Summer Internship

Karan Thakur PGDM

K. J. Somaiya Institute of Management Studies & Research

Introduction
The Samsung Group was founded in 1938 by Lee Byungchul (1910-1987). The meaning of the Korean word Samsung is "Tri-Star" or "three stars".

Samsung India 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.

K. J. Somaiya Institute of Management Studies & Research

Vision
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
K. J. Somaiya Institute of Management Studies & Research

Project Objective
I was given two basic projects to work on , which required me to get first hand information from as many touch points as possible. Samsung wanted to understand why do people are ready to pay a premium for Sony products when Samsung products are technologically superior to that of Sony and also analyse how are Sony & LG doing wrt merchandising..

So my mentor, Mr. Viresh Ahuja wanted to me to study the market and compare and contrast Sony and Samsung on two grounds :The In store promoter/In store demonstrator quality and interaction. The In store experience, visually and aesthetically.

K. J. Somaiya Institute of Management Studies & Research

Positioning : Digital technology leader

Appoints Olympic Gold Medalist ABHINAV BINDRA As Brand Ambassador for its consumer Electronics Business.

Appoints AAMIR KHAN As Its Brand Ambassador For Mobile Phones.

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Product Strategy

Mobile Phone
Largest player in the world for Smart phones. Second largest player after Nokia (In India). Products line comprising over 50 models.

K. J. Somaiya Institute of

TV / Audio / Video
Known for their innovation and technology. First to bring the concept of LED technology in televisions.

K. J. Somaiya Institute of

Camera / Camcorder
Fine technology and optical innovations such as auto focus and optical zoom capabilities. Though high on technology are at affordable range.

Home Appliances
Leading home appliances manufacturer. Vision in terms of product innovations nanotechnology, twin cooling etc. like silver

PC / Peripherals / Printers
Leader in this segment. But inclination of high end technology shows into these products also.

Market Share

Colour Television forms 30% share of the sales volume. Refrigerators & Air Conditioners together form 30% share of sales volume.

Refrigirators & AC's TV's Others

Price Strategy

Pricing strategies followed by Samsung

Competition-based pricing Based on distinctiveness and value proposition

Premium pricing

Introduction of innovative technology

K. J. Somaiya Institute of Management Studies & Research

Contd.

Price Range
Samsung Mobile Phones:GSM TV, video & audio TV: Projection TV LCD Projection TV Flat Panel Plasma LCD TVFlat TV 29 inches21 inchesConventional TV 21 inches20 inches3,649-21,399 LG 4,800-28,000

69,000- 109,000

89,990-99,990

265,000- 9,0,000 59,990- 265,000 19,990- 31,990 8,990- 17,690 13490 7690- 8990

2,95,000-7,50,000 75,000-1,69,900 20,290-37,990 9,190-11,990 7,990-8,990 7,890-8,890

K. J. Somaiya Institute of Management Studies & Research

Price range Continued

Monitors CRT Monitors 17 magic Bright Range15 Entry Level RangeLCD Monitors Home appliances Microwave Oven Solo Grill Convection Refrigerator:Direct Cool - Frost Free Side by side systemAir Conditioner:Insta Chill Window Insta Chill Split -

8,000 5,450 15,000- 34,000

13,750 5,750 19,500-46,800

4,990-6,990 5,990- 10,590 12,990- 15,590 7,500- 10,200 68,000- 1,20,000 14,990- 23,990 24,790- 41,990

5,490-7,990 6,990-13,990 12,990-18,990 9,950-11,400 69,000-1,25,000 15,490-20,990 26,750-42,500

K. J. Somaiya Institute of Management Studies & Research

PLACE STRATEGY
24 state level distribution offices Direct Dealer interface

Regional dispatch centers(RDC)

K. J. Somaiya Institute of Management Studies & Research

Distribution System
One level channel Two level channel Shop-in-shop Exclusive Showrooms Sales and Service network all-over the India.

K. J. Somaiya Institute of Management Studies & Research

Distribution Network
Original equipment manufacturer/vendor or supplier
Factory

Regional distributing center

Branch warehouse

Distributor

Direct dealer

Sub - Dealer

Modern retail/ Exclusive stores & Samsung digital plazas

Consumer/Customer

K. J. Somaiya Institute of Management Studies & Research

Promotion Strategy

Print Media Advertising

In 2011, Samsung India was the second most user of Print Media After LG Electronics in consumer durables.

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Internet Advertising

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Other Advertising

Official Sponsor: 1) Vancouver 2010 Paralympics Winter Games. 2) Samsung Cup. 3) Chelsea Football Club. 4) Sydney Roosters. 5) NASCAR Nextel Cup 6) French Peoples Baseball Team 7) Texas Motor Speedway.

Sales Promotion
Diwali Offer to the Customers.

Point of Sale
Point of Purchase promotion. Use of Electronic billboards, danglers etc.

Visual Merchandising
Visual merchandising today is not only limited to floor window display; it covers all the necessity to capture the attention of the customers by all means from the facade of the store to the location of each product inside the store. To capture attention, awaken the senses, provide the customers a wonderful buying experience which will bring them back to the store for the next time and become a loyal customer and make more sales are the major concern of an effective visual merchandising

K. J. Somaiya Institute of Management Studies & Research

Comparative Analysis Sony vs Samsung ( ISP )

Category
Training Duration Tools Used 3-2 days

Sony India Ltd

Samsung India Ltd

1-2 days

Focus Area

Frequency
Location Expectation

Products , PPTs , Products of Presentations , no product , fliers , LG+Samsung also used for illustration visual aid. purposes. Comparative study done in fro tof ISPs of the previous product and those of the competitors. Focus on technology, then product Technology training, no emphasis on features then on the Display, Store soft skills. ( Manpower /Ikea/ V5 ). Management and presentation special New product introduction. emphasis. Then demonstration skills are tested, usage of Pen drives , all in one remote , gaming features , panel differences. Do no mis-sell but explain why a premium. Monthly Monthly Mathura Road , Mohan Co operative office. Direct franchise hires. dealer who later distributes.

Hotels hired.

Better incentive policy , better treatment of ISPs. Looking for more Incentives given by the company to the training.

Category
Product

Sony India Ltd

Samsung India Ltd

Home audio video emphasis , Vaio and Queries for S3 , S2 and Note amongst cameras picking up. highest selling models. Laptops at the

sub 30k range doing very well.

Sony talks about being compatible with android phones + higher picture resolution , better colors instead of Samsung extra brightness and slower processor. Hot Selling Most unite sold Cameras then screens ( Mobiles , TV, Air conditioners. Smart LEDs) then laptops. TVs were being promoted aggressively

with the hand gestures , internet features etc.

Tv Mobiles Laptops 32 inches , LED , EX series 520, 550 etc selling the most. Sony taking a bad beating.

40 inches , LCD +LED Samusng Note , Galaxy series selling the most.

Vaio , Flagship Model , Colors , popular Value for money pricing youngsters do amonst women / younger generation not prefer , after sales better than

Sony , Series 3 launched against Vaio , unavailable. Series 9 Overpriced, people preferring Macbook.
Tablets Not selling too much. Complicated product , not Sonys usp.

Galaxy Tab 2 , selling a lot. 3G

preferred.

Sony World

Comparative Analysis Sony vs Samsung ( Instore Experience )

Instore Experience Sony India Ltd Samsung India Ltd.

Branding
Island Table Wire management Wall Bays Yes Brilliant Excellent presentation. Yes ( in LFR ) Poor Presentation good , sequence missing. SKU put in in whatever order. Not a complete range , mobile phone dummies , not all are active. Non 3g version of Galaxy Tab missing , only 56 variants of the cameras available. General white lighting throughout the store. No focus lamps. Well dressed , good salesman , not very intelligent seeming.

Demonstration

Neatly displayed + all product samples in hand ! Gaming consoles , phones , laptops cameras , complete range live models to get a feel. Bright white with spot lights on products. Well informed , well behaved , helpful. Focuses on bundling of products.

Lighting

ISP Presentation

Instore Experience Product Knowledge

Sony India Ltd A+ , all features , all technology all abbreviations well read.

Samsung India Ltd.

Mobile cafes have brilliant technical know how , the HA department has basic High on technical knowledge and information about the machine. cleanliness. Audio department poor. Nothing outside the brochure.

Etiquette

Sony ISD at ease, talks properly.

Outlets in Gurgaon had better responses than those in Central & West Delhi.

Category Management

Sony had a similar organized TVs were the first thing displayed layout for most of the stores , the across all stores , no specific cameras and TVs were in the first category management , especially two sides as one entered. Home in Mobiles, while some Samsung audio and home theatre zone cafes had an order, most of them towards the end of the store. had presented handsets in random sequence. Same with TVs , no arranged size wise.

Findings and Recommendations

People : Gather more resources in human front , getting technical experts on board . Focus needs to shift from hiring manpower agencies to training ISDs on board the company who can be trained directly by Samsung. Places: Very strong foothold in the tier 1 cities with special emphasis on the metropolitan cities. In the Panels and Mobile Phone segment it is a clear winner especially in the premium product range. The newly launched Galaxy S3 is as of the Highest Grosser in terms of pre- order sales ever in human history bagging orders over 9 million units before it was even launched. Focus should not be on tapping the other sections of the society. Coming with the Galaxy range which caters to the middle class has been a huge success too especially with youngsters since the devices are running on Android and are reasonably proceed. In the home appliances division, we need to pull up our socks and focus on bigger branding and merchandising initiatives.

Findings & Recommendations

Visual Merchandising Ideas Do not limit your visual merchandising theme to the Winter, Spring, Summer and Fall. Try to use at least six (6) different themes in a year. If you can use different themes in every month better but this is quite unmanageable. Go unusual and big display. People love novelty, something they havent seen before. Integrate dynamic techniques in your display . Integrating printed materials, multi-media, interactive installation and sensory input in your display are known to be dynamic techniques and are becoming the visual merchandising trend, not just for 2011but also for 2012 and the coming years because of the fast moving digital civilization

The Store and Environment

Allocate extra budget to develop the facade and external appearance of your store because this is the first thing that will be noticed by the people at street. Maintain the good look your store the marquees, awnings, signage, banners, entrance and landscapes are the things areas you need to consider. Maintain the good appearance of your shelves, showcases, racks and other POS materials If one is damaged, do not hesitate to repair it or decorate the part that is damaged. Radius shelving is also becoming a trend of visual merchandising. Enhance the ambiance of your store Add a little classic aroma, music and dramatic lighting. Ignite the interest of your customers by using hanging price cards For special offers, posters and other professionally made signage are have greater impact and sell better than handwritten signage.

K. J. Somaiya Institute of Management Studies & Research