TURN ON TOMMORROW

INTRODUCTION

• Samsung is one of the world’s largest technology providers.

• It started out as trading company exporting various products from South

Korea to Beijing, China.

• Founded by Lee Byung-chul in 1938, Samsung gradually developed into

the multinational corporation that it is today.

• The word Samsung means “three stars” in Korean.

• SAMSUNG is dedicated to develop innovative technologies and efficient

processes that create new markets, enrich people's lives, and continue to

make Samsung a digital leader.

Samsung in India

Samsung India is the hub for Samsung's South West Asia Regional

operations.

The South West Asia Headquarters, under the leadership of Mr. J S Shin,

President & CEO, looks after the Samsung business in Nepal, Sri Lanka,

Bangladesh, Maldives and Bhutan besides India.

Samsung India which commenced its operations in India in December

1995 headquartered in New Delhi.

Samsung India has widespread network of sales offices all over the country

Vision 2020 Samsung Electronics vision for the new

decade is, "Inspire the World, Create the Future.“

The Samsung Philosophy To devote our talent and technology to

creating superior products and services that contribute to a better global society.

SAMSUNG BUSINESS PRINCIPLES

PRODUCTSDigital appliance

Air Conditioners

Refrigerators

Microwave Ovens

Washing Machines

Vacuum Cleaners

Home Net

Compressors for Air Conditioners and refrigerators

Digital displaya) Plasma TVs

b) LCD TVs

c) Micro Display Panel TVs

d) Monitors

e) PDP Modules

f) OLED Panels

g) USB Memory

h) Flat Panel Computer Monitors

Digital mediaa) Home Theater Systems

b) DVD Recorders

c) Super Multi DVD Rewriters

d) CD±RW

e) Notebook PCs

f) Desktop PCs

g) PDAs

h) PDA Phones

i) MP3 Players

j) New Karaoke Systems

k) Car Infotainment

Mobile communications

CDMA Handsets

GSM Handsets

3G Handsets

Cellular Phones

KEY BUSINESS AREAS

TV/ AUDIO/VIDEO CAMERAS & CAMCORDERS PC/PERIPHERALS/PRINTERS MOBILE PHONES HOME APPLIANCES

REFRIGERATORS AIR CONDITIONERS WASHING MACHINES

DISTRIBUTION&MARKETING STRATEGY

The company has number of dealers and warehouses. They have LG exclusive shopee.

For the marketing of the products a number of activities are followed

Exhibitions are conducted from time to time.

Society and college activities are conducted.

Hoarding, Posters, banners are used so as to grab the attention of the costumers.

  Day to day advertisement in leading newspaper.

Discount at festival time.

For dealer relationship they arrange dealer meting at several time in the year

LG divide dealer in gold silver etc. category to know the performance of the dealers.

They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG product.

LG also uses the radio FM for the promotion activities.

Also provide capon and scratch card for festive season.

LG – CRICKET

LG has differentiated its products using technology and health benefits. CTV - ‘Golden Eye’ technology Air-conditioners - ‘Health Air System’ Microwave Ovens -‘Health Wave System’.

Marketing strategies

Product innovationPricingDistributionAdvertisement & sales promotion

Promotion….. Of all the elements of marketing mix,

LG seemed to have put more emphasis

on promotion and advertising.

In 2002, it spent around 1.3 billion on advertising. An ad agency which handled the account of one of the LG's rivals, commented: "Communication creates a mind space among the consumers and LG has occupied that fairly well."

Unlike many Indian brands which advertised seasonally i.e., (two-three months of the festival season-September, October and November), LG advertised all round the year.

R&D Potential

LG has set up research and development facilities in India at Bangalore and is in the process of setting up another at Pune. Both the units carry out R&D work for the domestic market as well as for the parent company. It also does customized R&D for specific countries to which it exports products.

The R&D facility in India, where LG has been investing Rs 2 billion per

annum, accounts for 90% of the innovations.

Research & development

The company’s thrust on Product Innovation and R&D have given the company a competitive edge in the marketplace

 Samsung has two Software development centres 

-Samsung India Software Centre (SISC) -Samsung India Software operations unit (SISO) at Noida and

Bangalore  Samsung India is also carrying out Hardware R&D at its Noida R&D

Centre.

COMPARATATIVE ANALYSIS

Brand Awareness & Market Share

MOTOROLA17%

SONY ERICSSON17%

NOKIA49%

APPLE6%

LG6%

SAMSUNG6%

Mobile Phones

Market Leader: Nokia

LG has a pie of 6%

Close competitor of Samsung &

Apple

Segment: Mobile Phones

Conclusions - Mobile Phones

Nokia is the market leader, followed by Sony Ericsson

LG is an emerging player

Direct competition with Samsung, owing to similar user perception

Brand Awareness & Market Share

Market Leader- LG

Godrej- Second most popular brand

Samsung & Whirlpool lag behind

SAMSUNG12%

VIDEOCON4%

LG35%

WHIRLPOOL15%

GODREJ27%

ELECTROLUX4%

BPL4%

Refrigerators

Segment: Refrigerators

Conclusions - Refrigerators

LG is the dominant player in the market

Other Players have a segmented market share

Unstructured Positioning of all other Players

Brand Awareness & Market Share

Market Leader- LG

Voltas- Second most popular brand

Samsung commands the third position

LG39%

VOLTAS24%

GENERAL5%

SAMSUNG16%

WHITE WEST-

IN-HOUSE

3%

CARRIER5%

HITACHI5%

ONIDA3%

Air Conditioners

Segment: Air Conditioners

Conclusions - Air Conditioners

LG is the dominant player in the market

Closer user perception shared with Voltas

LG rated low on Technological aspects like Noise Levels

Hitachi was positioned high for producing low Noise Levels.

Brand Awareness & Market Share

Market Leader- Sony

LG and Samsung close competitors

Philips has a small market share

SONY54%

PHILIPS4%

SAMSUNG17%

LG25%

LCD TV

Segment: LCD Televisions

Conclusions- LCD Television

Sony is the Market Leader in LCD TV segment.

Samsung – LG, very similar user perception, directly competing with each other.