“STUDY ON MARKETING OF SAMSUNG MOBILE PHONES ”

A Project submitted to

University of Mumbai for Partial Completion of the degree of

Master of Commerce

Submitted

By

Name: - Richa Khetan

Roll No.:- 27

Under the Project Guidance of

DR. MEGHA KHEDEKAR

GHANSHYAMDAS SARAF COLLEGE

MALAD – WEST, MUMBAI – 400064

M. COM. – II (MANAGEMENT) 2019 -20

 Certificate

This is to certify that Ms. Richa Khetan has worked and duly completed her project work for the degree of
Master in Commerce under the faculty of commerce in the subject of Management and her project is entitled,
“STUDY ON MARKETING OF SAMSUNG MOBILE PHONES” under my supervision.

I further certify that the entire work has been done by the leaner under my guidance and that no part of it has
been previously for any Degree or Diploma of any university.

It is her own work and facts reported by her personal findings and investigation.

Name &Signature of Guiding Teacher

Date of Submission
 DECLARATION BY LEARNER

I the undersigned Mis. Richa Khetan here by, declare that the work embodied in this project work titled
“STUDY ON MARKETING OF SAMSUNG MOBILE PHONES”, forms my own contribution to the
research work carried out under the guidance of DR. MEGHA KHEDEKAR is a result of my own research
has not been previously submitted to nay Degree or Diploma of an University.

Wherever reference has been made to previous works of others, it has been Cleary indicated as such and
included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in accordance
with academic rules and ethical conduct.

Name &Signature of the Learner

Certified by

Name &Signature of the Guiding Teacher

 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous, and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal Dr. Jayant Apte for providing the necessary facilities required for
completion of this project.

I take this opportunity to thank our Chief Coordinator Dr. Lipi Mukherjeeand Course Coordinator Dr.
Megha Khedekar for their moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Dr. Megha Khedekar whose
guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and magazines
related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my project.
 EXECUITVE SUMMARY

SAMSUNG is a company that has been steadily growing throughout the past decade. The
following report will help Samsung maintain the growth that has been enjoyed in the past, with a
strong emphasis on the growth of all consumer durable and mobile divisions. By analyzing
customers and what they want, strategies can be devised as to how SAMSUNG can increase their
share of the market. Furthermore, by comparing SAMSUNG‘S strength and weaknesses to that of
the competition, opportunities can be identified and capitalized on.

SAMSUNG entered into Indian market with its technically advanced home appliances. But
when it entered in an Indian market, it has to face very tough competition and still its facing
tough competition, but now it has gained the top position among different companies in India.
Not only Samsung has highest market share in home appliances, but also in Smartphone market,
SAMSUNG created its own marketing strategies and also defined their target market to
penetrate into Indian market. SAMSUNG aims to have more market share in Indian market.
India is a country having a major consumer in high and medium income, as the poverty level is
declining the major group with some purchasing ability. SAMSUNG India is now available
with a big target market. Already in the market major companies are available which is having a
trust among the consumer with respect to the quality, durability & price. The major competitors
in electronic consumer goods market are LG, Sony, and Panasonic etc. and in smartphone
market Apple, LG, Nokia, Blackberry, HTC etc. are the major competitors of SAMSUNG in
this project we try to find out some important things; the different kind of marketing strategies
of SAMSUNG in Indian market. Market strategy, Positioning strategy. Market Mix (product
strategy, price strategy , promotion strategy ). Financial, Innovation, Branding strategy etc.
Competitive advantage of SAMSUNG, SWOT analysis of analysis of SAMSUNG
 INDEX

SR.NO. TITLE PAGE NO.

➢
1 Chapter 1: - 1.1 Introduction to Mobile Industry 1

2 ➢ 1.2 Research Methodology

1.2.1 Sample Size
1.2.2 Objectives
4
1.2.3 Limitations
1.2.4 Scope
1.2.5 Data Collection

Research Hypothesis

3 ➢ Chapter 2: -2.1 Literature Review 6

Introduction to Samsung Mobile Phones

Chapter 3: Marketing Strategies
4 ➢
➢
3..2 Marketing Mix 14
16
➢ 3.3 SWOT Analysis
18
➢ 3.4 PESTLE Analysis
➢ 3.5 Segmentation, Targeting and 21
Positioning

➢ 3.6 Porters Five Forces Model 28

➢ 3.7 BCG Matrix 31
➢ 3.8 CSR Activities 35

5  Chapter 4: 4.1 Data 40

Analysis, Interpretation Presentation
 ➢
6 Chapter 5: Findings, Suggestion & 58
Conclusion

➢
7 Case Study 61

8 ➢ Appendix 68

9 ➢ Bibliography 71
 CHAPTER1 INTRODUCTION
1.1.1 INTRODUCTION TO MOBILE PHONES

A mobile phone (also known as a cellular phone, cell phone, hand phone, or simply a phone) is a phone that
can make and receive telephone calls over a radio link while moving around a wide geographic area. It does
so by connecting to cellular provided by a mobile phone operator, allowing access to the public telephone
network. By contrast, cordless is used only within the short range of a single, private base station.

In addition to telephony, modern mobile phones also support a wide variety of other services such as text
messaging, MMS, email Internet access, short-range wireless communications (infrared, Bluetooth),
business applications, gaming, and photography. Mobile phones that offer these and more general
computing capabilities are referred to as smartphones.

The first hand-held cell phone was demonstrated by John F. Mitchell and Martin Cooper of Motorola in
1973, using a handset weighing around 4.4 pounds (2 kg). In 1983, the DynaTAC 8000x was the first to be
commercially available. From 1983 to 2014, worldwide mobile phone subscriptions grew from zero to over
7 billion, penetrating 100% of the global population and reaching the bottom of the economic pyramid. In
2014, the top cell phone manufacturers were Samsung,Nokia, Apple, Samsung and LG.

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 A hand-held mobile radiotelephone is an old dream of radio engineering. In 1917, Finnish inventor Eric
Tigerstedt filed a patent for what he described as a "pocket-size folding telephone with a very thin carbon
microphone". Among other early descriptions is one found in the 1948 science fiction novel Space Cadet

by Robert Heinlein? The protagonist, who has just traveled to Colorado from his home in Iowa, receives a
call from his father on a telephone in his pocket. Before leaving for earth orbit, he decides to ship the
telephone home "since it was limited by its short range to the neighborhood of an earth-side [i.e.
terrestrial] relay office." Ten years later, an essay by Arthur C. Clarke envisioned a "personal
transceiver,So small and compact that every man carries one." Clarke wrote: "the time will come when we
will be able to call a person anywhere on Earth merely by dialing a number." Such a device would also, in
Clarke's vision, include means for global positioning so that "no one need ever again be lost." In his 1962
Profiles of the Future, he predicted the advent of such a device taking place in the mid-1980s

The Motorola DynaTAC 8000X. First commercially available, hand-held cellular mobile phone, 1984.
Early predecessors of cellular phones included analog radio communications from ships and trains. The
race to create truly portable telephone devices began after World War II, with developments taking place
in many countries. The advances in mobile telephony have been traced in successive generations from the
early "0G" (zeroth generation) services like the Bell System's Mobile Telephone Service and its successor,
Improved Mobile Telephone Service. These "0G" systems were not cellular, supported few simultaneous
calls, and were very expensive.

The first handheld mobile cell phone was demonstrated by Motorola in 1973. The first commercial
automated cellular network was launched in Japan by Nippon Telegraph and Telephone in 1979. In 1981,
this was followed by the simultaneous launch of the Nordic Mobile Telephone (NMT) system in Denmark,
Finland, Norway and Sweden. Several other countries then followed in the early to mid-1980s. These first

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 generation ("1G") systems could support far more simultaneous calls, but still used analog technology.

In 1991, the second generation (2G) digital cellular technology was launched in Finland by Radiolinja on
the GSM standard. This sparked competition in the sector as the new operators challenged the incumbent
1G network operators.

Ten years later, in 2001, the third generation (3G) was launched in Japan by NTT DoCoMo on the
WCDMA standard. This was followed by 3.5G, 3G+ or turbo 3G enhancements based on the high- speed
packet access (HSPA) family, allowing UMTS networks to have higher data transfer speeds and
Capacity.
By 2009, it had become clear that, at some point, 3G networks would be overwhelmed by the growth of
bandwidth-intensive applications like streaming media. Consequently, the industry began looking to data-
optimized fourth generation technologies, with the promise of speed improvements up to 10-fold over
existing 3G technologies. The first two commercially available technologies billed as 4G were the
WiMAX standard and the LTE standard, first offered in Scandinavia by TeliaSonera.

FEATURES OF A MOBILE PHONE

All mobile phones have a number of features in common, but manufacturers also seek product
differentiation by adding functions to make them more attractive to consumers. This has led to great
innovation in mobile phone development over the past 20 years.

The common components found on all phones are:

A battery, providing the power source for the phone functions.

An input mechanism to allow the user to interact with the phone. The most common input mechanism is
a keypad, but touch screens are also found in most smartphones.
A screen which echoes the user's typing, displays text messages, contacts and more.
Basic mobile phone services to allow users to make calls and send text messages.
All GSM phones use a SIM card to allow an account to be swapped among devices. Some CDMA devices
also have a similar card called a R-UIM.
Individual GSM, WCDMA, iDEN and some satellite phone devices are uniquely identified by an
International Mobile Equipment Identity (IMEI) number.
Low-end mobile phones are often referred to as feature phones, and offer basic telephony. Handsets with
more advanced computing ability through the use of native software applications became known as
smartphones.

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 1.2 RESEARCH METHODOLOGY

Research methodology is an essential part of every report. The field study was conducted to analyze the
market share and understand the brand image of Samsung. Research methodology is the scientific way to
solve research problem.

SAMPLE SIZE
The sample size of 100 respondents were taken.

OBJECTIVES
1. To study the promotional strategy and effect of Samsung phones on the country.
2. To find the extent of brand loyalty of consumers that exists among different of Samsung phones in the
country.
3. To study about the brand image of the company in the market.
4. To understand various marketing strategies adopted by the company.

LIMITATIONS
1. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The
environmental changes are vital to be considered in order to assimilate the findings.
2. Communication gap between the researcher and respondents was the major issue.
The availability of time to conduct the proper study on the project was limited.

SCOPE
The scope of the project is to study the product quality and growth of the company. It covers wide range
analysis of the company that kind of product quality services has been provided by the company, what are
the qualities of the product, what are the satisfaction level of the customer by the company, working and
promotional process of the company.
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 This study also shed lights on the various marketing schemes adopted by the company to attract the
customers and introduce the product.

This helps the researcher to know about the new technologies and growth rate of Samsung phones in the
country.

DATA COLLECTION
The data was collected by two methods of data collection

 Primary Data
 Secondary Data

PRIMARY DATA
Primary data is the firsthand data collected by the researcher. In this project the primary data was
collected through Questionnaire Survey method. It defines about what researcher has observed and
analyzed about the company.

SECONDARY DATA
Secondary data is the detailed study of the company and the information is collected through various
external sources. It provides with the accurate information of the company and its plans and policies. It is
collected from Case studies and various search engines like google, Wikipedia, etc.

“RESEARCH HYPOTHESIS”
There are several that are influencing brand loyalty of a Samsung mobiles. These include brand image,
perceived brand quality, customer satisfaction, brand experience and social media marketing.

H0: Marketing mix of Samsung is effective.

H1: Marketing mix of Samsung is not effective

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 CHAPTER2
LITERATURE REVIEW
Marketing comes in a advanced variety of flavors based on audience, and business in today‘s enlarge and
dynamic market place.
1) Kotler Keller: A successful marketing plan should be developed based on the customer‘s value,
creating, delivering, capturing and sustaining the customer value is important.
2) Drucker, 1973: this configuration is appropriate to develop a good marketing strategy we should know
company mission. The main trends which are already probable and to propose in which a new competitive
strategies can be fashioned to effort. What www.ijraset.com Volume 5 Issue VI, June 2017 IC Value:
ISSN: 2321-9653 International Journal for Research in Applied Science & Engineering Technology
(IJRASET) ©IJRASET: All Rights are Reserved 2262 our business is? Who are our customers? Value of
the customers and what should be the future of business.
3) Noble and Mokwa (1999) in this research work, the main drawback firms performance is that failure to
implement the formulated marketing strategies.
4) Hart (1992) the strategy reveals that conclusive reads of top managers and organizational members play
a very important role in strategy marketing. The common approaches important situation is few managers
control the strategy development.
5) Jain (1989) the suitability of marketing strategy would be strategy‘s impact on company‘s
performance.
6) Levitt (1983) The decision about marketing strategy depends on the goals of the organization, target
Market, an needs of the customers, company‘s performance depends on its marketing activities,
customers need should be concentrated rather than concentrating what they think.
7) Prasad .S in this study a customer attitude model was developed to know the attitudes ofcustomers
Indian young stars are very conscious about the Smartphone they choose.
8) Okazaki & Taylor (2010) A Survey was conducted among the senior executive of MNC‖s, to know the
factor that affected their decisions while adopting SMS based advertising, 55 senior executives were
surveyed, the findings suggest that brand building as a strongest and positive factor.

Perceive Brand Quality the perceive brand quality is measured from the seven-point liker scale
measurement that are adopted from (Aaker, 1991). These questionnaires were included to capture
quality for the influence of the brand to its customers. There are four questionnaires measured under
perceive brand quality.
• Samsung offers very durable products
• Samsung products are reliable
• Samsung offers products with excellent features
• Samsung offers phones with good quality.

Customer satisfaction
The measurement of customer satisfaction has been adopted from (Chi and Qu, 2008; Faullant et al.,
2008). A seven-point liker scale is used ranging from 'strongly disagree` to 'strong agree'. The overall

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 Satisfaction level, brand performance, consumer expectation is the main area of this part. It covers
five questionnaires numbered from five to nine.
• My expectation regarding Samsung performance is high
• I am satisfied using Samsung mobile experiences
• Overall Samsung meets my need and I am satisfied
• I am satisfied with the hardware and operational functionality of Samsung phones
• I am satisfied with the service provision of Samsung mobiles

Brand Image
A seven-point liker scale used to measure the dimension of brand image from the previous research of
(Keller, 2001). The questionnaires numbered from ten to thirteen are as follows.
• I think Samsung phones are fashionable and elegant.
• I think Samsung mobile is well- known and prestigious
• I think Samsung phone has a reputation for high quality
• I think Samsung is one of the top brands among Smartphone.

Brand Experience
The seven-point liker scale was adopted from the research of Brakus et al. (2009). The former author used
to measure automobile experience in their study. The experience measure is covered by the association of
feelings, cognition, sensations and behavioral responses of the consumer towards the brand. The
questionnaire numbered from (18-21) are as below.
• Using Samsung creates positive feelings and sentiments
• I find Samsung phones interesting in a sensory way
• I feel Samsung phones go with my way of life
• Because of Samsung phones, I feel I am part of a smart community

Brand loyalty
The questionnaires were adopted from the previous research of Dick & Bastu (1994) to measure the
dimensions in customer loyalty. The seven-point liker scale measurement is taken from Serkan & Gökhan
(2005). The following were the questionnaires from (18-21) that measures the brand loyalty for this part.
• I have favorable attitudes towards Samsung mobiles.
• I recommend Samsung phone towards my friends and family.
• Samsung is my first choice among smart phone.
• I consider loyal towards Samsung phones.

Social Media Marketing

A seven-point liker scale numbered from (22-24) is used for measuring the dimension on social media
marketing. The questions about engagement with brands on social media is measured Page 22

From literature review from (Mangold and Foulds, 2009), (Freidman, 2011) and (Brito, 2011). The
questionnaires are as follows.

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 • I believe social media plays important role in choosing a brand of smart phone.
• Samsung mobile is very popular among my friends and families in social networking sites like Facebook,
whose suggestion and feedback makes me loyal towards it.
• The content on the Samsung mobile page group, websites are up to date and attractive.

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 CHAPTER 3

3.1 INTRODUCTION OF SAMSUNG MOBILE PHONES

Samsung is a South Korean multinational conglomerate company headquartered in Samsung

Town, Seoul. It comprises numerous subsidiaries and affiliated businesses most of them united under
the Samsung brand, and is the largest South Korean chaebol (business conglomerate).
Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades, the
group diversified into areas including food processing, textiles, insurance, securities and retail. Samsung
entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the
mid-1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung was
separated into four business groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group.
Since 1990s, Samsung has increasingly globalized its activities and electronics, particularly mobile
phones and semiconductors, have become its most important source of income.
Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest information
technology company measured by 2012 revenues, and 4th in market value), Samsung Heavy
Industries (the world's 2nd-largest shipbuilder measured by 2010 revenues), and Samsung
Engineering and Samsung C&T(respectively the world's 13th and 36th-largest construction
companies). Other notable subsidiaries include Samsung Life Insurance (the world's 14th-largest life
insurance company), Samsung Everland (operator of Everland Resort, the oldest theme park in South
Korea) and Cheil Worldwide (the world's 15th-largest advertising agency measured by 2012 revenues).
Samsung has a powerful influence on South Korea's economic development, politics, media and culture
and has been a major driving force behind the "Miracle on the Han River". Its affiliate companies produce
around a fifth of South Korea's total exports. Samsung's revenue was equal to 17% of South Korea's
$1,082 billion GDP.

1938 to 1970

In 1938, Lee Byung-chull (1910–1987) of a large landowning family in the Uiryeong county moved to
nearby Daegu city. Samsung started out as a small trading company with forty employees located in Su-
dong (now Ingyo-dong). It dealt in locally-grown groceries and made noodles. The company prospered and
Lee moved its head office to Seoul in 1947. When the Korean War broke out, he was forced to leave Seoul.

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 He started a sugar refinery in Busan named Cheil Jedang. In 1954, Lee founded Cheil Mojik and built the
plant in Chimsan-dong, Daegu. It was the largest woollen mill ever in the country.

Samsung diversified into many different areas. Lee sought to establish Samsung as leader in a wide range
of industries. Samsung moved into lines of business such as insurance, securities and retail. President Park
Chung Heeplaced great importance on industrialization. He focused his economic development strategy on
a handful of large domestic conglomerates, protecting them from competition and assisting them
financially.

In 1947, Cho Hong-jai, the Hyosung group's founder, jointly invested in a new company called Samsung
Mulsan Gongsa, or the Samsung Trading Corporation, with the Samsung's founder Lee Byung-chull. The
trading firm grew to become the present-day Samsung C&T Corporation. After a few years, Cho and Lee
separated due to differences in management style. Cho wanted a 30 equity share. Samsung Group was
separated into Samsung Group and HyosungGroup, Hankook Tire and other businesses.

In the late 1960s, Samsung Group entered the electronics industry. It formed several electronics-related
divisions, such as Samsung Electronics Devices, Samsung Electro-Mechanics, Samsung Corning and
Samsung Semiconductor & Telecommunications, and made the facility in Suwon. Its first product was a
black-and-white television set.

1970 to 1990

In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered telecommunications
hardware. Its early products were switchboards. The facility was developed into the telephone and fax
manufacturing systems and became the center of Samsung's mobile phone manufacturing. They have
produced over 800 million mobile phones to date. The company grouped them together under Samsung
Electronics in the 1980s.

After Lee, the founder's death in 1987, Samsung Group was separated into four business groups—Samsung
Group,Shinsegae Group, CJ Group and the Hansol Group. Shinsegae (discount store, department store)
was originally part of Samsung Group, separated in the 1990s from the Samsung Group along with CJ
Group (Food/Chemicals/Entertainment/logistics), and the Hansol Group (Paper/Telecom). Today these
separated groups are independent and they are not part of or connected to the Samsung Group. One Hansol
Group representative said, "Only people ignorant of the laws governing the business world could believe

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 something so absurd", adding, "When Hansol separated from the Samsung Group in 1991, it severed all
payment guarantees and share-holding ties with Samsung affiliates." One Hansol Group source asserted,
"Hansol, Shinsegae, and CJ have been under independent management since their respective separations

From the Samsung Group". One Shinsegae department store executive director said, "Shinsegae has no
payment guarantees associated with the Samsung Group".

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 In 1980s, Samsung Electronics began to invest heavily in research and development, investments that were
pivotal in pushing the company to the forefront of the global electronics industry. In 1982, it built a
television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in Tokyo; in 1987, a
facility in England; and another facility in Austin, Texas, in 1996. As of 2012, Samsung has invested more
than US$13,000,000,000 in the Austin facility, which operates under the name Samsung Austin
Semiconductor. This makes the Austin location the largest foreign investment in Texas and one of the
largest single foreign investments in the United States.

1990 to 2000

Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch was
awarded contracts to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the
Burj Khalifa in United Arab Emirates. In 1993, Lee Kun-hee sold off ten of Samsung Group's
subsidiaries, downsized the company, and merged other operations to concentrate on three industries:
electronics, engineering and chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan
University foundation.

Samsung became the world's largest producer of me+mory chips in 1992 and is the world's second-largest
chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year). In
1995, it created its first liquid-crystal display screen. Ten years later, Samsung grew to be the world's largest
manufacturer of liquid-crystal display panels. Sony, which had not invested in large-size TFT-LCDs,
contacted Samsung to cooperate, and, in 2006, S-LCDwas established as a joint venture between Samsung
and Sony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD was owned by
Samsung (50% plus one share) and Sony (50% minus one share) and operates its factories and facilities in
Tangjung, South Korea. As of December 26, 2011, it was announced that Samsung had acquired the stake

of Sony in this joint venture.[27]

Compared to other major Korean companies, Samsung survived the 1997 Asian financial crisis relatively
unharmed. However, Samsung Motor was sold to Renault at a significant loss. As of 2010, Renault
Samsung is 80.1 percent owned by Renault and 19.9 percent owned by Samsung. Additionally, Samsung
manufactured a range of aircraft from the 1980s to 1990s. The company was founded in 1999 as Korea
Aerospace Industries (KAI), the result of merger between then three domestic major aerospace divisions of
Samsung Aerospace, Daewoo Heavy Industries and Hyundai Space and Aircraft Company. However,
Samsung still manufactures aircraft engines and gas turbines.

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 In 2000, Samsung opened a computer programming laboratory in Warsaw, Poland. Its work began with set-
top-box technology before moving into digital TV and smartphones. As of 2011, the Warsaw base is
Samsung's most important R&D center in Europe, forecast to be recruiting 400 new hires per year by the
end of 2013.

In December 2011, Samsung Electronics sold its hard disk drive business to Seagate.

In first quarter of 2012, Samsung Electronics became the world's largest mobile phone maker by unit sales,
overtaking Nokia, which had been the market leader since 1998. On 21 August's edition of the Austin
American-Statesman, Samsung confirmed plans to spend 3 to 4 billion dollars converting half of its Austin
chip manufacturing plant to a more profitable chip. The conversion should start in early 2013 with
production online by the end of 2013. On 14 March 2013, Samsung unveiled the Galaxy S4.

On August 24, 2012, nine American jurors ruled that Samsung had to pay Apple $1.05 billion in damages
for violating six of its patents on smartphone technology. The award was still less than the $2.5 billion
requested by Apple. The decision also ruled that Apple did not violate five Samsung patents cited in the
case. Samsung decried the decision saying that the move could harm innovation in the sector. It also
followed a South Korean ruling stating that both companies were guilty of infringing on each other's
intellectual property. In first trading after the ruling, Samsung shares on the Kospi index fell 7.7%, the
largest fall since 24 October 2008, to 1,177,000Korean won. Apple then sought to ban the sales of eight
Samsung phones (Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2
Epic 4G, Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the United States which has been denied
by the court.

On September 4, 2012, Samsung announced that it plans to examine all of its Chinese suppliers for possible
violations of labor policies. The company said it will carry out audits of 250 Chinese companies that are its
exclusive suppliers to see if children under the age of 16 are being used in their factories.

In 2013, a New Zealand news outlet reported a number of Samsung washing machines spontaneously
catching on fire. The corporation is expected to spend $14 billion on advertising and marketing in 2013,
with publicity appearing in TV and cinema ads, on billboards and at sports and arts events. In November
2013, the corporation was valued at $227 billion.

In May 2014, Samsung announced it will be shutting down its streaming service on 1 July 2014, also
meaning the end of the Samsung Music Hub app that typically comes installed on its Android phones.

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 In October 2014, Samsung announced a $14.7 billion investment to build a chip plant in South Korea.
Construction will begin next year with production beginning in 2017. The company has not yet decided the
type of chips to be produced.

Samsung plans to launch a new set of services beginning early 2015. The goal of this new suite of business
offerings, dubbed Samsung 360 Services, is to become a help desk of sorts for businesses IT departments.
The customizable services range from technical support to security solutions for having a Samsung
employee embedded in a client's business as an on-site support manager or technology consultant.

On December 2, 2014, Samsung announced it will sell Fiber Optics to U.S. speciality glass manufacturer
Corning Inc.

Samsung Electronics Inc. is expanding in Silicon Valley with a $300 million facility in San Jose, California.
The 10-story complex will include 1.1 million square feet of floor space, a clean room for semiconductors
and a "fitness center in the sky". The facility will be split between semiconductor research and development
and other sales and marketing functions. It will serve as the North America headquarters for semiconductor
operations.

In 2015, Samsung has been granted more U.S. patents than any other company - including IBM, Google,
Sony, Microsoft and Apple. The company received 7,679 utility patents through Dec. 11.

2016

In January 2016, Samsung announced it will be working with Microsoft to develop IoT devices based on
Windows 10, where the companies will work together to develop products that will run on the platform, as
well as integrate with other companies developing hardware and services on Microsoft's OS.

Samsung released a fitness smart watch called the Gear Fit 2 and a brand of wireless ear buds called Gear
Icon X.

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 3.2 MARKETING STRATEGY MARKETING MIX

Samsung has a vast product portfolio and its presence is in several different product categories. The
brand image driver for Samsung are the Samsung Smartphone‘s such as the Samsung note series or the
Samsung galaxy series.

PRODUCT IN THE MARKETING MIX OF SAMSUNG

1) Tablets
2) Mobile phones – Smart phones, normal phones,
3) Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV etc
4) Cameras and Camcorders
5) Refrigerators
6) Air conditioners
7) Washing machine
8) Microwave ovens
9) IT – Laptops, printers and accessories

The benefit of Samsung in terms of its product is that there is a trust on all Samsung products because of
the way Samsung products have performed in the last few years. Problems with the products has been
negligible. And with its Smart phones, Samsung has achieved a status symbol for its customers. At the same
time, Samsung is known for its service and people know that Samsung gives a very fast service for any of
Its product. Thus in the marketing mix of Samsung, the product portfolio is one of the strongest point for
Samsung.

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 PRICE IN THE MARKETING MIX OF SAMSUNG

Because of its presence in different product categories, Samsung uses various pricing strategies. We can
divide the pricing strategies and match it with the products that it is used for.
Skimming price – Samsung‘s smart phones are one of the best in the market and are the market leader in
terms of the features and USP‘s that they provide. The recent Samsung Note 3 + Gear is another entrant in
the market which is catching people‘s eyes. Thus, Samsung uses Skimming price for these products
wherein it tries to get a high value in the start before competitors catch up. Once the model is old or any
competitor has launched a similar product, Samsung immediately drops the price.

PLACE MIX IN THE MARKETING MIX OF SAMSUNG

Samsung is present through various channels in the market. It works on the channel marketing concept
wherein there are segments. Sales and service dealers, Modern retails and Distributors. The sales and
services dealers handle key accounts for Samsung and are involved in corporate sales. The dealer may also
open exclusive Samsung showrooms. The Modern retail segment includes large retailers like
Croma,Hypercity,Vijay Sales,Vivek‘s and any other who are present in the modern electronic retail chain.
Samsung being such a branded product, the retailers are bound to keep Samsung as an alternative for their
customers.
The distribution network is the most interesting in the case of Samsung. In several cities, Samsung has a
single distributor through whom they distribute throughout a territory.
For example – In Mumbai, Samsung has SSK distributors who are the distributors of all the Samsung
products.

PROMOTION IN THE MARKETING MIX OF SAMSUNG

Samsung uses multiple forms of promotions. Samsung as a company believes in pulling the customers to
themselves through advertising but at the same time uses strong tactics to push the products to the

Customer through sales promotions. Thus, on the other hand, Samsung uses various marketing vehicles
across the year covering festive season as well as non-festive time, also it gives many offers and discounts
to its trade partners to motivate them to sell Samsung above competition. With such strategy, Samsung‘s
brand is on the rise so that the pull and the push both the strategy is working simultaneously in Samsung
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 3.3 SWOT ANALYSIS

Strength in the SWOT analysis of Samsung.

Samsung enjoys the widest range of product portfolio which includes Mobile phone, Tablet,
Audio/TV/Video, camera, Camcorder, Home appliance, pc, peripherals, Printer, memory cards and
other accessories.
Samsung holds significant market shares in most of the product categories.
Samsung is NO. 2 in terms of market share in mobiles, it captured Nokia‘s market share by superior
innovations in smart phones.
Samsung is the best in design features and technology. It was the first to introduce dual screen mobiles,
65k TFT/LCD color phones, first phone with polyphonic ringtones, phones with rotating lens, thinnest
and lightest notepad etc.
Samsung enjoys the first mover advantage in terms of introducing advance features in LCD, refrigerator,
Air conditioner etc. It introduce the world‘s smallest MP3 player and India‘s first 17‖ TFT-LCD-TV
monitor.
Samsung took advantage of the growing economy of Asian market by setting up manufacturing plant
in India their by reducing logistics and supply chain costs.
Samsung brand value increase by 80% in past 3 yrs.

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 Weakness in the SWOT analysis of Samsung.
Samsung mobile launched a series of smartphones recently which led to cannibalization.
The demand for LCD panel is expected to decline in the future.
Still Nokia is considered to be the most preferred product in India in terms of ease of use,
reliability and resale value. Chinese products focus on economies of scales and dump
into Indians market for lesser costs. This results in reduction of sales.
Samsung is a hardware leader but has too much of dependence for software from other parties.
Online stores which sell a wide range of products and giving better deals as they don‘t incur cost
and distribution channel.

Opportunity in the SWOT analysis of Samsung.

Samsung is planning to make the Air condition product category more strong with unique
technology called ‗Triple Protection Preposition‘
Samsun is the India‘s official ‗Olympic Partner‘ for the 2012 London Olympic and recently
Launched ‗Olympic Ratna Program‘. This will result enhance brand awareness and increase thesales
Samsung Mobile and Home appliances has future plan of launching customized products for Indian
market.
The Indian youth population is growing and mobile phone sale is expected to increase due to
lesser call rates
Its financial position is strong and there is a scope of entering into unrelated diversification.

Threats in the SWOT analysis of Samsung.

Samsung has wide variety of product lines failures of one product line will have impact on the other
and will result in brand dilution.
The competitors like Nokia are focused only in one segment.
Since India is a potential market, entry of foreign players is likely high. Foreign players like Haier
have already started gaining market shares in India in home appliance.
Threats from Chinese products.
Retails chains like Big Bazar sell consumer electronics and home appliance in low cost strategy which
are procured in bulks from foreign market.

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 3.4 PESTLE ANALYSIS

Samsung is a global conglomerate that operates in the ―White Goods‖ market or the market for consumer
appliances and gadgets. The company that is a South Korean family owned business has global aspirations
and as the recent expansion into newer markets has shown, Samsung is not content with operating in some
markets in the world but instead, wants to cover as many countries as possible. Therefore, the focus of this
article is on the external environmental drivers of Samsung‘s strategy.

Political

In most of the markets where Samsung operates, the political environment is conducive to its operations
and though there are minor irritants in some of the foreign markets like India, overall Samsung can be said
to be operating in markets where the political factors are benign. However, in recent months, it has faced
significant political headwinds in its home country of South Korea because of the country‘s tensions with
North Korea wherein the company has had to take into account not only the political instability but also
the threat of war breaking out in the Korean Peninsula. Apart from this, Samsung faces political pressures
in many African and Latin American countries where the political environment is unstable and prone to
frequent changes in the governing structures. Of course, this is not yet a major cause for worry as the
company has more or less factored the political instability into its strategic calculations.

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 Economic

This dimension is especially critical for Samsung, as the opening up of many markets in the developing
world has meant that the company can expand its global footprint. However, this dimension is also a worry
since the ongoing global economic crisis has severely dented the purchasing power of consumers in many
developed markets forcing Samsung to seek profitable ventures in the emerging markets. The key point to
note here is that the macroeconomic environment in which Samsung operates globally is beset with
uncertainty and volatility leading to the company having had to reorient its strategies accordingly. The
saving grace for the company is that it has adjusted rather well to the tapering off of the consumer disposable
incomes in the developed world by expanding into the emerging and the developing markets. Indeed, this
is the reason Samsung has begun an aggressive push into the emerging markets in the hope of making up
for lost business from the developed world.

Socio-Cultural

Samsung is primarily a South Korean Chaebol or a family owned multinational. This means that despite its
global footprint it still operates from the core as a Korean company. Therefore, there are several aspects to
its global operations some of which include adapting itself to the local conditions. In other words, Samsung
being a Global company has had to act locally meaning that it has had to adopt a Glocal strategy in many
emerging markets. Apart from this, Samsung has had to tailor its products to the fast changing consumer
preferences in the various markets where it operates. The key point to note here is that Samsung operates
in a market niche that is strongly influenced by the lifestyle preferences of consumers and given the fact
that socio cultural factors are different in each country; it has had to reorient itself in each market
accordingly.

Technological

Samsung can be considered as being among the world‘s leading innovative companies. This means that the
company is at an advantage as far as harnessing the power of technology and driving innovation for
sustainable business advantage is concerned. This has translated into an obsessive mission by the company
to be ahead of the technological and innovation curve and a vision to dominate its rivals and competitors as
far being the first to reach the market with its latest products is concerned. However, as we shall discuss

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 later, this has also resulted in the company cutting corners with its imitation of the legendary Apple‘s
Product design and this has brought legal and regulatory scrutiny and troubles for the company. There is a
lesson here for other technology driven companies from Samsung‘s experiences and it is that no matter how
fast you are to reach the consumer in this age of Big Bang Disruption, doing the basics right is still the key
to success.

Legal

As mentioned in the last section, Samsung has had to face heavy penalties for its alleged imitation of the
Apple‘s iPad and iPhone and this has led to the company taking a beating as far as public perceptions and
consumer approval of its strategies are concerned. It remains to be seen as to how the company would
wriggle out of the legal maze that it finds itself in the developed markets because of the various lawsuits.

Environmental

With the rise of the ethical consumer who wants his or her brands to source and make the products in a
socially and environmentally responsible manner, Samsung has to be aware of the need to make its products
to satiate the ethical chic consumer. This means that it has to ensure that it does not compromise on the
working conditions or the wages it pays to its labor who are engaged in making the final product.

Conclusion

The preceding analysis clearly indicates that Samsung has its task cut out for itself as it navigates the
treacherous global consumer market landmine. Indeed, as the company prepares to expand its global
footprint, the stakes could not have been higher in a recessionary era and an uber competitive technological
market landscape.

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 3.5 STP OF THE COMPANY
[SEGMENTATION, TARGETING & POSITIONING]

SEGMENTATION

Market segmentation is a marketing strategy which involves dividing a broad target market into subsets of
consumers, businesses or countries who have, or are perceived to have, common needs, interests, and
priorities, and then designing and implementing strategies to target them.

Market-segmentation research has the power to identify the target consumers an organization should
priorities and target. Market Segmentation can be achieved with 5 steps focusing on the core elements of
the segmentation.

Step 1: Define your target market, trends and scope of segmentation.

It is important to target the target market for the product being sold as consumers that are not within the
target market are variables that do not provide any useful information for your organization. It is important
to try and comprehend why the customer is within this specific segment. What are their goals or purpose
for being within this market? What are they likely to be chasing within this segment?

By uncovering what the consumers need is the organization can look to satisfy this need and by doing so
better position themselves to approach this market segment. Identifying other products that match the needs
of your consumer is important as well as they will need to be evaluated and analyzed because of the threat
they pose to your specific target market.

It is crucial to ensure that as you are understanding the target segment that you are also adjusting your
company scope in order to match it with your company objectives and capabilities. If the organization is
not satisfying the consumer need it has identified it will likely fail as consumer needs will not be met.

By specifying geographical li

mitations, organizations can create a scope that is applicable in their specific domestic position.
Organizations should work to segment areas that are within its areas of operating capability as segmenting
areas that aren‘t realistically available represents opportunities that will be able to be utilized either way.

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 Step 2: Perceptual Mapping and Market Mapping

―A market map defines the distribution and value added chain between final users and suppliers which takes
into account the various buying mechanisms found in a market, including the part played by ‗influencers‘‖.
(McDonald, M., Dunbar, I. 2012). Market Mapping is essential to correctly determine the specific market
that should be analyzed and the people who should be segmented. This model aids the identification of
target consumers from Suppliers, Distributors, Retailers and Final Users. This includes the high potential
market segments and what the size of it is.

Perceptual mapping is especially important as it creates a visual diagram of the range of products being
offered within a segment. Traditionally the perceptual map will consist of 4 headings; the basic elements of
this map includes Low or High Quality and Low or High Price but these can be changed and altered based
on specific product attributes e.g. A soft drink producer may want to evaluate a perceptual map including
traits such as High or Low in Caffeine and High or low in Sugar in their specific market segment. Different
segments will have different traits and attributes that will need to be evaluated to determine where an
organization will position themselves. ‗Conceptualizing market segmentation as per formative enhances
knowledge of how marketing frameworks shape marketing‘ (Venter, P., Wright, A., Dibb, S. 2015).

By divulging where competitors are positioned within the market map it is possible to see attractive
segments of the market that may be worthwhile occupying. This is where you can begin to form an idea of
where you will be able to hit the market as you can see which areas of the market are left untouched or not
utilized to its maximum potential.

Step 3: Construct a Model of the market.

A market is composed of customers who have spending trends that are different from those of other people.
It is important to identify these trends and how they come into play within your market model. Transactions
made can offer a lot of information about the consumer and it is important that this information is utilized
in order to gain the greatest knowledgeable advantage available to your organization. ―It requires you to
record the key features sought by the market when deciding between competing offers. These are selected
from the actual product and services on offer (what is bought) and from the options presented by where it

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 can be bought when it is bought and how‖. (McDonald, M., Dunbar, I. 2012).

It also includes definitions of the product or service: what it comprises or consists of. By identifying
characteristics and properties of a purchase as well as decisions which are made at the time of purchase,
organizations can more accurately gauge the personalities and needs of their consumers.

By identifying these aspects of consumers, consumers will be able to be placed into separate categories or
groups which are easily identifiable (relative to the organization). Consumers which are in categories
become easier to satisfy as it is easier to establish their needs. Wealth, Age, Life Stage, and Budget,
Socioeconomic factors, background & job are all relative factors that need to be considered when
categorizing populations into groups (Evans, M. 2009). It is important to micro segment these consumers
into categories which fit with the organizational scope as these details are significant to the organization.
It is imperative to note that when looking through relative factors, organizations should look to find Key
Discriminating Features within these factors to identify which factors will be important for making
meaningful differences. ―A meaningful difference occurs when some of the customers within a group would
not respond positively to an offer consisting of the key discriminating features listed for them.‖
(McDonald, M., Dunbar, I. 2012). Appropriate segments can then be targeted to place differing levels of
interest amongst features the product has to offer. Segments can be rated to signify how well a specific
feature will perform within that segment.

Developing a good range of micro segments is essential as it must be representative of the current market.
Once completed this transactional information can assist decision making on selected a micro segment that
is fitting for the organizational scope and purpose.

Step 4: Identifying Segments

Consumers at this stage can be examined and observed to reveal key information that drives their
consumerism. After selecting attractive micro segments it is important to think about the Key discriminating
features for these segments. What needs need to be fulfilled? This question is imperative to selecting the
right segment as the need of the customer is reflected in their Decisive Buying Criteria. ―Decisive buying
criteria are the attributes of a purchase that customers evaluate when choosing between alternative offers‖.
(McDonald, M., Dunbar, I. 2012)

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 Features of the product must relate to some sort of benefit for the consumer e.g. a feature of a remote
controller is the ‗off‘ switch. By switching off the device using a controller instead of manually doing it,
time is saved thus resulting in a benefit.

Once consumer needs and benefits have been thoroughly analyzed and understood, the value the
consumer perceives can be generated and from this prices can be established and value can be assigned to
the features of the product. By having a value assigned with key features for particular segments, needs,
prices and benefits can be more readily and easily calculated thus allowing for a more accurate market
segment analysis. Once the appropriate markets have been analyzed and compared, appropriate segments
will be identifiable for the organization to pursue.

Step 5: Segmenting

Similar micro segments can be grouped as bigger segments if they satisfy the same need, segments must be
comprised of only features that are the almost the same or extremelysimilar.

Consumers can now be grouped via their characteristics to form a ‗segment‘. These characteristics include
all information that was obtained during steps 1-4 to create specific segments of consumers that all have the
same kind of needs, wants, and benefits received from the specific product within their segment.

Analyzing competitor intensity within segments and finding attractive segments for your particular product
is crucial to business success because of how competitors may be positioned themselves inside the market.
By ensuring that the organization is within the correct segment, success levels become higher as companies

are more likely to effectively meet consumer demands within the specified segment and in turn make a
higher amount of profit. It is critical that segments are the correct size for the companies‘ capabilities as
segments that are too big or too little will most likely yield negative results.

Once all segments are sorted into their respective groups organizations can have a clear look at the
amount of individuals within each formed group and their specific decisive buying criteria and can begin
to make an informed decision on which segment to pursue.

Selecting segments based on Attractiveness

Identifying key segments relevant to your organization.

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 It is important to define the specific criteria that your organization is searching for within consumers in
order to determine how attractive specific segments are for your organization. Each Segment contains
different types of consumers with different needs so it is crucial that your organization chooses the correct
segment that aligns itself with organizational criteria. By choosing the right segment for organization
criteria, company goals and segments align allowing for a higher chance of success within that segment.
―An overall attractiveness score is then calculated for each concluding segment based on how well each of
them satisfies your company requirements‖. (McDonald, M. 2008). At this point attractive segments are
now clearly visible and by choosing a segment that is fitting for an organization we can guarantee a higher
success rate for the specified product.

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 TARGETING

After segmenting the market based on the different groups and classes, you will need to choose your targets.
No one strategy will suit all consumer groups, so being able to develop specific strategies for your target
markets is very important.

Targeting is a follow on process from segmentation, and is the process of actually determining the select

markets and planning the advertising media used to make the segment appealing. [ Targeting is a changing
environment. Traditional targeting practices of advertising through print and other media sources, has made
way for a social media presence, leading a much more ‗web-connected‘ focus. Behavioral targeting is a
product of this change, and focuses on the optimization of online advertising and data collection to send a
message to potential segments. This process is based around the collection of ‗cookies‘, small pieces of
information collected by a consumer‘s browser and sold to businesses to identify potential segments to
appeal to. For example, someone consistently accessing photography based searches is likely to have
advertisements for camera sales appear, due to the cookie information they deliver showing an interest in
this area. Whilst targeting a market, there are three different market coverage choices to consider -
undifferentiated, differentiated and niche marketing. Choosing which targeting choice to pursue depends
on the product or service being offered. Undifferentiated marketing is the best option to focus on the market
as a whole and to promote products that have a wide target segment, whilst differentiated and niche
marketing are more specialized and focus on smaller, more selective segments.

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 POSITIONING

Positioning is about the customer perception about the brand as being different from the other brands on
specific dimension including product attributes. Positioning us the final stage in the ‗STP‘ process and
focuses on how the customer ultimately views your product or service in comparison to your competitors
and is important in gaining a competitive advantage in the market. Therefore, customer perceptions have a
huge impact on the brands positioning in the market. There are three types of positioning that are key in
positioning the brand to a competitive advantage; these are Functional Positioning, Symbolic Positioning,
and experiential positioning. Functional Positioning is focused on the aspects of the products or services
that can fulfill consumers‘ needs or desires. Symbolic Positioning is based on the characteristics of the
brand that fulfill customers‘ self-esteem. Experiential positioning is based around the characteristics of the
brands that stimulate the sensory or emotional connection with the customers. A combination of the three

is key to positioning the brand at a competitive advantage to its immediate competition. ] Overall,
positioning should provide better value than competitors and communicate this differentiation in an
effective way to the consumer.

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 3.6 PORTER’S FIVE FORCE MODEL ANALYSIS

Porter five forces analysis is a framework to

Aanalyze the level of competition within an industry and business strategy development. It draws upon
industrial organization (IO) economics to derive five forces that determine the competitive intensity and
therefore attractiveness of an Industry. Attractiveness in this context refers to the overall industry
profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive
down overall profitability. A very unattractive industry would be one approaching "pure competition", in
which available profits for all firms are driven to normal profit. This analysis is associated with its
principal innovator Michael E. Porter of Harvard University.

Porter referred to these forces as the micro environment, to contrast it with the more general term macro
environment. They consist of those forces close to a company that affect its ability to serve its customers
and make a profit. A change in any of the forces normally requires a business unit to re-assess
the marketplace given the overall change in industry information. The overall industry attractiveness does
not imply that every firm in the industry will return the same profitability. Firms are able to apply their core
competencies, business model or network to achieve a profit above the industry average.

The porter‘s five force model for Samsung Company are explained

below Introduction

Porter‘s Five Forces methodology is used in this article to analyze the business strategies of white goods
makers like Samsung. This tool is a handy method to assess how each of the market drivers impact the
companies like Samsung and then based on the analysis, suitable business strategies can be devised. Further,
companies like Samsung are known to study the markets they want to approach thoroughly and deeply
before they make a move and it is in this perspective that this analysis is undertaken.

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 Industry Rivalry

This element is especially significant for Samsung as the other White Goods multinationals like LG, Nokia,
and Motorola not to mention Apple as they are engaged in fierce competitive rivalry. Indeed, Samsung
cannot take its position in the market for granted as all these and other domestic white goods players operate
in a market where margins are tight and the competition is intense. Apart from this, Samsung faces the
equivalent of the ―Cola Wars‖ (the legendary fight for dominance between Coke and Pepsi) in emerging
markets like India where Samsung has to contend and compete with a multitude of players domestic and
global. This has made the impact of this dimension especially strong for Samsung.

Barriers to Entry and Exit

The White Goods industry is characterized by high barriers to entry and low barriers to exit especially where
global conglomerates like Samsung are concerned. Indeed, it is often very difficult to enter emerging
markets because a host of factors have to be taken into consideration such as setting up the distribution
network and the supply chain. However, global conglomerates can exit the emerging markets easily as all
it takes is to handover and sell the business to a domestic or a foreign player in the case of declining or
falling sales. This means that Samsung has entered many emerging markets through a step-by-step approach
and has also exited the markets that have been found to be unprofitable. This is the reason why white goods
multinationals like Samsung often do their due diligence before entering emerging markets.

Power of Buyers

The power of buyers for white goods makers like Samsung is somewhat of a mixed bag where though the
buyers have a multitude of options to choose from and at the same time have to stick with the product since
they cannot just dump the product, as it is a high value item. Further, the buyers would have to necessarily
approach the companies for after sales service and for spare parts. Of course, this does not mean that the
buyers are at the mercy of the companies. Far from that, they do have power over the companies, as most
emerging market consumers are known to be finicky when deciding on the product to buy and explore all
the options before reaching a decision. This means that both the buyers and the companies need each other
just like the suppliers and the companies, as we shall discuss next.

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 Power of Suppliers

In many markets in which Samsung operates, there are many suppliers who are willing to offer their services
at a discount since the ancillary sectors are very deep. However, this does not mean that the companiescan
exert undue force over the suppliers as once the supply chain is established; it takes a lot to undo it and
build a new supply chain afresh. This is the reason why white goods makers like Samsung invariably study
the markets before setting up shop and also take the help of consultancies in arriving at their decision.

Threat of Substitutes
This element is indeed high as the markets for white goods are flooded with many substitutes and given the
fact that consumer durables are often longer term purchases, companies like Samsung have to be careful in
deciding on the appropriate marketing strategy. This is also the reason why many multinationals like
Samsung often adopt differential pricing so as to attract consumers from across the income pyramid to wean
them away from cheaper substitutes. Further, this element also means that many emerging market
consumers are yet to deepen their dependence on white goods and instead, prefer to the traditional forms of
housework wherein they rely less on gadgets and appliances. However, this is rapidly changing as more
women enter the workforce in these markets making it necessary for them to use gadgets and appliances.

Stakeholders

This is an added element for analysis as the increasing concern over social and environmentally conscious
business practices means that companies like Samsung have to be careful in how they do business as well
as project themselves to the consumers. For instance, white goods makers are known to decide after due
deliberation on everything from choosing their brand ambassadors to publicizing their CSR (Corporate
Social Responsibility) initiatives.

Conclusion

We can now conclude this analysis with the theme that as the global economy integrates and more emerging
markets open up, companies like Samsung are at an advantage because they have already established
themselves in many markets. However, it must also be noted that each market is unique and hence, Samsung
must not adopt a one size fits all strategy and instead, must approach each market differently. In conclusion,
Samsung can take pride from the fact that being an Chinese conglomerate, it has managed to break into and
hold its own against many other multinationals that have been in this business for decades

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 3.7 BCG MATRIX

BCG analysis is mainly used for Multi Category / Multi Product companies. All categories and products
together are said to be Business portfolio. Thus, the various entities of your business portfolio may move
forward by a different pace and with a different strategy. The BCG analysis actually helps you in deciding
which entities in your business portfolio are actually profitable, which are duds, which you should
concentrate on and which gives you competitiveover others.
Once you know which businesses stand where in your business portfolio, you also come to know which
businesses need investments, which needs harvesting (making money), which needs divesting (reducing
investment) and which needs to be completely taken out of the business portfolio. For a major organization
like HUL, ITC etc which have multiple categories and within the categories, they have multiple lines of
products, the BCG analysis becomes very important. At a holistic level, they get to make a decision on
which product to continue and which product to be divested. Which product can give new returns with good
investment, and which products are reaching the apex of market share.

BCG Growth Share Matrix – The BCG growth share matrix was developed by Henderson of the BCG
group in 1970‘s. The matrix classifies businesses / SBU‘s by
1) Relative Market Share – The market share of the business / SBU / Product in the market as compared to
its competitors and overall product / category.
2) Market growth rate – The growth rate of the industry as a whole is taken into consideration from which
the growth rate of the product is extrapolated. This growth rate is then pitched on the graph.
Thus by having 2 basic but at the same time very important factors on X axis and Y axis, the BCG matrix
makes sure that the classifications are concrete. Calculating the Market growth rate comprises of both
industry growth and product growth rate thereby giving a fair knowledge of where the product / SBU stands
in comparison to the Industry. The market share on the other hand comprises of the competition and the
product potential in the market. Thus when we consider growth rate and market share together, it
automatically gives us an overview of the competition and the industry standards as well as an idea of what

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 the future might bring for the product.
Once the businesses have been classified, they are placed into four different quadrants of the matrix. The
quadrants of the matrix are divided into
1) Cash Cows – High market share but low growth rate (most profitable).
2) Stars – High market share and High growth rate (high competition)
3) Question marks – Low market share and high growth rate (uncertainty)
4) Dogs – Low market share and low growth rate (less profitable or may even be negative profitability)
On the basis of this classification, strategies are decided for each SBU / Product. Lets discuss the
characteristics and strategies of each quadrant in detail.

1) Cash Cows in the BCG MATRIX

The cornerstone of any multi product business, cash cows are products which are having a high market
share in a low growing market. As the market is not growing, that cash cow gains the maximum advantage
by generating maximum revenue due to its high market share. Thus for any company, the cash cows are the
ones which require least investment but at the same time give higher returns. These higher returns enhance
the overall profitability of the firm because this excess revenue can be used in other businesses which are
Stars, Dogs or Question marks.
Strategies for cash cow – The cash cows are the most stable for any business and hence the strategy
generally includes retention of the market share. As the market is not growing, acquisition is less and
retention is high. Thus customer satisfaction programs, loyalty programs and other such promotional
methods form the core of the marketing plan for a cash cow product / SBU.

2) Stars in the BCG Matrix

The best product which comes in mind when thinking of Stars is the telecom products. If you look at any
top 5 telecom company, the market share is good but the growth rate too is good. Thus because these two
factors are high, the telecom companies are always in competitive mode and they have to juggle between
investment and harvesting vis investing money and taking out money time to time. Unlike cash cows, Stars

Cannot be complacent when they are top on because they can immediately be overtaken by another
company which capitalizes on the market growth rate. However, if the strategies are successful, a Star can
become a cash cow in the long run.
Strategies for Stars – All types of marketing, sales promotion and advertising strategies are used for Stars.
This is because in cash cow, already these strategies have been used and they have resulted in the formation
of a cash cow. Similarly in Stars, because of the high competition and rising market share, the concentration
and investment needs to be high in marketing activities so as to increase and retain market share.

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 3) Question Marks in the BCG Matrix

Several times, a company might come up with an innovative product which immediately gains good growth
rate. However the market share of such a product is unknown. The product might lose customer interest and
might not be bought anymore in which case it will not gain market share, the growth rate will go down and
it will ultimately become a Dog. On the other hand, the product might increase customer interest and more
and more people might buy the product thus making the product a high market share product. From here
the product can move on to be a Cash Cow as it has lower competition and high market share. Thus Question
marks are products which may give high returns but at the same time may also flop and may have to be
taken out of the market. This uncertainty gives the quadrant the name ―Question Mark‖. The major problem
associated with having Question marks is the amount of investment which it might need and whether the
investment will give returns in the end or whether it will be completely wasted.
Strategies for Question marks – As they are new entry products with high growth rate, the growth rate
needs to be capitalized in such a manner that question marks turn into high market share products. New
Customer acquisition strategies are the best strategies for converting Question marks to Stars or Cash cows.
Furthermore, time to time market research also helps in determining consumer psychology for the product
as well as the possible future of the product and a hard decision might have to be taken if the product goes
into negative profitability.

1) Dogs in the BCG matrix

Products are classified as dogs when they have low market share and low growth rate. Thus these products
neither generate high amount of cash nor require higher investments. However, they are considered as
negative profitability products mainly because the money already invested in the product can be used
somewhere else. Thus over here businesses have to take a decision whether they should divest these
products or they can revamp them and thereby make them saleable again which will subsequently increase
the market share of the product.
Strategies for Dogs – Depending on the amount of cash which is already invested in this quadrant, the
company can either divest the product altogether or it can revamp the product through rebranding /
innovation / adding features etc. However, moving a dog towards a star or a cash cow is very difficult. It
can be moved only to the question mark region where again the future of the product is unknown. Thus in
cases of Dog products, divestment strategy is used.

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 Sequences in BCG Matrix

Success Sequence in BCG Matrix – The Success sequence of BCG matrix happens when a question mark
becomes a Star and finally it becomes a cash cow. This is the best sequence which really give a boost to the
companies profits and growth. The success sequence unlike the disaster sequence is entirely dependent on
the right decision making.

Disaster sequence in BCG Matrix – Disaster sequence of BCG matrix happens when a product which is a
cash cow, due to competitive pressure might be moved to a star. It fails out from the competition and it is
moved to a question mark and finally it may have to be divested because of its low market share and low
growth rate. Thus the disaster sequence might happen because of wrong decision making. This sequence
affects the company as a lot of investments are lost to the divested product. Along with this the money
coming in from the cash cow which is used for other products too is lost.

Strategies based on the BCG Matrix.

There are four strategies possible for any product / SBU and these are the strategies which are used after
the BCG analysis. These strategies are
1) Build – By increasing investment, the product is given an impetus such that the product increases its
market share. Example – Pushing a Question mark into a Star and finally a cash cow (Success sequence)
2) Hold – The company cannot investor it has other investment commitments due to which it holds the
product in the same quadrant. Example – Holding a star there itself as higher investment to move a star
into cash cow is currently not possible.
3) Harvest – Best observed in the Cash cow scenario, wherein the company reduces the amount of
investment and tries to take out maximum cash flow from the said product which increases the overall
profitability.
4) Divest – Best observed in case of Dog quadrant products which are generally divested to release the
amount of money already stuck in the business.
Thus the BCG matrix is the best way for a business portfolio analysis. The strategies recommended after
BCG analysis help the firm decide on the right line of action and help them implement the same.

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 3.8 CSR ACTIVITIES

Under the CSR vision of ―Global Harmony with People, Society and Environment,‖ Samsung strives to
build a society where people, society and the environment coexist in harmony. The aim is to create
positive change for people everywhere, helping them to live a better life full of possibilities, while
preserving the environment. In an effort to promote sustainable social development and better quality of
life, Samsung has not only provided products that meet the needs of customers, but has also reached out to
underserved individuals around the country, carrying out various social responsibility activities for local
communities.

Samsung’s core focus areas are –

I. Education Program – Samsung Smart Class

The Indian education system till date is largely driven by conventional method of using textbooks as
educational material, and lectures for imparting knowledge. This leads to inferior learning outcomes at
higher education levels, further reflecting in low skilled manpower in India.

Samsung sees education as the seed of innovation and thus created the Samsung Smart Class program that
supports education through the use of Samsung‘s technology, services and expertise. Set up in partnership
with Government schools in India, Samsung is not only committed to giving students greater access to
education but is expanding the scope of learning. Samsung is working with educators around the world to
improve learning experiences through the use of technology, facilitating a classroom environment that is
limitless and gives students access to a world of knowledge from their desks. Through the use of IT
technology, the Samsung Smart Class fosters a smart education environment, enabling students have the
opportunity to easily understand and assimilate the syllabus concepts through a more learner-centric
education platform.

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 II. Employability - Samsung Technical School Program
Unemployment has been one of the biggest challenges plaguing the Indian economy. Almost every
industry is facing a shortage of skilled workforce. The real problem is finding suitable candidates to fill
jobs. Being unemployed and unemployable are two different issues. Societal inequalities, inadequate
education infrastructure, quality of education and lack of effective assessment of skills are some of the
reasons why a majority of working-class personnel in our country are not qualified for the jobs that they
aspire for.

While problems of unemployment are not new, the rise in number of people who are unable to meet the
industry's needs due to the lack of career-oriented knowledge and skills-set is a pressing problem.
Samsung has, through it‘s Samsung Technical School, decided to assist the youth of today in designing
their future and laying the foundation for financial independence by offering systematic vocational
education and local employment. Samsung fosters promising talents by offering customer service
education, soft skills and capabilities needed to survive in today‘s competitive work atmosphere. The
graduates are also exposed to life skills training or internship opportunities during their course, which
prepares them for the real workplace scenario.

III. Health and Medical care - Samsung Smart Healthcare

Accelerated urbanization has led to an alarming increase in the rate of health issues, accidental injuries,
crime and violence in India. It is well recognized that our health care system is not fully equipped to meet
the challenge as significant deficiencies exist in current trauma systems. Most hospitals catering to the
underprivileged have inefficient services for medical or trauma care, due to financial constraints and lack
of appropriate health infrastructure. Most do not offer prompt diagnoses or life-saving treatment.
Consequently death rate in India is estimated to be sevenfold worse compared to most advanced states.

Samsung aims to enhance hospital care through its medical equipment and technology, thus improving
survival and functional outcome among patients. Samsung‘s installation of automated biochemistry,
immunology, and hematology equipment will enable hospital departments to benefit from this rapid
quality testing especially in cases of emergencies such as cardiac tests or accidents. Samsung equipment

will not only provide fast diagnosis with test results, but also reduces the time between injury and the
definitive treatment thereby reducing morbidity and mortality.

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 Health and Medical care - Blood Donation Drives
The need for blood is constantly increasing the world over. Apart from diseases like dengue, millions lose
their

lives to accidents and natural or man-made disasters. Against an annual demand of 12 million units, India
is able to collect only 9 million units of which 70 per cent is from voluntary blood donors while the
remaining 30 per cent is from family/replacement donors. A blood donor by his donation saves many lives
and gives hope to many whose situation may otherwise be hopeless.

Samsung regularly organizes blood donation camps to encourage employees to donate blood. Through
these blood donation camps, Samsung aims to support the areas of blood and platelet donation and
treatment of disorders such as sickle cell anemia, thalassemia and hemophilia that require repeated blood
transfusions.

IV. Sports – Samsung Ratna Program

Indian sports have made a remarkable contribution at the international level, most importantly cricket.
Despite the facts and records, the present condition of sports in India (except for cricket), is nevertheless
dismal. Incentives, infrastructure and proper training is lagging far behind, in short, sports in India require
a lot of improvement. Every sport has its own importance and deserves equal respect and management.
The condition of the women teams is still poor.

Samsung has since its inception globally contributed to the advancement of sports culture and discovering
and cultivating sports-talented human resource continuously. Samsung has been actively engaged in a
broad range of sports events including supporting domestic and international competition groups and
athletes, sports marketing & sponsorship and sports administration.

Samsung appreciates the value of sports and is proud to have sponsored and supported the world‘s leading
sporting events including the Olympic Games (since 2000), the Asian Games (since 1998) and the Youth
Olympic Games (since 2010). Beginning with the Olympic Games in 2004, Samsung made a further
commitment to sports by instituting the Ratna Program wherein the company supports top ranking

Athletes across individual sports disciplines with their training expenses while they prepare for the
Games (Olympic or Asian). Patterned on the lines of the Global Olympic Solidarity Fund, the Samsung
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 Ratna Program has across the years supported 41 talented athletes across various Asian and Olympics
Games, who have gone ahead to win medals enriching the growing sporting culture in the country.

V. Response to Humanitarian Disasters

India‘s urban and rural populace has always been vulnerable to natural disasters. Droughts, floods,
landslides, cyclones and earthquakes are some of the natural disasters that have recently affected the
country. The impact of each hazard varies, and leaves a lasting impact in most cases on the people and on
the national budget, disrupting life and livelihoods.

In this context, Samsung will extending a helping hand to aid communities facing natural disasters
through multifarious ways including initiating relief and rehabilitation activities, offering services and
financial assistance. As support to such initiatives is not pre-planned, therefore they will be of an ad-hoc
nature. The magnitude and the form of investment covered under this support will depend on the nature
of the disaster.

1. CSR program will be undertaken by Samsung in areas selected for interventions. Samsung will choose to
undertake need assessments as and when, it deems.

2. Samsung will encourage employees for volunteering in community service.

3. The time period/duration over which a particular program will be spread, will depend on its nature, extent
of coverage and the intended impact of the program.

4. Samsung may enter into partnerships with the government, business partners and communities to create
multiplier effect of its social and environment projects.

5. The mode of implementation of CSR programs will include a combination of direct implementation and
partners such as government schools and college, training institutes, NGOs, business partners, registered
societies etc. Samsung will select its activity partners after appropriate due diligence.

6. Samsung may also implement the CSR programs through registered trust/foundation/society/companyset
up by Samsung or its holding or subsidiary or associate company under section 8 of the Companies Act,
2013 or through other registered trust/society/company having an established track record of three years
in undertaking the projects or programs proposed to undertaken by Samsung.

7. Samsung may use the services of internal teams, expert agencies, consultancy firms etc., wherever required
for carrying out base line surveys, guidance on project design and implementation, due diligence of

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 implementation partners, impact assessment surveys etc.

8. The teams responsible for implementing the various CSR projects are mentioned in the section on the
Governance Structure of the Policy.

The Board of Directors of Samsung will be responsible for:

the approval of the CSR Policy for Samsung India Electronics

disclosing the content of the Policy in its report and ensuring its placement on Samsung‘s website in such
a manner as prescribed under Section 135 of the Companies Act 2013 read with the CSR Rules

ensuring that the social projects included in the Policy are undertaken by Samsung

that Samsung spends, in every financial year, at least 2 percent of the average net profits made during the
three immediately preceding financial years

ensuring that Samsung gives preference to the local areas around its operations for spending the amount
earmarked for CSR projects

ensuring that it specifies the reasons in its report for not spending the earmarked amount in case it to spend
such amount

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 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

1. Gender of the customer

Female 40%

Male 60%

Sr. No Particulars Percentage

1 Male 60%

2 Female 40%

From the above data we can understand that the survey is majorly filled by the male category and therefore
the further analysis is based on what are the opinion according to the males.

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 2. Income of the customer

30000 – 50000 Less than 15000

20% 40%

20000 – 30000 15000 – 20000

30% 10%

Sr. No Particulars Percentage

1 Less than 15000 40%

2 15000 to 20000 10%

3 20000 to 30000 30%

4 30000 to 50000 20%

The above data helps us to know that to which income group the major people belongs to who have filled
this survey form. 40% of the people has the income of less than 15000. And only 20% people come under
high income group.

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 3. Which country does Samsung Company belongs to?

India 1%
Japan 19%

Korea 80%

Sr. No Particulars Percentage

1 Korea 80%

2 Japan 19%

3 India 1%

Samsung company belongs to Korea, the above data also proves that people are well aware with the
origin of the company.80% of the people are well aware about the company.

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 4. From where did you get to know about your Samsung Mobile Phones?

Others 15%

Friends
10%

Advertisement 20% Newspaper 55%

Sr. No Particulars Percentage

1 Newspaper 55%

2 Advertisement 20%

3 Friends 10%

4 Others 15%

From the above date we can understand that 55% of the people has got to know about the Samsung mobile
phones through newspapers. As newspaper is the strongest medium to promote any brands in the market,
Samsung Company has advertised about its brand majorly through newspaper.

Interpretation:

Since Samsung mobiles are more into newspaper advertisements, maximum customers know about
it through the same.

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 5. What attracts you to buy Samsung Mobile Phones?

DATA
Others
14%
Memory Storage
31%
Processor
15%

Camera Quality
40%

Sr. No Particulars Percentage

1 Memory Card 31%

2 Camera Quality 40%

3 Processor 15%

4 Others 14%

According to the above data, people are attracted towards samsung mobile phones due to its camera quality,
which also proves that people are well aware about the features of the mobile phones.

Interpretation:

Since the camera quality of Samsung Mobiles is too high, maximum customers are attracted because of it.

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 6. Are you satisfied with the price offered by the Samsung Mobile Phones?

DATA
No
10%

Yes
90%

Sr. No Particulars Percentage

1 Yes 90%

2 No 10%

The above data say that 90% of the people are well satisfied with the price offered by the Samsung mobile
company as he must be economical for them as their income.

Interpretation:

90% of the customers are satisfied with the prices of Samsung Mobile Phones as it is economical as per
their income

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 7. Are you satisfied with the after-sale service offered by the company?

DATA
No
14%

Yes
86%

Sr. No Particulars Percentage

1 Yes 86%

2 No 14%

86% of people are not satisfied with the after-sale service of the company because they do not much service
centers for the repairing of the mobile phones.

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 8. How often do you change your mobile phones?

DATA

3 Months
25%

6 Months
1Year 10%
65%

Sr. No Particulars Percentage

1 3 months 25%

2 6 months 10%

3 1 Year 65%

From above data we can undersatand that there are 65% of people who change their mobile phones in every
one year. Which means that these people almost belong to the low income category

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 9. Have you used Samsung Mobile Phones?

DATA

No
27%

Yes
73%

Sr. No Particulars Percentage

1 Yes 73%

2 No 27%

The above data says that maximum number people have used samsung mobile phones, may be they must
have purchased it or had seen in the stores where the demonstration of any new product is done .

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 10. Do you think Samsung phones influences the customers in the market?

DATA
May Be
10%

No
20%

Yes
70%

Sr. No Particulars Percentage

1 Yes 70%

2 No 20%

3 Maybe 15%

70% of the people thinks that Samsung mobile phones has influenced people in the market because of its
style and high power camera quality.

Interpretation:

As Samsung mobile phones has high power camera quality, with high speed and attractive features, it
influences 70% people in the market.

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 11. Are you satisfied with the availability of the accessories of Samsung phones in the market?

DATA
No
10%

Yes
90%

Sr. No Particulars Percentage

1 Yes 90%

2 No 10%

From the above data we understand that 10% people are not satisfied with the availability of the accessorise
of the Samsung mobile phones because there is no accessorise available in the market for the phone. The
accessorise are only available inside the box of the mobile phone.

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 12. With which phone will you compare the Samsung phones?

DAT
Others A gionee
16% 17%

Sony
27
%
I-phones
40%

Sr. No Particulars Percentage

1 Gionee 17%

2 Iphone 40%

3 Sony 27%

4 Others 16%

According to the above data samsung mobile phones is mainly compared with sony and I-phone with 27
and 40% share respectively.

Interpretation:

40% of the people compares Samsung Mobiles with Iphone, as they both are tough competitors with almost
same features.

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 13. Do you think that Samsung mobile phones will take over the market share in upcoming years?

DATA

No Yes
50% 50%

Sr. No Particulars Percentage

1 Yes 50%

2 No 50%

According to the data, since I phone and other companies have great impact in the market, the consumers
are not sure about it that Samsung mobile phones will takeover in the upcoming years.

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 14. Express your views regarding the Samsung phones

DATA
Satisfactory
5%
Excellent
29%
Good
30%

Very Good
36%

Sr. No Particulars Percentage

1 Excellent 29%

2 Very Good 36%

3 Good 30%

4 Satisfactory 5%

The views of the consumers regarding the Samsung mobile phones in terms of Excellent, Very good, Good
and satisfactory are more or less same as the company is new in the market and people are yet to accept the
product completely. They are presently observing others view to change their own view towards the
product.

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 15. Which outlet do you prefer buying your mobile phones?

Doesn’t matter 5%
Mobile Shops 15%

Mobile Shops 80%

Sr. No Particulars Percentage

1 Mobile Shop 80%

2 Hypermarkets and Malls 15%

3 Doesn’t matter any place 5%

In this pie chart we can see that 80% of customers prefer to buy the mobile phones from
mobile shops 15%of customers prefer to buy from hypermarkets and mall. 5% of
customers buy mobile from anywhere
As place doesn‘t matter to them.

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 16. Do you recommend Samsung mobile phones to your friends and relatives?

No, I dont10%
Maybe couple of them20%

Yes Ofcourse70%

Sr. No Particulars Percentage

1 Yes Ofcourse 70%

2 Maybe couple of them 20%

3 No, I dont 10%

We can see that 70% of customers recommend Samsung mobile phones to

others As they think that Samsung mobile phones is best. 20% customers
suggest only To some of them to but the product.

Interpretation:

70% of customers are willing to recommend Samsung Phones as they are highly satisfied with all
services.

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 17. Whether Samsung should continue making mobile
phones?

No 20%

Yes 80%

Sr. No Particulars Percentage

1 Yes 80%

2 No 20%

80% of individuals think that Samsung company should continue the

Making of Samsung product in the market .while rest 20% does not feel like
The company should continue in making of products.

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 18. What do you think about Samsung mobile phone marketing?

1 2 3 4

15%

10%

15% 60%

Sr. No Particulars Percentage

1 There are too little advertisements 80%

2 There are too many advertisements 15%

3 No impressive advertisements 5%

60% of individuals think that marketing of Samsung mobiles is done nicely.

15% of them think that there are too little ads from the company
10% thinks that there are too many ads.
15% thinks that there are non-impressive ads from the company.

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 CHAPTER 5

FINDINGS

1. 60% of the respondents are Male, which is highest recorded percentage.

2. 40% of the respondents are getting below Rs.15000 income per month and 30% of the respondents are getting above
Rs.20000.

3. 65% of the respondents change their mobile phones in every one year.
4. 55% of the respondents say that they know about Samsung mobile from Newspaper.

40% of the respondents feel that feature of the Samsung mobile phone is good

5. 40% of the respondents feel that camera quality of the Samsung mobile phone is good.

6. 73% of the respondent must have purchased it or had seen in the stores.
7. 90% of the people are well satisfied with the price offered by the Samsung mobile company as he
must be economical for them as their income.
8. 88% of the respondent are not satisfied with the after sale service of the company.
9. 70% of the respondent thinks that Samsung mobile phones has influenced people in the
market. 10% people are not satisfied with the availability of the accessories of the Samsung
mobile phones.
10. Samsung mobile phones is mainly compared with Sony and I-phone with 27 and 40% share
respectively. 50% of the respondent are in favor of Samsung and other then that are in favor of others
in the market.
11. 80% of the people are well about where the company belongs to.
12. 36% of the respondent express their view about the product as very good.
13. Samsung mobile phones is mainly compared with sony and I-phone with 27 and 40% share
respectively. 72% of the dealers rated the promotional service as good. The rating shows that
Samsung is successful in delivering distinctive customer value.
14. 50% of the respondents think that advertising will facilitate to increase their counter share. It might
build conviction and purchase intent among the target audience.
15. 96% of the dealers are satisfied with SAMSUNG as a whole

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 SUGGESTIONS

1. In order to attract and make the customer to purchase through online, the company can provide special offer
who purchase through online mode.

2. There is no relation between education level of respondent and excellent feature of mobile.

3. So this prove that latest technology is required all type of people, so marketing strategy can be adopted to
retain the old customer as well as to bring new customer. Provide the product with latest technology as well
as user friendly model.

4. SAMSUNG should redress the grievance of the dealers regarding the supply of catalogs, so that the dealers
can show various models to the prospects and endorse to buy SAMSUNG.

5. The company should modify some of the models as these models don‘t have any output connection
specially the 22‖ model as it is the largest selling model in most of the counters.

6. Dealers in Kolkata don‘t have enough space to in their counter that‘s why they are not willing to keep
display stand in their counter. Company should customize the display stand so that it can be easily fix in
the wall, in this way SAMSUNG can improve the display share as SAMSUNG also believes that ― JO
DIKHTA HAI WO BIKTA HAI‖.

7. The rural counters are not getting the current price list of the product as salespersons are visiting less in
these counters company should focus on that matter seriously.

 Company should introduce low cost products to satisfy the needs of the low or middle class as SONY is
having 19‖ model in this segment.

8. Branding and promotional activities should be done effectively as it creates along lasting image in the
mind of the customers.

9. As there is a bottle neck competition between SAMSUNG and I phone, it is necessary to take major steps
to overcome the area of downfall in SAMSUNG with respect to I phone.

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 CONCLUSION

The overall study about the Samsung Company actually gave more information about the mobile
phone industry and its working. The study also proves that the mobile industry is going to grow
with more uniqueness, innovations and durability and most importantly style and will never have
end to it.

In fact their more mobile companies coming up in the market with a tough competition for
existing mobile companies as a marketing strategies are being first stolen by other companies and
then modified and finally used in the market.

The study about Samsung mobile phones makes us understand that the company is customer‘s
oriented as the phones are designed as per their demands in terms of battery life, looks and
internal features. The company not only take care of its customer but also look after their
employees and their needs, they are very well trained in the company about the phones so that
they don‘t have to face anything wrong in the market from the customers or dealers. The
company has hired promoters for each shops in the market as per area, this not only give the
proper information to the customers in the market but also makes the employees comfortable to
work in their living area.

The company has tried to majorly capture the market through the mentality of the society in with
respect to the income happening at each house. The price of the phone are nominal and affordable for
the income groups.

Samsung has also done many CSR activities and sponsorship to build its brand image in the
market and has been quite successful also in the market.

The overall brand image of the company in the market is really good and very well acceptable
by everyone. The company has come on 2nd position and is growing more.

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 CASE STUDY

Apple Inc. v. Samsung Electronics Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and
Samsung Electronics regarding the design ofsmartphones and tablet computers; between them, the companies made
more than half of smartphones sold worldwide as of July 2012. In the spring of 2011, Apple began litigating against
Samsung in patent infringement suits, while Apple and Motorola Mobility were already engaged in a patent war
on several fronts. Apple's multinational litigation over technology patents became known as part of the mobile
device "smartphone patent wars": extensive litigation in fierce competition in the global market for consumer mobile
communications. By August 2011, Apple and Samsung were litigating 19 ongoing cases in nine countries; by
October, the legal disputes expanded to ten countries. By July 2012, the two companies were still embroiled in more
than 50 lawsuits around the globe, with billions of dollars in damages claimed between them. While Apple won a
ruling in its favor in the U.S., Samsung won rulings in South Korea, Japan, and the UK. On June 4, 2013, Samsung
won a limited ban from the U.S. International Trade Commission on sales of certain Apple products after the
commission found Apple had violated a Samsung patent, but this was vetoed by U.S. Trade Representative Michael
Froman.

South Korean courts

In Seoul, Samsung filed its lawsuit in April 2011 in the Central District Court citing five patent infringements. In
late August 2012, a three-judge panel in Seoul Central District Court delivered a split decision, ruling that Apple
had infringed upon two Samsung technology patents, while Samsung violated one of Apple's patents. The court
awarded small damages to both companies and ordered a temporary sales halt of the infringing products in South
Korea; however, none of the banned products were the latest models of either Samsung or Apple.

The court ruled that Samsung violated one of Apple‘s utility patents, over the so-called "bounce-back" Effect in
iOS, and that Apple was in violation of two of Samsung‘s wireless patents. Apple‘s claims that

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 Samsung copied the designs of the iPhone and iPad were deemed invalid. [16] The court also ruled thatthere was
"no possibility" that consumers would confuse the smartphones of the two brands, and that Samsung's smartphone
icons did not infringe upon Apple's patents.

Japanese courts

Samsung's complaint in Japan's Tokyo District Court cited two infringements. Apple has filed other patent suits in
Japan against Samsung, most notably one for the "bounce-back" feature. Samsung has also sued Apple, claiming
the iPhone and iPad infringe on Samsung patents.

On August 31, 2012, The Tokyo District Court ruled that Samsung‘s Galaxy smartphones and tablets did not violate
an Apple patent on technology that synchronizes music and videos between devices and servers the three-judge
panel in Japan also awarded legal costs to be reimbursed to Samsung. Presiding Judge Tamotsu Shoji said: "The
defendant's products do not seem like they used the same technology as the plaintiff's products so we turn down the
complaints made by [Apple]." An unnamed spokesperson for Samsung said: "[We will] continue to offer highly
innovative products to consumers, and continue our contributions toward the mobile industry's development."

French and Italian courts

Shortly after the release of the iPhone 4S, Samsung filed motions for injunctions in courts in Paris
and Milan to block further Apple iPhone sales in France and Italy, claiming the iPhone infringed on two separate
patents of the Wideband Code Division Multiple Access standard. Samsung reportedly singled out the French and
Italian markets as key electronic communications markets in Europe, and by filing suit in a different court, avoided
going back to the German court where it had lost a round earlier in its battle with Apple.

Australian courts

Also in early 2011, an Australian federal court granted Apple's request for an injunction against Samsung's Galaxy
Tab 10.1. Samsung agreed to an expedited appeal of the Australian decision in the hope that if it won its appeal
before Christmas, it might salvage holiday sales that it would otherwise lose. Ultimately, the injunction Apple
sought to block the Tab 10.1 was denied by the High Court of Australia. In July 2012 an Australian judge started
hearing the companies' evidence for a trial anticipated to take three months.

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 U.S. courts

First trial verdict

On August 24, 2012 the jury returned a verdict largely favorable to Apple. It found that Samsung had willfully
infringed on Apple's design and utility patents and had also diluted Apple's trade dresses related to the iPhone. The
jury awarded Apple $1.049 billion in damages and Samsung zero damages in its counter suit. The jury found
Samsung infringed Apple's patents on iPhone's "Bounce-Back Effect" (US Patent No. 7,469,381), "On-screen
Navigation" (US Patent No. 7,844,915), and "Tap To Zoom" (US Patent No. 7,864,163), and design patents that
covers iPhone's features such as the "home button, rounded corners and tapered edges" (US D593087) and "On-
Screen Icons" (US D604305). Design Patent 504,889 (describing the ornamental design of the iPad) was one of the
few patents the jury concluded Samsung had not infringed. This amount is functionally reduced by the bond posted
by Apple for the injunction granted during the trial (see below).

On October 23, 2012, U.S. Patent and Trademark Office tentatively invalidated Apple's bounce back patent (US
Patent No. '381) possibly affecting the ruling in the Apple v. Samsung trial. Apple's attorneys filed a request to stop
all sales of the Samsung products cited in violation of the US patents, a motion denied by Judge Lucy H. Koh on
December 17, 2012, who also decided that the jury had miscalculated US$400 million in its initial damage
assessment and ordered a retrial.

Injunction of U.S. sales during first trial

The injunction Apple sought in the U.S. to block Samsung smartphones such as the Infuse 4G and the Droid Charge
was denied. Judge Koh ruled that Apple's claims of irreparable harm had little merit because although Apple
established a likelihood of success at trial on the merits of its claim that Samsung infringed one of its tablet patents,
Apple had not shown that it could overcome Samsung's challenges to the patent's validity.

Apple appealed Judge Koh's ruling, and on May 14, 2012, the appeals court reversed and ordered Judge Koh to
issue the injunction. The preliminary injunction was granted in June 2012, preventing Samsung from making, using,
offering to sell, selling, or importing into the U.S. the Galaxy Nexus and any other of its technology making use of
the disputed patent. Simultaneously, Apple was ordered to post a US$95.6 million bond in the event that Samsung
prevailed at trial.

Following the trial, in which the Nexus was found not to infringe Apple's patents, Samsung filed an appeal to
remove the preliminary injunction. On October 11, 2012, the appeals court agreed and vacated the Injunction.

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 A new hearing was held in March 2014, in which Apple sought to prevent Samsung from selling some of its current
devices in U.S. At the hearing, Judge Koh ruled against a permanent injunction.

First trial appeal

There was an interview given by the jury foreman, where, at the 3 minute mark in the video, the jury foreman
Hogan said: "the software on the Apple side could not be placed into the processor on the prior art and vice versa,
and that means they are not interchangeable," and at the 2:42-2:45 minute mark, in which Hogan states "each patent
had a different legal premise." Groklaw reported that this interview indicatesthe jury may have awarded
inconsistent damages and ignored the instructions given to them. In an article on Gigaom, Jeff John Roberts
contended that the case suggests that juries should not be allowed to rule on patent cases at all. Scott McKeown,
however, suggested that Hogan's comment may have been poorly phrased.

Some have claimed that there are a few oddities with Samsung's U.S. Patent discussed by Hogan during the
interview, specifically that the '460 patent has only one claim. Most US patents have between 10 - 20 separate
claims, most of which are dependent claims. This patent was filed as a division of an earlier application, possibly in
anticipation of litigation, which may explain the reduced number of claims. The specifics of this patent have not

been discussed in the Groklaw review or the McKeown review because most [ believe that the foreman misspoke
when he mentioned the number of the patent in question; a more detailed interview with the BBC made it clear that
the patent(s) relevant to the prior art controversy were owned by Apple, not Samsung, meaning that his mention of
the "460 patent" was a mistake.

On Friday, September 21, 2012, Samsung requested a new trial from the judge in San Jose arguing thatthe verdict
was not supported by evidence or testimony, that the judge imposed limits on testimony time and the number of
witnesses prevented Samsung from receiving a fair trial, and that the jury verdict was unreasonable. Apple filed
papers on September 21 and 22, 2012 seeking a further amount of interest and damages totaling $707 million. A
hearing has been scheduled in U.S. District Court on December 6, 2012 to discuss these and other issues.

On October 2, 2012, Samsung appealed the decision to the United States Court of Appeals for the Federal Circuit,
requesting that Apple's victory be thrown out, claiming that the foreman of the jury had not disclosed that he had
been sued by Seagate Technology Inc., his former employer, and which has a strategic relationship with Samsung,
despite having been asked during jury selection if he had been involved in lawsuits. Samsung also claimed that the
foreman had not revealed a past personal bankruptcy. The foreman responded that he had been asked whether he
had been asked during jury selection whether he had been involved in any lawsuits during the past 10 years, so that
the events claimed by Samsung occurred before

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 that time frame, although his claim is not consistent with the actual question he was asked by the Judge. Apple
has similarly appealed the decision vacating the injunction on Samsung's sales.

As of December 2014, appeals in the first case remain ongoing. Leading up to a December 4, 2014 hearing at the
United States Court of Appeals for the Federal Circuit, Samsung had noted that the USPTO had released
preliminary and/or final findings of invalidity against some of the patents relevant to the first case, namely the so-
called pinch-to-zoom patent 7,844,915. Samsung argued for, at the very least, a recalculation of the damages they
owe in the case. Samsung is seeking a re-trial at the District Court. Apple has not yet conceded the invalidity of the
patents in question, and several options remain for them to appeal the USPTO's decisions.

First trial controversy

The ruling in the landmark patent case raised controversies over the impact on the consumers and the smartphone
industry. The jury's decision was described as being 'Apple-friendly' by Wired and a possible reason for the
increased costs— because of licensing fees to Apple—that subsequently affected Android smartphone
users. A question was also raised about the validity of lay juries in the U.S. patent system, whereby the qualifications
of the jury members were deemed inadequate for a complex patent case; however, it was later revealed that the jury
foreman Velvin Hogan was an electrical engineer and a patent holder himself. Hogan's post-verdict interviews with
numerous media outlets raised a great deal of controversy over his role as the jury foreman. He told Bloomberg TV
that his experience with patents had helped to guide the jurors‘ decisions in the trial. A juror Manuel Ilagan said in
an interview with CNET a day after the verdict that "Hogan was jury foreman. He had experience. He owned
patents himself … so he took us through his experience. After that it was easier." As the jury instructions stated that
jurors can make decisions based solely on the law as instructed and "not based on your understanding of the law
based on your own cases," controversy was consequently generated.

Hogan also told the Reuters news agency that the jury wanted to make sure the message it sent was not just a "slap
on the wrist" and wanted to make sure it was sufficiently high to be painful, but not unreasonable. His remark does not
corroborate with jury instructions that state: "the damages award should put the patent holder in approximately the
financial position it would have been in had the infringement not occurred" and "it is meant to compensate the patent
holder and not to punish an infringer." Samsung appealed against the decision, claiming jury misconduct, and
Samsung can be given a new trial if the appeal court finds that there was juror misconduct.

Other questions were raised about the jury's quick decision. The jury was given more than 700 questions, including
highly technical matters, to reach the verdict and awarded Apple more than US$1 billion in

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 Damages after less than three days of deliberations. Critics claimed that the nine jurors did not have sufficient time
to read the jury instructions. A juror stated in an interview with CNET that the jury decided after the first day of
deliberations that Samsung was in the wrong.

Retrial of damages amount from first U.S. trial

In a damage-only retrial court session on November 13, 2013, ordered in relation to the first U.S. trial by Judge Koh
in December 2012, Samsung Electronics stated in a San Jose, U.S. courtroom that Apple's hometown jury found
Samsung copied some elements of Apple's design. Samsung's attorney clarified the purpose of the damage-only
retrial and stated, "This is a case not where we're disputing that the 13 phones contain some elements of Apple's
property," but the company disputed the US$379.8 million amount that Apple claimed that it is owed in the wake of
Samsung's —Samsung presented a figure of US$52 million.

On November 21, 2013 the jury awarded a new figure of US$290 million. The following devices were the concern
of the retrial: Captivate, Continuum, Droid Charge, Epic 4G, Exhibit 4G, Galaxy Prevail, Galaxy Tab, Gem,
Indulge, Infuse 4G, Nexus S 4G, Replenish, and Transform.

Second U.S. trial

Apple filed a new U.S. lawsuit in February 2012, asserting Samsung's violation of five Apple patents. The products
being cited are: Admire, Galaxy Nexus, Galaxy Note, Galaxy Note II, and Galaxy SII, Galaxy SII Epic 4G Touch,
Galaxy SII Skyrocket, Galaxy SIII, Galaxy Tab II 10.1, and Stratosphere. Samsung has responded with a
counterclaim, in which it states that two patents for nine phones and tablets have been infringed on by Apple. The
products that Samsung is citing are: iPhone 4, iPhone 4S, iPhone 5, iPad 2, iPad 3, iPad 4, iPad mini, iPod touch (5th
generation), iPod touch (4th generation), and MacBook Pro. Samsung stands to gain US$6 million if the jury rules
in its favor, while Apple is seeking US$2 billion in damages and could proceed with similar lawsuits against other
Android handset makers, as the relevant patent issues extend beyond Samsung's software technology.

The second trial was scheduled for March 2014 and jury selection occurred on March 31, 2014. Judge Koh referred
to the new lawsuit as "one action in a worldwide constellation of litigation between the two companies."

The trial began in early April and decision was delivered on May 2, 2014 and Samsung was instructed to pay
US$119.6 million to Apple for smartphone patent violations, a compensatory amount that was termed a "big loss"
by the Guardian "Technology" team—the media outlet described the victory as "pyrrhic." The jury found that
Samsung had infringed upon two Apple patents and Brian Love, assistant professor at the Santa Clara University law
school, explained: "This amount is less than 10% of the amount Apple requested,

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 and probably doesn't surpass by too much the amount Apple spent litigating this case." Apple's official response
was a reaffirmation that "Samsung willfully stole" from the Cupertino, US-based corporation; however, Apple‘s
lawyers claimed that a technical mistake has been made by the jury and Koh ordered the jurors to return on May 5,
2014 to resolve an issue that is potentially worth several hundred thousand dollars.

The jury also found Apple guilty of infringing one of Samsung‘s patents and the South Korean corporation, which
had initially sought US$6 million of damages, was awarded US$158,400. In the wake of the verdict, Judge Koh will
be responsible for deciding whether a sales ban of Samsung products will be implemented, a decision that was
deemed highly unlikely by legal experts, such as Rutgers Law School's Michael Carrier, after the verdict
announcement.

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 APPENDIX
1. Name?
2. Age?

18 to28
28 to38
38 to 58
58 to 68
68 and above

3. Gender of the customer?

Male
Female

4. Income of the customer?

Less than 15000

15000 to 20000
20000 to 30000
30000 to 50000
50000 to above

5. Have you used Samsung mobile phones?

Yes
No

6. What attracts you to buy Samsung mobile phones?

Storage space
Processor
Long lasting battery
Fingerprint censor
Camera Quality

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 Others

7. you satisfied with the price offered by Samsung mobile phones?

Yes
No

8. Are you satisfied with the after-sale service offered by the company?

Yes
No

9. Do you think Samsung phones influences the customer in the market?

Yes influences
No
Maybe

10. Are you satisfied with the availability of the accessories of Samsung phone in the market?

Yes
No

11. How often do you change your mobile phones?

3 months
6 months
1 year
1 year and above

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 12. With which phone will you compare the Samsung phones?

Gionee
I phones
Sony
Others

13. Do you think that Samsung mobile phones will take over the market share in the coming years ?

Yes
No

14. Which country does Samsung Company belongs to?

Korea
Japan
India
USA

15. Which outlet do you prefer buying your mobile phone?

Mobile shop
Hypermarkets and malls
Doesn‘t matter

16. Express your views regarding Samsung phones?

Excellent
Very good
Good
Satisfactory

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 17. Do you recommend Samsung mobile phones to your friends and relatives?
Yes of course
Maybe couple of them
No, I don‘t

18. Whether Samsung should continue making mobile phones

Yes
No

19. What do you think about Samsung mobile phones marketing?

Good advertisement
There are too little advertisements
There are too many advertisements
None

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 REFERENCE

WEBLIOGRAPHY

 www.google.com
 www.wikipedia.com
 www.samsung.com
 www.samsung.com/fi/about
 Samsung/corporate profile/vision.html

BIBLIOGRAPHY
 Kotler, Philip & Keller 2012 marketing management, 14e person education 1st edition limited
2012 Samsung website, About Samsung Corporate Profile, vision and mission

 Marketing strategy the origin of the concept to the development of a conceptual framework.
Journal of Historical Research in marketing

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