A PROJECT ON REPORT

( Advertisement & Sales promotion )

Submitted To:

Submitted By:

Mrs. Yogita sharma

Himani khatri

INDEX

PARTICULARS

Sr.No.

y Introduction of Topic y Introduction of Company y Objective of the study y Research Methodology y Data analysis y Limitation y Recommendations y Conclusion y Annexture y Bibliography

Introduction of companyeee

The Samsung Group (Korean: ) is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by revenue[3][4] with an annual revenue of US $173.4 billion in 2008[2] and is South Korea's largest chaebol. The meaning of the Korean hanja word Samsung ( ) is "tristar" or "three stars". The Samsung Group is composed of numerous international affiliated businesses, most of them united under the Samsung brand including Samsung Electronics, the world's largest electronics company,[5][6][7] Samsung Heavy Industries, the world's second largest shipbuilder[8] and Samsung C&T, a major global construction company. Samsung has been the world's most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world.[9] Samsung Group accounts for more than 20% of South Korea's total exports[10] and is the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries. The company's strong influence in South Korea is visible throughout the nation, which has been referred to as the "Republic of Samsung.

Samsung Group

Type Industry Founded Founder(s) Headquarters Area served

Public (Korean:

Conglomerate 1938 Lee Byung-chul Samsung Town, Seoul, South Korea Worldwide

BACKGROUNDe

The Samsung Group is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by revenue with annual revenue of US$173.4 billion in 2008 and is South Korea's largest chaebol. The meaning of the Korean word Samsung is "Tri-Star" or "three stars". The Samsung Group is composed of numerous international affiliated businesses, most of them united under the Samsung brand including Samsung Electronics, the world's largest electronics company, Samsung Heavy Industries, the world's second largest shipbuilder and Samsung C&T, a major global construction company. Samsung has been the world's most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world. Samsung Group accounts for more than 20% of South Korea's total exports and is the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries.

History

In 1938, Lee Byung-Chull founded Samsung, a small trading company with forty employees located in Daegu. The company prospered until the Communist invasion in 1950 when he was forced to leave Seoul and start over in Busan. During the war, Samsung's businesses flourished and its assets grew twenty-fold. In 1953, Lee started a sugar refinery. The company diversified into many areas such as insurance, securities, and retail. In the early 1970s, Lee borrowed heavily from foreign interests and launched a radio and television station. Samsung Group later formed several electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and grouped them together under Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-andwhite television set. In the late 1980s and early 1990s, Samsung Electronics invested heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. By the 1980s Samsung was manufacturing, shipping, and selling a wide range of appliances and electronic products throughout the world. In 1982, it built a television assembly plant in Portugal; in 1984, it built a $25 million plant in New York; and in 1987, it built another $25 million facility in England.

The 1990s saw Samsung rise as an international corporation. Samsung's construction branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates, which is the tallest structure ever constructed. In 1993 and in order to change the strategy sold off ten of Samsung Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering, and chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation. Samsung survived the Asian financial crisis of 1997-98 relatively unharmed. However, Samsung Motor, a $5 billion venture was sold to Renault at a significant loss. Additionally, Samsung manufactured a range of aircraft from 1980 to 1990s. Most importantly, Samsung Electronics (SEC) has since come to dominate the group. and the worldwide semiconductor business, even surpassing worldwide leader Intel in investments for the 2005 fiscal year. Samsung's brand strength has greatly improved in the last few years. Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest chipmaker after Intel. In 1995, it built its first liquid-crystal display screen. Ten years later, Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. In 2006, S-LCD was established as a joint venture between Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. Samsung Electronics, which saw record profits and revenue in 2004 and 2005, overtook Sony as one of the world's most popular consumer electronics brands, and is now ranked #19 in the world overall. Behind, Nokia, Samsung is the world's second largest by volume producer of cell phones with a leading market sharein the North America and Western Europe.

SAMSUNG ELECTRONICS IN INDIA

Samsung India Electronics Private Limited (SIEL) is the Indian subsidiary of the US $55.2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. Headquartered in New Delhi, SAMSUNG India has widespread network of sales offices all over the country . SAMSUNG India is the hub for SAMSUNGs South West Asia Regional operations. The South West Asia Headquarters, looks after the SAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. SAMSUNG India which commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. From being a virtually unknown entity in the Year 1995, brand SAMSUNG today enjoys an awareness level of over 65% and a positive opinion of over 80% in the country today (source: BAS 2007). Initially, a player only in the Colour Televisions segment, it later diversified into colour monitors (1999) and refrigerators (2003). Today, it is recognized as one of the fastest growing brands in the sphere of digital technology. SIEL is the market leader in high end digital television (Plasma, LCD).

PRODUCT PORTFOLIO OF SIEL

SAMSUNG India is the hub for SAMSUNGs South West Asia Regional operations. SAMSUNG India has segmented their products into five categories. Source: Samsung Electronics website
Fig: Width of the product mix of SIEL

15

_ MOBILE PHONE _ TV/AUDIO/VIDEO _ CAMERA/CAMCORDER _ HOME APPLIANCES_ PC/PERIPHERALS/PRINTERS

Source: Samsung Electronics website

Introduction of TOPIC:

ADVERTISEMENT AND SALES PROMOTION:

Promotion stands for various activities the company undertakes to communicate and promote its products to the target market. It involves communication programs i.e. direct marketing, advertising, sales promotions, public relations and motivation of sales force. To the customer this tool provides knowledge and information.

ADVERTISING:
It is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

SALES PROMOTION:
The short-term incentive to encourage trial or purchase of a product or service refers to sales promotion. Whereas advertising offers a reason to buy; sales promotion offers an incentive to buy. Since sales promotion directly push up the sales, increasing number of companies are undertaking sales promotion activities.

Where advertisement offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for consumer promotion (samples,coupons,cash refund, price off,premiums,prizes,patronage rewards, free trials,warranties,tie-in-offers cross promotion, point of purchase displays and demonstration);trade promotion(price off, advertising and display allowances and free goods);and business and sales force promotion(trade shows and conventions, contests for sales reps and specialty advertising..

Promotion
Samsung Innovative promotion and advertising initiatives
To establish trust and confidence among Indian consumers, Samsung did active promotion and advertising by taking the following initiatives. ySamsung 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. yNot confining itself to cricket, Samsung sponsors the Indian contingent to the Olympics and the Asian Games. It also ran training programmes for deserving Indian athletes under the Olympic Ratna banner. Samsung has also helped bring to India, for the first time, the Olympic torch relay. Samsung also brings every year to India - the World Cyber Games, which is regarded as the Olympics of the Cyber world.

ySamsung also launched a series of innovative below-the-line activities. In mobile phones, Samsung tied up with noted painter Satish Gujral for his paintings to be available as downloads on Samsung mobile phones. yProduct placement was done in movies and popular television serials like Jassi where Samsung products were set in lifestyle environments. yFor Microwaves, Samsung ran a Kitchen-on-Wheels programme where mobile kitchens with microwave ovens went to various localities demonstrating the advantages of microwave cooking. ySamsung branded its products as superior technology and environment friendly ones. The

Samsung refrigerators and ACs incorporate a revolutionary new technology called Silver Nano Health System that ensures freshness and bacteria free environment. It launched the Bio range of products. In microwave ovens, features like the bio-ceramic coating and 3D shower waves keep in mind the health conscious public of today. yLaunched a special marketing campaign for Flat TVs including a focused advertising campaign Duniya Hai Gol, TV Flat and attractive exchange offers. As a result, flatscreen TVs make up over 50 per cent of Samsungs TV sales compared an industry average of 17 per cent.

Customiz d products for Indian Consumers

ySamsung understands the local cultural sensibilities to customize its products according to the Indian market. It has set up a usability lab at the Indian Institute of Technology in New Delhi to customize Samsung products to meet the specific needs of Indian consumers. This industry-institute partnership is helping Samsung to study and analyze consumer response in aspects of product design, including aesthetics, ergonomics and interface. yThrough its research done on consumer preferences in India, Samsung has concluded that Indian consumers want more sound oriented products. Thus, the Samsung televisions for India have a higher sound capacity than their foreign counterparts. yFor the semi-automatic segment of Samsung washing machines, Samsung has introduced for the first time in India a feature called Super Dry. It is present in three of Samsungs semi automatic models and dries the clothes better than the rest. ySamsung washing machines have an additional menu that takes care of the local Indian wardrobes. They also have a memory re-start that takes care of the frequent power failures in India.
57 |

SALES PROMOTION TOOLS:

Many tools can be used to accomplish sales promotion objectives. Descriptions of the main promotional tools are as follows;

Consumer Promotion Tools

The main consumer promotion tools are as follows;

ySamples:
They are offers of a trial amount of a product. It consists of inviting prospective purchasers to try the product without cost or at a lower cost in the hope that they will buy the product. Samples may be free or discounted.

yCoupons:
Coupons are certificates that give buyers a saving when they purchase a specified product. Coupons can be mailed, placed in advertisements or included with other products.
yRebates:

Rebate is also known as cash refund offers. Rebates are offers to refund part of the purchase price of a product to its customers who send a proof of purchase to the manufacturer. These are like coupons except that the price reduction occurs after the purchase and not at the point of sale.

   yPrice Packs:
Cents-off deals or price packs offer consumers savings by way of reducing prices that are marked by the producer directly on the package.

yPremiums:
These are the goods offered either free or at a low cost as an incentive to buy a product. Premiums may be in-pack or on-pack (outside the pack).

yPrizes:
They are offers of chance to win something such as cash, trips or goods by luck or through extra efforts. Contests of talent and sweepstakes or draws the most popular prize offering promotions.

yTie-in Promotions:
Tie-in promotions involve two or more brands or companies that team up on coupons, refunds or contests to increase their pulling powers.

yCross Promotions:
Cross promotions involve using one brand to advertise non-competing brand.

yAdvertising

Specialties:

These are useful articles imprinted with an advertiser s name, given as gifts to consumers.
yPatronage

Rewards:

They are cash or other awards for the regular use of company s products or services. They are values (in cash otherwise) that are proportional to one s patronage of a certain vendor or a group of vendors. They aim at building brand loyalty.

yPoP Promotions:
Point of purchase (PoP) includes displays and demonstrations that take place at the point of purchase or sale.

PURPOSE OF STUDYe.
Sales promotion tools vary in their specific objectives. They may be used to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion usually targets brand switchers because non-users and users of other brands do not always notice a promotion. Sales promotions are thus also seen as a tool for breaking down loyalty to other product. Sales promotions also let manufacturers adjust to short term changes in supply and demand and differences in customer segments. They also let manufacturers to experiment by varying prices. Sales promotions also lead to greater consumer awareness of prices. To use sales promotion, a company must set objectives, select the right tools, develop the best program and implement it and evaluate the results.

OBJECTIVES:
The specific sobjectives set for sales promotions will vary with the type of the target market. For consumer promotions, objectives include encouraging purchasing of larger sized units, building trial among non-users and attracting switchers away from the competitor s brands. For trade promotions, objectives may include; including retailers to carry new items and higher level of inventory, encouraging off-seasonal buying, of-setting competitive promotions, building brand loyalty of retailers and gaining entry into new retail outlets. The sales force promotions help in encouraging support of a new product or model, encouraging more prospecting and stimulating off-seasonal sales.But most importantly, sales promotion should be focused on consumer relationship
building.

RESEARCH METHODOLOGY:

Research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedures. The research design used for this study is Descriptive Research. It focuses on the accurate description of the variables in the problem model. Any source of information can be used in a descriptive study, although most studies of this nature rely on secondary data source of survey research. The sampling design followed in the survey is simple random probability sampling in which each population element has a known and equal chance of selection.

The researcher has done the research in the following manner; a) Type of the research undertaken is analytical. b) Technique used is random sampling. c) Sample size taken is 30. d) Sources of data used include both primary as well as secondary data.

e) Tool used for the research is questionnaire. f) Plan of analysis are tables and graphs.

Data Collection Methods:

In this study, the foremost data collection instrument used is the questionnaire method. The questionnaire has been designed with both open ended and closed ended questions. Apart from this, the research instrument consists of primary and secondary data collected for the study.

Primary Data:
Here first hand information is obtained by distributing printed questionnaire to the marketing executives of the company. Data was also obtained from the observation and interview technique adopted by the researcher. Moreover, information was disseminated by the departmental heads.

Secondary Data:
Here the information is obtained from the brochure of SAMSUNG GROUP, books,websites, newsletter, journals, magazines, newspapers, etc.

LIMITATION OF STUDY :

Due to time, geographic and monetary constraints. It may not be able to go deeper in to search This study is related to Faridabad market only. This project is primarily focused on Refrigerator, Washing machine, Air conditioners product category. Unavailability of data. Especially for promotional strategies of competitors. There could be some errors, data collection, data interpretation, and even the environment plays an important role in the outcome of the results.

y y

y y

DATA ANALYSISee..
ANALYSIS
AG E G R O U P

36 Above 10%

18-20 9%

31-35 37%

21-25 33%

INCOME GROUP (PER ANNUM IN THOUSAND)

150-175 11% 125-150 11%

175 above 4% 75-100 17% 100-125 57%

THREE ELECTRONICS COMPANIES THAT COMES IN YOUR MIND.

70 60 50 58

Things that you looked while purchasing an electronic item ?

80

68

71

75

69

70

60

50

32 33
40

30

How did you get to know about Samsung that you are having at present?

45 40 35 30 25 20 15 10 5 0 Adv. Fam. Inf. Frn`s Rc. Fmly Rcm.

I preferred Samsung than other because of?

80 70 60 50 40 30 20 10 0

71 66

33

14

L.M.C.

Looks

Low Price

less physical efforts

Respondents may

QUESTIONNAIRE

CONSUMER SURVEY
Name: ______________________

Address: _____________________
Q1. Please mention your age group 18-20 26-30 36- Above Q2.) Please mention your income group (per annum in thousand) 75-100 125-150 175 & above Q3) Gender Male Q4) Martial Status Married Unmarried Clerical or Salesmen First Jobbers Retired Q5) please mention your occupation ? Officials Student LG . Videocon. Samsung. Haier Whirpool Female 100-125 150-175 21-25 31-35

Q6) Name three electronic companies that come to your mind ?

Q7) Do you think Samsung handsets are updated with the latest features? YES NO

Q7) what are the things that you look while purchasing an electronic item? More power saver Looks Low maintenance cost Reliability(less chances of breakdown) Least physical efforts Low price

Q8) how did you get to know about Samsung that you having at present? Advertisement Family information Friends recommendation Dealers recommendation Q9) which other electronic item would you have preferred to buy? LG Videocon others Sony

Q10) Prefer Samsung than other because of: low price Less physical efforts Better looks

Low maintenance cost Q12) what is the image of samsung in your mind? Economical Durable Smooth product Safe product warranty and guarranty they offer.

Q13)Except Samsung your other preferred mobile phone brands? Nokia

LG

Motorolla Others

CONCLUSIONe.
This study highlighted that Faridabad market is still a virgin market for SAMSUNG products. Customers need to be made aware of the productive usages of these Products if SAMSUNG want to target these untapped market segments of customers. Also SAMSUNG need to modify their advertising strategies in order to educate the target audience about the product. Hence SAMSUNG will be able to win a major between the competitors

BIBLIOGRAPHYe..

 BOOKS AND JOURNALS REFERRED:

SAMSUNG Electronics annual report,2009 Marketing Management, 12th Edition
o By: Philip Kotler and Kevin Lane Keller

 WEBSITES:
http://www.google.com http://www.ibef.org http://www.displaysearch.com http:// www.dnb.com http://www.samsung.com.