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  • 7/25/2019 Samsung Arranged


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    'able of (ontent

    1) *ntro+uction

    1)1 Gro,th in *n+ia-s phone market............)

    1)1)1 /ocal success.................1)1)" 0e, threat...................)))

    1)" Scope.......................))

    ") /iterature Reie,

    ")1 Samsung Mission an+ 2ision..............")1)1 3hat are Samsung4s goals in the Smartphone market

    an+ ho, +oes it ,ant to achiee them5

    ")" *nternal analysis

    ")")1 6erie, of Samsung..................

    ")7 Marketing Mi8.....................)

    ")7)1 Pro+uct.......................))

    ")7)" Promotion))......................")7)7 Price.........................

    ")7)9 Place........................

    ")9 3orl+,i+e Smartphone 2en+or Market Share "#1$ ;"

    ")$ *n+ian Smartphone Market ;" "#1$...........)

    2.5.1 Smartphone 2en+or

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    1) *ntro+uction:

    Some years back, the mobile phone industry was led by Nokia and Motorola. They had been in this

    position for quite some time. ut thin!s drastically chan!ed" the story of Samsun! mobile in the

    mobile phone industry was one almost low profile company with distinct products and low cost

    product portfolio. #n less than a decade, they mana!ed to emer!e the market leaders in the

    Smartphone industry. So how did this happen$ #n this industry, of fierce competition, the companies

    ha%e been forced to come up with %ery creati%e technolo!ical inno%ation and winnin! marketin!

    strate!ies. &hen i'hone was launched by (pple #nc. in 2))*, they created the Smartphone market for

    the a%era!e consumers, before that the product was tar!etin! only business users. +rom then (pples

    i'hone and (ndroid phones, which are offered by Samsun!, -T and Nokia ha%e tried their best in

    competin! in this e%er chan!in! hi!h/tech market and so far ha%e qualified to be the bi! players in the

    Smartphone industry. #n a fast !rowin! industry, time is e%erythin! and e%ery company wants to

    possess most inno%ati%e technolo!y and products before its competitors. Samsun! is currently the top

    Smartphone manufacturer in 0urope. (t the end of 2)12 Samsun! had 2. share of the market

    accordin! to the fi!ures from omscore 3n.d4. Samsun! o%ertook Nokia in (pril 2)12 to claim the top

    spot, a position it had maintained for lon!. (pple came second with 2).5 market share" followed by

    Nokia at 1. market share 3Samsun! dominates 0uropean Smartphone market, 2)14. ein! the

    top sellin! Smartphone brand in 0urope, Samsun! has captured 65 share of the 0uropean

    Smartphone market accordin! to data from 7antar &orld panel omtech 3n.d4. (s the worldwide

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    Smartphone sales increased by 6.8 in 2)12 and accounted for 8. of total mobile sales,

    accordin! to 9artner research 3n.d4, Samsun! and i'hone dominated the Smartphone market.

    Samsun! mobile phone led with 8: million units in ;, commandin! 2.5 of the !lobal

    Smartphone market 3(pple and Samsun! lead !lobal Smartphone race, 2)124 Samsun! 9alaury

    awarded (pple more than ?1, when founded Samsun! infrin!ed (pples patent. The >ury found

    Samsun! to ha%e infrin!ed the (pple @tility, that is Aesi!n patents but not for all products. Aama!es

    owed by Samsun! were ?1.)5 billion 3Bowensohn, 2)124. Buckily for them this le!al and marketin!

    warfare didnt slow its momentum nor dimmed its ambitions. Samsun! is focusin! in increasin! its

    annual re%enue to about ?6)) billion in some few years from now, which will see them in same

    hei!hts with the likes of &al/Mart #nc., who are worlds lar!est companies. Samsun! still la!s behind

    (pple e%en after its success in the perception of most inno%ati%e company. The company leaders are

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    now workin! towards chan!in! Samsun!=s culture and strate!y to be classified as an inno%ati%e

    company and chan!e its reputation of bein! a fast follower.

    1)1 Gro,th in *n+ia-s phone market

    The #ndian Smartphone market is heatin! up as multinational and home !rown companies compete to

    con%ert customers away from old/!eneration feature phones.

    (lthou!h !rowth in #ndias telecoms market is slowin! somewhat from the frantic pace of the last few

    years, telecom companies continue to add millions of mobile subscribers. &ith cellular penetration at Cust

    *, handset makers still ha%e room to attract new customers. Det consumers are also up!radin!, with a

    thri%in! replacement market aided by droppin! prices and cheap financin! schemes.

    The Smartphone handset se!ment offers the most potential. (ccordin! to an (u!ust report from

    technolo!y researcher #A #ndia, only 1) of #ndias mobile population uses Smart phones but this is the

    fastest !rowin! se!ment, accountin! for 28 of handset shipments in the quarter ended >une 2)16, up

    from 1 in ;2 2)1. (ccordin! to #A, durin! the quarter the o%erall #ndia mobile handset market

    stood at .21million units with a 5 quarterly !rowth, while Smartphone shipments !rew 11 quarterly

    and :6 year/on/year. @7/based consultancy analys says that #ndia is now the worlds fastest !rowin!

    Smartphone market !lobally and the third/lar!est market after hina and the @nited States.

    &hile Smartphone penetration is peakin! in markets like these, #ndia still offers enormous potential, with

    millions of customers ea!er to up!rade. The spread of the #nternet is also dri%in! Smartphone demand. (s

    telecom companies use mobile broadband to deli%er #nternet access to people without computers and push

    their 9 and 69 ser%ices, analysts e

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    #A forecasts that #ndias Smartphone market will more than double by 2)1:, with annual Smartphone

    sales !rowth of around 6) for the ne

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    oupled with this mass market approach, howe%er, home !rown companies maintain bi! ad%ertisin! and

    marketin! bud!ets. Microma< spent hea%ily to build its brand, throu!h ad%ertisin! and sponsorship of

    much/watched cricket e%ents. #t has si!ned on -ollywood star -u!h >ackman as its brand ambassador,

    while Ba%a sponsors 0n!lish football club Bi%erpool in #ndia. 7arbonn says it spent o%er 2) of its

    re%enues on ad%ertisin! and marketin! initially to build its presence. #ndian handset companies ha%e also

    focused on local customisation, in%estin! in research and de%elopment and desi!n centres.

    +or instance, a phone launched by local +irstouch in May 2)16 allows users to translate te

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    Taiwan/based hi!h/end handset maker -T is aimin! for a 1) market share by 2)15, sayin! #ndia is

    amon! its top fi%e fastest !rowin! re!ions. #n the si< months ended September 2)16, it launched fi%e

    de%ices in the low/ to mid/ran!e cate!ory, its first sub/Fs1),))) handset. -T is maintainin! a modest

    portfolio of 1)/15 products. 0%en (pple is aimin! for more affordability with trade/in payments,

    instalment plans and older models.

    ut local players intend to push back, relyin! on their wide distribution network and %olume/buildin!

    wide product portfolios. Microma< says it will now focus on %alue rather than price alone, and on Smart

    phones priced between Fs1),))) and Fs15,))), as well as the fast/!rowin! tablets se!ment. #t is


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    concentrate on the consumer perception re!ardin! Samsun! marketin! strate!y to structure the conclusion

    of the studies.

    ") /iterature Reie,:

    ")1 Samsung Mission an+ 2ision

    ")1)1 3hat are Samsung4s goals in the Smartphone market an+ ho, +oes it ,ant to achiee


    #n order to understand what Samsun! wants to achie%e in the Smartphone market and how, #t will be


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    the business$ &ho are the customers$ (nd what can the business do for the customer$ These

    statements are usually completed with an articulation of the company=s %ision or strate!ic intent,

    which e (ore 0et,orks) ?Samsung "#17@

    J#nspire the world, create the futureK, #s Samsun! mission statement in its %ision 2)2). &ith this new

    %ision, Samsun! commitment is to inspire its communities by takin! ad%anta!e of its key stren!th,

    Inspire the World, Create the

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    creati%e solutions, inno%ati%e products and new technolo!y, as they continue to promote its new

    %alues for Samsun! core networks. This includes industry, partners and employees. Samsun! hopes to

    contribute a better world and rich e

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    desi!ned to satisfy the customer=s need. -e continued by statin! that the product in marketin! refers to all

    acti%ities relatin! to the product de%elopment, keepin! in mind that there is a market for the product, it

    has to be appealin!" it differentiates from other products e

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    This is the amount for what the product is to be paid. 3orden, 1864. -utchison 32))84 referred price as

    what customers will e

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    channels. They distribute to %arious telecommunication companies like mobile phone retailers,

    #nternet partners such as (maon and other carriers. They also ha%e 'op/up Samsun! retail


    7)1 3orl+,i+e Smartphone 2en+or Market Share "#1$ ;"

    The worldwide Smartphone market !rew 1.) year o%er year in 2)15 ;2, with 61.5 million shipments,

    accordin! to data from the #nternational Aata orporation 3#A4&orldwide ;uarterly Mobile 'hone

    Tracker. This !rowth is primarily due to !ains e

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    Samsungretained its P1 leadership in the worldwide Smartphone market with a 21.6 share in

    2)15;2. This retention of position comes in the midst of a !rowth decline of 11.5 ;o;. This is

    lar!ely attributed to the underwhelmin! performance of its newest fla!ship releases, the 9ala

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    in 2)15 ;2. -uaweis D/series sold briskly both inside and outside hina, as a %aluable low/cost

    option in many markets. &hat remains to be seen is how -uawei will le%era!e its online %s offline

    strate!y, focus on re%enue, and efforts on inno%ation to battle in this arena.

    iaomiousted B9 to !ain a spot in the top fi%e cate!ories. 7ey to its success was the launch of the

    Fedmi 2( model in hina, as well as the continued performance of the Fedmi 2 and M#/6 models.

    This !rowth is remarkable considerin! that it has made its presence felt only in (sia 'acific, and

    primarily in hina. &ith Hiaomis recent entry into rail and announcement to launch in (frica in

    September, its future !rowth may become dependent on markets outside (sia 'acific. #t will also

    showcase if Hiaomis direct sellin! strate!y will pro%e successful in these newer markets.

    /enoofell by two places this quarter, which resulted in a 6.* share of the market. The Motorola

    brand shipped 5.8 million units, .2 of the Beno%o !roup. The second quarter after Motorola

    announced its return to hina" it shipped 27 units in comparison to the 827 units in 2)15;1. 0%en

    thou!h Beno%o had strate!ically positioned both its brands and coincidin! models in order to


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    The !rowth in the Smartphone market was helped by %endors usin! online retail, or eTail, to

    penetrate the market. (ccordin! to 7iran7umar, Fesearch Mana!er with #As #ndiaMobile 'hone

    team, GeTailers ha%e opened additional a%enues for !rowth for many %endors in #ndia, who would

    ha%e otherwise stru!!led to !et a hold in the comple< distribution network.G (lthou!h #ndia remains

    a retail dominated market, %endors such as Beno%o and Hiaomi ha%e used etailin! channels in #ndia

    to rapidly e

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    such as the 9ala

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    7)" Place in the marketing mi8 of Samsung gala8y:

    'lace not only means location and distribution schemes but rather includes the entire mana!ement process

    until reachin! the products to the consumer. Samsun! products are a%ailable in the market %ia %aried

    channels workin! on the concept of channel marketin! with the se!ments/ Sales and ser%ice dealers,

    Modern retail and Aistributors. Samsun! retailers sell products throu!h chains of supermarkets clearly

    concentratin! on the demand and opportunities to e

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    monitorin! distribution channels or payin! less to distribution companies because while placin! a lar!e

    order, discounts are always present.

    7)7 Promotions in the marketing mi8 of Samsung gala8y:

    +or Samsun!, the new product launches and schemes keep bein! updated in the local media. Newspapers

    and the electronic media help in promotin! new launches as well as in informin! the consumers about

    Samsun! products and its !oals. Samsun! bein! a !lobal !iant in consumer electronics is well aware of

    the fact that 'romotion is the stron!est pillar behind the marketin! mi< strate!ies. -oardin!s and posters

    are put up in the maCor cities. elebrities are in%ited for the launch of a new product. #n addition, to help

    promote the !lobal appeal of the brand, often/famed celebrities like (mir 7han and 'riyanka hopra are

    made its brand ambassador. #t is usually Samsun!=s strate!y to use almost 5 of re%enue !enerated from

    sales in promotion. 'ublic relations, puttin! out new releases, writin! articles for trade publications etc.

    are usually the part of promotional schemes. +or the official launch of Samsun!=s latest &a%e and 9ala

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    (nother Samsun! also uses other promotion tools seen in class such as e%ents, personal sales, publicity/

    public relations, 9oo!le (wards, social networksQ it also uses different kinds of sales promotions. +or


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    This implies that Samsun! adapts the lan!ua!e and the content of its webpa!e to each of the countries

    where it is established. #n each of the countries, it will also ha%e to consider the le!al system re!ardin!

    promotion, what kind of publicity competition carries out, etc.

    7)9 Price in the marketing mi8 of Samsung gala8y:

    Since Samsun! has a wide ran!e of products, it has %arious pricin! methods. 'rice of a commodity says a

    lot about the product. #nno%ati%e products, which are e

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    (ompetitie PricingV Ine of my fa%orite parts of Samsun! marketin! strate!y. Aue to the fact,

    that unlike smart phones, Samsun! has difficulties in !ainin! an ed!e o%er its competitors with

    other products. Surely, Samsun! is an authentic brand, but in terms of home appliance, it can=t

    possibly surpass B9. +urthermore, in ameras annon and Nikon are leadin! the market. So, for

    Samsun! to withstand this fierce competition, it=s %ital to use competiti%e pricin!. (lso, Samsun!

    ne%er is a late comer in production and non/inno%ati%e, but they are mostly the first ones to

    introduce a chan!e.

    9) Analysis 6f Samsung4s Marketing Strategy:

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    9)1 S36' Analysis

    This method is the best in e

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    omparin! the two smart phones i'hone and 9ala

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    There are few differences between Samsun! products and its competitors. Samsun! offers many smart

    phones, includin! 9ala

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    (pple is seen as the bi!!est Samsun! threat especially in the launch of its new de%ice the bud!et i'hone

    5. The idea that a bud!et i'hone would allow (pple to sell in emer!in! markets such as #ndia would cut

    market shares for Samsun!. (%ailability of substitute products affects Samsun! 9ala

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    chan!ed the picture. +rom now shadow of the new owner will loom lar!e on any mo%e thatNokiamakes.

    &ary competitors included.

    The deal will ha%e the bi!!est resonance for the market leader in #ndia, Samsun!, which occupies the No.

    1 position both in terms of re%enue !enerated and units sold. (ccordin! to a Loice Aata sur%ey of

    mobile handset players released last month, Samsun!!enerated sales worth Fs 11,2: crore in 2)12/1, a

    Cump of 6 per cent from the pre%ious year. #ts market share for the year was pe!!ed at 1.5 per cent as

    a!ainst Nokias 2*.2 per cent. &hile Nokias sales were la!!in! Samsun!s at Fs 8,*:) crore, the 7orean

    company may now ha%e to step up its %i!il to !uard its market share in the country in the li!ht of the new


    Nokia has been in #ndia for around 1: years, for most of these it was the unquestionable leader of the

    handset market. #n fact, it !a%e millions of #ndians their first feel of a mobile phone. (t its peak/which

    lasted until the mid/2)))s/the +innish company had )/5 per cent market share. The dream run came to

    an end in the second half of that decade as (ndroid/operated phones took the industry by storm. ( few

    strate!ic missteps by Nokia only hastened that slide/makin! Samsun!s !rowth in market share

    sweepstakes easier.

    (nalysts say what worked for Samsun! was its different/strokes/for/different/folks strate!y. 0%en as it

    went about buildin! a channel distribution network on the !round, Samsun! hit the market with a wide

    portfolio of handsets at %aryin! price points, lea%in! no consumer se!ment untapped. &hile hi!hli!htin!

    the ease of user interface of its handsets throu!h marketin! promotions, frequent product up!rades kept

    its portfolio fresh. This helped to keep up consumer interest in its products. Samsun! be!an sprucin! up

    its product portfolio e%ery quarter at a time when the industry norm was to come out with a new product

    line e%ery si< to ei!ht months.
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    3i+e array

    G(t any !i%en point in time, we ha%e )/6) models a%ailable in the market,G says Lineet TaneCa, country

    head 3mobile di!ital ima!in!4, Samsun! #ndia. +or instance, in the smart phone se!ment, there are 15/

    1 models in the price ran!e straddlin! Fs 5,2)) to Fs 6),))). Samsun! e

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    the mo%e has taken some industry players and analysts by surprise. G&e were e

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    senior market analyst 3mobile phones and tablets4, #A #ndia. The !rowth in the phablet se!ment/smart

    phones with lar!e screen sie 35 inch to * inch4/ has lar!ely been dri%en by local #ndian players.

    The handset market in #ndia is also set to enter a new phase where partnerships between mobile operators

    and manufacturers become the norm. GMobile ser%ice pro%iders are increasin!ly lookin! at lockin! in

    hi!h a%era!e re%enue per user post/paid customers with attracti%e 9 plans bundled in with brand/

    conscious users,G says Blyod. This could pro%e to be the !ame chan!er for many handset players.

    #n that sense, the mobile phone market is poised for a lot of action in the comin! months. Multinationals

    like (pple, Beno%o and Sony too are !ettin! into contention, tar!etin! the hi!h/end, hi!h/mar!in

    smartphone sales. (s the market !ets crowded, (nshul 9upta, principal research analyst at 9artner, says

    Samsun! may need to cut down on the clutter in its portfolio. G#t needs to focus on fewer se!ments and

    models rather than fi!ht ri%als in each se!mentG says 9upta.

    Sudhin Mathur, director 3smart phones4, Beno%o #ndia, saysE GAays of one brand dominatin! the market

    are o%er.G The strate!y that will work !oin! forward for each player is to protect the market se!ment one

    is stron! in, attack the market where there are !rowth opportunities. G#ndia is not a homo!eneous market,


    e%ery player needs to decide its battle field,G said Mathur.

    9)7 Samsung4sStrategy for Mobile market segment:

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    No wonder Samsun! is undisputed kin! in mobile market other than (pple. Their strate!y is quite simple

    and ener!etic. Their Market strate!ies %aries accordin! to the re!ions. Samsun! re!ularly introduces new

    models in all se!ments in e%ery 6 to months.

    Samsun! was the first to introduce JminiK, Jme!aK and JoomK concept in mobile Market, Now it=s been

    followed by all other companies. They created the benchmark by introducin! Samsun! 9ala

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    Takin! on display side Sasmun! introduced (MIB0A technolo!y and now they ha%e mo%ed to Super

    (MIB0A concept in their latest fla!ship models. Samsun! offers bud!et friendly phones and premium

    phones also with a hefty price ta!. Their FA dept is super fast in adaptin! in technolo!y and new

    features. &ith their recently launched 9ala

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    #n terms of Samsun!=s strate!y to dri%e o%erall sales, it is focussin! on WMade for #ndia= products that

    ha%e the ri!ht set of features for the ri!ht prices. The company recently announced the 9ala series of

    smart phones, which ha%e !ood %alue/for/money factor alon! with features such as 69 BT0 and @ltra

    Aata Sa%in! mode that #ndian consumers are demandin! these days. -owe%er, the company=s official

    declined to comment on the percenta!e of sales that the company is attractin! from the online channels.

    9)$ Samsung relying on-Make for *n+ia- Strategy to (ounter Global Slump:

    Ine source familiar withSamsun!said the !roup, one of the bi!!est players in the #ndian consumer

    electronics market, would in%est up to ?1 billion in manufacturin! units and in research and de%elopment,

    adaptin! products to local taste and needs. &hile Samsun! does not !i%e a fi!ure for its in%estments or

    re%enue tar!ets from #ndia, senior officials say it plans to in%est hea%ily in manufacturin! and research. #t

    already uses a 1),)))/stron! de%elopment team to tailor e%erythin! from frid!es to air conditionin! units

    for #ndian consumers.

    G&hile 'rime Minister Narendra Modi is talkin! about Make in #ndia, we are sayin! Make for #ndia,G

    said FanCi%Cit Sin!h, chief marketin! officer for Samsun! in #ndia.

    G#ts not Cust about manufacturin! that we%e been doin! anyway. ut we are makin! products desi!ned

    for #ndia, and this doesnt happen by luck.G

    Sin!h said Samsun! was also considerin! addin! a new manufacturin! unit. #t already has three research

    centres and two factories.

    G( lot of states ha%e been approachin! us for a new factory, but it is premature to talk about in%estments,G

    he told Feuters.

    Samsun! is under intense pressure as ri%als (pple and hinas Hiaomithreaten its position as !lobal

    leader in smart phones, key to its bottom line.

    #n #ndia, Samsun! is seein! stron! competition from local company Microma

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    Hiaomi, which launched in the #ndian market in >uly last year has also said it would in%est and be!in

    local production in #ndia soon.

    Samsun! has been in #ndia for two decades and of the handsets it sells locally, 8) percent are made at two

    manufacturin! units in the country. They could also manufacture hi!h end 9ala

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    The 9alaanuary 2), 2)16.

    GThe mid/se!ment is not only witnessin! hi!h !rowth but is also %alued si!nificantly by the consumers.

    &e are en%isa!in! further acceleration in terms of !rowth in the current year as the new launches will


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    and !esture/based controls that (pple fla!ship i'hone 5 current lack. The resolution of the ).1 inch/thin

    9alaose and one of its most darin! undertakin!, the creation of a massi%e new

    semiconductor campus with distincti%e desi!n, Samsun! is seemed determined to compete with (pple in

    becomin! a creati%e leader in the smart phone market. This mo%e in e

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    This pro!ram enables Samsun! to put to!ether information and ideas from Samsun! subsidiaries that are

    aimed to chan!e its brand knowled!e. These products demonstrate how Samsun! is lookin! holistically at

    industry best practices to inform its marketin! e

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    &) References:

    1) 0adicicco B. 2)1, Samsun! 9ala