market for Samsung One you can see
there is a rapid surge of traffic from India, indicating there is a very promising geographic
market for the product. Other countries saw huge changes in traffic as well, as Samsung;
popularity continues to soar.
Crushing the competition

The new smartphone’s reputation as the must-have phone for the tech-savvy lot had a direct
impact on the Samsung website. Referring tech-oriented sites helped fan the flames by
directing traffic to the product’s homepage, and ultimately the referrers lent a big helping
hand in cementing brand awareness.

The chart below illustrates which publishers helped sustain the buzz about the phone through
referrals.

How was Samsung faring compared to its competitors? Or perhaps more accurately,
how were Samsung’s competitors handling the entrance of this uber-popular newcomer
into the market?
To find out, we took a look at how the company was competing with their closest rivals
in terms of traffic to their respective websites. For this comparison we used
Blackberry, HTC, Motorola and Xiaomi.
 Based on this graph, it doesn’t look like much of a competition. You can see how quickly
site traffic to Samsung managed to surpass each of the competitors we analyzed in just
a matter of months, and its traffic continues to rise. It’s also interesting to note that
Samsung visitors are more engaged, based on visit duration to the site.

Samsung + Social Media = Winning strategy

Now for the traffic breakdown by source: out of all of its main competitors, Samsung
One is the only smartphone with the greatest amount of traffic from Direct. This
illustrates how strong the brand is – clearly, Samsung One’s reputation preceded itself.
 Perhaps this is most obvious, though, when you take a look at traffic from social media.
Traffic from social media to the Samsung website dwarfs the social traffic driven by
their competitors.

While certainly social media doesn’t even come close as a substantial traffic source
when compared with other major traffic sources (especially Direct and Search),
Samsung One is clearly commanding the social scene. Social media provides the
company with nearly 8 percent of total incoming visits and continues to rise, with
Facebook, Reddit and Twitter being the main social media sites directing traffic.

Samsung One also has a very good distribution of traffic sources – another aspect
that sets it apart from the competition. Again going back to the appeal of the phone’s
exclusivity: When something is invite-only, everyone wants it… and everyone talks
about it.

Making a lasting impression

One of the distinguishing features of Samsung One’s marketing campaign was the
invite- only incentive, which prompted some aspiring entrepreneurs to start selling
invites.
There was some question as to the phone’s sustainability given the business model.
Then Black Friday and Cyber Monday happened. During that time, Samsung temporarily
removed the invite-only requirement for purchase,and allowed people to simply buy the
phone on the website. The results speak volumes about the phone’s brand presence.

On October 28th, the Samsung website received nearly 2.5M visits – 226 percent
higher than the previous month’s daily average. This traffic volume accounted for one
day,but was almost the same amount of site traffic the company received for all of
October.
Since then, Samsung has started allowing users to buy the phone invite-free
on Tuesdays, and thus far the phone is as popular as ever.

Whether the phone’s popularity would continue to soar if the invite were removed for a
longer period of time remains to be seen. But even Samsung skeptics can agree that
there’s something to be said for the relatively unknown brand that – thanks to a clever
marketing strategy and the power of social media – has managed to climb to the top of
the ranks of mid-range smartphones.
SAMSUNG CELEBRATES PREMIUM SALES LEAD IN INDIA WITH
DIG AT APPLE
SAMSUNG BECOMES NUMBER 1 SMARTPHONE IN INDIA WITH
SAMSUNG 6 SERIES
SAMSUNG TOPS ONLINE SALES CHARTS IN INDIA’S
$400+ MARKET

SAMSUNG ONE’S MARKETING STRATEGY HAS MADE

IT SO DESIRABLE