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9 ANNEXURE 37-40




To study the consumer buying behavior towards Samsung electronics

To know and understand the consumer buying decision factor

To study competitor of Samsung electronics





Questionnaires often seem a logical and easy option as a way of collecting information from
people. They are actually rather difficult to design and because of the frequency of their use in all
contexts in the modern world, the response rate is nearly always going to be a problem (low)
unless you have ways of making people complete them and hand them in on the spot (and this of
course limits your sample, how long the questionnaire can be and the kinds of questions asked).
As with interviews, you can decide to use closed or open questions, and can also offer
respondents multiple choice questions from which to choose the statement which most nearly
describes their response to a statement or item. Their layout is an art form in itself because in
poorly laid out questionnaires respondents tend, for example, to repeat their ticking of boxes in
the same pattern. If given a choice of response on a scale 1-5, they will usually opt for the middle
point, and often tend to miss out subsections to questions. You need to take expert advice in
setting up a questionnaire, ensure that all the information about the respondents which you need
is included and filled in, and ensure that you actually get them returned. Expecting people to pay
to return postal questionnaires is sheer folly, and drawing up a really lengthy questionnaire will
also inhibit response rates. You will need to ensure that questions are clear, and that you have
reliable ways of collecting and managing the data. Setting up a questionnaire that can be read by
an optical mark reader is an excellent idea if you wish to collect large numbers of responses and
analyses them statistically rather than reading each questionnaire and entering data manually.

 Identify your sample

 Draw up a list of appropriate questions and try them out with a colleague
 Pilot them
 Ensure questions are well laid out and it is clear how to 'score them' (tick, circle, delete)
 Ensure questions are not leading and confusing
 Code up the questionnaire so you can analyze it afterwards
 Gain permission to use questionnaires from your sample
 Ensure they put their names or numbers on so you can identify them but keep real names
 Hand them out/post them with reply paid envelopes

 Ensure you collect in as many as possible
 Follow up if you get a small return
 Analyze statistically if possible and/or thematically

Sample size

Sample size in the survey is 40 people.

The secondary data are collected which are already published by someone I am used those
data from using different website books and consumer behavior
Secondary data collected for some relevant purpose. Various sources are used to collected
the data and obtain. Data are collected from different websites of the Samsung and its
published website officially and unofficially also use the consumer behaviors website to
collect the different factor affecting consumer affecting buying behavior of consumer.
Book is also used in the find out the secondary data like research methods in business and
some official websites also.





Though similar, consumers are unique in themselves they have needs and
Wants which are varied and diverse from one another and they have different
Consumption patterns and consumption behavior. The marketer helps satisfy
These needs and wants through product and service offerings. For a firm to
Survive, compete and grow, it is essential that the marketer identifies these
Needs and wants, and provides product offerings more effectively and efficiently than other
competitors. A comprehensive yet meticulous knowledge of consumers and their consumption
behavior is essential for a firm to succeed. Herein, lies the essence of
Consumer Behavior, an interdisciplinary subject that emerged as a separate field of study in the


Consumer Behavior may be defined as the interplay of forces that takes place during a
consumption process, within a consumers self and his environment. This interaction takes place
between three elements viz. knowledge, affect and behavior; it continues through pre-purchase
activity to the post purchase experience;
it includes the stages ofevaluating, acquiring, using and disposing of goods and services.
The consumer includes both personal consumers and business/industrial/organizational
Consumer behavior explains the reasons and logic that underlie purchasing decisions and
consumption patterns; it explains the processes through which buyers make decisions.
The study includes within its purview, the interplay between cognition, affect and behavior that
goes on within a consumer during the consumption process: selecting, using and disposing of
goods and services

This includes within its ambitthe knowledge, information processing and thinking part; It
includes the mental processes involved in processing of information, thinking and interpretation

of stimuli (people, objects, things, places and events). In our case, stimuli would be product or
service offering; it could be a brand or even anything to do with the 4Ps.


This is the feelings part. It includes the favorable or unfavorable feelings and corresponding
emotions towards stimuli (e.g. towards a product or service offering orbrand). These vary in
direction, intensity and persistence.

This is the visible part. In our case, this could be the purchase activity: to buy or nota buy
(again specific to a product or service offering, a brand or even related to any of the 4 Ps)


Nature of Consumer Behavior

The subject deals with issues related to cognition, affect and behavior in consumption behaviors,
against the backdrop of individual and environmental determinants. The individual determinants
pertain to an individuals internal self and include psychological components likepersonal
motivation and involvement, perception, learning and memory, attitudes, self-concept and
personality, and, decision making. The environmental determinants pertain to external influences
surrounding an individual and include sociological, anthropological and economic components
like the family, social groups, reference groups, social class, culture, sub-culture, cross-culture,
and national and regional influences.

The subject can be studied at micro or macro levels depending upon whether it is analyzed at the
individual level or at the group level.

The subject is interdisciplinary. It has borrowed heavily from psychology (the study of the
individual: individual determinants in buying behavior), sociology NPTEL (the study of groups:
group dynamics in buying behavior), social psychology (the study of how an individual operates
in group/groups and its effects on buying behavior), anthropology (the influence of society on
the individual: cultural and cross-cultural issues in buying behavior), and economics (income and
purchasing power).

Consumer behavior is dynamic and interacting in nature. The three components of cognition,
affect and behavior of individuals alone or in groups keeps on changing; so does the
environment. There is a continuous interplay or interaction between the three components
themselves and with the environment. This impacts consumption pattern and behavior and it
keeps on evolving and it is highly dynamic

Consumer behavior involves the process of exchange between the buyer and the seller, mutually
beneficial for both.

As a field of study it is descriptive and also analytical/ interpretive. It is descriptive as it explains

consumer decision making and behavior in the context of individual determinants and
environmental influences. It is analytical/ interpretive as against a backdrop of theories borrowed
from psychology, sociology, social psychology, anthropology and economics, the study analyzes
consumption behavior of individuals alone and in groups. It makes use of qualitative and
quantitative tools and techniques for research and analysis, with the objective is to understand
and predict consumption behavior

It is a science as well as an art. It uses both, theories borrowed from social sciences to understand
consumption behavior, and quantitative and qualitative tools and techniques to predict consumer

Scope of Consumer Behavior:

The study of consumer behavior deals with
Piton patterns and Behavior. It includes within its ambit the answers to the following:
- What the consumers buy: goods and services
- Why they buy it: need and want
- When do they buy it: time: day, week, month, year, occasions etc.
- Where they buy it: place
- How often they buy it: time interval
- How often they use it: frequency of use
The scope of consumer behavior includes not only the actual buyer but also the various
rolesplayed by him/ different


Influencing Consumer Behavior

1. Internal factors
2. Social factors
3. Cultural factors
4. Economic factors
5. Personal factors
There are five questions that support any understanding of consumer behavior.
Who is the market and what is the extent of their power with regard to the organization?
What do they buy?
Why do they buy?
Who is involved in the buying?
How do they buy?
When do they buy?
Where do they buy?

1. Internal factor
The buying behavior of consumers is influenced by a number of internal or psychological
factors. The most important ones Motivation and Perception.

a) Motivation:
A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need
that is sufficiently pressing to drive the person to act. There can be of types of needs:
1. Biogenic needs:
They arise from physiological states of tension such as thirst, hunger
2. Psychogenic needs:
They arise from psychological states of tension such as needs for recognition, esteem
In the words of William J Stanton, A motive can be defined as a drive or an urge for which an
individual seeks satisfaction. It becomes a buying motive when the individual seeks satisfaction
through the purchase of something. A motive is an inner urge (or need) that moves a person to
take purchase action to satisfy two kinds of wants viz. core wants and secondary wants. Let us
take two examples:
TABLE 2.1: Examples of core and secondary want:
Products Core want Secondary want

Glasses Protection to eyes It should look goo

Shoes Protection to feet Elegance in style

So, motivation is the force that activates goal-oriented behavior. Motivation acts as a driving
force that impels an individual to take action to satisfy his needs. So it becomes one of the
internal factors influencing consumer behavior.
b) Perception:
Human beings have considerably more than five senses. Apart from the basic five (touch, taste,
smell, sight, hearing) there are senses of direction, the sense of balance, a clear knowledge of
which way is down, and so forth. Each sense is feeding information to the brain constantly, and
the amount of information being collected would seriously overload the system if one took it all
in. The brain therefore selects from the environment around the individual and cuts out the
extraneous noise.
In effect, the brain makes automatic decisions as to what is relevant and what is not. Even though
there may be many things happening around you, you are unaware of most of them; in fact,
experiments have shown that some information is filtered out by the optic nerve even before it
gets to the brain. People quickly learn to ignore extraneous noises: for example, as a visitor to
someone elses home you may be sharply aware of a loudly ticking clock, whereas your host
may be entirely used to it, and unaware of it except when making a conscious effort to check that
the clock is still running.
1. Subjectivity:
This is the existing world-view within the individual, and is unique to that individual.
2. Categorization:
This is the pigeonholing of information, and the pre-judging of events and products. This can
happen through a process known as chunking, whereby the individual organizes information into
chunks of related items. For example, a picture seen while a particular piece of music is playing
might be chunked as one item in the memory, so that sight of the picture evokes the music and
vice versa.
3. Selectivity:
This is the degree to which the brain is selecting from the environment. It is a function of how
much is going on around the individual, and also of how selective (concentrated) the individual
is on the current task. Selectivity is also subjective: some people are a great deal more selective
than others.
4. Expectation:
These lead individuals to interpret later information in a specific way. For example, look at this
series of numbers and letters:
In fact, the number 13 appears in both series, but in the first series it would be interpreted as a
because that is what the brain is being led to expect, (The in Matura Ml Script looks like this.

5. Past experience:
For example, many consumers would feel confident that Big Bazaar would sell higher-quality
items than the local corner shop, but might be less able to distinguish between Food Bazaar and
Giant hyper store. The information is subjective in that the consumer will base decisions on the
selected information. Each of us selects differently from the environment and each of us has
differing views. Information about quality will be pigeonholed, or categorized: the individual
may put Skoda Octavia in the same category as Mercedes Benz or perhaps put Sony in the same
slot as Aiwa.

Social factors:

Man is a social animal. Hence, our behavior patterns, likes and dislikes are influenced by the
people around us to a great extent. We always seek confirmation from the people around us and
seldom do things that are not socially acceptable. The social factors influencing consumer
behavior are a) Family, b) Reference Groups, c) Roles and status.

a) Family:
There are two types of families in the buyers life viz. nuclear family and Joint family. Nuclear
family is that where the family size is small and individuals have higher liberty to take decisions
whereas in joint families, the family size is large and group decision-making gets more
preference than individual. Family members can strongly influence the buyer behavior,
particularly in the Indian contest. The tastes, likes, dislike, life styles etc. of the members are
rooted in the family buying behavior.
The family influence on the buying behavior of a member may be found in two ways
i) The family influence on the individual personality, characteristics, attitudes and evaluation
criteria and
ii) The influence on the decision-making process involved in the purchase of goods and services.
In India, the head of the family may alone or jointly with his wife decides the purchase. So
marketers should study the role and the relative influence of the husband, wife and children in
the purchase of goods and services.
Family of orientation:
This is the family in which a person takes birth. The influences of parents and individuals
upbringing have a strong effect on the buying habits. For instance, an individual coming form an
orthodox Tamil or Gujarati vegetarian family may not consume meat or egg even though she
may appreciate its nutritional values.
Family of procreation:
This is the family formed by an individual with his or her spouse and children. Normally, after
marriage, an individuals purchasing habits and priorities change under the influence of spouse.
As the marriage gets older, the people usually settle in certain roles. For instance, a father
normally takes decisions on investment whereas the mother takes decision on health of children.

From a marketing viewpoint, the level of demand for many products is dictated more by the
number of households than by the number of families. The relevance of families to marketing is
therefore much more about consumer behavior than about consumer demand levels .In terms of
Recent research has shown that pre-teens and young teens have a greater influence on family
shopping choices than do the parents themselves, for these reasons:
i. Often they do the shopping anyway, because both parents are working and the children have
the available time to go to the shops.
ii. They watch more TV, so are more influenced by advertising and more knowledgeable about
iii. They tend to be more attuned to consumer issues, and have the time to shop around tor.
b) Reference group:
A group is two or more persons who share a set of norms and whose relationship makes their
behavior interdependent. A reference group is a group of people with whom an individual
associates. It is a group of people who strongly influence a persons attitudes values and behavior
directly or indirectly. Reference groups fall into many possible grouping, which are not
necessarily to be exhaustive (i.e. non over-lapping). The various reference groups are:
i) Membership or contractual groups:
They are those groups to which the person belongs, and interacts. These groups have a direct
influence on their members behavior.
ii) Primary or normative groups:
They refer to groups of friends, family members, neighbors co-workers etc. whom we see most
often. In this case, there is fairly continuous or regular, but informal interaction with
cohesiveness and mutual participation, which result in similar beliefs and behavior within the
iii) Secondary groups:
They include religious groups, professional groups etc, which are composed of people whom we
see occasionally. These groups are less influential in shaping attitudes and controlling behaviour
but canexert influence on behavior within the purview of the subject of mutual interest. For
example, you can be member of a philately or literary club where you can discuss on mutually
interesting subjects.
iv) Aspiration group:
These are group to which a person would like to join as member. These groups can be very
powerful in influencing behaviour because the individual will often adopt the behaviour of the
aspirational group in the hopes of being accepted as a member. Sometimes the aspirational
groups are better off financially, or will be more powerful; the desire join such groups is usually
classed as ambition.
v) Dissociative or avoidance groups:
These are groups whose value an individual rejects and the individual does not want to be
associated with. For example, a senior corporate executive does not want to be taken as a
teenager. Hence, the individual will try to avoid certain products or behaviors rather than be
taken for somebody from the dissociative group. In the just given example, the executive may
not use cigarette, perfume or car, which are very much teenager-oriented. Like inspirational
groups, the definition of a group as dissociative is purely subjective and it varies from one
individual to the next.
vi) Formal groups:

These groups have a known list of members, very often recorded somewhere. An example might
be a professional association, or a club. Usually the rules and structure of the group are laid
down in writing. There are rules for membership and members behaviour is constrained while
they remain part of the group.
vii) Informal groups:
These are less structured, and are typically based on friendship. An example would be an
individuals circle of friends, which only exists for mutual moral support, company and sharing
experiences. Although there can be even greater pressure to conform than would be the case to a
formal group, there is nothing in writing.
Often informal groups expect a more rigorous standard of behaviour across a wider range of
activities that would a formal group; such circles of friends are likely to develop rules of
behaviour and traditions that are more binding than written rules.
viii) Automatic groups:
These are those groups, to which one belongs by virtue of age, gender, culture or education.
These are sometimes also called category groups. Although at first sight it would appear that
these groups would not exert much influence on the members behaviour, because they are
groups, which have not been joined voluntarily, it seems that people are influenced by group
pressure to conform. For example, when buying clothes, older people are reluctant to look like a
teenager and hence they normally do not buy jeans.
ix) Indirect groups:
In this case, the customers are not in direct contact with the influencers. For example, a film star
like Shah Rukh Khan pitches for Santro car, it obviously has a deep influence over the blind
x) Comparative groups:
The members of this group are those with whom you compare yourself. For example, you may
compare yourself with your brother or sister (sibling rivalry) or the colleagues and try to emulate
by possessing some unique products or brands like Modava watch or Christian Dior perfume.
xi) Contactual group:
The group with which we are in regular contacts like college friends, office colleagues.
3. Cultural factors:
According to Schiffman and Kanuk, values include achievement, success, efficiency, progress,
material comfort, practicality, individualism, freedom, humanitarianism, youthfulness and
practicality. This broad set of values is then influenced by the subcultures like nationality groups,
religious groups, racial groups and geographical areas, all of which exhibit degrees of difference
in ethnic taste, cultural preferences, taboos, attitudes and lifestyle.
Cultural factors consist of a) Culture, b) Sub culture and c) Social class.
a) Culture:
Culture is the most fundamental determinant of a persons want and behaviour. The growing
child acquires a set of values, perception preferences and behaviours through his or her family
and other key institutions. Culture influences considerably the pattern of consumption and the
pattern of decision-making. Marketers have to explore the cultural forces and have to frame
marketing strategies for each category of culture separately to push up the sales of their products
or services. But culture is not permanent and changes gradually and such changes are
progressively assimilated within society..

Culture can change over a period of time, although such changes tend to be slow, since culture is
deeply built into peoples behaviour. From a marketing viewpoint, therefore, it is probably much
easier to work within a given culture than to try to change it.
b) Sub-Culture:
Each culture consists of smaller sub-cultures that provide more specific identification and
socialisation for their members. Sub-culture refers to a set of beliefs shared by a subgroup of the
main culture, which include nationalities, religions, racial groups and geographic regions. Many
sub-Cultures make up important market segments and marketers have to design products and
marketing programs tailored to their needs.
Although this subgroup will share most of the beliefs of the main culture, they share among
themselves another set of beliefs, which may be at odds with those held by the main group. For
example, Indians are normally seen as orthodox, conservative people, but rich, up-market youths
do not hesitate to enjoy night parties with liquor and women. Another example is that, the urban
educated or upper class exhibits more trace of individualism although Indian culture is mostly
collective in nature.
c) Social class:
Consumer behaviour is determined by the social class to which they belong. The classification of
socioeconomic groups is known as Socio-Economic Classification (SEC). Social class is
relatively a permanent and ordered division in a society whose members share similar value,
interest and behaviour. Social class is not determined by a single factor, such as income but it is
measured as a combination of various factors, such as income, occupation, education, authority,
power, property, ownership, life styles, consumption, pattern etc.
There are three different social classes in our society. They are upper class, middle class and
lower class. These three social classes differ in their buying behaviour. Upper class consumers
want high-class goods to maintain their status in the society. Middle class consumers purchase
carefully and collect information to compare different producers in the same line and lower class
consumers buy on impulse.

4. Economic Factors:
Consumer behaviour is influenced largely by economic factors. Economic factors that influence
consumer behaviour are
a) Personal Income,
b) Family income,
c) Income expectations,
d) Savings,
e) Liquid assets of the Consumer,
f) Consumer credit,
g) Other economic factors.
a) Personal Income:
The personal income of a person is determinant of his buying behaviour. The gross personal
income of a person consists of disposable income and discretionary income. The disposable
personal income refers to the actual income (i.e. money balance) remaining at the disposal of a
person after deducting taxes and compulsorily deductible items from the gross income. An
increase in the disposable income leads to an increase in the expenditure on various items. A fall
in the disposable income, on the other hand, leads to a fall in the expenditure on various items.
b) Family income:

Family income refers to the aggregate income of all the members of a family.
Family income influences the buying behaviour of the family. The surplus family income,
remaining after the expenditure on the basic needs of the family, is made available for buying
shopping goods, durables and luxuries.
c) Income Expectations:
Income expectations are one of the important determinants of the buying behaviour of an
individual. If he expects any increase in his income, he is tempted to spend more on shopping
goods, durable goods and luxuries. On the other hand, if he expects any fall in his future income,
he will curtail his expenditure on comforts and luxuries and restrict his expenditure to bare
d) Savings:
Savings also influence the buying behaviour of an individual. A change in the amount of savings
leads to a change in the expenditure of an individual. If a person decides to save more out of his
present income, he will spend less on comforts and luxuries.
g) Other economic factor:
Other economic factors like business cycles, inflation, etc. also influence the consumer
5. Personal factor:
Personal factors also influence buyer behaviour. The important personal factors, which influence
buyer behaviour, are a) Age, b) Occupation, c) Income and d) Life Style
a) Age:
Age of a person is one of the important personal factors influencing buyer behaviour. People buy
different products at their different stages of cycle. Their taste, preference, etc also change with
change in life cycle.
b) Occupation:
Occupation or profession of a person influences his buying behaviour. The life styles and buying
considerations and decisions differ widely according to the nature of the occupation. For
instance, the buying of a doctor can be easily differentiated from that of a lawyer, teacher, clerk
businessman, landlord, etc. So, the marketing managers have to design different marketing
strategies suit the buying motives of different occupational groups.
c) Income:
Income level of people is another factor which can exert influence in shaping the consumption
pattern. Income is an important source of purchasing power. So, buying pattern of people differs
with different levels of income.
d) Life Style:
Life style to a persons pattern or way of living as expressed in his activity, interests and
opinions that portrays the whole person interacting with the environment. Marketing managers
have to design different marketing strategies to suit the life styles of the consumers.


It is very important that a company develops a coherent marketing strategy for the launch of each
individual product in its portfolio. It is of equal importance that these strategies are compatible
and support the firms overall objectives.

This case study examines how Samsung develops new high-tech products and brings them to the
mass market on an international level. Although Samsung is a multi-national company with 56
worldwide subsidiaries, this case study concentrates on the UK market. It discusses three very
different products and how they require varying marketing methods and channels to supply three
different markets.
Background to Samsung Founded in 1938 in South Korea, Samsung has grown from a modest
trading company to a multi-national conglomerate with an annual turnover in 1997 of nearly

$100 billion. Samsung operates in three major markets - electronics, engineering and chemicals -
and employs people in more than 60 countries. The corporate philosophy is to devote its human
resources and technology to the development of a global society through ever better products and
services. Samsung pursues three strategies to achieve its objective of maintaining global

Samsung Electronics Co., Ltd. is the chief subsidiary of South Korea's giant Samsung Group and
the largest electronics producer in Asia. Samsung Electronics operates four main divisions
including Digital Media, Semiconductors, Information & Communications, and Home
Appliances. The company sells televisions, video, and audio equipment; computers and related
products; phones, cellular phones, and fax machines; home appliances; semiconductors;
network-related products; factory automation products; fiberoptics products; closed circuit
security products; motors and compressors; and solar energy systems. In 2000, Samsung
Electronics held the leading market position in the code division multiple access (CDMA)
Handset, DRAM, SRAM, and color monitor markets.
Early History of Samsung Group
Samsung Electronics was created in 1969 as a division of the mammoth Korean chaebolSamsung
Group. The unit was established as a means of getting Samsung into the burgeoning television
and consumer electronics industry. The division's first product was a small and simple black-
and-white television that it began selling in the early 1970s. From that product, Samsung
Electronics gradually developed a diverse line of consumer electronics that it first sold
domestically, and later began exporting. The company also began branching out into color
televisions, and later into a variety of consumer electronics and appliances. By the 1980s,
Samsung was manufacturing, shipping, and selling a wide range of appliances and electronic
products throughout the world.
Lee established a sugar refinery in 1953, a move that was criticized at the time because sugar
could be easily obtained through American aid. But for Lee, the act was important because it was
the first manufacturing facility built in South Korea after the Korean War. From sugar, wool, and
other commodity businesses, Lee moved into heavier manufacturing. The company prospered
under Lee's philosophy of making Samsung the leader in each industry he entered.
From manufacturing, Samsung moved into various service businesses during the 1960s,
including insurance, broadcasting, securities, and even a department store. Lee experienced
several major setbacks during the period. For example, in the late 1960s, shortly before Samsung
Electronics was created, Lee was charged with an illegal sale of about $50,000 worth of goods.
The charges turned out to be the fabrication of a disgruntled government official to whom Lee
had refused to pay a bribe. Nevertheless, one of Lee's sons was arrested and Lee was forced to
donate a fertilizer plant to the government to win his release. Despite that and other problems,
Samsung continued to flourish. Indeed, by the end of the 1960s the conglomerate was generating
more than $100 million in annual revenues.
To develop the economy rapidly, Park identified key industries and large, profitable companies
within them. The government worked with the companies, providing protection from
competition and financial assistance as part of a series of five-year national economic growth
plans. By concentrating power in the hands of a few giant companies (the chaebols), Park
reasoned, roadblocks would be minimized and efficiencies would result. Between 1960 and
1980, South Korea's annual exports surged from $33 million to more than $17 billion.

Samsung Electronics and the entire Samsung chaebol were beneficiaries of Rhee's policies.
Several countries, including Japan, were barred from selling consumer electronics in South
Korea, eliminating significant competition for Samsung. Furthermore, although Samsung
Electronics was free to invest in overseas companies, foreign investors were forbidden to buy
into Samsung. As a result, Samsung was able to quickly develop a thriving television and
electronics division that controlled niches of the domestic market and even had an edge in some
export arenas.
During the 1970s and 1980s, Samsung Group created a number of electronics-related divisions,
several of which were later grouped into a single entity known as Samsung Electronics Co., Ltd.
Samsung Electron Devices Co. manufactured picture tubes, display monitors, and related parts.
Samsung Electro-Mechanics Co. made VHF and UHF tuners, condensers, speakers, and other
gear. Samsung Corning Co. produced television glass bulbs, computer displays, and other
components. Finally, Samsung Semiconductor& Telecommunications Co. represented Samsung
in the high-tech microchip industry. Rapid growth in those industries, combined with savvy
management, allowed the combined Samsung Electronics Co., Ltd., to become Samsung Group's
chief subsidiary by the end of the 1980s.
Entering the Semiconductor Market: Late 1970s to Early 1980s
Shortly after introducing its 64K chip, Samsung teamed up with some Korean competitors in a
research project that was coordinated by the government Electronics and Telecommunications
Research Institute. The result was a 1-megabit DRAM (and later a 4-megabit DRAM) chip.
During the middle and late 1980s, Samsung parlayed knowledge from the venture to become a
significant supplier of low-cost, commodity-like DRAM chips to computer and electronics
manufacturers throughout the world. Meanwhile, its other electronics operations continued to
grow, both domestically and abroad. Samsung opened a television assembly plant in Portugal in
1982 to supply the European market with 300,000 units annually. In 1984, it built a $25 million
plant in New York that could manufacture one million televisions and 400,000 microwave ovens
per year. Then, in 1987, it opened another $25 million facility in England with capacity for
400,000 color televisions, 300,000 VCRs, and 300,000 microwave ovens.
Between 1977 and 1987, Samsung Group's annual revenues surged from $1.3 billion to $24
billion (or about 20 percent of South Korea's entire gross domestic product). Much of that
growth was attributable to Samsung Electronics. Byung-Chull Lee died in 1987 and was
succeeded by his son, Kun-Hee Lee. Kun-Hee Lee recognized the importance of the electronics
division and moved quickly to make it the centerpiece of the Samsung Group. To that end, he
consolidated many of the Group's divisions and eliminated some operations. He also introduced
various initiatives designed to improve employee motivation and product quality. Kun-Hee Lee
was credited with stepping up Samsung Electronics's partnering efforts with foreign companies
as part of his goal to put Samsung at the forefront of semiconductor technology.
Focus on Electronics and Research and Development: Late 1980s to Early 1990s
Sales at Samsung Group grew more than 2.5 times between 1987 and 1992. More important,
Samsung drew from potential profit gains to more than double research and development
investments as part of Kun-Hee Lee's aggressive bid to make Samsung a technological leader in
the electronics, semiconductor, and communications industries. Besides partnering with U.S. and
Japanese electronics companies, Samsung Electronics acquired firms that possessed important
technology, including Harris Microwave Semiconductors and Integrated Telecom Technologies.
In 1993, Kun-Hee Lee sold off ten of Samsung Group's subsidiaries, downsized the company,

and merged other operations to concentrate on three industries: electronics, engineering, and
Samsung Electronics' rapid rise and technical achievements put the company in the spotlight in
the semiconductor industry. Its 4-megabit chip, in fact, had made it the leading global producer
of DRAM chips by early 1995. Furthermore, Samsung Electronics was increasing its investment
in development still further, as evidenced by a $2.5 billion outlay to develop a 64-megabit
DRAM chip by 1998. In December of 1995, development on the world's first 1-gigabit
synchronous DRAM chip was also in the works. Exports for the year increased to more than $10
Restructuring Under the Leadership of Yun Jong-Yong: Late 1990s
A crisis hit the Asian economy in the fall of 1997, and by early 1998, the Korean won--the
nation's currency--was valued at 1,800 won to the dollar, which was less than half of its value
just one year earlier. Samsung was forced to drastically change the way it had operated in the
past and it began selling off segments that were not related to its core business. In addition, it cut
26 percent of its domestic workforce and 33 percent of its international workforce, and it slowed
Under the leadership of Yun, Samsung had successfully diversified its product line from
dependence on memory chips despite the trying economic times. By the end of 1999, the chips
accounted for 20 percent of sales--in 1995 they had secured 90 percent of profits and half of total
sales. The company divested more than 57 of its businesses and decreased long-term debt by
$10.8 billion. In addition, all of its product groups were able to secure profits during the year.
Samsung also held a strong share of the cellular phone market and was one of the six top
manufacturers of wireless phones and the leading producer of computer monitors. Sales for the
year increased 24 percent to $22 billion while profits reached $2.4 billion. The firm's stock also
rose dramatically, increasing by 233 percent to $227 a share.
Alliances for the New Millennium
Yun's successful leadership of the company during its restructuring and the Asian crisis was
noted throughout the industry. In January 2000, Fortune magazine named Yun Asia's
Businessman of the Year. The firm, which had adopted the phrase 'Leading the Digital
Convergence Revolution' for the new millennium, continued to develop new technologies and
seek growth in high-margin markets. The company partnered with Yahoo! to utilize its network
to sell its products on-line. It also teamed up with Microsoft to design and develop a line of
cellular phones. At the same time, Samsung's exports of cellular phones increased in Kazakhstan,
Mexico, Central Asia, and Central and South America. By this time, it was operating as the
fourth largest producer of such phones.
Samsung's positive results continued in 2000 as the firm secured $26 billion in sales and $4.7
billion in net profits. Memory chips accounted for 38 percent of sales, information and
telecommunications equipment secured 22 percent, digital media took 27 percent, and home
appliances accounted for 8 percent of sales. The company looked to strategic partnerships,
research and development, and growth, to maintain its positive financial record. In March 2001,
it teamed up with DellComputer Corporation in a $16 billion technology and research and
development agreement. In addition, the company was selected by China to provide CDMA
cellular phone networks in its four major cities.
Sales figures did decrease slightly in the first part of 2001, however, due to a slowdown in the
personal computer market, an oversupply of LCDs, and a slowdown in the cellular market.

Nevertheless, Samsung management continued to focus on remaining a leader in the electronics

Key Dates:
1. 1969: Samsung Electronics is established.
2. 1971: The Company exports its first black-and-white television to Panama.
3. 1978: Samsung Group enters the semiconductor market by forming Samsung
Semiconductor and Telecommunications Co.
4. 1983: The Company enters the personal computer market.
5. 1984: The firm officially adopts the name Samsung Electronics Co., Ltd.
6. 1988: Samsung Electronics and Samsung Semiconductor merge.
7. 1992: The Company develops the world's first 64M DRAM.
8. 1994: Sales increase after the 4-megabit DRAM chip is developed.
9. 1995: Exports reach $10 billion.
10. 1997: The Company battles the Asian economic crisis.
11. 1999: The firm undergoes a major restructuring, and profits reach $2.4 billion.
12. 2000: Sales reach $26 billion and net profits climb to $4.7 billion
13. 2011 : increased market share
14. 2012 : Samsung growth in android phones
15. 2013 :Samsung Electronics global revenue$216.71bn
16. 2014 :Samsungs sales of 73 million smart phones keeps it comfortably in the number
one spot (a 24.4% share of Smartphone sales)



As TFT monitors are primarily aimed at corporate customers, the marketing strategy adopted by
Samsung necessitates a completely different approach. Samsung has identified a potential market
amongst business users, whose employees might spend long periods of time in front of a
computer screen and need a larger display with better definition. The financial centres in the City
have likewise proved an important market. A further group of customers are high street shops, in
particular fashion outlets such as Jigsaw, who have installed Samsung TFTs at their point of sale
terminals. As the customer steps up to the counter, the sales assistant records the sale, whilst
images and details of complementary products are displayed on the screen.

To encourage business users to buy Samsung monitors, a radical marketing strategy has been
developed. With support from Head Office in Korea, a number of initiatives have been
introduced to raise brand awareness and instil good perceptions of the product. An open day and
seminar for corporate customers, along with a high profile press launch were organised.
Advertising was carefully targeted at business users, particularly in the City and in product
specific magazines and papers. One-to-one marketing has also been used, mailing promotional
material directly to the customer.

The cost of this technology means that TFT LCD monitors are still more expensive than
conventional CRT monitors, although the price is falling steadily as manufacturing
techniques improve and more competitors enter the market.

Samsung has a vast product portfolio and its presence is in several different product categories.
The brand image driver for Samsung are the Samsung Smartphones such as the Samsung note
series or the Samsung galaxy series. Overall, Samsung is present in the following product

Products in the marketing mix of Samsung

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.

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 Samsungs smart phones are one of the best in the market and are the market
leader in terms of the features and USPs that they provide. The recent Samsung Note 3 + Gear is
another entrant in the market which is catching peoples 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.

Competitive pricing For products other than smart phones, Samsung uses competitive pricing.
Televisions, air conditioners, refrigerators and other products have competition in the form of
Panasonic or LG. Samsung is known to be a great brand but it is not greater than LG for home
appliances. In fact LG beats Samsung where home appliances are concerned. Similarly in
Washing machines Whirlpool, and in Cameras Cannon, are the brands which are to be
beaten. Thus in various categories, Samsung keeps competitive pricing so as to beat the
competitor. Samsung as a brand hardly uses penetrative pricing because it doesnt enter late in
the market. In fact, it is present in most consumer durable segments in the market.

Place 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 three segments. Sales and
service dealers, Modern retail and Distributors. The sales and service dealers handle key
accounts for Samsung and are involved in corporate sales. These dealers may also open
exclusive Samsung showrooms. The Modern retail segment includes large retailers like Croma,
Hypercity, Vijay sales, Viveks and any others 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 distributors for all Samsung
products. This distributor has a huge investment in Samsung and both, the distributor and the
company, go hand in hand for the sale of Samsungs products. Thus all material of Samsung will
be sold to a single distributor who in turn will sell it forward to retailers.

Promotions in the marketing mix of Samsung Samsung uses multiple forms of promotions.
Samsung as a company believes in pulling the customer to themselves through advertising but at
the same time uses strong tactics to push the product to the customer through sales promotions.
Thus on one hand, Samsung uses various marketing vehicles across the year covering festive
season as well as non-festive time. On the other hand, it gives many offers and discounts to its
trade partners to motivate them to sell Samsung above competition. With such a strategy,
Samsungs brand is on the rise so that both, the pull as well as push strategy is working
simultaneously in Samsung.

The marketing mix of Samsung is a lesson to marketers in several points. First, Business will
grow if you have multiple products at once as all of these products can become revenue drivers
for your company. Second, Pull strategy, though expensive, is far more beneficial in the long

The Marketing mix is a set of four decisions which needs to be taken before launching any new
product. These variables are also known as the 4 Ps of marketing. These four variables help the
firm in making strategic decisions necessary for the smooth running of any product /
organization.These variables are

Brand building
Samsung is a relative newcomer to the highly competitive world of mobile communications,
developing a cellular telecom system as late as the 1990s. Having established itself in the CDMA
markets (including USA and Korea), Samsung has now decided to use the GSM (Global System
for Mobile communications) network to enter the international markets. As part of the trend
towards convergence in the electronics world bringing computers, entertainment and
communications closer together Samsung has implemented a brand building exercise,

stretching the brand name to take in new products. Drawing on the expertise and economies of
scale from being one of the worlds leading manufacturers of memory chips and display screens,
Samsung will be able to compete with those firms already in the market.

New product development

Samsung developed a new product, a slimline phone with an innovative design, which has been
deliberately positioned in the mid to high end of the market. Due to its unique selling point -
voice activated, hands free dialling - Samsungs phones are specifically targeted at ABC1
businessmen and women, aged between 25 and 44. This is known as market segmentation or
differentiated marketing.

The marketing strategy for the mobile phone market is different yet again. The promotional
strategy, designed to increase brand recognition, has involved extensive sponsorship of some of
the most prestigious sporting events broadcast across the globe. Sydney 2000 Olympics and the
World Gymnastics Championships have been selected as platforms from which the Samsung
brand name is sported. An extensive mobile phone advertising campaign on terrestrial TV and in
the specialist press was reinforced by an outdoor campaign in the autumn of 1999 involving
adverts on the sides of taxis, on buses and on the underground.

Having launched five mobile handsets on the market between 1998 and 1999, Samsung is
already working on its strategy for the new data communications market where consumers will
be able to access the Internet and e-mail via mobile phones. In this time, Samsung acquired a
sizeable portion of the market and demonstrated remarkable innovation in technology and
design, as with the wrist phone and the MP3 phone.

As mobile phones are usually bought through specialist retailers or through phone service
providers, the channels of distribution also differ from DVD and TFT monitors. Samsung has
made it a priority to establish a solid distribution base by forming strategic trade partnerships
with the core retailers and mobile phone retailers. This base established, the strategy involves
extending these networks and searching for every opportunity to make the products available to
the consumer. Point of sale materials and brochures have been produced for impressive in-store
displays and professional training sessions guarantee that retail staff have a thorough knowledge
of the products.


1. Strength
Samsung enjoys the widest range of product portfolio which includes Mobile phone,
Tablet, TV/Audio/Video, Camera, camcorder, Home appliance, pc, peripherals,
printer, memory cards and other accessories.
Samsung holds significant market share in most of the product categories.
Samsung is NO.2 in terms of market share in mobiles, it captured Nokias market
share by superior innovation in smart phones.
Samsungs is the best in terms of design features and technology. It was the first to
introduced dual screen mobiles , 65k TFT/LCD colour phone, first phone with
polyphonic ringtones, phones with rotating lens, thinnest and lightest note pad etc.
Samsung enjoys the first mover advantage in terms of introducing advance features
in LCD, refrigerator, Air conditioner etc. It introduced the worlds smallest MP3
player and Indias first 17 TFT-LCD-TV monitor.
Samsung took advantage of the growing economy of Asian market by setting up
manufacturing plant in India there by reducing logistics and supply chain costs.
Samsung brand value increased by 80% in past three years.

2. Weakness

Samsung Mobile launched a series of Smart phones recently which led to cannibalization.
The demand for LCD panels 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 scale and dump into Indian market for lesser
cost. This results in reduction of sales.
Samsung is a hardware leader but has too much of dependence for software from other
Online stores which sell a wide range of products are giving better deals as they dont
incur cost in distribution channel.

3. Opportunity
Samsung is planning to make the air-condition product category more strong with
unique technology called Triple protection proposition.

Samsung is the Indias official Olympic partner for the 2012 London Olympic
and recently launched Olympic Ratna Program. This will result enhance brand
awareness and increase the sales.
Samsung Mobile and Home appliance has future plans of launching Customized
products for Indian market. This will improve the market share in rural market.
The Indian youth population is growing and mobile phone sales is expected to
increase due to lesser call rates.
Its financial position is strong and there is a scope of entering into unrelated

4. Threats
Samsung has wide variety of product lines, failure of one product line will have
impact on the other and will result in brand dilution.
The competitors like Nokia are focused 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 share in India in home
Threats from Chinese products.
Retail Chains like Big bazaar sell consumer electronics and home appliance in low
cost strategy which are procured in bulks from foreign market.



Data collected from 40 person and interpretation on behalf of collected data
1. Which category below includes your age?

Data collected different age of people below 17 ages 5 persons

18 to 21 ages 20 persons
22to 29 ages 10 persons
30 to 50 ages 10 persons


below 17
21 -29

2. Which of the following best describes your current occupation?

Survey includes people own business, student, employee.
15 people doing own business
20 students
5 employee



3. What is your approximate average income?

Average income of people

50000-100000 are 7 people
100000-300000 are 23 people
300000-500000 are 6 people
More than 500000 are 4 people


500000 more

4. Which product your using of Samsung?

What product are using by responder 30 people are using Samsung phone includes 10 people
also home appliance of Samsung.4 people are using camera and 6 people using laptop

5. for what reason you choose the brand Samsung?

Why people choose Samsung only

17 people for quality
8 people for its feature
10 people for innovation
5 people for brand loyal

Reason to choose samsung


6. What reason makes you purchase Samsung?

11 people for feature.
10 people for status symbol
17 people for multi- tasking

7. people getting information from where before purchase ?

10 people are get information from internet
8 people are get information from promotion store
7 people are from television
15 people for word of mouth


promotion store
word of mouth

8. People are take advice or not
18 people are taking advise from who already use
5 people taking advise from latest model
17 people are buying other are bought


alredy use
latest model
same product

9. Who inspired to buy a Samsung product?

16 people are inspired by family

18 people are inspired by friends
6 people are inspired by neighbor



10. Which method of buying will you use for purchase?

Around 40 people using purchasing method of Samsung product

13 people are buying online
19 people are retail shop
8 people are buy second hand phone also


second hand

11 Which method do you feel is most effective for Samsung?

Advertisement method most effective

10 people saying TV
8 people for newspaper
10 people for magazine
12 people internet

advertisement effect


12. Quality of the product?
Quality of the product Samsung
4 people say very good
8people only good
15 people average
10 people said poor
5 people said very poor quality

13. Are you satisfied with Samsung product?

Consumers are satisfied or not

28 people are satisfied
12 people are not satisfied



14. What is your opinion to improve any feature or service?

Opinion for improve services and goods

15 people for quality improvement
8 people Product improvement
12 people for after sales services
5 people for other

improve services and goods

after sales&serices



Samsung improve their quality of the product.

New innovation in product.
Improve the battery life of cellphone.
After sales and service improve.
Improve the feature of product.
Cost decrees of the product .
Making good available to consumer easily.
Credit facility to consumer.
Software up gradation easily.


By utilising its global qualities and substantial market knowledge, Samsung has developed three
distinct marketing strategies to launch three equally high-tech, but different, products. Through
successful, diverse approaches to individual markets it has maintained its corporate philosophy -
to devote its human resources and technology to the development of a global society through
ever better products and services.
Conclusion its the samsung gives a good facility to consumer and provide a better service to
consumer for the better future of the company
Consciously improvement in the product in the market and try to give the better or newer







1. Which category below includes your age?

A) 17 OR younger
B) 18-21
C) 22-29
D) 30-50

2. Which of the following best describes your current occupation?

A) Business
B) Student
C) Employee

3. What is your approximate average income?

A) 50000-100000
B) 100000-300000
C) 300000-500000
D) 500000 or more

4. Which product your using of Samsung?

A) Phone
B) Home appliance
C) Camera
D) Laptop

5. For what reason you choose the brand Samsung?
A) Quality
B) Feature
C) Innovation
D) Other reason

6. What one reason makes you purchase a Samsung product?

A) Feature
B) Status symbol
C) Multi-tasking

7. Where did you look for the information before purchasing a Samsung product?
A) Internet
B) Promotion store
C) Television
D) Word of mouth

8. Did you take advice from someone else?

A) Someone already used
B) Someone having latest technology update
C) Some recently bought the same

9. From whom you inspired to buy a product?

A) Family
B) Friends
C) Neighbor

10. Which method of buying will you use for purchase?

A) Online
B) Retail shop
C) Second hand

11. Which method do you feel is most effective for Samsung?

A) Television
B) Newspaper
C) Magazine
D) Internet

12. Quality of the product?
A) Very good
B) Good
C) Average
D) Poor
E) Vary poor

13. Are you satisfied with samsung product?

A) Yes
B) No

14. What is your opinion to improve any feature or service?

A) Quality
B) Product
C) After sales servicers
D) Other(specify)

BOOK REFER: Research methods in business