PRICING STRATAGY ADOPTED BY SAMSUNG

TABLE OF CONTENTS

S. NO. TABLE OF CONTENTS PAGE NO

1. Welcome To Electronics 5

2. L.C.D. Televisions 12

3. Competitor Analysis 25

4. Research Methodology 30

5. Data Analysis 34

6. Recommendation And Suggestion 46

7. Swot Analysis 47

8. Conclusion 54

9. Limitation 55

10. Bibliography 56
 11. Annexure-Questionnaire 57

WELCOME TO ELECTRONICS

By connecting science and technology from across the company. DuPont has become a leading
supplier of electronic and advanced display materials. DuPont offers a broad semiconductor
fabrication and packaging. DuPont also provides a wide range of products targeted to the fast
growing display industry, enabling the manufacture of advanced OLED, LCD, PDP displays
and more.

SIZE OF THE INDUSTRY

The electronic industry in India constitutes just 0.7% of the global electronic industry. Hence
it is miniscule by international comparison. However the demand in the Indian market is
growing rapidly and investments are flowing in to augment manufacturing capacity. India
however remains a major importer of electronics materials, components and finished equipment
amounting to over US$12 Billion in 2005. This is not a desirable situation and local
manufacturing has to keep pace with growing local demand.

The output of the electronic hardware industry in India is worth $11.6 Bn at present. The
breakup of production in various segments the industry is as shown below:

PRICING STRATEGY

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A business can use a variety of pricing strategies when selling a product or service. The Price
can be set to maximize profitability for each unit sold or from the market overall. It can be used
to defend an existing market from new entrants, to increase market share within a market or to
enter a new market. Businesses may benefit from lowering or raising prices, depending on the
needs and behaviors of customers and clients in the particular market. Finding the right pricing
strategy is an important element in running a successful business.

MODELS OF PRICING

ABSORPTION PRICING

Method of pricing in which all costs are recovered. The price of the product includes the
variable cost of each item plus a proportionate amount of the fixed costs.

Contribution margin-based pricing

Contribution margin-based pricing maximizes the profit derived from an individual product,
based on the difference between the product's price and variable costs (the product's
contribution margin per unit), and on one‟s assumptions regarding the relationship between the
product‟s price and the number of units that can be sold at that price. The product's contribution
to total firm profit (i.e. to operating income) is maximized when a price is chosen that
maximizes the following: (contribution margin per unit) X (number of units sold)

Creaming or skimming

In most skimming, goods are sold at higher prices so that fewer sales are needed to break even.
Selling a product at a high price, sacrificing high sales to gain a high profit is therefore
"skimming" the market. Skimming is usually employed to reimburse the cost of investment of
the original research into the product: commonly used in electronic markets when a new range,

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such as DVD players, are firstly dispatched into the market at a high price. This strategy is
often used to target "early adopters" of a product or service. Early adopters generally have a
relatively lower price-sensitivity - this can be attributed to: their need for the product
outweighing their need to economise; a greater understanding of the product's value; or simply
having a higher disposable income. it will maximize profits for the better of the company

Decoy pricing

Method of pricing where the seller offers at least three products, and where two of them have a
similar or equal price. The two products with the similar prices should be the most expensive
ones, and one of the two should be less attractive than the other. This strategy will make people
compare the options with similar prices, and as a result sales of the most attractive choice will
increase.

Freemium

Freemium is a business model that works by offering a product or service free of charge
(typically digital offerings such as software, content, games, web services or other) while
charging a premium for advanced features, functionality, or related products and services. The
word "freemium" is a portmanteau combining the two aspects of the business model: "free" and
"premium". It has become a highly popular model, with notable success.

High-low pricing

Method of pricing for an organization where the goods or services offered by the organization
are regularly priced higher than competitors, but through promotions, advertisements, and or
coupons, lower prices are offered on key items. The lower promotional prices are designed to
bring customers to the organization where the customer is offered the promotional product as
well as the regular higher priced products.

Limit pricing

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A limit price is the price set by a monopolist to discourage economic entry into a market, and is
illegal in many countries. The limit price is the price that the entrant would face upon entering
as long as the incumbent firm did not decrease output. The limit price is often lower than the
average cost of production or just low enough to make entering not profitable. The quantity
produced by the incumbent firm to act as a deterrent to entry is usually larger than would be
optimal for a monopolist, but might still produce higher economic profits than would be earned
under perfect competition.

Loss leader

A loss leader or leader is a product sold at a low price (i.e. at cost or below cost) to stimulate
other profitable sales. This would help the companies to expand its market share as a whole.

Marginal-cost pricing

In business, the practice of setting the price of a product to equal the extra cost of producing an
extra unit of output. By this policy, a producer charges, for each product unit sold, only the
addition to total cost resulting from materials and direct labor. Businesses often set prices close
to marginal cost during periods of poor sales. If, for example, an item has a marginal cost of
$1.00 and a normal selling price is $2.00, the firm selling the item might wish to lower the
price to $1.10 if demand has waned. The business would choose this approach because the
incremental profit of 10 cents from the transaction is better than no sale at all.

Market-oriented pricing

Setting a price based upon analysis and research compiled from the target market. This means
that marketers will set prices depending on the results from the research. For instance if the
competitors are pricing their products at a lower price, then it's up to them to either price their
goods at an above price or below, depending on what the company wants to achieve.

Odd pricing

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In this type of pricing, the seller tends to fix a price whose last digits are odd numbers. This is
done so as to give the buyers/consumers no gap for bargaining as the prices seem to be less and
yet in an actual sense are too high, and takes advantage of human psychology. A good example
of this can be noticed in most supermarkets where instead of pricing at $10, it would be written
as $9.99. This pricing policy is common in economies using the free market policy.

Pay what you want

Pay what you want is a pricing system where buyers pay any desired amount for a given
commodity, sometimes including zero. In some cases, a minimum (floor) price may be set,
and/or a suggested price may be indicated as guidance for the buyer. The buyer can also select
an amount higher than the standard price for the commodity.

Penetration pricing

Penetration pricing includes setting the price low with the goals of attracting customers and
gaining market share. The price will be raised later once this market share is gained.

Predatory pricing

Predatory pricing, also known as aggressive pricing (also known as "undercutting"), intended to
drive out competitors from a market. It is illegal in some countries.

Premium decoy pricing

Method of pricing where an organization artificially sets one product price high, in order to
boost sales of a lower priced product.

Premium pricing

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Premium pricing is the practice of keeping the price of a product or service artificially high in
order to encourage favorable perceptions among buyers, based solely on the price. The practice
is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that
expensive items enjoy an exceptional reputation, are more reliable or desirable, or represent
exceptional quality and distinction.

Price discrimination

Price discrimination is the practice of setting a different price for the same product in different
segments to the market. For example, this can be for different classes, such as ages, or for
different opening times.

Price leadership

An observation made of oligopolistic business behavior in which one company, usually the
dominant competitor among several, leads the way in determining prices, the others soon
following. The context is a state of limited competition, in which a market is shared by a small
number of producers or sellers.

Psychological pricing

Pricing designed to have a positive psychological impact. For example, selling a product at
$3.95 or $3.99, rather than $4.00. There are certain price points where people are willing to buy
a product. If the price of a product is $100 and the company prices it as $99, then it is called
psychological pricing. In most of the consumers mind $99 is psychologically „less‟ than $100.
A minor distinction in pricing can make a big difference in sales. The company that succeeds in
finding psychological price points can improve sales and maximize revenue.

Target pricing business

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Pricing method whereby the selling price of a product is calculated to produce a particular rate
of return on investment for a specific volume of production. The target pricing method is used
most often by public utilities, like electric and gas companies, and companies whose capital
investment is high, like automobile manufacturers.

Time-based pricing

A flexible pricing mechanism made possible by advances in information technology, and

employed mostly by Internet based companies. By responding to market fluctuations or large
amounts of data gathered from customers - ranging from where they live to what they buy to
how much they have spent on past purchases -dynamic pricing allows online companies to
adjust the prices of identical goods to correspond to a customer‟s willingness to pay. The airline
industry is often cited as a dynamic pricing success story. In fact, it employs the technique so
artfully that most of the passengers on any given airplane have paid different ticket prices for
the same flight.

Value-based pricing

Pricing a product based on the value the product has for the customer and not on its costs of
production or any other factor. This pricing strategy is frequently used where the value to the
customer is many times the cost of producing the item or service. For instance, the cost of
producing a software CD is about the same independent of the software on it, but the prices
vary with the perceived value the customers are expected to have. The perceived value will
depend on the alternatives open to the customer. In business these alternatives are using
competitors software, using a manual work around, or not doing an activity. In order to employ
value-based pricing you have to know your customer's business, his business costs, and his
perceived alternatives.It is also known as Perceived-value pricing.

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LCD TELEVISIONS

Olevia L T32HV 32 Widescreen Flat-Panel LCD TV’s

By Syntax

Syntax‟s high-quality, high value Olevia L T32HV 32-inch LCD TVs use advanced Super-
IPS display technology and innovative display panels from LG Philips LCD, one of the
world‟s foremost manufacturers of thin-film liquid – crystal displays ( TFT LCDs.) These
LCD TVs also deliver exceptionally wide viewing angles, a high 1,200: 1 contrast ratio,
exemplary 800 cd/m2 brightness for easy viewing in bright rooms, HD ready 1,366 x 768
(WXGA) native pixel resolution, and a 16:9 cinema style wide screen aspect ratio.

Flat Screen TV (By Band)

Phillips : flat panel TVs

Toshiba : flat panel TVs

Audio Vox : flat panel TVs

View Sonic : flat panel TVs

RCA : flat panel TVs

Other Brands : flat panel TVs

Plasma : flat panel TVs

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LCD : flat panel TVs

Olevia LT27HV 27” HDTV-Readv Flat Panel LCD TVs

By Syntax

Olevia LT27HV 27” LCD TVs have 3:2 pull down cinema video processing. These LCD
TVs provide a smooth theatre like experience, and their 10-bit 3D comb filter enhances
color purity. Olevia L T27HV

LCD TVs have a brightness rating of 500 cd/m2 (candela per square meter ) and a 16
millisecond (ms) response time. It‟s compatible with 480p, 1080i,and 720p HDTV signals
and has a built-in 181 channel tuner, you wiil need an optional HDTV tuner to receive high
definition broadcasts.

Flat Screen TV (B y Price)

$0-$500 : flat panel TVs

$500-$1000 : flat panel TVs

$1000-$2000 : flat panel TVs

$2000-$3000 : flat panel TVs

$3000-$4000 : flat panel TVs

$4000-$5000 : flat panel TVs

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$5000-$6000 : flat panel TVs

$6000-above : flat panel TVs

Sceutre X27sv –NAGA III 27” HD-Readv Flat Panel LCD TV

By Sceptre

Upgrade your television viewing experience with the HD-readv Sceptre X27sv-NAGA III
27 inch LCD TV. It features a built-in standard, 181

Channel NTSC tuner, and it‟s capable of HD (high definition ) and ED (Enhanced
Definition) resolution for an ever better picture, with an optional set top box. It also
includes side-mounted stereo speakers that produce 8 watts of power per channel (for 16
watts of total power ). It can provide virtual surround sound via the set‟s two speakers, and
it includes a jack for an external subwoofer.

Digimate DGL26 26” Widescreen HD-Readv LCD TV

By Digimate

The breathtakingly elegant Digimate 26-inch TV presents a palette of exquisitely realistic

images that will forever change the way you view television. You will feast your eyes on
vibrant colors, compelling contrasts and uncommon depths of field. This masterfully
engineered HD Ready television boasts 1280 x 768 resolution, 0.63 dot pitch, 16:9 aspect
ratio, 600:1 contrast and 450 nit brightness to create picture perfect panoramas you will
savor for years to come.

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 Go Video T A2050 20” LCD TV with Remote Control

By go video

Turn any room in your home into an entertainment haven with the 20 inch Go video T A2050
LCD TV which feature a thin profile and a removable stand with a small footprint. It‟s also
easily wall mountable with optional wall mounting hardware. IT feature an 800 * 600- pixel
resolution and 4.3 aspect ratio for viewing standard TV signals.

BASIC TYPES OF TELEVISIONS

Tubes, Flat Panel, and Projection:

Buying a television can be frustrating if you don‟t know what you are looking for. From tubes
to plasma, there are more models on the store shelves than covers of magazines. Before
exploring analog versus digital, SDTV, HDTV and EDTV take a look at the types of
television in today’s consumer market. Here‟s a list of television‟s types you will see in the
stores across North America.

Direct view – Tube:

Also known as direct view, a tube television is the closest thing to the one baby boomers
watched when they were kids. The picture device is a cathode ray tube, which is specialized
vacuum tube. All science aside, CRTs come in all shapes and sizes up to about 40 inches. They

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feature a good picture from all angles, the best black level, and are significantly lower in price
than other TVs. Despite their bulky and heavy build, tube television are long-lasting and
acclaimed for retaining a good picture throughout it‟s lifespan, which can be decades.

Dieital Lieth Processing (DLP):

Digital light processing was invented in 1987 by Texas

Instruments. It is named for its ability to process light digitally with the aid of an optical
semiconductor called a digital Micro mirror device or DMD chip. This chip is comprised of
over one millions mirrors. The size of each mirror is less than 1/5 the width of a human hair.
Currently, over fifty manufacturers produce at least one model of a DLP television. DLP’s
come in rear and front projection. They are not susceptible to bum-in, but some people do
notice a glitch called Rainbow Effect.

 Introduction to DLP
 FAO: DLP Lamp Replacement & Maintenance.

Liquid Crystal Display (LCD):

Whether flat panel or rear projection, there are a ton of choices on the market for or liquid
crystal display televisions. Flat panel display are by far the most popular LCD television
because of their thin, lightweight construction, which is convenient for people who want to use
their LCD as a TV & computer monitor. LCDs are not susceptible to bum-in. LCDs with sloe
response can show a ghosting effect, while other LCDs can have screen door effect. That is
why it is important to see the LCD monitor before buying to see if the screen meets your needs.

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  FAO: LCD Rear Projection
 30-39” LCD Flat Panel LCD Display

SOME COMPANY’S BRAND PRICE & FEATURES

L.G.

Size Price Features

3 band equalizer, 200

program memory, 200 W
P.M.P.O. Arc Zoom

Flatron+ 21 ( 53 cm ) 11,500

3 band equalizer, 200

program memory, 200 W
P.M.P.O. Arc Zoom

20 ( 51 cm) 10,500

Golden Eye,

3 band equalizer, 200

program memory, 200 W
P.M.P.O. Arc Zoom

Golden Eye Magic 21

( 53 cm)

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 11,500

Golden Eye,

3 band equalizer, 200

program memory, 200 W
P.M.P.O. Arc Zoom

20 ( 51 cm) 10,500

Golden Eye,

3 band Graphic equalizer, ,

140 W P.M.P.O. Arc Zoom,

AV stereo
Joy Max Dix 14 inch 7,500

CROWN

Size Price Features

100 program, 400 W stereo

sounds, 200 channels, Bass
Treble & Balance.

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Pure Flat21 ( 53 ) 8,495

100 program, 400 W stereo

sounds, 200 channels, Bass
Treble & Balance.

Pure Flat ( 51 cm) 7,495

100 program, 300 W stereo

sounds, 200 channels, Bass
Treble & Balance.

14 Pure Flat 5,495

ONIDA

Size Price Features

400W P.M.P.O. In built

woofer D.V.M.C.,4 user

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21 oxygen Flat ( 53cm ) 14,990 login, LCD remote, Head
phone

300W P.M.P.O. In digital

eye.,4 user login, child safe,
20 Oxygen Flat ( 51 cm) 10,490
200 channels

76,490 300W P.M.P.O. In digital

eye.,4 user login, child safe,
14 Oxygen
200 channels

T – SERIES

Size Price Features

100 program, 400 W

P.M.P.O. 4 speakers bass
5,490
treble& balance ADND

True Flat 21 ( 53 ) status memory safe Eye

100 program, 300 W

P.M.P.O. 4 speakers bass

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 treble& balance AD/VD
status memory safe Eye
True Flat 20 ( 51 cm) 7,490

100 program, 300 W

P.M.P.O. 4 speakers bass
treble& balance ADND
status memory safe Eye

True Flat 14 inch 6,490

SANSUI

Size Price Features

110 program memory,

1500W P.M.P.O. Woofer,
Hard Rock 21 ( 53cm ) 15,990
Selectable picture 5 modes.

9,990 110 program memory,

600W P.M.P.O. Bass
Furatto 20 ( 51 cm)
Treble & balance.

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 110 program memory,
350W P.M.P.O. Bass
14 SY Super Eye 6,990
Treble & balance.

SAMSUNG

Size Price Features

150 program memory,

1000 W P.M.P.O. woofer, 5
21 M 16 ( 53 ) 15,490
selectable picture modes.

150 program memory,

1000 W P.M.P.O. woofer, 5
20 M 16 ( 51 cm) 13,490
selectable picture modes

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 100 program memory, 500
W P.M.P.O. woofer, 5
14 M 16 8,990
selectable picture modes

AKAI

Size Price Features

110 channels, 550W

P.M.P.O., 10 Selectable
Flatron 21 ( 53cm ) 8,990
sounds & picture modes.

Flatron 20 ( 51 cm) 7,990

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 110 channels, 350W
P.M.P.O., 10 Selectable
Akai 14 inch 5,990
sounds & picture modes.

PHILIPS

Size Price Features

200channels,

110 program memory, 500

W P.M.P.O., 5 selectable
21 M 16 ( 53 ) 13,990
picture modes.

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 200channels,

110 program memory, 500

W P.M.P.O., 5 selectable
20 M 16 ( 51 cm) 12,990
picture modes.

200channels,

110 program memory, 350

W P.M.P.O., 5 selectable
14 M 16 8,990
picture modes.

Competitor Analysis

A detailed analysis of some of the major players is done below -

LG ELECTRONICS

LG Electronics rightly understood the consumer motivations to create magnetic products, price
them strategically, position them sharply and keep making the magnetism more potent. Having
understood the finer differences in consumer motivations, it opted for sharp arrow “reasons-to-

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buy” differentiations over the “blanket all approach “taken by most of the other players. It is an
aggressive marketer. It focuses on low and medium price products.

SAMSUNG

Initially the strategy of Samsung in India was to create premium image by emphasizing global
brand. After facing stiff competition from the Korean major – LG, Samsung also started
playing price game. In 2004, it reverted back to its premium positioning, although it resulted in
some loss of market share. In line with global digital initiative of the parent company, Samsung
India is seeking to acquire the digital leadership in India by introducing its digital ready
televisions like the 40” LCD projection TV, 43” projection TV & the plano series of flag color
TV.

ONIDA ( MIRC ELECTRONICS)

Its popular devil ad although had engendered a strong emotional pull towards the brand, it
represented no advancement. The company plugged the gap by touting its digital technology.
Like Videocon it has also been able to hold its market share. The world -class quality of Onida
has enabled the company to make breakthrough on the export front. Onida is leading brand in
gulf market & also export its model to Africa, Bangladesh, Sri Lanka & Nepal. I has technical
tie-up with the Japan victor company (JVC). So focused is Onida on positioning itself on the
premium, high-tech plank that it is even planning to push its own envelop on obsolescence,

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much like Intel has been doing in its own industry. Best strategy is aimed at further broad
basing the product offering of the company, which has largely dominated the top end of the TV
market, across multiple market segments. Besides understanding the strategy adopted by
different players, several other factors- industry growth, concentration & balance, corporate
stakes, fixed cost and product differences need to analyzed to determine the extent of rivalry
between existing players.

VEDIOCON

Videocon has always been a price player and has an image of a low price brand. This entails
providing more features at a given price vis- a -vis competitors. IT has taken over multinational
brands to cater to unserved segments, like Sansui – to flank the flagship brand Vidiocon in the
low to mid priced segment, essentially to fight against brands like BPL, ONIDA, PHILIPS and
taken over Akai- tail end brand for brands like Aiwa. It is one of the largest manufacturers of
TV and its components in India and thus has advantages of economies of scale and low cost
due to indigenization. It has the widest distribution in India with more than 5000 dealers in the
major cities. It also has strong base in the semi- urban & rural markets. Due to its multibrand
strategy it has at present multiple brands at the same price points This has lead to the state of
diffused positioning for its brand. It has also lead to a cannibalization of sales among these
brands. The flagship brand has lost market share due to the presence of Sansui in the same
segment. Because of reduction in import duties on CPT the cost advantage of Videocon is also
on the decline. Hence it it facinf rough weather & also trying to boost exports.

SPECIAL FOCUS ON SAMSUNG TELEVISION

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VISION:

Samsung India aims to be the best company in India by the year 2006. Best company in terms
of both in terms of internal workplace environment as well as the external context in which the
company operates. Samsung aims to grow in India by contributing to Indian economy &
making the life of its consumer simpler, easier, and richer through its superior quality products
“our aim is to gain technological leadership in the Indian marketplace as a goal yo earn the
love and respect of more and more of Indian consumers.”

Mr.S.H.Oh, President & CEO

Samsung south-west Asia regional headquarters.

SAMSUNG ELECTRONICS ANNUAL REPORT

Company profile 1st Annual report, 2004.

Report of independent accountants.

To the shareholders and Board of Directors, Samsung Electronics Company Ltd.

We have audited the accompanying the balance sheet of Samsung Electronics Company Ltd. as
of December 31, 1997, and related statements of income, appropriation of retained earnings and
cash flow for the year then ended, expressed in Korean won. These financial statements are the
responsibility of the company‟s management. Our responsibility is to express an opinion, as

24
independent auditors, on this financial statement, as to weather they have been prepared in
conformity with financial accounting standards generally accepted in the republic of Korea.
For this purpose, we conducted a audits with accordance with auditing standards generally
accepted in the republic of Korea. In our opinion the financial statements referred to above
present fairly, in all material respects, this financial position of Samsung Electronics Company
Ltd. as of December 31,1997, as the results of its operation, the changes in its retained earnings
and ts cash flows for the year then ended. In conformity with financial accountings standards
generally accepted in the republic of Korea.

As further explained in note 2 of financial statement, 1997 the company changes its policy for
foreign currency translation and extended the useful lives 01 property, plant and equipments.

SAMSUNG PROFILE

Samsung Profile 2008

Wherever you are... in the hustle of the streets or the comfort of the home...Samsung is part of
the fabric of your life. As a global leader we are at the forefront of change, anticipating today
what our customers around the world will want tomorrow.

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 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem along
with the logic behind them. It is necessary for the researcher to know not only the research
methods/techniques but also the methodology. Researchers not only need to know how to
develop certain indices or tests, how to calculate the mean, the mode, the median or the

26
standard deviation or chi-square, how to apply particular research techniques, but they also
need to know which of these methods or techniques, are relevant and which are not, and what
would they mean and indicate and why.

RESEARCH OBJECTIVE

 To find out price strategy toward various television brands

 To find out price fixing policy adopted by other television companies.

 To find out market share in different television brands.

RESEARCH DESIGN

A research project conducted scientifically has a specific framework of research from the
problems identification to the presentation of the reports. This framework of conducting
research is known as the research design.

Research design provides the glue that holds the research the project together. A design is used
to structure the research, to show how all of the major part of the research project-the sample of
or the group, measures, treatment of program, and methods of assignment- work together to try
to address the central research questions. There can be following types of research design.

DESCRIPTIVE RESEARCH STUDIES

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Descriptive Research Studies are those studies which are concerned with are concerned with
describing the characteristics of a particular individual, or of a group. Studies concerned with
narration of facts and characteristics concerning individual, group or situation are all examples
of descriptive research study most of the social research study most of the social research
comes under this categories.

Size of Sample:

The sample size consist of 50 units out of which the most logical and non biased response are
selected thus the sample size is taken out to be 96. This refers to the number of items to be
selected from universe to constituent the names. This major problem before a researcher the
size of sample should neither be expressively large nor should too small it be optimum.

Sampling Unit:

A decision has to be taken concerning a sample unit before selecting sample. Sampling unit
may be geographical one such as state, district, village, etc. or a construction unit such as house
flat, etc, or it may be social unit such as family, club school etc, or it may be an individual. My
sampling unit is Customer in Lucknow City.

DATA COLLECTION

The task of collecting the data begins after a research problem has been defined and research
design/plan chalked out. While deciding about the method of data collection to be used for the
study the researcher should keep in mind two types of data viz., primary & secondary.

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Secondary Data: the secondary data are those which have been already collected by
someone else and which have already been passed through the statistical tool.

“Secondary data are statistics not gather for the immediate study and hand but for some other
purposes”

Primary data: The primary data are those which are collected afresh and for the first time,
and thus happen to be in original in character.

“Primary data may be described as those data that have been observed and recorded by the
researchers for the first time to their knowledge”.

INSTRUMENT USED IN DATA ANALYSIS IS RATING METHOD

Questionnaire:-

This method of data collection is quite popular particularly in the case of big enquiry.

It is being adopted by private individual, research worker, private & public organization & even
by the government. In this method a questionnaire is sent to the person concerned with a
request to answer the question and return the questionnaire. A questionnaire consists of a
number of question printed or type in a definite order on a form of or set of forms

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 DATA ANALYSIS

1. How Many Television Brand You Know?

(i) L.G. (ii) Videocon (iii) Sony (iv) Philips

(v) Onida (vi) Samsung (vii) Others

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 OTHERS
SAMSUNG 9% LG
12% 30%

ONIDA
11%
PHILIPS VIDEOCON
9% SONY 16%
13%

INTERPRETATION

In the survey conducted by me, I have found that people are Television
brand like:

L.G - 30%

Videocone - 16%

Sony - 13%

Philips - 9%

Onida - 11%

Samsung - 12%

Other - 9%

2) At the present time which brand of T.V. you are using?

1%
L.G.
2% 6% VIDIOCON 31
15% 30% SONY
PHILIPS
INTERPRETATION:

In the survey conducted by me, I have found that in future in case of exchange offer or
change so people mind perception is:

L.G - 30%

Videocone - 13%

Sony - 12%

Philips - 10%

Onida - 8%

Samsung - 15%

Akai - 2%

Oscar - 1%

Other - 6%

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3. How many years do you have television?

(i) Less than 1 year (ii) 2 – 3 year (iii) 3 – 5 year

(iv) More than 5 year

5%
15%
> 1 YEAR
2-3 YEAR
3-5 YEAR
55% < 5 YEAR
25%

INTERPRETATION:

In the survey conducted by me, I found that 5% people have television from less than one
year and 15 % people have television from 2-3 year and 25% people have television from
3-5 year and 55% people have television from more than five years.

4. Which brand will you prefer in future in case exchange offer or

Change?

33
 (i) L.G. (ii) Videocon (iii) Sony (iv) Philips

(v) Onida (vi) Samsung (vii) others

6% L.G.
15% 30%
VIDIOCON
SONY
PHILIPS
8% ONIDA
10% SAMSUNG
12% 19% OTHERS

INTERPRETATION:

In the survey conducted by me, I have found that in future in case of exchange offer or
change so people mind perception is:

L.G - 30%

Videocone - 19%

Sony - 12%

34
Philips - 10%

Onida - 8%

Samsung - 15%

Other - 6%

5. Why will you prefer that particular brand?

(i) Price (ii) sound (iii) features (iv) others

35
 OTHERS
5%
FEATURE PRICE
25% 35%

SOUND
35%

INTERPRETATION:

In the survey conducted by me, I have found that why people prefer that particular brand
so result is that 35% going with Price 35% going with sound 25% going with feature and
5% going with other.

6. Do you get satisfaction after purchasing your own brand?

(i) Yes (ii) No (iii) can’t say

36
 CAN'T
SAY
5%
NO
30%

YES
65%

INTERPRETATION:

In the survey conducted by me, I have found that people get satisfaction after purchasing
own brand 65% people said yes and 30% said no and 5% said can’t say.

7. After purchasing TV. Do you satisfy from after sales services?

(i) Yes (ii) No (iii) can’t say

37
 CAN'T
SAY

YES

NO

INTERPRETATION:

In the survey conducted by me, I have found that people get satisfy from after sale
services 45% people said yes and 30% said no and 25% said can’t say.

8) Which brand do you think provide the largest model ?

38
 5%

G
N
U
S
M

25%
A
S

N
O

Series1
C
O
E

30%
ID
V

LG

40%
Y
N
O
S

INTERPRETATION:

In the survey conducted by me, I have found that people think that brand which provide
the largest model is:

L.G - 30%

Sony - 40%

Videocone - 25%

Samsung - 5%

9) Which brand do you find most popular among your relatives And friends?

39
 5%
30%
25%
SONY
LG
VIDIOCON
SAMSUNG

40%

INTERPRETATION:

In the survey conducted by me, I have found that people think that brand which provide
the largest model is:

L.G - 40%

Sony - 30%

Videocone - 25%

Samsung - 5%

10. At present, Do you agree that T.V company giving you competitive

40
 Price and model?

(i) Yes (ii) No (iii) can’t say

CAN'T
SAY
30% YES
40%

NO
30%

INTERPRETATION:

In the survey conducted by me, I have found that people are agree with competitive price
and Quality of Television company 40% say yes and 30% say no and 30% can’t say.

11). If Television Manufacturing industry introducing new T.V. then

company has to focus on which area?

(i) Schemes (ii) Quality (iii) Features

41
(iv) Discount (v) Technology Improving (vi) others

35%
30%
25%
20%
Series2
15%
10%
5%
0%
T

S
Y

GY
S
ES

UN
IT

R
RE

HE
LO
M

AL

CO
U
HE

NO
QU

OT
AT

S
SC

DI
FE

CH
TE

INTERPRETATION:

In the survey conducted by me, I have found that people are going with:

Schemes - 21%

Quality - 30%

Feature - 30%

Discount - 5%

Technology Improving - 8%

Other - 6%

RECOMMENDATION AND SUGGESTION

42
Today life seems impossible without the electronic that form a major part of human life. Can
you imagine an evening without the television set? Or a hot cup of coffee at the press of the
button ? The convenience of living a bachelor‟s life thanks to the microwave?

Electronics is seeing such advancement that scientists in the recent past are working towards
bringing to the fore the functioning of artificial intelligence. Which they claim would reduce
man‟s load by almost half. Wow seems totally amazing!

Well on the brighter side life may become fast paced and simple, as everything would
happen with the press of a few buttons once the wired connections have been made: but then
there is the flip side- becoming a slave of the automated life.

This basically implies that in case of an electronics breakdown, the first thing that a person
does is press the panic button and then feel totally immobile and paralyzed until things are
necessary to balance life- manual and electronics.

On the basis of finding of the survey I am here by suggesting some points:

 Company should give emphasis on the sales promotion measure in order to increase the
brand awareness.

 Credit profile can further in hence the sales as many of the people do not find it
appropriate to invest in such at thing bearing this much price as one time.

 At least there must be some types of advertisement campaign to promot the sales of
television in Lucknow

SWOT ANALYSIS

43
Introduction One of the fundamental factors of a successful organization in the market is ability
to success in high competitive environment. Therefore, an important part of this paper is to
build an effective marketing system in which a great deal of attention is paid not only to the
issue of gaining a new customer but also to the retention of existing customer. On the other
hand, to recognize stability in an organization, the board of such organization necessities in fact
explains their goals of the organizations or develops their information of the organizations
vision and mission. An organization that has mission and vision must do entirely possible to
effort towards achieving its mission and vision. The targets and aims, is what they must pursue
vigorously with high common sense of commitment to realize stability. Its well-meaning to
explanation that the supervising an organization to authorize stability as it regards their goals
and aims, specific strategic planning process should be active for the purpose of the application
SWOT Analysis which is part of strategic planning tool will be watchful.

Study problems there are great and massive significant threats which conflict the directors of
organization are as soon as they will make a decision. Just because of it's very difficult to crate
right decision, especially decide for a long time or strategy decision concluded their product's
price and selecting the place to takings the out puts of the companies, at this time the actuality
tool to make the strategy plan of the company which are named (SWOT Analysis), and depend
of this place the research problem consist of some of the inquiries which are researcher try to
get answer, such as:

Q1) What are the roles of SWOT Analysis on company's strategy planning? And how does
SWOT analysis set the stage for strategic planning?

Q2) Why the recent companies need to SWOT Analysis?

Q3) In what is the SWOT analysis practiced and implemented in the Samsung mobiles market
in the last years?

Research hypothesis

44
H1. SWOT analysis can be increase information to setting the strategic planning of Samsung
Mobile Company.

H2.Complexity of both internal and external environment is the important factors that make
recent companies to use SWOT analysis especially for the companies which are sells
international brands such as Samsung mobile company.

H3. May be practiced SWOT analysis for the increase market share and profit or not.

SWOT Analysis concepts

SWOT can be designated as an assessment of strength and weaknesses of the company, and
external influences like opportunities and threats that can affect the company, and it's used for
the fundamental identification of the current state of the company. It summarizes the basic
factors influencing the effectiveness of marketing activities and affecting the achievement of
the goals. (Bambuch, 2013), Ommani ( 2011) and Djurkovic (2012) pointed that SWOT
Analysis is a descriptive method used for the designations of strategic planning of a certain
market or an entire industry. As well as it's an abbreviation of the words; strength, weaknesses,
opportunities and threats. See figure 1.

Positive Negative

Internal Strength Weaknesses

External Opportunities Threats

45
In addition the four components of the SWOT Analysis assumed as part of an extensive
strategic planning. (Kaczmarek, 2016), furthermore, the first two aspects (strengths and
weaknesses) are related to internal organizational factors. However opportunities and threats
concealment a wider situation or environment in which the entity operates. See the fig.(2). The
first are probable to be under control of the organization but the last one they are no less
significant when looking at the impact on the originality. (Oreski, 2012)

Fig.2. SWOT analysis (Author,2018)

SWOT Analysis in use Vega (2004) pointed that “SWOT analysis was used simply, because
the first contact with the firm complete it clear that sales manager had not any idea of how to
construction the complex condition. On the other hand, it is also clear that the analysis could
not have been practical without the technological awareness of the facilitator. In addition
application of SWOT needs a good information and sound knowledge base to succeed. Also
sales manager did not have adequate knowledge especially about the external SWOT factors”.
As well, Oreski (2012) the SWOT analysis is used for the strategic planning in tourism.
Correspondingly strategic planning for the destination could be a difficult task as there are
several possible strategies resulting from the assessment of environmental influences. And it's

46
charity generally in firms. However, SWOT analysis incomes banal or deceptive results so
frequently that advised scrapping it. (Valentin, 2005).

On the other hand when using SWOT analysis, it should be confirmed that:

1. Only specific, verifiable statements are used.

2. The internal and external elements are prioritized so that time is spent intent on the most
significant factors.

3. It is not charity in exclusivity. And no one tool is possible to be completely comprehensive,

so a mixture of option-generating tools should be used. (Downey & Technical Information
Service, 2007).

What is strategy planning?

According to Jim and Rouse (1999) “strategic planning is an important process in preparing to
carry out organization‟s mission. An effective strategic planning process provides a context to
make decisions on how to gathering organizational resources. On the other hands, strategic
analysis is the route of conducting research on the business environment within an organization
functions and on the organization itself, in order to articulate strategy” (Downey and Technical
Information Service, 2007). Also, Jim and Rouse (1999) pointed that the basic steps of strategic
planning are prepare to plan then define and review Organizational Vision, Mission, Activities
and Values. Also it is include identifying strategic issues and develop strategic goals and
Objectives, furthermore it is consists of implementation of plans to achieve goals and carry out
purposes. Lastly its hold monitors and evaluate periodically.

SWOT, PEST and strategy formulation

According to Fine (2009) “SWOT analysis can help a company to comprehend itself better and
it is an important advice for making the proper planning of marketing strategy”. However,
Huiru (2011) pointed that the analysis of PEST is scan of the external macro-environment in
which an organization survives. It is the useful tool for considerate the political, economic,

47
sociocultural and technological environment (Downey & Technical Information Service, 2007).
In addition, according to Xu (2009) particular business strategists argue that these sectors need
to be analyzed before a firm improves a strategy.

Marketing mix and SWOT analysis of Samsung

To demonstrate the theories researcher precedes the framing marketing strategy by using
SWOT analysis and 4p's of Samsung mobile company.

Introduction to the Samsung's Company

“Samsung group is the South Korean multinational conglomerate company headquartered in

Samsung town, Seoul. Samsung was founded by Lee B. Chul in 1938 as a trading company. It
has vast product portfolio as well as its presence is in several different product sorts. The brand
image for Samsung is the Samsung Smartphones such as the Samsung note series or the
Samsung galaxy series see fig 3. Generally, Samsung has the following product categories”.

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

48
 Fig. 3. Samsung‟s mobile (Web Page)

“On the other hands, based on SWOT analysis, Samsung‟s strength is reliability. As well
Samsung is known for its service and people know that Samsung gives a very fast facility for
any of its product.
In addition, the analysis on company‟s internal and external environment depends on using
SWOT analysis and market strategy plan. See tables (1 & 2). For further environment of the
company from strength, weakness, opportunity and threat perspective.” (Xu, 2009).

Samsung’s Strength Samsung’s Weaknesses

1. The Most of Samsung products are 1. Price of Samsung's product is not cheap
designed in Korea and produced in China. compared to some domestic competitors.

2. Very high brand reputation. 2. Samsung entered Chinese market, and the
current markets are mainly in the big cities.
3. High integrated research and development
capability. 3. Lack of market control skill, because
Samsung cannot control the price on the major
4. Extended guarantee service
components.

5. High loyalty and reputation.

49
6. Unique Healthy theme.

Table 1. Swot Analysis of Samsung

Samsung’s opportunities Samsung’s threats

1. The notebook industry is a fastgrowing 1. Competition in the industry becomes more

industry. fierce and rigorous.

2. Chines markets is expected to grow more 2. The profit ratio decrease too fast due to the
than 40%, and much higher compared to fast decline on unit price.
global speed 13%.
3. Speed of innovation is quite fast.
3. Consumer‟s attitude changed.
4. Some key components always face
4. The support from government. The supplying constraints.
government itself is the biggest customers in
5. Outsourcing companies‟ ambition into
the industry.
marke

Table 2. Marketing Strategy Plan Of Samsung

Therefore, according to Xu (2009) marketing mix of Samsung company consists of Product

which is portfolio is one of the strongest points for Samsung. And its price which is most of
their product is inexpensive. As well as the third element is place of Samsung this has a single
distributor through whom they distribute throughout a territory. Besides promotions of
Samsung is the fourth component. Since the company has spent lavishly on advertisements
containing celebrities and innovative marketing partnerships.

50
 CONCLUSION

Television industry based on fast consumer goods and the better opportunity is there for
entrepreneur. Demand of television never decline and tat is there for entrepreneur.

Demand especially from old generation continues to be unsatisfactory and to have a negative
impact on the dynamics of commercial interchange production volumes and pricing policies
end up adapting to this situation with strategies that aim essentially at defending positions.
Industry is aiming at young generation.

In the meantime however television companies are being asked to continue their efforts to
maintain their competitiveness. This is also because some difficult situation are beginning to
spread in the industry and companies must strive to avoid losing their competitive edge.

We can summarize as:

 L.G is on the top spot.

 L.G and Videocon has a brand image and generic name in Electronic goods.

 Industry most of the customer have the preference of Sony over the other brand.

 The consumer only switched to other brands when the price range is too high.

 L.G, Videocon and Sony are the major competitors in Industry.

 Samsung has very good distributional channel in comparison to other brands.

51
 LIMITATION

Major limitation which was faced during this project is

 Limitation of non responsiveness of customers.

 The result could not be exact and accurate measure of the phenomena under question
due the exploratory of them study.

 The information with the respondents may not be very accurate.

 This study was self finance hence the survey was under financial constraints.

52
 BIBLIOGRAPHY

THE book and other help referred during the development of this report are as follow:

1) kotler, Philip “Marketing management” published by pearson education

(singapour) Pvt. Ltd.

2) Kothari, C.R “Research Methodology” published by new age international (p)

ltd.

 www.google.com

 www.television.com

 www.samsung.com

 Times of India

 www.iupindia.com

53
 ANNEXURE-QUESTIONNAIRE

TOPIC: A study of marketing strategy of Television Industry in Lucknow.

Name: __________________ Contact No._______________________

Address______________________________________________________________

1. How Many Television Brand You Know?

(i) L.G. (ii) Videocon (iii) Sony (iv) Philips

(v) Onida (vi) Samsung (vii) Others

2. At the present time which brand of T.V. you are using?

___________________________________________

3. How many years do you have television?

(i) Less than 1 year (ii) 2 – 3 year (iii) 3 – 5 year

(iv) More than 5 year

4. Which brand will you prefer in future in case exchange offer or change?

(i) L.G. (ii) Videocon (iii) Sony (iv) Philips

54
 (v) Onida (vi) Samsung (vii) others

5. Why will you prefer that particular brand?

(i) Prize (ii) sound (iii) features (iv) others

6. Do you get satisfaction after purchasing your own brand?

(i) Yes (ii) No (iii) can‟t say

7. After purchasing TV. Do you satisfy from after sales services?

(i) Yes (ii) No (iii) can‟t say

8. Which brand do you think provide the largest range of models ?

__________________________________________

9. Which brand do you find most popular among your relatives and friends?

__________________________________________

10. At present, Do you agree that T.V company giving you competitive price and

Quality?

(i) Yes (ii) No (iii) can‟t say

11. If Television Manufacturing industry introducing new T.V. then company

55
 has to focus on which area?

(i) Schemes (ii) Quality (iii) Features

(iv) Discount (v) Technology Improving (vi) others

Date ___________ Signature:

56