SAMSUNG

Ishmeet Singh
501504071
 INTRODUCTION TO SAMSUNG

Samsung is known globally for its electronic products and it is one of the successful
brands in the electronic industry. It is an established company almost all around the world.
Samsung Electronics is a South Korean multinational electronics and information
technology company headquartered in Samsung Town, Seoul. It is the flagship subsidiary
of the Samsung Group. With assembly plants and sales networks in 61 countries across the
world, Samsung has approximately 160,000 employees.

In 2009, the company took the position of the worlds biggest IT maker by surpassing the
previous leader Hewlett-Packard. Its sales revenue in the areas of LCD and LED displays
and memory chips is number one in the world.

In the TV segment, Samsungs market position is dominant. For the five years since 2006,
the company has been in the top spot in terms of the number of TVs sold, which is
expected to continue in 2010 and beyond. In the global LCD panel market, the company
has kept the leading position for eight years in a row.

With the Galaxy S model mobile phone, Samsungs Smartphone line-up has retained the
second-best slot in the world market for some time. In competition to Apple's ipad tablet,
Samsung released the Android powered Samsung Galaxy Tablet.
 VISION 2020
As stated in its new motto, Samsung Electronics' vision for the new decade is,
"Inspire the World, Create the Future."
This new vision reflects Samsung Electronics commitment to inspiring its
communities by leveraging Samsung's three key strengths: New Technology,
Innovative Products, and Creative Solutions. -- and to promoting new value for
Samsung's core networks -- Industry, Partners, and Employees. Through these
efforts, Samsung hopes to contribute to a better world and a richer experience for
all.
 As part of this vision, Samsung has mapped out a specific plan of reaching $400
billion in revenue and becoming one of the worlds top five brands by 2020. To this
end, Samsung has also established three strategic approaches in its management:
Creativity, Partnership, and Talent.
Samsung is excited about the future. As we build on our previous accomplishments,
we look forward to exploring new territories, including health, medicine, and
biotechnology. Samsung is committed to being a creative leader in new markets.
 PRODUCT MIX

French Split Air

LED TV Semi Door Conditione
Automatic Counter Top r
Plasma TV Side By
Top Load Over the Side
UHD 4K TV Floor
Automatic Range
OLED TV Frost Standing
Front Load
Automatic Free Air
Bottom Conditione
Freezer r

Direct
Cool
PROCESS
DISTRIBUTION CHANNEL

Distributor Retailers
s

Clearing and Multi

Digital
Forwarding -Brand
plazas
Agents Retailers

Dealers
 MARKETING COMMUNICATION MIX BY
CHANNELS
DISTRIBUTORS RETAILERS, DEALERS, MULTI BRAND RETAILERS
 COMPETITOR ANALYSIS

Flat Panel TV-Market Shares Refrigerators-Market Shares

Other; 13% LG; 21% Other; 3%

Godrej; 18% LG; 23%
Sony; 22%
Samsung; 21% Videocon; 16%
Videocon; 14% Samsung; 20%
Panasonic; 9%
Whirlpool; 20%

Washing Machines-Market Shares Microwaves-Market Shares

Market shares at the

national level.
 COMPETITOR
ANALYSIS
Price Comparision of Refrigerators Price Comparision of Washing Machines
30000 25000

25000 20000
20000
15000
15000
10000
10000

5000 5000

0 0

Price Comparision of LCD TV's Price Comparison of Microwaves

40000 18000
35000 16000

30000 14000
12000
25000
10000
20000
8000
15000
6000
10000 4000
5000 2000
0 0

Retail prices at the national

level.
 SOME KEY FINDINGS IN THE
CHANNEL
Demurrage costs
Tight control over inventory management. Goods ordered by the dealer or the
distributor must be claimed and stored by them in their inventory.
In the event of ordered goods remaining unclaimed, the company has the right to
penalise the distributor or the dealer, as the company has to arrange for extra space
through third parties.
These costs are to be borne by the dealer or the distributor (in addition to heavy
penalties) known as demurrage costs.

Trade off between extra goods on display and risk of inventory clearance
Based on speculation and consumer trends in buying, dealer may order extra
goods.
Placement of new goods in strategic places by the dealer (again, based on
speculation and observed consumer habits.)
Risk of penalties due to inventory hold-up, against the profit garnered from
selling new goods (say, a newly introduced hot-selling product at that time,) faster
based on dealers ideas and speculations.
Every square inch of the store has a cost and penalty associated with it.
 SOME KEY FINDINGS IN THE
CHANNEL

BIDDING SYSTEM is used by the company to select dealers. Strength of the balance
sheet and the reputation of the dealer is looked at before authorizing the dealer.

INCENTIVES to the distribution channel are through certificates of recognition.

ZERO CREDIT policy followed by company when dealing with distributors and dealers.
However, the distributor may allow for a credit period of 7 days, depending on the health
of the retailers balance sheet.

OFFERS like goods free with other goods are almost always given by retailers to push
sales during festive seasons. Company does rarely gives such offers. Companys
promotions may be through scratch cards, free trips and/or microwave cooking kits etc.
Explicit offers are generally made by the retailers.
SAMSUNG PLAZA AT SIRSA (HARYANA )
Physical Evidence
People
 MARGINS IN THE CHANNEL

KEY FIGURES AT SAMSUNG PLAZA SIRSA (DEALER)

At any point in time, the inventory at SAMSUNG PLAZA (SIRSA) is

valued at 2 CRORE .
The inventory clearance period is 60 days (approx.)
The annual sales revenue is 1.25 CRORES INR*.
Annual operating expenditures of 53 lac INR* is recorded.
Margins offered by the company to the retailer, and the retailer to the
consumer is 4 percent and 10 percent, respectively.
SUGGESSTIONS TO INCREASE SALES OF THE STORE

1 . Training employees -How to sell well is crucial to your success. When employees are
knowledgeable, capable and efficient they can help keep your customers happy and loyal.
The Samsung plaza must train their new employees in order to meet customers requirements.

2. Build customer relationships - The Samsung plaza must focus on their loyal customers
who for every new purchase visit their store , they should give special discounts to them and
also build strong relationship by sending thank you and birthday emails, anniversary
greetings and other relationship building communications.

3. Run a Customer Reward Program make simple program where people can get
discounts for being a customer and satisfying certain simple criterias such as

Being a customer for one year, they can enjoy 50% discount on the first bill of their second
year as customer

Collect points and redeem points for discounts, gifts, and so on

10% discount on your purchase if you shop for more than 100$
4. Listening to customer properly - The reason Samsung plaza should be listening to
the customer to make more sales is that it helps them to learn the language of the
client. Once they start interacting with them more and understand their problems, they
will learn to convey Samsung product marketing message in a language their
customer understands.

5. After Sales Service Samsung plaza must focus on their after sales service as there
are lots of instances where the customers complaint that there problems after sales are
not solved properly , this is hampering there image in sirsa .

6. Set Up an Incentive Program for Your Sales personnel's - Samsung plaza must
Provide incentive to their sales personnel's as this will boost their morale and they
will perform better and this will increase sales .

7. Advertise a free gift with every new customers first purchase- Samsung plaza
can offer some free gifts to the first time customers for multiple purchases done by
them simultaneously .
 Samsung offerings for
lobby/information desk areas
Video wall and content management solution Consumers can
view impactful messages that promote retailers products and
services and solidify brand loyalty with stunning video walls.
Shoppers are engaged by rich content and interactivity delivered on
sophisticated Samsung SMART Signage in immersive, near-seamless
video walls arranged inmyriad creative configurations.
Wireless service and Wi-Fi network Retailers can provide
seamless wireless service for tech-savvy customers while improving
communication among employees with Samsung Wireless Enterprise
(WLAN). Merchants can deliver secure Wi-Fi on various infrastructure
formats for both shoppers and employees to increase convenience
and reduce costs.
 Attract customers to a convenient, customized
and dynamic shopping experience

Apparel store scenario

Enter the store. Shoppers are attracted by a luxurious,
modern atmosphere created by expansive displays.
Receive coupons. A customer receives store coupons
on a mobile device, which prompts the shopper to make
a return visit.
Check items easily. During the store visit, a shopper
automatically checks the appearance of selected apparel
items in real sizes on a life-size display.
Make a payment. After selecting items, a customer
easily and conveniently pays for them using a
mobiledevice.
 Samsung offerings for apparel
store in Sirsa
Real-size displays
Content management solution
Location-based marketing solution
Lighting infrastructure
CHARACTERSTICS OF SERVICES

Intangibility
Inseperability
Variability
Perishability
SAMSUNG HELP CENTRE
THANK
YOU