2. Samsung
Korea based company established in 1969
Has operations in 217 countries across the world and employs
around 240000 employees
Established in India in 1995
Samsung are leaders inTV and display, mobile segment has
touched record high with the advent of android
Fortune named Samsung 34th most admired companies
Consumer electronic division alone has a operating profit of $
218 Billion
3. Market share • Overall percent of Samsung
electronics : 32%
• Refrigerator – 15%
• Air conditioner –13%
• Washing Machine –19.8%
• Television-17.2%
• Ultra book-10%
• Mobile – 34%
Refrigerator
Air
conditioner
Washing
Machine
Television
Ultra book
Mobile
4. Refrigerators – RS21HUTPN
Samsung launched its refrigerators in India by 2003
Has two production refrigerator plants in India – Chennai & Noida
Refrigerator segments is one of the growing segment
Market growing at a rate 0f 15% every year, at a market size of 3.5
to 4 million units approx
Gaining market share by purely technical advancement
Rural demand at 25% and urban at 75%
5. Segmentation:
Demographic segmentation : Socio
Economic Class
Psychographic Segmentation :
Lifestyle
Targeting:
SEC A1,A2 and A3
People concerned about environment
Hygienic people
Positioning:
Technologically very advanced
Energy efficient and spacious
Low Maintenance
Differentiation:
Twin cooling technology
Digital inverter compressors
Filtering and dispensing
Energy consumption
Silver Nano Particles & Dura Cool
STDP
6. Product
* Refrigerators are luxury
products
* Service: immediate
delivery, customer
training, Repair &
maintenance
*Design: Stylish
and involves all
latest technology
* Product Line: RS..
Model comes in diff. var
*Brand:Technically advanced
Refrigeration
Attractiveness of
the market
offering
Product
features
Services mix
and quantity
7. PRICE
Samsung refrigerators can be classified under More for More type,
RS21HUTPN is a prime example
RS21HUTPN is priced at Rs. 91,500/- with all the latest technology,
“value pricing”
Credit system in place – EMI and low interest rate financing
Promotion Pricing – Special event pricing, Cash Rebates, Insurance
covers and warranties
Differentiated Pricing – Product capacity difference, channel pricing,
Location
Usually Indian customers are interested in products which offer an
discount
Competitor LG has priced the similar of dual door refrigerators at
1,00,000/-, other major competitors areWhirlpool
9. Segmentation
Demographic segmentation :
Income, social class, family size
Psychographic Segmentation :
Lifestyle
Targeting
People who wants ac’s with latest
technology , with savings up to 60%
power, Fastest cooling and compact
design
Positioning
Samsung on ! Savings on!
Links:
http://www.youtube.com/watch?v=y1y83MB27OI
http://www.youtube.com/watch?v=OH5_JdtCYA0&list=PLr
YwxaV1xCxu4tWFjuWP-tp7xo8XD2uX5
Differentiation
Multi JetTechnology for efficient, fast
cooling, Easy Installation
For efficient sleep and energy saving
Virus Doctor eliminates 99.99% of bacteria
and virus.Withstands voltage fluctuations
from 135V -290V with Stabilizer Free
operation
STDP
10. Product * Air conditioner are luxury products
* Service: immediate delivery,
customer training, Repair &
maintenance
*Brand:Technically advanced
*Mainly focusing on the people of
middle class and they mainly
concentrate on energy saving, virus
free etc
*Product features will add benefit to
target the audiences
* 3 yearsWarranty
Air
conditioner
11. PRICE
• Range : 40,000 to 28,000
• Penetration pricing
• Good products at reasonable price
• It has market operating price where by the goods are sold by distributors and
to the customers at fixed market price only
• Urban areas are still in focus
• Pricing is done based on competitors price
• Pricing is mainly focused on consumers income classes
13. Samsung Eco Bubble (WF165OWCW/TL)
• Samsung launched its washing machine(eco bubble
technology) in 2010
• Its manufacturing plant is in Greater Noida, Noida
• Currently the market share of Samsung is 19.8%
• According to market share it is the second largest
14. Segmentation
Geographic segmentation:
Tier I , Tier II cities
Demographic segmentation:
Based on the income and occupation
of people
Targeting
People who are more sensitive to
environment and electricity usage
People who wants all the benefits of dry
cleaning without having to step out of the
house ,spending time and money
Positioning
Technologically advanced
Energy efficient ( 70% less energy)
Eco- friendly
Differentiation
Eco bubble wash
Keep clothes looking new with
Diamond Drum
Anti-limescale heater stays efficient
for longer & 15’ quick wash
STDP
15. Product • Brand: Identifying consumer requirements
with well engineered and stylish designed
washing machines
• Shrink Packaging: It reduces the box weight
by 44% and wastes by more than 20%
• Variety: Different varieties from technology
prospective e.g. WF1650NCW/TL,
WF1124XAC , WF1600NCW/TL etc.
• Design: It was designed to reduce time,
vibration and energy efficient
• Features: Child proof display lock system,
Delay end
• Service: They have a very good service
coverage and quality centers
Washing
16. Price
• Samsung washing machine (WF1650WCW/TL) price is Rs 30,490
• Its price starts from Rs 27,990 – 81,990(More the benefit, more the price)
• In terms of availability it is found in allTier-I ,Tier-II cities
• Higher end product
• 5 years guarantee are offered for the product
• Offers discount during festive seasons to increase the sale
• Usually Indian customers are interested in products which offer an
discount
17. Place(Home appliances)
Samsung India is the distribution hub of SouthWest Asia Regional operations
Samsung home appliances are available in every part of the nation
RS21HUTPN( refrigerator) which is predominantly for SEC 1,2 and 3 is mostly
available in urban localities
There more than 5501 dealers across the country
Broadly two ways of reaching the customers, physical channel and online shopping
Channels are mainly of two kinds; One way channel:
Two way channel:
Comp.
Ware House
Distributors
Sub.
Distributors
Customers
Comp.
Ware House
BrandShop/
DirectDeale
rs
Customers
18. Promotion( Home appliances)
• Samsung usually spend huge money on marketing and advertising, its advertising and marketing
budget is around USD $ 3B
• TV advertisements, rich and stylishTV commercials , print media
• Samsung has been sponsors of many event like Olympics games, football matches, cricket match,
marathons etc
• Frequent sales discount are announced and also they have the festival season offers
• Brand ambassadors is Priyanka Chopra
• Highlighting the innovative features of the product through adds
• Social networking (Face book,Twitter )
• Distributing Pamphlets
• Online deals and referrals
• Hoardings on national highways
21. Samsung Televisions
Samsung electronics commenced its operation in India in 1995
Has two production plants in India – Chennai & Noida
Samsung India is a market leader in product categories like LEDTVs and LCDTVs
It has been ranked 19 among top 100 global brands in a brand value survey in 2011
conducted by BusinessWeek and Interbrand
Samsung launched the F8000 smartTV in June 2013
Experts say that due to increasing familiarity with apps and rising spending power
of consumers in India will boost the demand for smartTVs
22. Segmentation
Geographic Segmentation:Available mainly in urban
areas
Demographic Segmentation: Based on the income of
people, Based on occupation
Psychographic Segmentation:
Lifestyle
Value and benefits that they carry
Targeting
SEC A1 and A2; people who have more disposable
income
People who want to be technologically advanced
Ambitious personality
Positioning
Samsung positioned this model as aTV which is
future ready with smart evolution
“So smart and vivid, itsTV reinvented”
It also positioned it as a new technology in the world
ofTelevision
Differentiation
It has a voice and gesture recognition technology,
interacting with users as they speak and gesture
It is smart enough to analyze and keep track of user’s
TV viewing behaviors
It enables the users to make quick and easy access to
rich contents likeVOD services
It also has a CPU with a quad core processor
STDP
23. Product
• Features :Excitingly new features which no
other brand has come up with
• Brand : Samsung created a brand name
through it’s three key strengths i.e. “New
Technology”, “Innovative Products” and
“Creative Solutions”
• Packaging :Thinner LEDTVs requires less
packaging and less room, thereby reducing
transportation costs and also helps in saving
the environment
• Service :Samsung has a huge chain of service
centers
• Warranties :It gives warranties and extended
warranties which formally states the
expected product performance by the
manufacturer
entertain
ment
24. Price
Samsung F8000TV can be classified under More for More type
F8000 is priced using premium pricing strategy at Rs. 1,55,500/- for a 46 inchTV
and goes as high as Rs. 3,85,500/- for a 65 inchTV
Since the target customer belong to SEC A1 and A2 there is no burden on
customer as such
The company also gives discount and festive offers which attracts customers
It is priced high because of the value and benefits it gives to its owners
25. Place
SamsungTVs are available in every part of the country, but this model, F8000 is
designed for SECA1 and A2, who are available mainly in urban areas
Samsung has more than 5000 authorized dealers in India
Apart from physical channel, Samsung also sells its product online
26. Distribution Channel of Samsung TVs
Company’s
Manufacturing Unit
(Sriperumbudur,
Chennai)
C&F Agents (One in
each State)
Distributors
Small Dealers
/Retailers
Big Retailers
Retail Chains (eg.
Ezone, Next, etc.
Franchised Outlets
Digital Plaza Digital Homes Digital Worlds
27. Promotions
Samsung usually spend huge money on marketing and advertising, its advertising
and marketing budget is around USD $ 3B
TV advertisements, rich and stylishTV commercials
Samsung has been sponsors of many event like Olympics games, football matches,
cricket match, marathons etc
Frequent sales discount are announced and also they have the festival season
offers
Free accessories provided with the product
http://www.youtube.com/watch?v=uXuuyg6NaRY
29. Segmentation
Geographic Segmentation: tier 1 and 2
Demographic Segmentation:
Income - Upper middle and High class
Behavioral Segmentation:
Benefits – Quality, economy and speed
Based on status
Targeting
Mainly targeting central cities
SEC A1, A2 and A3 for those
people who have more disposable
income – like Business
personalities
Positioning
Light weight
Powerful Processing
Power Back up in 3 Seconds with
Fast Start
Differentiation
Longer Battery Life and Life Span
Duralumin, the New Definition of Lightweight
Super Bright Screens with 400nit brightness
Longer Battery Life and Life Span
Intuitive Navigation include 3D image sensing
Own Korea team cutting edge design
STDP
30. Product
• Product line consist of 3 series
• Mainly aimed High income class
people
• Designed by own Korea team
• fashionable and cutting edge design
• 3 year warranty for free
• Fit into premium product category like
apple
Computing
31. Price
• Range starting from 105000
• Warranty and insurance covered by price
• Credit system in place – EMI and low interest rate financing
• Profit oriented pricing approach
• pricing is fixed after considering Competitors and distributors
• High end premium price
32. Place
• Distributed to tier 1 and tier 2 cities
• It has its own Samsung outlets in all major cities
• Institutional sales are taken care by vertical market business
department
• It has effective distribution system and after sales service
33. Promotion
• spending millions of dollars for marketing and advertising
• actively involved in sponsoring for various sorts activities
• associated with Olympic games and Asian games for many years
• it actively promotes its products through social media campaigns
Competitors
• Lenovo
• apple
• Dell
35. STDP
Geographic- Mostly urban
areas
Demographic-Age, Sec
class and Occupation
Age group : of 16-29 years
Sec class - A2,A3,B1
Professional and business
man
The company has shunted its digital
imaging unit sideways so that it sits
under the giant umbrella of the
mobile division, in the hope of
combining "technical know-how" in
these two areas and ultimately
"differentiating" its smartphones
with better camera technology.
Advanced technology at
relatively lower cost
Segmentation Targeting
Positioning
Differentiation
36. Product
• Mobiles are becoming
necessities
• Service: Samsung smart cafe’s
• Brand :Technically advanced
Mobile
37. Mobiles are considered as necessities
Samsung mobiles can be classified under More for More type, SamsungGalaxy
Grand is a prime example
Samsung galaxy grand is priced at Rs. 17,099/- with all the latest technology
Since the target customer belong to SEC 1,2 and 3 there is no burden on
customer as such
Usually Indian customers are interested in products which offer an discount
Competitor Sony has priced the similar kind of sets at 16000/-, other major
competitors are Nokia, Micromax, HTC
Price:
38. Place :
Samsung mobiles are available in every part of the nation, but this
model Grand which is predominantly for SEC 1,2 and 3 is mostly
available in urban localities
There more than 5501 dealers across the country
Samsung India is the distribution hub of south west Asia regional
operations
39. Promotion:
Samsung usually spend huge money on marketing and advertising, its advertising and marketing
budget is around USD $ 3B
TV advertisements, rich and stylishTV commercials
Samsung has been sponsors of many event like Olympics games, football matches, cricket match,
marathons etc
Frequent sales discount are announced and also they have the festival season offers
Free accessories provided with the product
brand ambassadors is Aamir Khan ( Mobile Phones)
Editor's Notes
Head quartered at Seoul South Korea, started as a trading company in 1938. Samsungs revenue is equal 17% of South Korea’s GDP
Leader in TV and computer memory chips.
It has earmarked a record 26 trillion won (22.3 billion dollars) for this year's investment, including eight trillion won for research and development.
Refrigerator LG – 24% Whirlpool -20%
Air Conditioner LG
Washing Machine –
Ultra Book-
Two segments: Frost free refrigerator segment and Direct Cool
Current Refrigerator industry is at $1.8 Billion USD
Dimensions (W x D x H) (mm)912 x 734 x 1789 mm
Capacity (Litres)585
Global Refrigerators market share of 11 %, second after whirlpool at 14%
We have taken a set of home appliance and electronic good of Samsung which can be classified as Durable Goods
Shopping Goods: Consumer characteristically compares on such bases as suitability, quality, price and style
- Spare part availability
- shrink packaging, a product is wrapped with a buffer material followed by LDPE shrink film, before compressing
the ensemble with heat. This technique reduces the weight of packages by an average of 44% compared to paperboard
packaging, thereby reducing transportation costs and cutting down GHG emissions from transportation, too.
- Benefit:
Basic Product:
Expected Product: expected by customer
Augmented Product: Exceeds customer exp.
Potential Product: Potential future products
Pricing is a very challenging part in the whole marketing process
Pricing Objective: Maximizing the market share
Demand Determination
Estimation Cost
Analysis of competitors cost, price and offer
Pricing model – value pricing – operation change is setting up one more production plant in chennai