18-12-2012, 05:28 PM
SAMSUNG INDIA ELECTRONICS LIMITED
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Background
Samsung Electronics Co. Ltd. is a global leader in semiconductors, telecommunication, digital media
and convergence technologies.; with 2003 global sales of US$ 36.4 billion and net income of US$
5.0 billion. Employing over 88,000 people across 89 offices in 46 countries, the company consists
of six main business units: Corporate Technology Operations, Digital Appliance Business, Digital
Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business.
Recognised as one of the fastest growing global brands, Samsung Electronics is the world’s largest
producer of colour monitors, color TVs, memory chips and TFT-LCDs. Samsung India Electronics
Ltd. (SIEL) is a subsidiary of Samsung Electronics Company Ltd (SECL)
of South Korea. SIEL started its operations in 1995 and provides high technology consumer
electronics, IT, Home appliance and Telecom products. It has over 1400 employees and a turnover
of over US$ 824 million.
Sales of SIEL have been growing at a CAGR of almost 50 per cent over the past four years.
SIEL is the market leader in high end digital television (Plasma, LCD and DLP). In the highly
competitive Colour Television market in India,
Samsung has a market share of 15.5 per cent.
Samsung holds the No. 2 position in the Flat
Television category, Frost Free refrigerators as well
as in the Microwave oven segment.
Samsung is the leader in the IT essentials
segment with 63 per cent Market share in TFT
LCD monitors, 51 per cent in CRT Monitors, 43
per cent in Multifunction Printers and 47 per cent
in Hard Disc segment.
Factors for Success
Innovative promotion and
advertising initiatives
To establish trust and confidence among Indian
consumers, Samsung did active promotion and
advertising by taking the following initiatives.
• Samsung India associated itself with the ruling
passion of the Indian mass consciousness: Cricket.
Samsung launched the Team Samsung campaign
with the stars of the Indian cricket team, which
caught the imagination of an entire nation. In 2004,
Samsung also brought to India what was possibly
the biggest cricketing spectacle of this decade, the
historic India vs. Pakistan cricket series - ‘The
Samsung Cup’
Customised products for Indian Consumers
Samsung understands the local cultural sensibilities to
customise its products according to the Indian market.
• Samsung phones support five Indian languages -
Hindi, Marathi, Bangla, Punjabi and Tamil. The
phones supports phone menu, fonts and SMS in
these five languages. Samsung is the first company
in the world to introduce a Bangla menu.
• It has set up a “usability lab” at the Indian Institute
of Technology in New Delhi to customise Samsung
products to meet the specific needs of Indian
consumers. This industry-institute partnership is
helping Samsung to study and analyse consumer
response in aspects of product design, including
aesthetics, ergonomics and interface.
• Through its research done on consumer
preferences in India, Samsung has concluded
that Indian consumers want more soundoriented
products. Thus, the Samsung televisions
of India have a higher sound capacity than their
foreign counterparts.
Corporate Social Responsibility
Samsung has also made its mark as a company with
a conscience and an organisation with social
responsibilities. In 2004, Samsung won the Golden
Peacock Special Commendation for Corporate Social
Responsibility. This award was given by the Institute
of Directors and the World Council for Corporate
Governance.
Samsung runs the Digital Hope programme,
supporting organisations that promote the use of
technology to improve the lives of youth, empower
them and help bridge the ‘digital divide’. Organisations
supported by this programme include Development
Alternatives and the National Centre for Promotion
of Employment of Disabled People (NCPEDP).
Future Plans
• Samsung plans to create an aspirational digital
lifestyle for the average Indian consumer with the
introduction of innovative digital products, that
represent the absolute high end of technology
and design.
• The company also plans to revolutionise retail in
the country by launching a massive retail roll-out
of its exclusive outlets - Digitall World, Digitall
Homes and Digitall Plaza. The company believes
that with an increasing footprint of Samsung Digitall
Worlds and Samsung Digitall Homes, Indian
consumers today can experience the finest in
technology in a world class environment.
• The company also plans to set up 600 technology
retail counters to bring technology closer to the
consumers, allowing them to touch, feel and
experience the same
• Samsung is also investing in setting up the Samsung
Marketing Academy to train sales personnel to
engage in lifestyle selling. The emphasis is clearly
on providing customers a richer and more
informed buying experience.