2058946 samsung case study5b25d

8/8/2019 2058946 Samsung Case Study5b25d

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SAMSUNG CASESAMSUNG CASE

STUDYSTUDYGENERAL MANAGEMENTGENERAL MANAGEMENT

By:-

Shilpa Kher (43)

Reema Kotak (44)

Krithika .S (45)Siji Kumar (46)

Bhuvan Lalka (47)

Malavika M (48)

Heena M (49)


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AGENDA OF THE PRESENTATIONAGENDA OF THE PRESENTATION

Background of the Samsung caseBackground of the Samsung case

Strategy process at SamsungStrategy process at Samsung

Mission statement (aim & goal)Mission statement (aim & goal)

ObjectiveObjective

Environmental analysisEnvironmental analysis

Strategy (generic, alternative)Strategy (generic, alternative)

Swot analysisSwot analysis

Challenges faced by SamsungChallenges faced by Samsung


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BACKGROUND OF THE CASEBACKGROUND OF THE CASE

Samsungs Turnover Target and its AimSamsungs Turnover Target and its Aim

Philosophy at SamsungPhilosophy at Samsung

How Samsung catches up with LGHow Samsung catches up with LG

Samsungs move from being a Class product to aSamsungs move from being a Class product to a

Mass productMass product

Innovative Strategies( Samsung Marketing Academy)Innovative Strategies( Samsung Marketing Academy)

adopted to tap potential buyersadopted to tap potential buyers


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SAMSUNG ELECTRONICSSAMSUNG ELECTRONICS

Global leader in semiconductors and digitalGlobal leader in semiconductors and digital

technologiestechnologies

Samsung India commenced its operations in India inSamsung India commenced its operations in India in

December 1995December 1995

Sales turnover of over US $ 1Bn in just a decade ofSales turnover of over US $ 1Bn in just a decade of

operations in the countryoperations in the country

Core competency in the field of semiconductors whichCore competency in the field of semiconductors which

is backed by its R&D capabilities and manufacturingis backed by its R&D capabilities and manufacturing

scalescale

Emerge as one of the most unique brands creatingEmerge as one of the most unique brands creating

innovative and superior digital products every yearinnovative and superior digital products every year


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From being a virtually unknown entity in the YearFrom being a virtually unknown entity in the Year

1995, brand Samsung today enjoys an awareness of1995, brand Samsung today enjoys an awareness of

over 95% and a positive opinion of around 80% in theover 95% and a positive opinion of around 80% in the

country today (source: BAS 2004)country today (source: BAS 2004) Samsung has very successfully leveraged itsSamsung has very successfully leveraged its

association with Cricket and Cinema in the form ofassociation with Cricket and Cinema in the form of

Team Samsung and Samsung IIFA AwardTeam Samsung and Samsung IIFA Award

In 2003, LG was the market leader with a share ofIn 2003, LG was the market leader with a share of17.6% followed by Samsung at 15.8% in Consumer17.6% followed by Samsung at 15.8% in Consumer

Electronic ProductsElectronic Products

SAMSUNG ELECTRONICS (Ctd)SAMSUNG ELECTRONICS (Ctd)


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STRATEGY PROCESS ATSTRATEGY PROCESS ATSAMSUNGSAMSUNG


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SAMSUNGS PRODUCT LINESAMSUNGS PRODUCT LINE

Consumer Electronic Products like :Consumer Electronic Products like :

Colour Television (CTVs)Colour Television (CTVs)

Refrigerators (Frost Free)Refrigerators (Frost Free)

Air ConditionersAir Conditioners

GSM HandsetsGSM Handsets

Front Loading Washing MachinesFront Loading Washing Machines

LCD TV, Plasma TVLCD TV, Plasma TV


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MISSION STATEMENTMISSION STATEMENT

AIM :AIM : Samsung aims to become Indias leading volumeSamsung aims to become Indias leading volume

retailer in the consumer electronics segmentretailer in the consumer electronics segment

Achieving its aim by focusing on its Core StrategyAchieving its aim by focusing on its Core Strategy

Work on strengthening its unique Brand ImageWork on strengthening its unique Brand Image

Gaining Customer SatisfactionGaining Customer Satisfaction

GOALGOAL ::

Achieving $2 billion turnover by 2008Achieving $2 billion turnover by 2008


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ENVIRONMENTAL ANALYSISENVIRONMENTAL ANALYSIS

(Where are we now??)(Where are we now??) In 2004 and 2005 sales turnover was 4,900 crore andIn 2004 and 2005 sales turnover was 4,900 crore and

6,300 crore respectively6,300 crore respectively

Trying to Close on to the Market Leader LGTrying to Close on to the Market Leader LG

Trying to come Clean on its IT Business MessTrying to come Clean on its IT Business Mess

Making a mark in the High end category SegmentMaking a mark in the High end category Segment

LCD TV, Plasma TV,F

rost free Refrigerators andLCD TV, Plasma TV,F

rost free Refrigerators andSplit ACsSplit ACs


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RAPIDLY INCREASINGITS MARKET SHARE


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CTVCTV

27.126

14.4 14

11.39.1 8.7 8.3

0

5

10

15

20

25

30

Market

share

LG Samsung Onida Videocon

5-May 6-May


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WASHING MACHINEWASHING MACHINE

34.5

30.5

12.9

18.1

13.213.414.713.7

0

5

10

15

20

25

30

35

Market

Share

LG Samsung Videocon Whirlpool

5-May 6-May


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AIR CONDITIONERSAIR CONDITIONERS

40.6

32.8

15.9

19.9

9.5 10.37.5 7.8

05

10

15

20

2530

35

40

45

Market

Share

LG Samsung Voltas Videocon

5-May 6-May


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REFRIGERATORREFRIGERATOR

29.129.4

23 24

11.4

15.716.8

13.4

0

5

10

15

20

25

30

Market

Share

LG Whirlpool Samsung Godrej

5-May 6-May


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OBJECTIVEOBJECTIVE

(Where do they want to be ???)(Where do they want to be ???) Cross Rs7,500 Crore in Turnover in 2006Cross Rs7,500 Crore in Turnover in 2006

Strengthen ExportsStrengthen Exports

Reorientation of Marketing activitiesReorientation of Marketing activities

Expansion of its Sales InfrastructureExpansion of its Sales Infrastructure

Move to the TierMove to the Tier--II and TierII and Tier--III CitiesIII Cities

Become a Mass product and still retain its leadingBecome a Mass product and still retain its leading

edge technologyedge technology


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STRATEGY AT SAMSUNGSTRATEGY AT SAMSUNG

(A) GENERIC STRATEGY:(A) GENERIC STRATEGY:

Generic strategy includes Product diversificationGeneric strategy includes Product diversification

and focus of the companyand focus of the company

PRODUCT DIVERSIFICATIONPRODUCT DIVERSIFICATION

Product Range is from contemporary to hiProduct Range is from contemporary to hi--techtech Diversifying products so that each and every segmentDiversifying products so that each and every segment

is coveredis covered


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FOCUS OF THE COMPANYFOCUS OF THE COMPANY

Product Innovation through usage of leading edgeProduct Innovation through usage of leading edge

technologytechnology

Customer SatisfactionCustomer Satisfaction

Continuously Upgrading with technologyContinuously Upgrading with technology

Tapping the ever growing HighTapping the ever growing High--end Consumerend Consumer

Tweaked its focus to concentrate on middle classTweaked its focus to concentrate on middle class

segment alsosegment also

Spending a good amount of its revenue on R&DSpending a good amount of its revenue on R&D


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(B) ALTERNATIVE STRATEGY(B) ALTERNATIVE STRATEGY

PRODUCT DEVELOPMENTPRODUCT DEVELOPMENT

Research and development centre at Noida.Research and development centre at Noida.

Centre recently helped customize two high end frostCentre recently helped customize two high end frostfree refrigerators models, RT 25 and RT 28.free refrigerators models, RT 25 and RT 28.

Features offered by these are Cool Pack, toughenedFeatures offered by these are Cool Pack, toughenedglass shelves and high versatility compressorglass shelves and high versatility compressor


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MARKET PENETRATIONMARKET PENETRATION

Working towards reaching out to smaller cities.Working towards reaching out to smaller cities. Planning Dream Home road shows.Planning Dream Home road shows.

Expanding its sales network.Expanding its sales network.

Revamping sales infrastructure.Revamping sales infrastructure. Samsung Marketing AcademySamsung Marketing Academy set up to trainset up to train

frontline sales force and shop demonstrators.frontline sales force and shop demonstrators.


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SWOT ANALYSISSWOT ANALYSIS

STRENGHTSSTRENGHTS Clear target: $ 2 billion by 2008.Clear target: $ 2 billion by 2008.

Core value: Approach market through technology andCore value: Approach market through technology anddesign leadership.design leadership.

Launching hiLaunching hi--tech and contemporary products withtech and contemporary products withzeal and speed.zeal and speed.

Target is not only number driven but also aboutTarget is not only number driven but also aboutacquiring and retaining customers.acquiring and retaining customers.

Created a Unique Brand Image for itself as a high endCreated a Unique Brand Image for itself as a high endvalue driven brand.value driven brand.

The Samsung Marketing AcademyThe Samsung Marketing Academy


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WEAKNESSWEAKNESS

Approach market through technology and designApproach market through technology and design

leadership: a slow process.leadership: a slow process.

Not targeting the mass marketNot targeting the mass market

Not spreading the brand all over indiaNot spreading the brand all over india


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OPPORTUNITIESOPPORTUNITIES

LG: its slowing down and has not had any productLG: its slowing down and has not had any product

innovation in the last 6innovation in the last 6--8 months.8 months.

The Indian Mass Market.The Indian Mass Market.

The high end value driven proposition helps increaseThe high end value driven proposition helps increase

the Market Share.the Market Share. Samsung is well known for it product differentiationSamsung is well known for it product differentiation


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THREATSTHREATS

Indian Mass Market may be captured by a rivalIndian Mass Market may be captured by a rivalcompany, LG, Onida, Videocon;etc.company, LG, Onida, Videocon;etc.

The consumer durable industry is not in the bestThe consumer durable industry is not in the best

of health.of health.

Due to increased price of inputs and continuingDue to increased price of inputs and continuingprice erosion there is downtrend in theprice erosion there is downtrend in the

consumer durables market.consumer durables market.

Increased emergence of modern retail chainsIncreased emergence of modern retail chains-- aa

problem as Samsung is investing in building aproblem as Samsung is investing in building a

retail network across the countryretail network across the country


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THANK YOUTHANK YOU

2058946 samsung case study5b25d

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