INTRODUCTION

Cellular Telephony
The technology that gives a person the power to communicate anytime, anywhere - has
spawned an entire industry in mobile telecommunication. Mobile telephones have
become an integral part of the growth, success and efficiency of any business / economy.
The most prevalent wireless standard in the world today, is GSM. The GSM Association
(Global System for Mobile Communications) was instituted in 1987 to promote and
expedite the adoption, development and deployment and evolution of the GSM standard
for digital wireless communications.
The GSM Association was formed as a result of a European Community agreement on
the need to adopt common standards suitable for cross border European mobile
communications. Starting off primarily as a European standard, the Group Special Mobile
as it was then called, soon came to represent the Global System for Mobile
Communications as it achieved the status of a world-wide standard. GSM is today, the
world's leading digital standard accounting for 68.5% of the global digital wireless
market.
The Indian Government when considering the introduction of cellular services into the
country, made a landmark decision to introduce the GSM standard, leapfrogging
obsolescent technologies / standards.
Although cellular licenses were made technology neutral in September 2005, all the
private operators are presently offering only GSM based mobile services. The new
licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for
GSM technology to offer their mobile services.

The Government of India recognizes

that the provision of a world-class

telecommunications infrastructure and information is the key to rapid economic and

social development of the country. It is critical not only for the development of the
Information Technology industry, but also has widespread ramifications on the entire
economy of the country. It is also anticipated that going forward, a major part of the GDP
of the country would be contributed by this sector. Accordingly, it is of vital importance
to the country that there be a comprehensive and forward looking telecommunications
policy which creates an enabling framework for development of this industry.

OBJECTIVES OF THE STUDY

The primary objective was to study the perception & buying behaviour of customers
towards various mobile brands with special reference to SAMSUNG.
The secondary objectives of this study were to identify:

Factors that influence decision-making in purchasing a mobile phone.

Brand awareness of SAMSUNG mobile phones in the market.

Factors, which help in increasing the sale of mobile phones.

Various sources from which mobiles are purchased.

SCOPE OF THE STUDY

The scope of the research is based on the telecom industry and it throws light on the
brand preference of mobile phones with respect to Samsung.

Significance of the study:

Significance to the industry: My research will help the telecom industry to know the
current scenario of customers with respect to brand preference of mobile phones, with
respect to Samsung.
Significance for the researcher:

Wide exposure to the telecom industry.

Studying about the brand preference of Samsung mobile phones through the
respondents.

RESEARCH METHODOLOGY

Title Brand preference of Samsung mobile phones.

Title Justification This title is justified as it tells about the customer preference
towards Samsung mobile phones as compared to other brands.

SAMPLING METHODOLOGY:
Sampling Size 100 respondents
Sampling Area - Delhi and N.C.R.
Sampling Technique Random and Convenience sampling technique

RESEARCH DESIGN:

Visited the customers across Delhi and NCR & gathered information required as per
the questionnaire.

The research design is descriptive research.

DATA COLLECTION:

Primary data has been used by me in the form of Questionnaire, which is the basic
method of collecting primary data, which suffices all research objectives.

Secondary data sources like various internet sites such as samsung.com & other
websites have been used.

CONCEPTUAL FRAMEWORK
INDUSTRY PROFILE
In the early 1990s, the Indian government adopted a new economic policy aimed at
improving India's competitiveness in the global markets and the rapid growth of exports.
Key to achieving these goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai,
Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India.
The circles are further classified under "A," "B" and "C," with the "A" circle being
the most attractive and "C" being the least attractive. The regulatory body at that time
the Department of Telecommunications (DOT) allocated two cellular licenses
for each metro and circle. Thirty-four licenses for GSM900 cellular services were
auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra
in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in
more than one metro, three circles or both. The circles of Jammu and Kashmir and
Andaman and Nicobar had no bidders, while West Bengal and Assam had only one
bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the
Lok Sabha, and the president officially announced the TRAI ordinance on 25 January
2003. The government decided to set up TRAI to separate regulatory functions from
policy formulation, licensing and telecom operations. Prior to the creation of TRAI,
these functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial
burden on the operators, diverting funds away from network development and
enhancements. As a result, by 2005 many operators failed to pay their license fees and
were in danger of having their licenses withdrawn. In March 2005, a new telecom
policy was put in place (New Telecom Policy 2005).

Under this new policy, the old fixed-licensing regime was to be replaced by a
revenue-sharing scheme whereby between 8-12 per cent of cellular revenue were to
be paid to the government.
6

Samsung Group is a South Korean multinational conglomerate company headquartered

in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses,
most of them united under the Samsung brand, and are the largest South Korean chaebol
(business conglomerate).
Samsung was founded by Lee Byung - Chul in 1938 as a trading company. Over the next
three decades the group diversified into areas including food processing, textiles,
insurance, securities and retail. Samsung entered the electronics industry in the late 1960s
and the construction and shipbuilding industries in the mid-1970s; these areas would
drive its subsequent growth. Following Lee's death in 1987, Samsung was separated into
four business groups Samsung Group, Shinsegae Group, CJ Group and Hansol Group.
Since the 1990s Samsung has increasingly globalized its activities, and electronics,
particularly mobile phones and semiconductors, have become its most important source
of income.

Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest
information technology company measured by 2012 revenues, and 4th in market
value), Samsung Heavy Industries (the world's 2nd-largest shipbuilder measured by 2010
revenues), and Samsung Engineering and Samsung C&T (respectively the world's 13th
and 36th-largest construction companies). Other notable subsidiaries include Samsung
Life

Insurance (the

world's

14th-largest

life

insurance

company), Samsung

Everland (operator of Everland Resort, the oldest theme park in South Korea), Samsung
Techwin (an aerospace, surveillance and defence company) and Cheil Worldwide (the
world's 15th-largest advertising agency measured by 2012 revenues).
Samsung has a powerful influence on South Korea's economic development, politics,
media and culture, and has been a major driving force behind the "Miracle on the Han
River". Its affiliate companies produce around a fifth of South Korea's total
exports. Samsung's revenue was equal to 17% of South Korea's $1,082 billion GDP.
In 2013, Samsung began construction on building the world's largest mobile phone
factory in the Thai Nguyen province of Vietnam. Samsung has been able to achieve the
largest market share of nearly 31% in the global smartphone segment, as of 2013.

HISTORY
1938 to 1970
In

1938, Lee

Byung-Chull (19101987)

of

large

landowning

family

in

the Uiryeong county came to the nearby Daegu city and founded Samsung
Sanghoe , a small trading company with forty employees located in Su-dong (now
Ingyo-dong). It dealt in groceries produced in and around the city and produced
its own noodles. The company prospered and Lee moved its head office to Seoul
in 1947. When the Korean War broke out, however, he was forced to leave Seoul
and started a sugar refinery in Busan named Cheil Jedang. After the war, in
1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu. It
was the largest woollen mill ever in the country and the company took on the
aspect of a major company.
Samsung diversified into many areas and Lee sought to help establish Samsung as an
industry leader in a wide range of enterprises, moving into businesses such as insurance,
securities, and retail. President Park Chung Hee placed great importance on
industrialization, and focused his economic development strategy on a handful of large
domestic conglomerates, protecting them from competition and assisting them
financially.
In 1947, Cho Hong-jai (the Hyosung groups founder) jointly invested in a new company
called Samsung Mulsan Gongsa, or the Samsung Trading Corporation, with the Samsung
Group founder Lee Byung-chull. The trading firm grew to become the present-day
Samsung C&T Corporation. But after some years Cho and Lee separated due to
differences in management between them. He wanted to get up to a 30% group share.
After

settlement,

Samsung

Group

was

separated

into

Samsung

Group

and Hyosung Group, Hankook Tire, and others.

In the late 1960s, Samsung Group entered into the electronics industry. It formed several
electronics-related divisions, such as Samsung Electronics Devices, Samsung ElectroMechanics, Samsung Corning, and Samsung Semiconductor & Telecommunications, and
made the facility in Suwon. Its first product was a black-and-white television set.

1970 to 1990
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the
telecommunications hardware industry. Its early products were switchboards. The facility
was developed into the telephone and fax manufacturing systems and became the centre
of Samsung's mobile phone manufacturing. They have produced over 800 million mobile
phones to date. The company grouped them together under Samsung Electronics in the
1980s.
After Lee, the founder's death in 1987, Samsung Group was separated into four business
groupsSamsung Group, Shinsegae Group, CJ Group, and the Hansol Group. Shinsegae
(discount store, department store) was originally part of Samsung Group, separated in the
1990s

from

the

Samsung

Group

along

with

CJ

Group

(Food/Chemicals/Entertainment/logistics) and the Hansol Group (Paper/Telecom). Today

these separated groups are independent and they are not part of or connected to the
Samsung Group. One Hansol Group representative said, "Only people ignorant of the
laws governing the business world could believe something so absurd", adding, "When
Hansol separated from the Samsung Group in 1991, it severed all payment guarantees
and share-holding ties with Samsung affiliates." One Hansol Group source asserted,
"Hansol, Shinsegae, and CJ have been under independent management since their
respective separations from the Samsung Group". One Shinsegae department store
executive director said, "Shinsegae has no payment guarantees associated with the
Samsung Group".
In the 1980s, Samsung Electronics began to invest heavily in research and development,
investments that were pivotal in pushing the company to the forefront of the global
electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a
plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and another
facility in Austin, Texas, in 1996. As of 2012, Samsung has invested more than US$13
billion in the Austin facility, which operates under the name Samsung Austin
Semiconductor. This makes the Austin location the largest foreign investment
in Texas and one of the largest single foreign investments in the United States.

10

1990 to 2000
Samsung started to rise as an international corporation in the 1990s. Samsung's
construction branch was awarded a contract to build one of the two PETRONAS
Towers in Malaysia, Taipei

101 in Taiwan and

the Burj

Khalifa in United

Arab

Emirates. In 1993, Lee Kun-hee sold off ten of Samsung Group's subsidiaries, downsized
the company, and merged other operations to concentrate on three industries: electronics,
engineering, and chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan
University foundation.
Samsung became the largest producer of memory chips in the world in 1992, and is the
world's second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor
Market Share Ranking Year by Year). In 1995, it created its first liquid-crystal
display screen. Ten years later, Samsung grew to be the world's largest manufacturer of
liquid-crystal display panels. Sony, which had not invested in large-size TFT-LCDs,
contacted Samsung to cooperate, and, in 2006, S-LCD was established as a joint venture
between Samsung and Sony in order to provide a stable supply of LCD panels for both
manufacturers. S-LCD was owned by Samsung (50% plus one share) and Sony (50%
minus one share) and operates its factories and facilities in Tangjung, South Korea. As of
26 December 2011 it was announced that Samsung had acquired the stake of Sony in this
joint venture.
Compared to other major Korean companies, Samsung survived the 1997 Asian financial
crisis relatively unharmed. However, Samsung Motor was sold to Renault at a significant
loss. As of 2010, Renault Samsung is 80.1 per cent owned by Renault and 19.9 per cent
owned by Samsung. Additionally, Samsung manufactured a range of aircraft from the
1980s to 1990s. The company was founded in 1999 as Korea Aerospace Industries (KAI),
the result of merger between then three domestic major aerospace divisions of Samsung
Aerospace, Daewoo Heavy Industries, and Hyundai Space and Aircraft Company.
However, Samsung still manufactures aircraft engines and gas turbines.

11

2000 to 2014
In 2000, Samsung opened a computer programming laboratory in Warsaw, Poland. Its
work began with set-top-box technology before moving into digital TV and smartphones.
As of 2011, the Warsaw base is Samsung's most important R&D centre in Europe,
forecast to be recruiting 400 new-hires per year by the end of 2013.
In 2001, Samsung Techwin became the sole supplier of a combustor module for
the Rolls-Royce Trent 900 used by the Airbus A380, the world's largest passenger
airliner. Samsung Techwin is also a revenue-sharing participant in the Boeing's 787
Dreamliner GEnx engine program.
In 2010, Samsung announced a ten-year growth strategy centred around five
businesses. One of these businesses was to be focused on biopharmaceuticals, to which
the company has committed 2.1 trillion.
In December 2011, Samsung Electronics sold its hard disk drive (HDD) business
to Seagate.
In the first quarter of 2012, Samsung Electronics became the world's largest mobile
phone maker by unit sales, overtaking Nokia, which had been the market leader since
1998. In the August 21 edition of the Austin American-Statesman, Samsung confirmed
plans to spend 3 to 4 billion dollars converting half of its Austin chip manufacturing plant
to a more profitable chip. The conversion should start in early 2013 with production on
line by the end of 2013. On March 14, 2013, Samsung unveiled the Galaxy S4.On August
24, 2012, nine American jurors ruled that Samsung had to pay Apple $1.05 billion in
damages for violating six of its patents on smart phone technology. The award was still
less than the $2.5 billion requested by Apple. The decision also ruled that Apple did not
violate five Samsung patents cited in the case. Samsung decried the decision saying that
the move could harm innovation in the sector. It also followed a South Korean ruling
stating that both companies were guilty of infringing on each other's intellectual
property.

12

In the first trading after the ruling, Samsung shares on the Kospi index fell 7.7%, the
largest fall since October 24, 2008, to 1,177,000 Korean won. Apple then sought to ban
the sales of eight Samsung phones (Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2
Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G, Galaxy S Showcase, Droid Charge
and Galaxy Prevail) in the United States which has been denied by the court.
On September 4, 2012, Samsung announced that it plans to examine all of its Chinese
suppliers for possible violations of labour policies. The company said it will carry out
audits of 250 Chinese companies that are its exclusive suppliers to see if children under
the age of 16 are being used in their factories.
In 2013, a New Zealand news outlet reported a number of Samsung washing machines
spontaneously catching on fire. The corporation is expected to spend $14 billion on
advertising and marketing in 2013, with publicity appearing in TV and cinema ads, on
billboards, and at sports and arts events. In November 2013, the corporation was valued
at $227 billion.
In May of 2014, Samsung announced it will be shutting down its streaming service on
July 1, 2014, also meaning the end of the Samsung Music Hub app that typically comes
installed on its Android phones.
On September 3, 2014, Samsung announced Gear VR, a virtual reality device in
collaboration with Oculus VR and developed for the Galaxy Note 4.
In October of 2014, Samsung announced a $14.7 billion investment to build a chip plant
in South Korea. Construction will begin next year with production beginning in 2017.
The company has not yet decided the type of chips to be produced.
In October 2014, Samsung also announced it would invest $560 million in the
construction of a new 700,000 square metre production complex in Vietnam.
Samsung plans to launch a new set of services beginning early 2015. The goal of this new
suite of business offerings, dubbed Samsung 360 Services, is to become a help desk of
sorts for businesses IT departments. The customizable services range from technical
support to security solutions to having a Samsung employee embedded in a client's
business as an on-site support manager or technology consultant.
13

ACQUISITIONS AND ATTEMPTED ACQUISITIONS

Samsung has made the following acquisitions and attempted acquisitions:[52]
Rollei Swiss watch battle
Samsung Techwin acquired a German camera-maker Rollei in 1995. Samsung (Rollei)
used its optic expertise on the crystals of a new line of 100% Swiss-made watches,
designed

by

team

of

watchmakers

at

Nouvelle

Piquerez

S.A.

in

Bassequort, Switzerland. Rolex's decision to fight Rollei on every front stemmed from
the close resemblance between the two names and fears that its sales would suffer as a
consequence. In the face of such a threat, the Geneva firm decided to confront. This was
also a demonstration of the Swiss watch industry's determination to defend itself when an
established brand is threatened. Rolex sees this front-line battle as vital for the entire
Swiss watch industry. Rolex has succeeded in keeping Rollei out of the German market.
On March 11, 1995, the Cologne District court prohibited the advertising and sale of
Rollei watches on German territory.

Fokker, a Dutch aircraft maker

Samsung lost a chance to revive its failed bid to take over Dutch aircraft
maker Fokker when other airplane makers rejected its offer to form a consortium. The
three proposed partnersHyundai, Hanjin, and Daewoonotified the South Korean
government that they would not join Samsung Aerospace Industries.

AST Research
Samsung bought AST (1994) and tried to break into North America, but the effort was
unsuccessful. Samsung was forced to close the California-based computer maker
following mass defection of research staff and a string of losses.

FUBU clothing and apparel

In 1992, Daymond John had started the company with a hat collection that was made in
his house in the Queens area of New York City. To fund the company, John had to
mortgage his house for $100,000.
14

With his friends J. Alexander Martin, Carl Brown, and Keith Perrin, half of his house was
turned into the first factory of FUBU, while the other half remained as the living quarters.
Along with the expansion of FUBU, Samsung invested in FUBU in 1995.

Lehman Brothers Holdings Asian operations

Samsung Securities was one of a handful of brokerages looking into Lehman Brothers
Holdings. But Nomura Holdings has reportedly waved the biggest check to win its bid for
Lehman Brothers Holdings Asian operations, beating out Samsung Securities, Standard
Chartered, and Barclays. Ironically, after few months Samsung Securities Co., Ltd.
and City of London-based N M Rothschild & Sons (more commonly known simply
as Rothschild) have agreed to form a strategic alliance in investment banking business.
Two parties will jointly work on cross border mergers and acquisition deals.

MEDISON Co. Ltd. Ultrasound Monitors

In December 2010, Samsung Electronics bought MEDISON Co., a South Korean
medical-equipment company, the first step in a long-discussed plan to diversify from
consumer electronics.

Grandis Inc. memory developer

In July 2011, Samsung announced that it had acquired spin-transfer torque random access
memory (MRAM) vendor Grandis Inc. Grandis will become a part of Samsung's R&D
operations and will focus on development of next generation random-access memory.

Samsung and Sony joint venture LCD display

On December 26, 2011 the board of Samsung Electronics approved a plan to buy Sony's
entire stake in their 2004 joint liquid crystal display (LCD) venture for 1.08 trillion won
($938.97 million).

15

mSpot, Inc Music Service

On May 9, 2012, mSpot announced that it had been acquired by Samsung Electronics
with the intention of a cloud based music service. [64] The succeeding service
was Samsung Music Hub.

NVELO, Inc. Cache Software Developer

In December 2012, Samsung announced that it had acquired the privately held storage
software vendor NVELO, Inc., based in Santa Clara, California. NVELO will become
part of Samsung's R&D operations, and will focus on software for intelligently managing
and optimizing next-generation Samsung SSD storage subsystems for consumer and
enterprise computing platforms.

NeuroLogica Portable CT scanner

In January 2013, Samsung announced that it has acquired medical imaging company
NeuroLogica, part of the multinational conglomerates plans to build a leading medical
technology business. Terms of the deal were not disclosed.

Smart Things - Home Automation

On August 14, 2014, Samsung acquired Smart Things, a fast-growing home automation
start-up. The company isnt releasing the acquisition price, but Tech Crunch reported a
$200 million price tag when first caught word of the deal in July 2014.

Quiet side - U.S. air conditioner firm

On August 19, 2014, Samsung said it had acquired U.S. air conditioner distributor Quiet
side LLC as part of its push to strengthen its "smart home" business. A Samsung
Electronics spokesman said the South Korean company acquired 100 per cent of Quiet
side, but declined to elaborate on the price or other details.

16

CONTROVERSIES
Financial scandals
In 2007, former Samsung chief lawyer Kim Yong Chul claimed that he was involved
in bribing and fabricating evidence on behalf of the group's chairman Lee Kun-hee and
the company. Kim said that Samsung lawyers trained executives to serve as scapegoats in
a "fabricated scenario" to protect Lee, even though those executives were not involved.
Kim also told the media that he was "side-lined" by Samsung after he refused to pay a
$3.3 million bribe to the U.S. Federal District Court judge presiding over a case where
two of their executives were found guilty on charges related to memory chip price fixing.
Kim revealed that the company had raised a large amount of secret funds through bank
accounts illegally opened under the names of up to 1,000 Samsung executivesunder his
own name, four accounts were opened to manage 5 billion won.

Antitrust concerns
You can even say the Samsung chairman is more powerful than the President of South
Korea. Korean people have come to think of Samsung as invincible and above the law,
said Woo Suk-hoon, host of a popular economics podcast in a Washington Post article
headlined "In South Korea, the Republic of Samsung", published on December 9, 2012.
Critics claimed that Samsung knocked out smaller businesses, limiting choices for
Korean consumers, and sometimes colluded with fellow giants to fix prices while
bullying those who investigate. Lee Jung-hee, a South Korean presidential candidate, said
in a debate, Samsung has the government in its hands. Samsung manages the legal
world, the press, the academics and bureaucracy.

Viral marketing
The Fair Trade Commission of Taiwan is investigating Samsung and its local Taiwanese
advertising agency for false advertising. The case was commenced after the Commission
received complaints stating that the agency hired students to attack competitors of
Samsung Electronics in online forums.
17

Samsung Taiwan made an announcement on its Facebook page in which it stated that it
had not interfered with any evaluation report and had stopped online marketing
campaigns that constituted posting or responding to content in online forums.

OPERATIONS
Samsung comprises around 80 companies. It is highly diversified, with activities in areas
including

construction, consumer

electronics, financial

services, shipbuilding,

and medical services. In FY 2009, Samsung reported consolidated revenues of 220

trillion KRW ($172.5 billion). In FY 2010, Samsung reported consolidated revenues of
280 trillion KRW ($258 billion), and profits of 30 trillion KRW ($27.6 billion) (based
upon a KRW-USD exchange rate of 1,084.5 KRW per USD, the spot rate as of 19 August
2011). However, it should be noted that these amounts do not include the revenues from
all of Samsung's subsidiaries based outside South Korea.

SUBSIDIARIES AND AFFILIATES

As of April 2011, the Samsung Group comprised 59 unlisted companies and 19 listed
companies, all of which had their primary listing on the Korea Exchange.
Principal subsidiary and affiliate companies of Samsung include:
Ace Digitech
Ace Digitech is listed on the Korea Exchange stock-exchange (number 036550).
Cheil Industries
Cheil Industries is listed on the Korea Exchange stock-exchange (number 001300).
Cheil Worldwide
Cheil Worldwide is listed on the Korea Exchange stock-exchange (number 030000).
Credu
Credu is listed on the Korea Exchange stock-exchange (number 067280).

18

Imarket Korea
Imarket Korea is listed on the Korea Exchange stock-exchange (number 122900).
Samsung Card
Samsung Card is listed on the Korea Exchange stock-exchange (number 029780).
Samsung SDS
Samsung SDS is a multinational IT Service company headquartered in Seoul. It was
founded in March 1985. Its principal activity is the providing IT system(ERP, IT
Infrastructure, IT Consulting, IT Outsourcing, Data Centre). Samsung SDS is the Korea's
largest IT service company. It achieved total revenues of 6,105.9 billion won (US$5.71
billion) in 2012.
Samsung C&T Corporation
Samsung C&T Corporation is listed on the Korea Exchange stock-exchange (000830).
Samsung Electro-Mechanics
Samsung Electro-Mechanics, established in 1973 as a manufacturer of key electronic
components, is headquartered in Suwon, Gyeonggi-do, South Korea. It is listed on the
Korea Exchange stock-exchange (number 009150).
Samsung Electronics
Samsung Electronics is a multinational electronics and information technology company
headquartered in Suwon and the flagship company of the Samsung Group. Its products
include

air

conditioners,

computers,

digital

televisions, liquid

crystal

displays (including thin film transistors (TFTs) and active-matrix organic light-emitting
diodes (AMOLEDs), mobile phones, monitors, printers, refrigerators, semiconductors,
and telecommunications networking equipment It is the world's largest mobile phone
maker by unit sales in the first quarter of 2012, with a global market share of 25.4%. [76] It
is also the world's second-largest semiconductor maker by 2011 revenues (after Intel).
Samsung Electronics is listed on the Korea Exchange stock-exchange (number 005930).

19

Samsung Engineering
Samsung Engineering is a multinational construction company headquartered in Seoul. It
was founded in January 1969. Its principal activity is the construction of oil refining
plants; upstream oil and gas facilities; petrochemical plants and gas plants; steel making
plants; power plants; water treatment facilities; and other infrastructure. It achieved total
revenues of 9,298.2 billion won (US$8.06 billion) in 2011.
Samsung Engineering is listed on the Korea Exchange stock-exchange (number
02803450).
Samsung Everland
Samsung Everland engages in an array of services closely associated with the day-to-day
lives and business operations of its customers. Its business scope covers the three main
sectors of Environment & Asset, Food Culture, and Resort.
Since its inception in 1963 and the launch of theme park "Everland" in 1976, Samsung
Everland has steadily built its presence across the markets of golf, building management,
food and beverage, energy, and environment. Through this process, Samsung Everland
has managed to achieve its current market standing. As a corporation trusted by the local
community and renowned globally as a pioneer in the infrastructure of life, Samsung
Everland strives to help its customers lead fulfilling lives and achieve success in their
business operations by building the infrastructure for every aspect of life including
entertainment, culinary, and business.
Samsung Fine Chemicals
Samsung Fine Chemicals is listed on the Korea Exchange stock-exchange (number
004000).
Samsung Fire & Marine Insurance
Samsung Fire & Marine Insurance is a multinational general insurance company
headquartered in Seoul.[80] It was founded in January 1952 as Korea Anbo Fire and
Marine Insurance and was renamed Samsung Fire & Marine Insurance in December
1993.

20

Samsung Fire & Marine Insurance offers services including accident insurance,
automobile insurance, casualty insurance, fire insurance, liability insurance, marine
insurance, personal pensions and loans.
As of March 2011 it had operations in 10 countries and 6.5 million customers. Samsung
Fire & Marine Insurance had a total premium income of $11.7 billion in 2011 and total
assets of $28.81 billion on 31 March 2011. It is the largest provider of general insurance
in South Korea.
Samsung Fire has been listed on the Korea Exchange stock-exchange since 1975 (number
000810).
Samsung Heavy Industries
Samsung Heavy Industries is a shipbuilding and engineering company headquartered in
Seoul. It was founded in August 1974. Its principal products are bulk carriers, container
vessels, crude oil tankers, cruisers, passenger ferries, material handling equipment steel
and bridge structures. It achieved total revenues of 13,358.6 billion won in 2011 and is
the world's second-largest shipbuilder by revenues (after Hyundai Heavy Industries).
Samsung Heavy Industries is listed on the Korea Exchange stock-exchange (number
010140).
Samsung Life Insurance
Samsung Life Insurance Co., Ltd. is a multinational life insurance company
headquartered in Seoul. It was founded in March 1957 as Dongbang Life Insurance and
became an affiliate of the Samsung Group in July 1963. Samsung Life's principal activity
is the provision of individual life insurance and annuity products and services. As of
December 2011 it had operations in seven countries, 8.08 million customers and 5,975
employees. Samsung Life had total sales of 22,717 billion won in 2011 and total assets of
161,072 billion won at 31 December 2011. It is the largest provider of life insurance in
South Korea.
Samsung Life Insurance is listed on the Korea Exchange stock-exchange (number
032830)

21

Samsung Machine Tools

Samsung Machine Tools of America is a national distributor of machines in the United
States. Samsung GM Machine Tools is the head office of China, Its SMEC Legal
incorporated company.
Samsung Medical Centre
The Samsung Medical Centre was founded on November 9, 1994, under the philosophy
of contributing to improving the nations health through the best medical service,
advanced medical research, and development of outstanding medical personnel". The
Samsung Medical Centre consists of a hospital and a cancer centre. The hospital is
located in an intelligent building with floor space of more than 200,000 square meters
and 20 floors above ground and 5 floors underground, housing 40 departments, 10
specialist centres, 120 special clinics, and 1,306 beds.
The 655-bed Cancer Centre has 11 floors above ground and 8 floors underground, with
floor space of over 100,000 square meters. SMC is a tertiary hospital manned by
approximately 7,400 staff including over 1,200 doctors and 2,300 nurses. Since its
foundation, the Samsung Medical Centre has successfully incorporated and developed an
advanced model with the motto of becoming a "patient-centred hospital", a new concept
in Korea.
Samsung SDI
Samsung SDI is listed on the Korea Exchange stock-exchange (number 006400). On
December 5, 2012, the EU's antitrust regulator fined Samsung SDI and several other
major companies for fixing prices of TV cathode-ray tubes in two cartels lasting nearly a
decade.
Samsung Securities
Samsung Securities is listed on the Korea Exchange stock-exchange (number 016360).
Samsung Techwin
Samsung Techwin is listed on the Korea Exchange stock-exchange (number 012450).

22

Shilla Hotels and Resorts

The Hotel opened in March 1979, following the intention of the late Lee Byung-chull, the
founder of the Samsung Group. Hosting numerous state visits and international events, it
has played the role of locomotive for the service industry in Korea with pride and
responsibility as "the face representing the Samsung Group" and "the hotel representing
Korea". THE SHILLA maintains elegance and a tradition of winning guests hearts with
the aim of becoming "the best hospitality company". By joining LHW, it is on par with
the most luxurious hotels in the world. Meanwhile, it has added modernistic design
elements on top of the roof called tradition, thus going through changes to make itself a
premium lifestyle space. In addition, with its know-how as a service company in the
background, it started a duty-free shop business, and has built its image as the best global
distribution company. Also, it is expanding its business into commissioned management
of fitness facilities with five-star hotels in Korea and abroad as well as into the restaurant
business. THE SHILLA promises to be a globally prestigious hospitality company that
offers the best value for money by making creative innovations and continuously taking
on challenges. Shilla Hotels and Resorts is listed on the Korea Exchange stock-exchange
(number 008770).
S-1 Corporation
S-1 was founded as Koreas first specialized security business in 1997 and has
maintained its position at the top of industry with the consistent willingness to take on
challenges. S1 Corporation is listed on the Korea Exchange stock-exchange (number
012750).

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DATA ANALYSIS AND INTERPRETATION

Analysis based on the questionnaire:

1. Are you using a mobile phone?

No. of respondents

Yes

98

No

02

Interpretation:
It was found out that all the 98% respondents were using mobile phones.

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2. Which company handset are you using?

No. of respondents
Nokia

44

Samsung

12

Motorola

12

Sony

22

Others

10

Total

100

Interpretation:
The above chart shows the percentage of various handsets used by the respondents.
Out of 100 respondents 44 respondents are using Nokia while 12 are using Motorola,
22 are using Sony, 12 are using Samsung and rest uses the other brands.

3. Are you satisfied?

25

No. of respondents
Yes

84

No

16

Total

100

Interpretation:
The chart shows maximum number of respondents who were satisfied with their handset
Out of 100 respondents 84 respondents are satisfied with the handsets they are using
while 16 are not satisfied with their handsets.

4. Are you aware of the brand Samsung?

26

No. of respondents
Yes

98

No

02

Total

100

Interpretation:
27

The pie chart shows the percentage of respondents who were aware of the brand
Motorola. Out of 100 respondents 98 are aware of brand Motorola.
5. In what time you are thinking to change your handset or buying a new one?

No. of respondents
A week

18

A month

22

Six month

40

A year

20

Total

100

Interpretation:
The above chart depicts the respondents buying behaviour with reference to time. Out of
100 respondents 40 changes their handset in a time period of 6 months, 22 changes their

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handset in a month, 20 changes their handset in a year while just 18 of them changes their
handset in a week.

6. To which handset will you move?

No. of respondents
Nokia

10

Samsung

36

Motorola

14

Sony

28

Others

12

Total

100

Interpretation:
This chart depicts the respondents next preference for mobile phones. Out of 100
respondents 28 respondents are willing to switch over to Sony Ericsson, 36 are willing to
switch over to Samsung.

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7. Where do you generally purchase your handsets from?

No. of respondents
Dealer

72

Grey market

16

Others

12

Total

100

Interpretation: This shows the source of purchase of handset of the respondents .Out of 100 respondents
72 respondents purchases their handset from the dealers, 16 respondents purchases their
handset from grey market while the rest 12 respondent purchases their handset from the
other sources available.

8. Do you think Samsung mobile phones are value for money?

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No. of respondents
Yes

80

No

20

Total

100

Interpretation:
This shows that maximum respondents consider Motorola mobile phones value for their
money. Out of 100 respondents 80 considers Motorola mobile phones value for their
money rest 20 respondents contradicts on this.

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9. What according to you is the most important additional feature that should
be present in a mobile phone?
No. of respondents
24
44
12
12
8
100

Camera
Bluetooth
MP3
MMS
Others
Total
*

Interpretation:
This shows the various additional features which customer takes into account while
purchasing handset. Out of 100 respondents 44 gives preference to Bluetooth as an
additional feature while purchasing a handset, 24 respondents gives preference to camera,
12 gives preference to mp3, 12 gives preference to mms while the rest 8 respondents
prefer to have some other additional features apart from these.

10. How important is after sales service in the mobile industry?

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No of respondents
Very important

62

Important

32

Average

Total

100

Interpretation:
This shows that the after sales service is considered to be of prime importance to the
respondents. Out of 50 respondents 62 considers after sales services very important while
32 respondents consider it a little less than very important and the rest 6 respondent gives
it an average position.

FINDINGS OF THE STUDY

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Nokia, Samsung, Motorola and Sony Ericsson are the favourite as brands among
the customers in Delhi Market, closely followed by others.

The brand awareness of SAMSUNG mobile phones seems to be almost 100%.

The general opinion about SAMSUNG mobile phones is that it is either good or
satisfactory.

Most of the respondents are satisfied with their handsets.

According to the study the most important additional feature that must be present
in the mobile phone is Bluetooth followed by camera.

Most of the respondents think that after sale service is the very important part of
the mobile industry.

Almost all of the respondents believe that SAMSUNG mobile phones are value
for money.

CONCLUSION

34

Hereby I can conclude from this research that Samsung has the maximum brand
preference as compared to other brands.
Most of the dealers are selling more than one brand. They sell different brands to gain
more volume & more availability to the customers. So dealers preference to push a
particular brand to the customer plays a major role in the mobile market.
According to the dealers advertising & promotional schemes along with other schemes
also affect the consumers willingness. Aggressive advertising put into effect for a long
time in the customers mind, which influence the people, are T.V, Newspapers &
magazines.
Consumers prefer a MNC brand due to the quality & technological superior features.
Consumers also judge the after sale service availability of the company before purchasing
a mobile.

LIMITATIONS OF THE STUDY

35

A small sample size of 100 customers was considered due to lack of time &
resource constraints.

The scope of the project is limited to the city of Delhi and N.C.R. So, we cannot
say that the same response will exist throughout India.

This study takes both primary data and secondary data.

Primary data takes from various resources. They may tell lies or may not interest
in the study.

Secondary data takes from websites and documents which may not be correct or
manipulate/distort by someone.

This study is very time consuming & no reliability is there.

With regard to uneducated customers it was difficult to get across to them all the features
of their respective mobile phones

RECOMMENDATIONS

36

Samsung should provide better service and try to solve the hanging problems.

Samsung should increase the awareness about the 3G service.

Samsung should offer more range of Rs. 10,000 or less than Rs. 10,000 mobile
phones.

Samsung should try to increase the awareness through the television

advertisement.

Samsung should increase their distribution channel.

The company should continue to work on the Strategy of T.Q.M (Total Quality
Management)

Consumers do not get satisfied with the promotional policies of the company.
New techniques of promotion are required to create awareness about the entire
range of company products.

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