ACKNOWLEDGEMENT

My deepest gratitude to Mrs. Namita Jain , whose significant supervision

kept inspiring me to look beyond the obvious while working on this project,
without his valuable guidance this project would not have been possible.
I also extend a warm hand of thanks to all my teachers, and batch mates for
their undying love and support.
I also thank my parents who have always believed in me and have been
there for me throughout the making of this thesis, their faith in me always
motivated me to keep it going and bring this work to successful completion.

(Poonam Yadav)

Samsung is a Korean industrial group with a product portfolio ranging from electronics,
finance and construction to other services. It successfully internationalized its business
from local to global. Samsung is headquartered in Seoul, South Korea. It is ranked as
number 20 of the 100 most valuable brands worldwide carried out by Interbrand in 2005.
This is an increase of more than 100% since 2000 with brand value rising from US$5.2
billon up to US$12.5 billion. In 2005 the company had 175,000 employees and an annual
turnover of US$43.6 billon. Innovation and premium branding helped Samsung to
achieve profits of US$10.5 billion the same year.
Exporting dried fish and vegetables Samsung was founded in 1938 and started large scale
manufacturing in the late 1950s in various industries. In 1978, Samsung Semiconductor
became a separate entity producing for the domestic market. With the development of a
64K DRAM (Dynamic Random Access Memory) VLSI chip (Very Large Scale
Integration electronics chips) it expanded globally. In the financial crisis in 1997,
Samsung was facing US$20 billion in debt and had to slim down the company by more
than 100 non-essential businesses in a restructuring process. It kept only 47 affiliated
companies and strategically re-focused on four technical components: displays, storage
media, random access memory (RAM) and processors.
The restructuring process led Samsung also to focus on core businesses. It restructured its
business into four strategic business areas Home Network, Mobile Network, Office
Network and Core com ponents that support network products. Samsung implemented a
clear mission and vision across all core businesses:

Vision: Leading the Digital Convergence Revolution

Mission: Digital e-Company i.e. a company that leads the digital Convergence
Revolution through innovative
Digital Products & e-Processes.
Also, Samsung focused on developing pioneering products and technology in
semiconductors, telecommunication devices and home appliances field, which on the
long-term made Samsung a most competitive total solution provider in digital
convergence. The strategy to develop new markets and new approaches has led
Samsung to become a brand-led technology innovator. Its specialty is to focus on its
customer needs and to adapt quickly to changes in consumer preferences.
Simultaneously to the reorganization of its business units, Samsung established an
intensive internal change management process where marketing activities were
bundled under one Corporate Center. The aim was to implement a holistic marketing
strategy instead of individual marketing plans to strengthen its market power and to
increase brand strength with high quality and innovative products.
Samsung had to face the following challenges:

Create one global brand and marketing strategy establishing a

clear brand vision and brand values to leverage brands success across B2C and B2B
businesses.

Concentrate communication from customer to stakeholder

perspective as communication to non-customer stakeholder groups becomes more
and more important having a strong direct brand impact.

Increase communication planning from cost to investment

perspective along the entire brand screen.

Expand position on chip/semiconductor market via cuttingedge

technology and concentrate communication to digital consumers.

Samsung in India
Samsung India is the hub for Samsungs South West Asia Regional operations. The South
West Asia Regional Headquarters 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, today enjoys a sales turnover of over US$ 1Bn in
just a decade of operations in the country.
Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located
all over the country. The Samsung manufacturing complex housing manufacturing
facilities for Colour Televisions, Colour Monitors,
Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung Made in
India products like Colour Televisions, Colour Monitors and Refrigerators were being
exported to Middle East, CIS and SAARC countries from its Noida manufacturing
complex. Samsung India currently employs over 1600 employees, with around 18% of its
employees working in Research & Development.

Customized products for Indian Consumers

Samsung understands the local cultural sensibilities to customize its products according
to the Indian market. It has set up a usability lab at the Indian Institute of Technology in
New Delhi to customize Samsung products to meet the specific needs of Indian
consumers. This industry-institute partnership is helping Samsung to study and analyze
consumer response in aspects of product design, including aesthetics, ergonomics and
interface.

Through its research done on consumer preferences in India,

Samsung has concluded that Indian consumers want more sound oriented
products. Thus, the Samsung televisions for India have a higher sound capacity
than their foreign counterparts.

For the semi-automatic segment of Samsung washing machines,

Samsung has introduced for the first time in India a feature called Super Dry. It is
present in three of Samsungs semi automatic models and dries the clothes better
than the rest.

Samsung washing machines have an additional menu that takes

care of the local Indian wardrobes. They also have a memory re-start that takes
care of the frequent power failures in India.

The Samsung Philosophy

At Samsung, we follow a simple business philosophy: to devote our talent and

technology to creating superior products and services that contribute to a better global
society.
Every day, our people bring this philosophy to life. Our leaders search for the brightest
talent from around the world, and give them the resources they need to be the best at what
they do. The result is that all of our productsfrom memory chips that help businesses
store vital knowledge to mobile phones that connect people across continents have the
power to enrich lives. And thats what making a better global society is all about.
Values
We believe that living by strong values is the key to good business. At Samsung, a
rigorous code of conduct and these core values are at the heart of every decision we
make.
People
Quite simply, a company is its people. At Samsung, were dedicated to giving our people
a wealth of opportunities to reach their full potential.
Excellence
Everything we do at Samsung is driven by an unyielding passion for excellenceand an
unfaltering commitment to develop the best products and services on the market.
Change

In todays fast-paced global economy, change is constant and innovation is critical to a

companys survival. As we have done for 70 years, we set our sights on the future,
anticipating market needs and demands so we can steer our company toward long-term
success.
Integrity
Operating in an ethical way is the foundation of our business. Everything we do is guided
by a moral compass that ensures fairness, respect for all stakeholders and complete
transparency.
Co-prosperity
A business cannot be successful unless it creates prosperity and opportunity for others.
Samsung is dedicated to being a socially and environmentally responsible corporate
citizen in every community where we operate around the globe.
Product Innovation
In 2012, Samsung India became the largest electronics and consumer goods company in
India with Rs 27,000 crore revenue. In the last three months, Samsung has launched a
galaxy of smartphones - Galaxy S4, Galaxy Fame, Galaxy Young, Galaxy Star, Galaxy
Grand Quattro, Galaxy Mega, Galaxy Tab 2 and Galaxy Pocket Neo, along with the Rex
series. There have been over 20 new flat panel television launches, 30 new models of airconditioners and refrigerators each.
Now it seems that Samsung wants to consolidate its presence and grow its revenue at
more than 30% in 2013. It is reported that Samsung has sold more than 15 million of its

Galaxy smartphones in India, recently beat Nokia in overall cellphone market share, and
has become the largest brand by sales in flat panel television, frost-free refrigerators,
side-by-side refrigerators, smartphones and tablets.
In April 2011, Samsung Electronics sold its HDD commercial operations to Seagate
Technology for approximately US$1.4 billion. The payment was composed of 45.2
million Seagate shares (9.6 percent of shares), worth US$687.5 million, and a cash sum
for the remainder.
In the first quarter of 2012, the company became the highest-selling mobile phone
company when it overtook Nokia, selling 93.5 million units compared to Nokia's 82.7
million units. Samsung also became the largest smartphone vendor as a result of strong
sales of its Galaxy SII and Galaxy Note devices.
In May 2013, Samsung announced that it had finally managed to test speed-enhanced
fifth generation (5G) technology successfully.
In April 2013, Samsung Electronics' new entry into its Galaxy S series smartphone range,
the Galaxy S4 was made available for retail. Released as the upgrade of the best-selling
Galaxy S III, the S4 was sold in some international markets with the companys Exynos
processor.
In July 2013, Samsung Electronics forecasted weaker than expected profits for its April to
June quarter. While analysts expected around 10.1 trillion won, Samsung Electronics
estimated an operating profit of 9.5 trillion (US$8.3 billion). During the same month,
Samsung acquired the media streaming device manufacturer Boxee for a reported $30
million.

On August 5, 2013, invitations were received for the "Samsung Unpacked 2013 Episode
2" event on September 4, 2013 in Berlin, Germany during the annual IFA conference.
While the invitation does not present any details of the event, industry figures stated that
the launch of the Galaxy Note III device is expected, as Samsung used the 2012 IFA
conference to launch the Galaxy Note II.
Samsungs mobile business chief Shin Jong-kyun stated to the Korea Times on
September 11, 2013 that Samsung Electronics will further develop its presence in China
to strengthen its market position in relation to Apple. The Samsung executive also
confirmed that a 64-bit smartphone handset will be released to match the ARM-based A7
processor of Apple's iPhone 5S model that was released in September 2013.
Due to smartphone salesespecially sales of lower-priced handsets in markets such as
India and ChinaSamsung achieved record earnings in the third quarter of 2013. The
operating profit for this period rose to about 10.1 trillion won (US$9.4 billion), a figure
that was boosted by memory chip sales to customers such as Apple, Inc.
On October 14, 2013, Samsung Electronics offers an apology for using refurbished
components from cheaper desktop computers to fix higher-end products on the heels of
growing criticism of the tech giant's unethical business practices as exposed Sunday by
MBC TVs current affairs magazine 2580.
MARKETING STRATEGIES OF SAMSUNG INDIA
It does not require the genius of a rocket scientist to recognize that branding is the
lifeblood of any corporation. This was well recognized by Samsung Electronics
Corporation (Samsung), way back in 1998, when the South Koreas leading consumer

electronics giant entered into an agreement with the International Olympic Association
(IOA) to sponsor the 1998 Seoul Olympics. The message was clear. Samsung wanted to
sponsor Olympics to establish itself as a global brand. And it became successful to a great
extent too.
Samsungs association with the Olympics helped the company increase its brand
visibility and brand recall among its consumers worldwide. In the late 1990s, Samsung
forged several marketing alliances with companies worldwide and sponsored events to
enhance its brand awareness. Due to its marketing efforts, its brand value appreciated by
more than 200 per cent from US$5.2 billion in 2001 to its current $10.8 billion. The
company was ranked twenty-fifth in Interbrands list of the worlds top 100 brands. In
2002, Samsung emerged as the only non-Japanese brand from Asia to be listed in the
global top 100 brands valued by Interbrand, the worlds leading brand consultant. The
company was ranked as the fastest-growing brand in the world by Interbrand.
In spite of the worldwide slowdown, Samsung, whose sales are equivalent to some 20 per
cent of South Koreas GDP, posted a net profit of 1.5 trillion Won for the third quarter of
2007-08.
In late 2008, Samsung emerged as the number one player in the US cell phone market by
snatching the crown from Motorola. It also emerged as the world leader in the memory
chip market In 2007, Samsung spent more on R&D than IBM. The company has jumped
to the second place in the number of patents granted by Americas patent office (just
behind IBM).

As a result of its commitment to innovation and unique design, SEA was ranked #6 in the
electronics industry segment in the Fortune magazines Most Admired Companies
2008, and named as one of Fast Companys Fast 50 Most Innovative Companies of
2008. Among popular Business Week rankings, SEC ranked #26 in the publications
Most Innovative Companies of 2008 and #21 in the 100 Best Global Brands for
2007. SEC is also a top patent holder, ranking second overall in the U.S. in 2007.
According to industry experts, the reason for these earnings over the years is Samsungs
holistic approach to develop several strategies for different regions, but guided by one
unified Samsung brand image building strategy. Samsungs branding strategy was
launched by its Chairman Kun Lee in 1996. It was a coordinated global programme to
make Samsung an international brand. Over the last one decade, Samsung has executed
its comprehensive brand building strategy. The companys annual investment in branding
and marketing is about US$3 billion, which has been spent to increase its brand
awareness around the world.
For any new company, when it makes its entry into the market, there are two ways to
stimulate growth: intensive advertising campaign, and product offerings with unique
functions. Samsung recognized the potential of both. In terms of products, Samsung
introduced its leading-technology display products as well as printers in the Indian
market and carried out SI meets all over the country to educate the channel community
on its new products, says Ranjit Singh Yadav, Director IT, Samsung India.
However, the power of brand building exercise was not lost on the company. In fact,
Samsung tilted more towards advertising and brand-making strategy creating awareness

of its name by investing large amounts of money in million-dollar brand- making

campaigns.
In India, Samsung, in order to create its brand awareness, signed seven cricket celebrities
and in doing this it aimed to cash in on the popularity of cricket in India which is
considered a religion in India. Instead of just ads featuring cricketers, Samsung launched
its Team Samsung India campaign all over India. The focus of this concept was to
create patriotism through cricketers, but under the Samsung brand name the banner reads
With Team Samsung. The campaign was a huge success and it enabled Samsung to
increase awareness of its brand. As a result, it began to make impressive growth in India.
In India, Samsungs investment on branding has spanned our brand building and
corporate initiatives, product investments and investments in the channel, says Mr.
Yadav. In the year 2008, Samsung supported the Olympics cause in India by way of
sponsorship of the Indian team, the support for select members of the Indian team. The
company also organized the biggest-ever national level school quiz on Olympics for
school children. Consequently, its Olympic-related advertising campaign brought the
companys brand closer to customers.
They supported the Indian team to the Beijing Olympic Games as well as provided
scholarship support to six Indian athletes for their training expenses, including Abhinav
Bindra whom they subsequently signed on as their Brand Ambassador for Consumer
Electronics products, following his return from the Olympics. Samsung hugely invested
in sports, as it knew that sports attract crowds. In the Athens 2004 Olympic games, it was

named as Worldwide Wireless Communications Partner of the Olympic games, but not
without a cost.
Samsung provided 14,000 mobile phones and also supported equipment during the
games. They also presented themselves in the Olympic Torch Relay, which took place in
27 countries. They also showcased their products for 17 days to the visitors at the
Olympic event and also allowed 30,000 minutes of free calling grabbing the audience to
its brand.
It has been noted that older companies often portray their products as commodities and
generally sell their products only on the basis of brand without enhancing their quality
and lowering their price. However, Samsung has proved to be an exception to this. The
company not only invested hugely in brand creation campaigns, it also remained a cut
above the rest by introducing innovation. In order to create a somewhat different image,
Samsung has positioned itself by developing innovative products, thus becoming a leader
rather than a follower.
Product innovation and channel expansion were the two key approaches that helped us
grow our IT business in the year 2008 .We launched new categories like Digital Photo
frames and entered the Notebook PC category with a comprehensive range of Notebooks
and Netbooks. We enhanced our in-shop visibility through Shop in Shops within the
channel, Shop boards as well as by adding over 100 channel partners in the B&C class
cities.
Their channel engagement policy in 2008 included training the sales force on our new
products and technologies through the Samsung Marketing Academy; SI meets in smaller

cities as well as educating the channel through their newsletters and other communication
material. They also tapped the large format retail for their IT products.
The Success Secret
Being ahead of the competition is the mantra of Samsungs success. In business, it always
pays to reduce the lead-time, as being late in business means business is over, which
happened in the case of many big brands and competitors.
For instance, the most advanced mobile phone has only two-mega pixel camera, but
Samsung offered 5-mg phone in 2005. Samsung is offering new products lower than the
market price. Yet, the company has been able to retain its standard and quality.
However, part of this success was also Samsungs openness. The company opened up and
recruited employees from a global pool of talent bringing in talent from various countries,
making these people work together at one table designing the best product. This trend
boosted the companys perception and made it a global brand among the consumers. The
strategy paid off and in the past five years, it has achieved the biggest gain among major
brands, even surpassing Sony.
Samsungs approach is holistic reaching the world customer. It created its branding in
multiple ways, ranging from traditional adds to billboards, racing, Olympic games,
cricket matches, marathons. In short, wherever it saw the crowd, it communicated
Samsung message by presenting itself as a leader of innovation with affordable price.
In the year 2009, Samsung India is looking at strengthening both the product portfolio
and the channel. The company will be tapping our existing brand shops as well as Large
Format retail stores for our IT products. We have just launched our comprehensive range

of Notebook PCs and the Live 360 campaign for Notebook PCs. In the year 2009, we
will be expanding our portfolio in Notebook PCs, Display products as well as our Printer
range, says Mr. Yadav.
Samsung India will be continuing with its channel expansion in the year 2009 as well.
They will be strengthening the corporate sales business based on our enhanced lineup.
Market will see the introduction of new technologies in the marketplace and some of the
trends that we saw in the year 2008 will get more pronounced. Thus, I expect the LCD
Monitor category to dominate the market completely, even as the transition from Desk
Top PCs to Notebook PCs and Netbooks will continue. The Widescreen format will
continue to dominate in LCD monitors. Similarly, the 17 and 19 monitors will continue
to dominate in terms of screen sizes. With the introduction of new technology and
convergence products, the Large Format Retail will continue to be a significant channel
for selling IT products.

Clear Brand Positioning

Samsungs aim to build a clear brand positioning followed a structured approach. First,
Samsung established a brand mission according to the overall mission of the company.
The mission reflected the core values of the brand being close to the customer, consider
customer needs and deliver innovative solutions.
Second, Samsung developed a distinctive value proposition to foster its single brand
strategy. The value proposition gave further detail on the brand mission and explained
how Samsung aimed to concentrate on a clear focus towards customer orientation and its

promise to innovate best-in-class technology. Moreover, the value proposition

accentuated some emotional aspects the brand wanted to communicate. The increased
emotionality was then brought to life in Samsungs image campaign.
Looking back, in the 1990s, Samsung was the brand you bought if you couldnt
afford Sony or Toshiba. But this image should change a lot. The strategy was changed
from a low cost and low quality image to a price pr