Punjab Technical University

Asian Business School

[Market mix of Samsung India ltd]

This Report was completed in partial fulfillment of the Degree Master of Business Administration Punjab Technical University Asian Business School

SUBMITTED TO Sachin Srivastava

SUBMITTED BY Vikas Arya MBA 2nd Sem

ACKNOWLEDGEMENT

One of the most pleasant aspects of writing an acknowledgement is the opportunity to thank all those who have contributed to it. Unfortunately, the list of expression of gratitude- no matter how extensive- is always incomplete and inadequate. This acknowledgement is no exception. First of all, I wish to express my sincere gratitude to Mrs. Latika Sahni (Dean) ABS, Filmcity, Noida, for giving me opportunity to do research under her profound guidance. Because of her inspiring guidance, motivation, positive criticism, continuous encouragement and untiring supervision this work could be brought to its present shape. I would like to thank all of them who in one way or the other have helped me.

VIKAS ARYA

2|Page

CERTIFICATE

This is to certify that the project work done, entitled Market mix of Samsung India ltd is a bonafide work carried out by and under our supervision and guidance. The project report is submitted towards the partial fulfillment of full time Master of Business Administration Degree.

This work has not been submitted anywhere else for any other degree/diploma.

Date:

3|Page

Table of Content
ACKNOWLEDGEMENT CERTIFICATE INTRODUCTION ABOUT THE COMPANY SAMSUNG INDIA LTD COMPANY NAME AND LOGO REVIEW OF LITERATURE (MARKLET MIX) PRODUCT OF SAMSUNG ELECTRONICS STP BY FOUR P TSST COMPETITORS AWARDS BRAND POWER SOCIAL CONTRIBUTIONS R&D @ SAMSUNG VISION INSPIRE THE WORLD, CREATE THE FUTURE VALUES 1 2 4 6 11 14 15 16 27 34 36 38 39 40 42 43 44 45
4|Page

CONCLUSION

46

INTRODUCTION

STATEMENT OF THE PROBLEM:

TO STUDY THE MARKET MIX OF SAMSUNG INDIA LTD

In this market, which is full of competitors, we would like to know the strategies that help us to beat our competitors. This study helps us to know could we overcome our competitors with regards to Four Ps and STP of our products.

OBJECTIVE OF THE STUDY:

1. To analyze the market mix of Samsung Electronics. 2. To analyze the different market for different products. 3. To analyze the Segmenting, Targeting and Positioning of Samsung products. 4. To know the present status of the competitors of Samsung India ltd.
5|Page

5. To know about the competitors of the company. 6. To know deeply about the company.

SCOPE OF THE STUDY:

The study is conducted with respect to Samsung India ltd. Due to time and a resources constraint, this study is focused on College students. This study helps us to know we can overcome our competitors with regards to advertisement and market mix.

OPERATIONAL DEFINITIONS:
The definition committee of the American Marketing Association has defined market mix as, A planned mix of the controllable elements of a product's marketing plan commonly termed as 4Ps: product, price, place, and promotion.

6|Page

About the Company SAMSUNG

Type Public Korean Consumer electronics Telecommunication Semiconductor Founded Headquarters Area served Key people Revenue Net income Total assets Owner(s) 1969 Samsung Town, Seoul, South Korea Worldwide CEO: Choi Gee-Sung Chairman: Lee Kun-hee US$ 179.4 billion (2009) US$ 8.33 billion (2009) US$ 101.64 billion (2009) Lee Kun-hee & Affiliates 17.57%, 13.07%,
7|Page

Industry

Treasury Stocks of Samsung Electronics

National Pension Service 5.90% (as Employees Parent Website 187,800 (2009) Samsung Group samsung.com

of September 31, 2009)

Samsung Electronics is a Korean company. Headquartered in Samsung Town, Seoul, South Korea. It is the flagship subsidiary of the Samsung Group. With assembly plants and sales networks in 65 countries across the world) has as many as 200,000 employees. In 2009, the company took the position of the worlds biggest IT maker by surpassing the previous leader Hewlett-Packard. Its sales revenue in the areas of LCD and LED displays and computer chips is number one in the world. Some of the most popular items produced by Samsung include LED-backlit LCD TVs and Galaxy S mobile phones. In the TV segment, Samsungs market position is dominant. For the four years since 2006, the company has been in the top spot in terms of the number of TVs sold, which is expected to continue in 2011 and beyond. In the global LCD panel market, the company has kept the leading position for eight years in a row. With the Galaxy S model, Samsungs Smartphone lineup has retained the second-best slot in the world market for some time. In competition to Apple's iPad tablet, Samsung released the Android powered Samsung Galaxy Tablet. Samsung Electronics was founded in 1969 in Daegu, South Korea as Samsung Electric Industries, originally manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers. By 1981, the company had manufactured over 10 million black and white TVs. In 1988, it merged with Samsung Semiconductor & Communications. It is noteworthy that Samsung Electronics has grown in leaps and bounds in a business notorious for cyclical fluctuations. Founded in 1938 as a food processing and textile purveyor, the parent group entered the electronic business as late as in 1969 when it created under its wings an electronic component subsidiary. It was a decision made after considering the fast-growing domestic demand for electronic goods.
8|Page

Just one year after its founding, the Samsung Group established in 1970 another subsidiary Samsung-NEC jointly with Japans NEC Corp. to manufacture electric home appliances and audio-visual devices. In 1974, it expanded into the semiconductor business by acquiring Korea Semiconductor, one of the first chip-making facilities in the country at the time. It was soon followed by the 1980 acquisition of Korea Telecommunications, an electronic switching system producer. In February 1983, Samsungs founder Lee Byung-chull made an epoch-making announcement, dubbed the Tokyo declaration, that his company would enter the DRAM (dynamic random access memory) business. And only one year after the declaration did Samsung became the third company in the world that developed the 64k DRAM after the United States and Japanese predecessors. The march from then onward as the pioneer in the memory chip-making industry has continued to this day for almost three decades. Although Samsung Electronics was already one of the biggest companies in Korea as early as the 1990s, it now is by far the most important company with unrivaled influence on the economy through a large network of supplier and partner companies as well as through its own revenue-generating power. Since the onset of the 1997 Asian financial crisis, the company has become more powerful: While most other high-tech companies were hit by cash-flow problems after the crisis, Samsung could avoid financial difficulties by broad-based structural reforms. After the crisis subsided, Samsung emerged as a global corporation. For four consecutive years from 2000 to 2003, it posted more than 5-percent net earnings when 16 large conglomerates out of 30 top companies of the nation went out of business in the wake of the unprecedented crisis. On 2009 and 2010, the US and EU fined Samsung Electronics with 8 other memory chip makers for its part in a price fixing scheme from 1999 to 2002. Other companies fined included Infineon Technologies, Elpida Memory (Hitachi and NEC) and Micron Technology. In December 2010, The EU granted immunity to Samsung Electronics for its part in informing on other members (LG Display, AU Optronics, Chimei InnoLux, Chunghwa Picture Tubes and HannStar Display) of a price fixing scheme. On April 2011, Samsung Electronics Co. have sold their HDD commercial operation to Seagate Technology for about $1.4 billion with payment of 45.2 million of (Samsung-Seagate) shares (9.6 percent of shares) with value of $687.5 million and the rest will be paid in Cash.
9|Page

Growth Only ten years ago, Samsungs only goal was to catch up with Japanese rivals. But now it is outperforming major Japanese electronics makers in many categories: in terms of global market share, Samsung is No. 1 in flat-panel TVs and memory chips; it is No. 2 in mobile handsets; it is one of the top suppliers in other home appliances. In 2005, Samsung surpassed Japanese rival Sony for the first time to become the world's largest and most popular consumer electronics brand as measured by Interbrand. In 2006, Business Week rated Samsung as 20th on its list of global brands, 2nd in the electronics industry. Business Week also ranked Samsung as 20th in innovation. In January 2007, Brand Finance ranked the company as the number 1 global brand in electronics. In 2007, Samsung Electronics' handset division overtook American rival Motorola, making it the world's second-largest mobile phone maker. In 2009, Samsung overtook Siemens of Germany and Hewlett-Packard of the USA with a revenue of $117.4 billion to take the No.1 spot as the world's largest technology company. The semiconductor division of Samsung Electronics is the world's largest memory chip and second largest semiconductor manufacturer worldwide. This has been the case for DRAM and SRAM for over a decade. To become the top brand in the electronics business, Samsung has spent enormous sums on marketing and branding. As part of fulfilling this strategy, the company devised in 1996 a plan to sponsor major sporting events. It succeeded in becoming an official sponsor for the 1998 Nagano Winter Olympics. Samsung today is the name that almost always appears in many big games. Despite being a giant in the global technology business with enviable growth, Samsung and its chairman Lee Kun-heeis famous for fretting over its future and coming crisis. Since returning from a mini retirement in March 2010, Mr. Lee said, Samsung Electronics future is not guaranteed because most of our flagship products will be obsolete in 10 years from now. Global consumers brand recognition of Samsung Electronics has increased steadily: According to the top-100 brand list compiled by Millward Brown, the British brand consultancy, Samsung, ranked at 68th on its list, was one of the worlds most valuable

10 | P a g e

brands whose growth has been most pronounced during the 2009-2010 period. Its brand value, estimated at as much as US$1.1 billion, grew by 80 percent. In the Worlds Most Reputable Companies 2010 ranking published by Reputation Institute of the United States, Samsung was placed at 22nd, a large advancement from the previous years 74th. This ranking, compiled by the U.S. consulting company since 2006, reflects survey results collected from consumers in 24 different countries for global 600 large corporations in terms of annual revenue and its GDP share in respective countries. The respondents answer questions in seven categories including products and services, innovativeness, work conditions, corporate governance, social responsibility, leadership, and financial performance. Samsung was also ranked 11th in the 50 Most Innovative Companies 2010 list put out by Business Week, a five-notch increase from the previous years 16th. The ranking, collated jointly by the U.S. weekly magazine and Boston Consulting Group since 2005, is based on answers to innovation-related survey questions asked to executives of global corporations. While survey answers take an 80-percent weight to the compilation of the ranking, the remaining 20 percent is accounted for by annual share appreciation (10%) and three-year average sales revenue and profit margin (5% each), respectively. Samsung had emphasized innovation in its management strategy since the early 2000s and it again highlighted innovation as part of core strategies when it announced the Vision 2020 in which the company set an ambitious goal of reaching the $400-billion sales revenue within 10 years. In order to cement its leadership in the areas of memory chip and TV production, Samsung has invested aggressively in research and development. The company currently has 24 R&D centers around the world. In the 2010 Business Week innovation ranking, Apple Computer and Google retained the leading positions as in the 2009 list, followed by Microsoft, which gained one notch from 2009s fourth place. Meanwhile, Samsung took the 33rd place in the Worlds Most Valuable Brands 2010 list made public by the Forbes magazine. Forbes said that Samsungs brand value was as much as $12.8 billion with an average sale revenue growth rate of 17 percent for the past three years.

11 | P a g e

SAMSUNG INDIA LTD

Samsung India is the hub for Samsung's South West Asia Regional operations. The South West Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, looks after the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India which commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. Headquartered in New Delhi, Samsung India has widespread network of sales offices all over the country . The Samsung manufacturing complex housing manufacturing facilities for color Televisions, Mobile phones, Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung 'Made in India' products like color Televisions, Mobile phones and Refrigerators are being exported to Middle East, CIS and SAARC countries from its Noida manufacturing complex. In November 2007, Samsung commenced the manufacture of color televisions and LCD televisions at its stateof-theart manufacturing facility at Sriperumbudur, Tamil Nadu. The Company is also manufacturing fully automatic front loading washing machines at its Sriperumbudur facility

SISO
12 | P a g e

Samsung Electronics India Software Operations (SISO) is one of the eleven Research & Development centers of Samsung Electronics Co. Ltd., housed in the IT hub of India, Bangalore. With its inception dating back to February 1996, as a liaison office, today it has grown in magnitude and proportions as a center of excellence in research and software development encompassing a wide range of technology domains. SISO today is a Private Limited Company, head quartered in Bangalore with ambitious plans of expanding its operation by 2 to 3 times by the year 2010. With about a decade of existence, the organization has executed close to 300 projects and has been accredited with the highest software quality certification of CMM Level 5 and ISO 9002. SISO also practices Six Sigma as a management methodology to facilitate innovation and increased productivity. Quite a synergy prevails between product development and software services initiatives and the entire system is backed by robust development and computing infrastructure. SISOs business processes have been extensively automated with a vision of making it a completely paperless office in the near future. As a captive entity of Samsung Electronics, SISO prides in its ability to work in some of the cutting edge technologies that its parent organization ventures into. SISO also displays a high degree of efficacy in the creation and protection of Intellectual Property. SISO currently houses some 1000 intellects involved in stupendous research and development activities and parallely the organization also revels in making software backed by leading edge technologies in sync with ever-changing lifestyles, and, introducing global technologies customized for the Indian requirements. SISO also works with some of the best organizations in software and technology in India, to leverage on their core competencies. With an objective to spearhead Samsungs initiatives in India, SISO contributes to the different technologies in Wireless, Networking, Convergence, Digital and Semi-conductor in India where these domains have almost become revolutions.

Design
Behind Samsungs rapid rise there lies design power. In the early 1990s, the firm began emphasizing the importance of design in its products. In its high-rise headquarters in Kangnam, south of Seoul, it locates the corporate design center in which more than 900

13 | P a g e

full-time designers are housed. In the beginning, there were only two designers in the whole company, whose number rose to 510 in 2005. Samsung overhauls its design in every two years. For the first year, it scrutinizes all the design trends of the world, followed by product strategies. It then maps out new design plans during the second year. Samsungs effort to improve design paid off: since 2006, it has won as many as 210 awards from internationally prestigious design institutions. For example, it received the iF (International Forum) and IDEA design awards. Samsung was the winner in eight categories in the 2009 IDEA awards, the company that received the most awards. There is compelling reason for Samsungs rise as a design powerhouse. Korea had for so long been considered a backwater for design excellence, especially compared to the Japanese counterparts famous for churning out eye-catching gadgets. Samsung established as many as seven design centers in the worlds major cities including Milan and London, as well as in Seoul. The professional designers working in these centers constantly monitor latest design trends in their cities while scanning cultural and lifestyle changes. In the 2010 iF Material Awards, Samsung won the Gold Award for five of its products including the external hard disk drive. The iF Material Awards are given by the International Forum Design GmbH of Hannover, one of the worlds most prestigious design awards for design materials and process technologies. In 2010, the German company selected a total of 42 products in the areas of home appliance, furniture, and industrial design. Samsung won the awards in five categories including external hard disk, full-touch screen phone, side-by-side refrigerator, compact digital camera, and laser printer toner.

14 | P a g e

Corporate name and logo

Samsung Electronics corporate name Samsung comes from the word three stars that shine brightly. The hanja character Sam has the double meaning of three and strong while sung connotes star and bright (or shining). The corporate name has auspicious meaning in it, meaning that it foretells success.

Samsungs logo design emphasizes flexibility and simplicity while conveying a dynamic and innovative image through the ellipse, the symbol of the universe and the world stage. The openings on both ends of the ellipse where the letters S and G are located are intended to illustrate the companys open-mindedness and the desire to communicate with the world. The English rendering is a visual expression of its core corporate vision, excellence in customer service through technology. The basic color in the logo is blue, the color that Samsung has had used in its logos for years. The blue color symbolizes stability and reliability, which are precisely what the company wishes to accomplish with its customers. It also stands for social responsibility as a corporate citizen, a company official explained.

15 | P a g e

REVIEW OF LITERATURE
MARKET MIX: The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. The marketing mix (price, product, distribution, promotion) forms the entire promotional campaign. As stated in Management of a Sales Force by Rosann L. Spiro, Gregory A. Rich, William J. Stanton, when these are effectively blended, they form a marketing program that provides want-satisfying goods and services for the companys market." The term became popular in the article written by Niel Borden called, The Concept of the Marketing Mix, as explained on the site netmba.com. He started teaching the term to many after he himself learned about it with an associate of his. The marketing mix is a broad concept which includes several aspects of marketing which all inquire to obtain a similar goal of creating awareness and customer loyalty. The marketing mix is not only an important concept, but a guideline to reference back to when implementing the price, promotion, product, and distribution. Those are the four main ingredients of the marketing mix, but there are other components not already mentioned on the Wikipedia site, including, planning, branding,
16 | P a g e

packaging, display, distribution channels, personal selling, advertising, servicing, and physical handling. All in all the current description of the marketing mix is accurate, but missing some vital pieces of information which will allow individuals to gain a better understanding and implement a more effective marketing mix. A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide use.

PRODUCTS OF SAMSUNG ELECTRONICS Semiconductors

For more than 20 years since 1993, Samsung has kept the title of the worlds largest memory chip maker. In 2009, it began a strategy of Green Memory by which it increased the global DRAM market share to 33 percent. It also started mass-producing 30 nm-classes NAND flash memories in the same year whose world share rose as high as 42 percent. It succeeded in 2010 in mass-producing 30 nm-class DRAMs and 20 nmclass NAND flashes, both of which were the first time in the world. According to market research firm Gartner, during the second quarter of 2010 Samsung Electronics took the top position in the DRAM segment due to brisk sales of the item on the world market. Gartner analysts said in their report, Samsung cemented its leading position by taking a 35-percent market share. All the other suppliers had minimal change in their shares. Samsung took the top slot in the ranking, followed by Hynix, Elpida, and Micron, said Gartner.]Another market researcher IC Insights predicted that Samsung would become the worlds biggest semiconductor chip supplier by 2014 when it surpasses Intel. For the ten-year period from 1999 to 2009, Samsungs compound annual growth rate (or CAGR) has been 13.5 percent, compared with that for Intel paltry 3.4 percent. Extrapolating this trend to the future, Samsung will be able to catch up with Intel by the year 2014, estimated IC Insights. IC Insights also said that Intels 2009 sales revenue had been 52 percent higher than that for Samsung, but that differential narrowed to only 21 percent during the second quarter of 2010.
17 | P a g e

Another hitherto not-well-publicized area where Samsung had significant business in for years is the foundry segment. Samsung had begun investment in the foundry business since 2006 and now positioned it as one of the strategic pillars for semiconductor growth.

Hard drives Digital display: LCD displays, LED displays, plasma displays, OLED displays

Slimmer panels
Samsung Electronics TVs and display products have undergone a race toward everslimmer panels. In 2009, the company succeeded in developing the super-slim panel for 40-inch LED TVs, with the thickness of 3.9 millimeters (0.15 inch). Dubbed the Needle Slim, the panel is as thick (or thin) as two coins put together. This is about a twelfth of the conventional LCD panel whose thickness is approximately 50 millimeters (1.97 inches).

18 | P a g e

While reducing the thickness substantially, Samsung could maintain the performance as before, including full HD resolution, 120 Hz refresh rate, and 5000:1 contrast ratio. In October 2007, Samsung broke the 10-millimeter barrier by introducing the 10-mm thick 40-inch LCD TV panel, followed in October 2008 by the worlds first 7.9-mm panel. Samsung is leading the industry by developing panels for 24-inch LCD monitors (3.5 mm) and 12.1-inch laptops (1.64 mm). According to Samsung officials, the biggest factor in reducing the panel thickness was the LED backlight. They are optimistic that their company could cut TV width by 40 percent within two years from now. Home electronics: TVs, DVD players, Blu-ray players, home cinema systems, settop boxes, projectors

Televisions
For years in a row, Samsung has taken the top spot in the world TV market, with the launch of best-selling items. In 2009, it sold as many as 31 million flat-panel TVs, maintaining the top position for four consecutive years in terms of world market share. In early 2010, the company had set the years sales goal at 39 million units (including 10-million LED TVs). According to DisplaySearch, the U.S. market research and consulting firm, Samsung is forecast to take a 27-percent share for the global TV market in the second quarter of 2010 while LG Electronics accounts for 26.2 percent of the market. The market researcher predicted that Samsungs leadership would continue in 2011.
19 | P a g e

Samsung Electronics is creating a new market by introducing the Finger-Slim LED TV. Launched in March 2009, the super-slim LED TV has thus far been sold as many as 2.6 million units. In 2009 alone, it was sold more than 2 million units, which brightens the future prospect. Samsung has led the flat-panel TV market for the past five years with the 2006 introduction of its Bordeaux line, followed by the 2007 Bordeaux model, the 2008 Crystal Rose line, and the Finger-Slim in 2009. The company retained the leading position by successfully selling more than 1 million 3D TVs as of August 2010. As rivals are jumping on the bandwagon, Samsung outstrips them by consistently introducing new, better models. Today the company offers the full line of TVs, at many price point. This company is developing new LED TV models too. After expanding its TV lineups, Samsung became the industry-first 10-million-seller challenge. One of the new products to watch is the full HD 3D LED TV that was launched the first time in March 2010. Combining LED features with 3D functionality, the new 3D TV is expected to lead the market for years to come. Samsung showcased the new TV in the International Consumer Electronics Show (CES 2010) held in Las Vegas early this year. In 2009, Samsung TVs were selected in major U.K. publications and retailers as the best TV of the year. For example, Samsungs LED TV 7000 series was the winner of the Gadget Awards 2009 by T3, U.K.s most prestigious electronics magazine.
20 | P a g e

The T3 magazine in its news article on ten reasons why you should buy Samsung LED TV listed as the reasons superior picture quality, slim design, energy efficiency and connectivity.

3D experience
Samsung sold more than 1 million 3D TVs within six months of its launch. This is the figure close to what many market researchers forecast for the years worldwide 3D TV sales (1.23 million units). It also debuted the 3D Home Theater (HT-C6950W) that allows the user to enjoy 3D image and surround sound at the same time. With the launch of 3D Home Theater, Samsung became the first company in the industry to have the full line of 3D offerings, including 3D TV, 3D Blu-ray play, 3D content, and 3D glasses. The company is trying offer the 3D content streaming service on its 3D TVs. Just like iTunes store, the Samsung 3D TV aims to allow the user to connect to its own online store, Samsung Apps, and download applications on the users hard disk drive.

Smart TVs and apps

Samsung has introduced the Internet TV in 2007 that enabled the audience to receive information from the Internet while at the same time watching conventional TV programming. Samsung is also developing a new Smart LED TV from which consumers can download applications as well as view Internet content. In 2008, the company launched the Power Infolink service, followed in 2009 by a whole new Internet@TV. In 2010, Samsung started marketing the 3D TV while unveiling the upgraded Internet@TV, which offers free (or for-fee) download of applications from its Samsung Apps store, in addition to existing services such as news, weather, stock market, YouTube videos, and movies.

21 | P a g e

Samsung Apps will provide for-fee premium services starting the latter half of 2010, beginning in Korea and the United States, followed early next year by the same services in Europe. The services will be custom-tailored for each regions culture. Samsung plans to offer family-oriented applications such as health care programs and digital picture frames as well as games.

22 | P a g e

SamyGO community created at 2009 for hacking Samsung B series TV firmwares, and later supported A and C series TV's also, under GPLv2 license and deployed new applications like a tool increasing subtitle size and changing its color, enabling PVR functionality of TV, enabling internal video player on low end models, supporting DTS codec on B Series TVs, work around for DLNA problems by playing movies from SAMBA and NFS shares support etc. Also placed web browser right into TV with mouse and keyboard support and many more applications... Samsung started to release restricted firmware updates starting from Feb 2010 for fixing security issues those used by SamyGO community and disabled firmware downgrade option from TV menus, which believed to disable the SamyGO project. But hackers find workarounds for those new restricted firmwares. Samsung expects that Samsung Apps would ultimately become a multi-device application store attracting users of all kinds of electronic device such as mobile phones, computers, and cameras. The company also reckons that its Smart TV will be the future home entertainment hub.The UK consumers association (Which?) writeup of the latest model in 2011 was highly complementary of the picture quality.

23 | P a g e

Mobile phones
Samsung Electronics sold 235 million mobile handsets in the year 2009. At the end of Q3 2010 Samsung had surpassed the 70 million unit mark in shipped phones, giving it a global marketshare of 22% trailing Nokia by 12%. Overall, Samsung sold 280 million mobile phones in 2010, corresponding to a market share of 20.2%.

Following the success of its Anycall brand mobile phones in Korea, the company introduced numerous mobile handset models including premium phones, full-touch screen phones, and environmentally friendly phones. Samsungs flagship mobile handset line is the Galaxy S, which many consider a direct competitor of Apple's popular iPhone. It was initially launched in Singapore, Malaysia and South Korea in June 2010 followed by US variants called Vibrant and Captivate in July and Epic and Fascinate in August and September. It sold more than 1 million units within the first 45 days of in the US alone. Samsungs I9000 Galaxy S and S8500 Wave Smartphones were the winners of the 2010 European EISA Awards in the Smartphone and social media phone categories. The I9000 Galaxy S was recognized for its superior-quality screen and excellent connectivity while the S8500 Wave for its Bada operating system with unparalleled social networking and location-based services. Samsungs 2010 Smartphone shares worldwide are rising rapidly. The share in the United States has doubled in the second quarter of the year from the previous quarter. In

24 | P a g e

the second quarter the company shipped as many as 3 million Smartphones, a 173percent increase from the same period last year. While many other handset makers tend to focus on supporting one (or at most two) operating system, Samsung has kept supporting a wide range of operating systems in the market. Although the Galaxy S adopts Google Android as the primary operating system, it also supports other competing operating systems such as Symbian, Microsoft Windows Phone, Linux-based LiMo, and Samsungs proprietary Bada. The company set the sales goal of the 2010 yearend at 20 million units. Samsung faces challenges in the phone market. An alliance of Chinese low wage and Taiwanese technology is catching up closely. Smartphone makers such as Apple, RIM, and HTC are busy coming up with new models, and Samsung is working to maintain its top position.

Home appliances
In 2009, the year of worldwide recession due to the 2008 global credit crisis, Samsungs sales revenue rose 27 percent from the previous year, the biggest increase in the industry. In the home market, Samsung held the leading position thanks to strong sales of its flagship items, Zipel-brand side-by-side and kimchi refrigerators. In the North American, European, and Russian markets, it solidified its image as a premier home appliance maker by selling so many refrigerators, washing machines, air-conditioners, as well as new steam microwave ovens and robot vacuum cleaners.

In a market clearly split into two extremes of up market and budget categories, Samsung employs a two-pronged strategy to emphasize its premium image for affluent consumers
25 | P a g e

while marketing lower-end items with fewer bells and whistles for emerging economies consumers.

In 2009, Samsung introduced a host of new products including a premium mini-laptop computer N310 and slim-sized laptop X420. The N310 and the X420 are the thirdgeneration laptops with all the advanced features as well as portability and connectivity. Thanks to these new market entrants, Samsung could sell as many as 6 million laptops for the year. In the printer business division, one of the next-generation strategic areas, Samsung launched mono-laser printer, multifunction printer, and enterprise-use high-speed digital multifunction printer models. Samsung was ranked second in the world in the area of letter-size (A4) laser printers. In other segments such as mono-laser printers, multifunction printers, and color laser printers, Samsung was first or second place in the world. In the laser multifunction printer segment, it became No. 1 the first time in its history, all of which indicates that Samsung is growing fast in the printer business despite under the condition of severe economic recession. In 2010, Samsung introduced many new products boasting energy efficiency and ecofriendliness, including the premium laptop R580, netbook N210, the worlds smallest mono-laser printer ML-1660, and color laser multifunction printer CLX-3185.
26 | P a g e

In the area of wireless networking, the mobile telecom protocols such as Mobile WiMax and WiBro, the protocols developed by Samsung and adopted in 2007 as international standards, are in wide commercial use in many overseas markets. Since mobile telecom service providers in the United States, Japan, and Russia began deploying the standards, more and more providers (as many as 139 providers in 75 countries) are readying to take it up. Digital cameras and camcorders are the areas Samsung cannot overlook. The company has introduced several models in these areas such as the WB550 (the premium camera), the ST550 (the dual-LCD-mounted camera), and the HMX-H106 (64GB SSD-mounted full HD camcorder). Samsung in 2009 took the third place in the compact camera segment. Since then, the company has focused more on high-priced items. In 2010, the company launched the NX10, the next-generation interchangeable lens camera, thereby commencing the race toward the new category of camera market.

27 | P a g e

In the area of storage media, Samsung in 2009 succeeded in grabbing more than 10 percent of the world market share by introducing a new hard disk drive capable of storing 250Gb per 2.5-inch disk. In 2010, the company started marketing the 320Gb-perdisk HDD, the largest in the industry. In addition, it is focusing more on selling external hard disk drives.

In the MP3 player segment, Samsung is doing quite well. It is launching a host of new products including the M1, the premium MP3 player model and the worlds smallest DivX MP3 player R1

STP BY FOUR P

28 | P a g e

STP refers to Segmenting, Targeting and Positioning. STP is a market strategy of any company to market its products. Samsung segmented its market for its products. It does STP for every category of products differently.

STP by products and services STP by demographics/ firmographics STP by geography STP by channel STP by psychographics

STP OF CELLPHONE MARKET

29 | P a g e

Samsung segmented its cellular market in several categories. GEOGRAPHIC It has Samsung Guru segment for rural areas as well as Galaxy segment for urban areas. Samsung is one of the largest manufacturers of mobile phones and it shares the highest cellphone customers with Nokia in India. It has something for everyone.

DEMOGRAPHIC Samsung has mobile phones for youth, age of 16-29, for businessmen etc. for middle class youth it has Samsung Guru which is for govt. lower class workers also. Guru has many variants; it is coming in 3G also. It is a good option if you want to get a cheap 3G handset. Samsung Galaxy is a good option for youth as it has many attractive features as Wi-Fi, 3G. Galaxy is also for Businessmen. Samsung has partnered with IT industry leaders to bring you the most relevant enterprise solutions and the most comprehensive mobile implementation of Exchange ActiveSync. Decidedly adept in security concerns and the answer to your every business need, the Galaxy S II is ready for serious enterprise usage.

PSYCHOGRAPHIC

30 | P a g e

Samsung mobile is available for those customers too who have their choice based on their lifestyle. Samsung came with some so fancy mobile phones specially for girls and cheaper touch screen stylish phones so that everyone can enjoy touch screen T the rate of normal mobiles. Samsung has its range of mobile phones start from 1200 to 32,000+.

STP OF TELEVISION

GEOGRAPHIC

Samsung segmented its television in rural urban as well as semi urban markets. Samsung has round televisions for rural market as it can bear heavy fluctuations in electricity which normally happens in villages. Also Samsung has TFTs and LCDs for both semi urban and urban markets. Earlier Samsung Plasma televisions were used in urban areas, later they were available on lower rates so that they are now used by rural areas. Now technology has changed so much and urban areas are enjoying Samsung 3D LED televisions which have full HD and a great experience of watching television.

31 | P a g e

PSYCHOGRAPHIC

Samsung television is also segmented as psychographic market. A 3D LED TV is a very luxurious thing, on the other hand a round television, even a flat screen CRT TV is ment for middle class or lower middle class. LEDs and TFTs are ment for upper middle class.

STP OF AUDIO/ VIDEO PLAYERS/ CAMERAS (GADGETS)

GEOGRAPHIC & PSYCHOGRAPHIC Samsung audio/ video players are mainly made for youth. Its not made for rural areas as it is a waste of time kind of thing for them, its useless for villages as they have no computers and they are technologically too backward to use these gadgets. These gadgets also are the status symbol. They are used as luxurious gadgets too.
32 | P a g e

Samsung cameras and camcorders too are made for urban and semi urban areas only. Samsung gadgets are so stylish and youth oriented.

STP OF HOMEAPPLIANCES

GEOGRAPHIC
33 | P a g e

Samsung categorized its home care products geographically. It has appliances for rural as well as urban areas. Refrigerators are now a day used in rural areas also. Samsung also produces WASHING MACHINES AIRCONDITIONERS REFERIGERATORS MICROWAVE OVEN VACUUM CLEANER ELECTRONIC COOKER INDUCTION STOVE CD/DVD PLAYERS WRITABLE CDs/DVDs HOME THEATRE BLU-RAY

PSYCHOGRAPHIC Samsung categorized its home care products according to the lifestyle of customers. It has luxurious products like Electronic Cooker, Induction Stove, Air conditioners, Washing machines, Microwave Oven, Robotic Vacuum Cleaner etc. Most of the products are for urban and semi urban areas and only a few are for rural areas such as washing machines and refrigerators. Washing machines are still not so much used in rural areas but it is used in these areas. Robotic vacuum cleaners are so much luxurious products so as induction stoves. Air conditioners are both for middle class and premium class. Samsung side by side refrigerators and Samsung front loader washing machines are so luxurious products.

34 | P a g e

OTHER PRODUCTS SOFTWARE Samsung Electronics India Software Operations (SISO) is one of the eleven Research & Development centers of Samsung Electronics Co. Ltd., housed in the IT hub of India, Bangalore. With its inception dating back to February 1996, as a liaison office, today it has grown in magnitude and proportions as a center of excellence in research and software development encompassing a wide range of technology domains. SISO today is a Private Limited Company, head quartered in Bangalore with ambitious plans of expanding its operation by 2 to 3 times by the year 2010.

HARDWARE Samsung is one of the largest manufacturer of IT products. It is the largets manufacturer of microchips i.e. flash memory, RAM etc. Samsung is famous for its hard drives. Samsung makes chipsets along with Toshiba.

35 | P a g e

Toshiba Samsung Storage Technology Corporation (abbreviated TSST) is an international joint venture company of Toshiba (Japan) and Samsung Group (Korea). Toshiba owns 51% of its stock, while Samsung owns the remaining 49%. The company specializes in optical disc drive manufacturing. The company was established in 2004. It is aiming to be the largest in optical drives.

PERSONAL COMPUTERS Samsung also is a maker of laptops with some great features like waterproof, full HD LED display, sleek design, long lasting battery life and light weight.

STP OF COMPUTERS GEOGRAPHIC Samsung computers are made for semi urban and urban areas. Samsung laptops are made for students and also for official purpose. Netbooks are so much in fashion now a days. And mainly it is used by students as it is so easy to carry and stylish too.

DEMOGRAPHIC

36 | P a g e

Samsung laptops are also available in girly colors. It is basically for college girls. Netbooks are designed for college purpose and notebooks are used for official purpose mainly, but no one is bound, they can use as they like.

PSYCHOGRAPHIC Samsung laptops are both for urban and semi urban markets. Samsung is launching its new range of luxury laptops Airfoil which takes on Macbook Air. It is so sleek and beautiful laptop and also it is a luxury product which can be an add-on to your gadgets. Samsung now came up with new range of laptops this time it is "premium" QX series - given an "airfoil design exterior" that's aluminium clad like as certain fruit-branded manufacturer's notebooks. But not entirely constructed from metal: Samsung's release suggests it's just the lid that's fashioned from. Problem with Macbook Air that it has no swappable battery life, every time you have to plug in your charger, there Samsung Airfoil get rid of that, it has a good battery life with slim design.

Samsung also is the maker of computer equipments likePRINTERS RAM CD/DVD ROM WRITABLE/ rewritable CD/DVD MONITOR/ LED/ LCD DISPLAY FOR DESKTOP
37 | P a g e

FLASH DRIVES PROJECTORS PLEOMAX Samsung makes computer hardware under the name of PLEOMAX like keyboards, mouse, web camera, speakers and other peripheral devices.

COMPETITORS

HOME CARE PRODUCTS

Competitors of Samsung electronics In home appliances Whirlpool, Hitachi, Bluestar, Voltas, Godrej, LG, Philips, Onida, Videocon, Haier, Bajaj, Markson, Thomson, Sony, Electrolux, Kelvinator etc COMPETITIVE PRODUCTS 3D LED by Sony and LG are major competitor for Samsung LG side by side refrigerator, Godrej, Whirlpool refrigerator, washing machines is major competitive products for Samsung. Whirlpool, Hitachi, Bluestar, LG air conditioners are major competitors of Samsung Air conditioners.

MOBILES
In mobiles Nokia, Motorola, LG, HTC, Acer, Dell, Sony Ericsson, Blackberry, Apple, Huawei, O2 etc are major competitors of Samsung. COMPETITIVE PRODUCTS
38 | P a g e

Apple I-phone, Nokia N, X, E series mobile phones are competitor of Samsung Smartphone. LG cookie is competitor of Samsung Corby. Sony Ericsson xperia play is a competitor of Samsung SCH-B5200 HTC Sensation is a big competitor of Samsung Galaxy Tab.

IT PRODUCTS
In IT industry Intel, HP, Dell, IBM, Lenovo, Sony, Apple, Wipro, Logitech, Acer, Seagate, Creative etc are major competitors of Samsung.

COMPETITIVE PRODUCTS Intel is a big competitor for Samsung Chipset. Logitech is a competitive for Samsung Pleomax. Sony, hp, Lenovo, Dell, Toshiba are the main competitors for Samsung computers. LG, Sony, Moserbaer are the main competitors for Samsung IT products. Hp, Canon, TVS are the main competitive printer makers for Samsung.

39 | P a g e

AWARDS

During its tenure of 12 years in the country, Samsung India has won several Product Awards and recognitions across its Audio Video, Home Appliance, IT and Telecom Product categories. The Corporate Recognitions received by the Company in the recent past include: 'Electronics Organization of the Year' by EFY Magazine at its 'Readers' Choice Awards' February, 2007 Electronics Company of the Year - in 2006 by Consumer Electronics & TV Manufacturers Association No.1 Channel Favorite Company - in 2006 by Varindia Most preferred TV partner in Hospitality Industry by Hospitality India 2006 Best Retailer for the Year 2005 by India Retail Forum Most Trusted Company Award 2005 by VarIndia ELCINA (Electronics Industries Association of India) Awards for 'Excellence in Electronics' instituted by the IT department of the Government of India. Samsung India received the 1st Prize in the Consumer Electronics category for productivity, exports, R&D and quality assurance in 2002 Golden Peacock Special commendation Certificate for Corporate Social Responsibility (Private Sector) for the year 2004 'Special Award' by Electronic Industries Association of India for 'significant contribution to the development and growth of India's Electronics Hardware and IT industry.' in 2004 November 2006MoU signed with Tamil Nadu Government for setting up a second manufacturing Complex at Sriperumbudur, near Chennai June 2006Samsung commences manufacture of LCD TVs in India
40 | P a g e

January 1998All India operations with launch in East December 1997 Sponsorship of the lighting of the Permanent Asian Games Flame Ceremony at the National Stadium, New Delhi. November 1997 Sponsorship of Indian Contingent to 13th Asian Games in Bangkok. June 1997CTV Factory Inaugurated with Initial Plant Capacity of 400,000 units per annum June 1996Foundation Stone laid for CTV Factory at Noida, Uttar Pradesh.

BRAND POWER

From being a virtually unknown entity in the Year 1995, brand Samsung today enjoys an awareness level of over 65% and a positive opinion of over 80% in the country today (source: BAS 2007). The introduction of World First, Wow, leading technology products in the Indian market coupled with the Companys efforts to customize products for the Indian consumers, have contributed to the success of the brand in the Indian market. Technology Leadership, Product design and innovative marketing have all contributed to making Samsung a household name in the Indian market. The Company has carried out over 170 Dream Home Road Shows - a four day exhibition of its new products and technologies - in the metros and smaller markets to create consumer awareness. To display Samsung products in a more lifestyle ambience and to communicate the product benefits in a more interactive manner, Samsung India has set up a widespread network of Samsung Digital Plazas all over the country. The Samsung Brand shop network complements the over 8500 retail points for Samsung products located across the length and breadth of the country. Samsung plans to continue enhancing its penetration levels in the country to reach out to more and more Indian consumers

41 | P a g e

SOCIAL CONTRIBUTIONS

OLYMPIC SCHOLARSHIP PROGRAM FOR INDIAN ATHLETES

Digital technology leader, Samsung India has announced a Samsung Scholarship Programme to support seven top Indian athletes as they prepare for the forthcoming Beijing Olympics. The 'Samsung Olympic Ratnas' who have been identified for this Scholarship are- World Shooting Champion 2006, Rajiv Gandhi Khel Ratna Award Winner 2006 and Samsung Olympic Brand Ambassador : Manavjit Singh Sandhu - Silver Medal Winner at the 2004 Athens Games and Rajiv Gandhi Khel Ratna Award Winner 2004 : Rajyavardhan Singh Rathore - First Indian shooter to win a World Championship Gold in Zagreb in 2006 and Rajiv Gandhi Khel Ratna Award Winner in the Year 2001 : Abhinav Bindra - Silver Medal Winner at the Commonwealth Games 2006 and Rajiv Gandhi Khel Ratna Award Winner 2003 : Anjali Bhagwat - Silver Medal Winner at the Commonwealth Games 2006 and 2007 National Games : Avneet Kaur Sidhu
42 | P a g e

- - First Indian Archer to qualify for the Olympics and Gold Medal winner at the Archery World Cup 2007 : Dola Banerjee. - 2007 National Boxing Champion and Silver Medal Winner at the SAF Games 2006 : A L Lakra Patterned on the Olympic Solidarity Fund, the Samsung Scholarship Program will support the training expenses of these players for a period of one year, between October 2007 and September 2008. Samsung India has also become the 'Olympic Partner' for the Indian delegation to the 2008 Beijing Olympics. The Company will be the Official Sponsor in the category of Consumer Electronics, IT and Telecommunications On the Samsung Olympic Scholarship Program, states Mr. H B Lee, President & CEO, Samsung South West Asia HQ, "Our Olympic program seeks to support the training needs of these seven, high potential, high caliber athletes, who we hope can return from Beijing with Medals for the country. Hence, the term 'Samsung Olympic Ratna' for them."

43 | P a g e

R&D @ SAMSUNG

R&D at Samsung Innovation is crucial to Samsung's business. As new technologies are being constantly introduced to the market, speed is essential for remaining competitive in today's digital era, and new markets have to be pioneered continuously. Through the interplay of creative, imaginative people; a global R&D network; an organisation that encourages collaboration and cooperation among business partners all along the supply chain; and a strong commitment to ongoing investment, Samsung has put R&D at the heart of everything we do. People One of Samsung's strongest assets is our team of talented researchers and engineers. More than a quarter of all Samsung employees 42,000 people work everyday in research and development, and we expect that number to surpass 50,000 by 2010. Atand among our 42 research facilities around the world, they collaborate on strategic technologies for the future and original technologies designed to forge new market trends and set new standards for excellence.

44 | P a g e

VISION

Growing to be the best Samsung India aims to be the 'Best Company' in India. 'Best Company' in terms of the internal workplace environment, our manpower, our products as well as our efforts to make our customers happy through our products and services. Samsung aims to grow in India by contributing to the Indian economy and making the lives of our consumers simpler, easier and richer through our superior quality products. "Our aim is to gain technological leadership in the Indian marketplace even as our goal is to earn the love and respect of more and more of our Indian consumers." Mr. J S Shin President & CEO Samsung South West Asia Head Quarters

45 | P a g e

46 | P a g e

VALUES

Samsung Electronics Global Vision would be achieved through nine action values:

47 | P a g e

Continuous Innovation Creativity Challenge Strategic Focus Speed Simplicity Empowerment Crisis Awareness Customer Focus

CONCLUSION

48 | P a g e

Ever since its inception in1938, Samsung has continually refined its Mission statement to respond to changes both in the world, and in itself. Whether it was Economic Contribution to the Nation, Priority to Human Resources, or Pursuit of Rationalism, each slogan had the quality of representing the most significant moments in Samsungs history. Each of them represented a different stage of Samsungs growth from a domestic industrial leader to a global electronics powerhouse. But Samsung has its product line mainly for urban markets. India is a country of very large population, where a big part of population belongs to rural areas and semi urban areas. So, Samsung should also be focused on these areas as these areas are developing, this can also help these areas in developing itself. At least those products which are used in rural areas such as washing machines and Refrigerators could be endorsed there; it will help changing the lifestyle of people there. Samsung mobile phones are not as much used in rural areas as much as Nokia sells its mobile phones, just because Nokia reaches there but Samsung do not.

49 | P a g e