Priya Obhrai [Subject: Marketing/Commerce] International Journal of Vol.

3, Issue: 6, June: 2015

Research in Humanities & Social Sciences [I.F. = 0.352] ISSN:(P) 2347-5404 ISSN:(O)2320 771X

Marketing Strategies of Samsung in India

PRIYA OBHRAI
Assistant Professor, University of Delhi
D-220, Defence Colony, New Delhi-110024
(Delhi) India

Abstract:
This research paper covers the various marketing strategies of Samsung Electronics Co., Ltd in India.
Primary research was been carried out to understand and identify the mindset of people towards the
company. Various factors ranging from the availability of Samsung products, ownership trends,
differentiating feature in Samsung products were identified and analysed. The perception of consumers
and the effect of the endorser have also been studied. All these factors and many more have been
considered for understanding the market sha re of Samsung Electronics Co., Ltd in India. The study
gives important findings as to how the market standing of the Company has been consistently
improving even though it has been involved in a few controversies.

Keywords: Advertising, Bbrand value, Market share, Marketing, Perception

1. Introduction
Samsung Electronics Co., Ltd. is a South Korean multinational electronics company headquartered in
South Korea. It is the flagship subsidiary of the Samsung Group, amounting to 70% of the groups
revenue in 2012, and has been the world's largest information technology company by revenues since
2009. Samsung Electronics has assembly plants and sales networks in 80 countries and employs around
370,000 people.

In recent years, the company has diversified into consumer electronics. It is the world's largest
manufacturer of mobile phones and smart phones fueled by the popularity of its Samsung Galaxy line
of devices. The company is also a major vendor of tablet computers, particularly its Android-powered
Samsung Galaxy Tab collection, and is generally regarded as pioneering the tablet market through the
Samsung Galaxy Note family of devices.

Samsung has been the world's largest maker of LCD panels since 2002, the world's largest television
manufacturer since 2006, and world's largest manufacturer of mobile phones since 2011. Samsung
Electronics displaced Apple Inc. as the world's largest technology company in 2011 and is a major part
of the South Korean economy.

2. Products
1. LCD and LED panels
Samsung Galaxy S II
By 2004 Samsung was the world's-largest manufacturer of OLEDs, with a 40 percent market share
worldwide, and as of 2010 has a 98% share of the global AMOLED market. As of 2006, it held more
than 600 American patents and more than 2,800 international patents, making it the largest owner of
AMOLED technology patents.
2. Mobile phones
Samsung Galaxy Note series

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 Priya Obhrai [Subject: Marketing/Commerce] International Journal of Vol. 3, Issue: 6, June: 2015
Research in Humanities & Social Sciences [I.F. = 0.352] ISSN:(P) 2347-5404 ISSN:(O)2320 771X
Samsung's flagship mobile handset line is the Samsung Galaxy S, which many consider a direct
competitor of the Apple iPhone. It sold more than one million units within the first 45 days on sale in
the United States.

The company's I9000 Galaxy S and S8500 Wave smart phones were the winners of the 2010 European
EISA Awards in the smart phone and social media phone categories.

At the end of the third quarter of 2010, the company had surpassed the 70 million unit mark in shipped
phones, giving it a global market share of 22 percent, trailing Nokia by 12 percent. Overall, the
company sold 280 million mobile phones in 2010, corresponding to a market share of 20.2 percent.
Partially owing to strong sales of the Samsung Galaxy range of smart phones, the company overtook
Apple in worldwide Smart phone sales during the third quarter 2011, with a total market share of 23.8
percent, compared to Apple's 14.6-percent share. Samsung became the world's largest cell phone maker
in 2012, with the sales of 95 million smart phones in the first quarter.

During the third quarter of 2013, Samsung's smart phone sales were boosted by a strong consumer
reception in emerging markets such as India and the Middle East, where lower-priced handsets were
popular. As of October 2013, the company offers 40 smart phone models on its US website.
3. Semiconductors
Samsung DDR-SDRAM
Samsung Electronics has been the world's-largest memory chip maker since 1993. In 2010, market
researcher IC Insights predicted that Samsung would become the world's-biggest semiconductor chip
supplier by 2014, surpassing Intel. For the ten-year period from 1999 to 2009, Samsung's compound
annual growth rate in semiconductor revenues has been 13.5 percent, compared with 3.4 percent for
Intel.
4. Televisions
In 2009, Samsung sold around 31 million flat-panel televisions, enabling to it to maintain the world's
largest market share for a fourth consecutive year.

Samsung sold more than one million 3D televisions within six months of its launch. This is the figure
close to what many market researchers forecast for the year's worldwide 3D television sales (1.23
million units).

In 2007, Samsung introduced the Internet TV, enabling the viewer to receive information from the
Internet while at the same time watching conventional television programming. Samsung later
developed "Smart LED TV" (now renamed to "Samsung Smart TV"), which additionally supports
downloaded apps. In 2008, the company launched the Power Info link service, followed in 2009 by a
whole new Internet@TV. In 2010, it started marketing the 3D television while unveiling the upgraded
Internet@TV 2010, which offers free (or for-fee) download of applications from its Samsung Apps app
store, in addition to existing services such as news, weather, stock market, YouTube videos, and
movies.

Samsung Apps offers for-fee premium services in a few countries including Korea and the United
States. The services will be custom-tailored for each region. Samsung plans to offer family-oriented
applications such as health care programs and digital picture frames as well as games. Samsung's range
of smart TVs includes the apps ITV Player and motion controlled Angry Birds.
5. Others
Samsung GX-10 digital SLR camera
Samsung produces printers for both consumers and business use, including mono-laser printers, color
laser printers, multifunction printers, and enterprise-use high-speed digital multifunction printer
models.
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RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
 Priya Obhrai [Subject: Marketing/Commerce] International Journal of Vol. 3, Issue: 6, June: 2015
Research in Humanities & Social Sciences [I.F. = 0.352] ISSN:(P) 2347-5404 ISSN:(O)2320 771X
In the area of storage media, in 2009 Samsung achieved a ten percent world market share, driven by the
introduction of a new hard disk drive capable of storing 250 Gb per 2.5-inch disk. In 2010, the
company started marketing the 320Gb-per-disk HDD, the largest in the industry. In addition, it was
focusing more on selling external hard disk drives. Following financial losses, the hard disk division
was sold to Seagate in 2011.

3. Objective
The basic idea of taking up this research study is to analyze the market share of SAMSUNG consumer
durables and mobile phones in Delhi. At the same time an attempt was made to understand the brand
image of SAMSUNG in India.
To analyze who are the major players of consumer durables and mobile phones in the market.
To study the market share of Samsung electronics.
To study the brand value of Samsung.

4. Literature review
Marketing comes in a wide variety of flavors based on audience, media platform and business in
todays evolving and dynamic marketplace. Therefore, its no surprise that marketers define what they
do differently.

To start, here are explanations from the American Marketing Association (AMA), marketings
professional organization, and Dr. Philip Kotler, the author of business school marketing classics.
Theyre followed by the other definitions in alphabetical order by authors last name.

Dr. Philip Kotler defines marketing as the science and art of exploring, creating, and delivering
value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and
desires. It defines, measures and quantifies the size of the identified market and the profit potential. It
pinpoints which segments the company is capable of serving best and it designs and promotes the
appropriate products and services.

4.1 Marketing strategy

Marketing strategy is defined by David Aaker as a process that can allow an organization to
concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a
sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the
field of marketing that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore contributes to the
goals of the company and its marketing objectives.

According to Shaw, Eric (2012)."Marketing Strategy: From the Origin of the Concept to the
Development of a Conceptual Framework. Journal of Historical Research in Marketing., there is a
framework for marketing strategies.

Samsung's Marketing Strategy in India

4.2 Product Innovation

Samsung's product range in India included CTVs, audio and video products, information technology
products, mobile phones and home appliances. Its product range covered all the categories in the
consumer electronics and home appliances. Analysts felt that the wide product range of Samsung was
one of main reasons for its success in the Indian market. Samsung positioned itself on the technology
platform.
1. Pricing
Pricing also seemed to have played a significant role in Samsung's success.
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RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
 Priya Obhrai [Subject: Marketing/Commerce] International Journal of Vol. 3, Issue: 6, June: 2015
Research in Humanities & Social Sciences [I.F. = 0.352] ISSN:(P) 2347-5404 ISSN:(O)2320 771X
2. Distribution
Along with the launch of new products, Samsung also consolidated its distribution system. Samsung
had 18 state-level distribution offices and a direct dealer interface. The direct dealer interface helped
the company get quick feedback from dealers, and enabled it to launch products according to consumer
needs.
3. Advertising and Sales Promotion
In 1995, when Samsung entered India, it realized that Indian consumers were not familiar with the
company. So, in order to establish itself in the Indian consumers' mind, Samsung launched corporate
advertisements highlighting its technologically superior goods.

4. Research Methodology
The researcher has followed descriptive research.
Descriptive research is used in this project report in order to identify the brand value of Samsung in
India. This is the most popular type of research technique, generally used in survey research design and
most useful in describing the characteristics of consumer behaviour. The method used was
questionnaire and interview of the Samsung customers was taken.

The essential part of any report is research methodology. The field study was conducted to analyze the
market share and understand the brand image of Samsung products. The sample size was 100. 60%
males and 40% females was the ratio of the respondents in this survey. The age of the respondents was
in the following proportion:
Less than 18 years - 06.67%
18-22 years - 36.67%
22-2 years - 30.00%
26-30 years - 16.67%
Greater than 30 years - 10%
These numbers show that most of the respondents are young
The occupation of the respondents was also kept in mind while conducting the survey to have a
complete and comprehensive analysis. The occupation of the respondents was in the following
proportion:
College students - 46.67%
Business man - 16.67%
Working population - 20%
Others - 16.67%

Data used in this report is mainly primary data, which is collected first hand by survey in the field. In
some areas secondary data has also been used.

5. Method of data collection

5.1 Collection of primary data
The source of the primary data is the population sample from which you collect the data. The data was
collected through the primary source by survey method using questionnaire and taking respondents
personal interview.

5.2 Collection of secondary data

Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in
the case of quantitative data, provides larger and higher-quality databases that would be unfeasible for
any individual researcher to collect on their own. In addition, analysts of social and economic change
consider secondary data essential, since it is impossible to conduct a new survey that can adequately
capture past change and/or developments. The data is collected from journals and trusted internet
sources.
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RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
 Priya Obhrai [Subject: Marketing/Commerce] International Journal of Vol. 3, Issue: 6, June: 2015
Research in Humanities & Social Sciences [I.F. = 0.352] ISSN:(P) 2347-5404 ISSN:(O)2320 771X
5.3 Data Analysis & Interpretation
Ownership Trends of Samsung Products
From the above chart, it can be observed that the
respondents use Samsung products- mobile (63.33%),
Tablet (3.33%), TV (6.67%), Home apps (10%),
Mobile
3% 13% PC/Laptop (3.33%) and others (13.33%). These numbers
Tablet show that Samsung mobile are in the hands of most of
10% TV the customers.
7% Home Apps
64% 5.4 Frequency of changing mobile phones
PC/Laptop
3% 3%
Others

7%
Less than 1 year
20% 1-2 years
From the above chart, it can be observed 2-4 years
that the respondents are using mobile phones 70%
less than 1 year. Less than 1 year (70%), 1-2 Above 4 years
years(20%), 2-4 years(6.67%) and Above 4
years (3.33%).

5.5 Level of satisfaction with the Samsung product

From the above chart, it can be observed that the respondents are satisfied with Samsung products,
93.33% respondents are satisfied and 3.33%
respondents are not satisfied.
7%
5.6 Differentiating factor of Samsung compared
Yes with its competitors
No From the above chart, it can be observed that the
respondents consider Samsung as an innovative
93% product. Affordable price (20%), innovation (37%),
design (30%), technology (3.33%) & application
(10%).

5.7 Is the brand name Samsung sufficient to

Affordable initiate a purchase?
3% price
10%
20% Innovation

Design 20%
30%
Technology
37% Yes

Applications No

80%

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RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
 Priya Obhrai [Subject: Marketing/Commerce] International Journal of Vol. 3, Issue: 6, June: 2015
Research in Humanities & Social Sciences [I.F. = 0.352] ISSN:(P) 2347-5404 ISSN:(O)2320 771X
From the above chart, it can be observed that 80% respondents buy Samsung products because of its
brand name and the rest 20% do not just go by the brand name.

6. Samsung advertising
From the above chart, it can be observed that the
3% Samsung TV advertisements affect the respondents
more, TV(73.33%), Newspaper (4%), Magazine
T.V. (3.33%), Online (6.67%), Outdoor (10%), Radio
10%
7% Newspaper (0%) and Leaflets (3.33%).
3%
Magazine
4% 6.1 Perception of Samsung
Online
Outdoor 10% 7%
73%
10% Economical
Leaflets
Durable
Smooth product
73%
Safe product
From the above chart, it can be observed that
the respondents consider Samsung products as a
durable. Economical (7%), Durable (73%), Smooth product (10%) and Safe product (10%).

6.2 Overall experience with Samsung

From the above chart, it can be observed that 47% of
the respondents think that their overall experience
with Samsung is good. Outstanding (23%), Poor
7%
23% Poor (7%), Average (23%) and Good (47%).
23% Average
Good
47% Outstanding 23%
Yes
No
77%

6.3 Effect of endorser on the customer

From the above chart, it can be observed that
77% respondents buy Samsung products because their favourite celebrities endorse it. NO (23%), YES
(77%)

6.4 Availability of Samsung products

From the above chart it can be observed that 90%
respondents say that their Samsung product is available
in the retail stores near them. YES (90%), NO(10%).
10%

YES
7. Findings and Conclusion
7.1 Findings
NO Customers are loyal and appreciating the brand.
90% Samsung is enjoying a very good position against its
customers. It maintains a very good relationship with
the suppliers.
Samsung is financially strong and stable. The
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RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
 Priya Obhrai [Subject: Marketing/Commerce] International Journal of Vol. 3, Issue: 6, June: 2015
Research in Humanities & Social Sciences [I.F. = 0.352] ISSN:(P) 2347-5404 ISSN:(O)2320 771X
production processes and procedures of inventory management are consistent with the industrial
standards.
Samsung enjoys the widest range of product portfolio which includes mobile phones, tablets, TVs,
cameras, camcorders, home appliances, personal computers, printers and other accessories.
Chinese products focus on economies of scale and dump into Indian market for lesser cost. This
results in reduction of sales.
Samsung is a hardware leader but it has too much of dependence for software from other parties.
Online stores which sell a wide range of products are giving better deals as they dont incur cost in
distribution.
Samsung has wide variety of product lines; failure of one product line will have impact on the other
and will result in brand dilution.
Since India is a potential market, entry of foreign players is likely. Foreign players like Haier have
already started gaining market share in India in home appliances.

8. Conclusion
Although Samsung has captured the highest share in Indian Market, but the company had to face many
problems. For example- conflict with Apple. Apple blamed Samsung that it copied some of its features
and designs. This blame damaged the reputation of Samsung all over the world but still Samsung is a
favorite brand of Indian consumers whether we talk about consumer goods or smart phones. It means
despite of problems and blames, Samsung has positioned itself well in the minds of its consumers as a
quality brand.

9. Suggestions and Comments

After conducting the survey and knowing the market, I realize that:
Samsung should focus on further increasing its market share of its various products.
Samsung should work on constantly innovating its products in order to ensure that their sales dont
fall.
Samsung should work on maintaining and increasing international relationships with various
countries.
Samsung should get involved in more amd more partnerships and events like it did in the 2012
London Olympics.

References
1. "Marketing Strategy: From the Origin of the Concept to the Development of a Conceptual
Framework". Journal of Historical Research in Marketing.
2. articles.economictimes.indiatimes.com Collections
3. en.wikipedia.org- Wikipedia
4. heidicohen.com/marketing-definition/
5. Other data has been taken from the annual reports of Samsung of past few years.
6. The data for this project has been taken from the following websites
7. www.businessnewsdaily.com/sales-marketing/
8. www.marketingprofs.com/marketing/library/49/marketing-strategy
9. www.samsung.com/in- Samsung
10. www.samsung.com/in/aboutsamsung/samsungelectronics/india/index.html

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