Samsung Marketing Strategy
Marketing strategies of Samsung in India
Scenario in the consumers Durables sector:-
Prior to liberalisation, the Consumer Durables sector in India was restricted to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together, they controlled nearly 90% of the market. They were first superceded by players like BPL and Videocon in the early 1990s, which invested in brand-building and in enhancing distribution and service channels. Then, with liberalisation came a spate of foreign players from Samsung to LG Electronics to Sony to Aiwa.
Both rising living standards, especially in urban India, and easy access to consumer finance have fuelled the demand for consumer durables in the country. Also, the entry of a large number of foreign players means the consumer is no longer starved for choice. But this has also resulted in an over-supply situation in recent times as growth levels have tapered off.
Major players:-
The major players in the consumer durables industry, operating in different sectors such as air conditioners, washing machines, refrigerators & television include:
Blue Star Ltd., Mirc Electronics Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony Corporation Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International Ltd.
Entry of Samsung in India
Emerging Markets (EMs) with large consumer bases and untapped demand constitute the major growth opportunities for the multinationalsand global companies. However, not all companies are successful in establishing a foothold, leave alone operating profitably, in such markets. For most, it takes years of struggle before they can even breakeven. Marketing is difficult in such EMs because of little or no market data, non-existent or poorly developed distribution systems, lack of regulatory discipline, and where regulations exist, a propensity to change them frequently and unpredictably.
Samsung entered India in December 1995 as a 51:49 joint
Scenario in the consumers Durables sector:-
Prior to liberalisation, the Consumer Durables sector in India was restricted to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together, they controlled nearly 90% of the market. They were first superceded by players like BPL and Videocon in the early 1990s, which invested in brand-building and in enhancing distribution and service channels. Then, with liberalisation came a spate of foreign players from Samsung to LG Electronics to Sony to Aiwa.
Both rising living standards, especially in urban India, and easy access to consumer finance have fuelled the demand for consumer durables in the country. Also, the entry of a large number of foreign players means the consumer is no longer starved for choice. But this has also resulted in an over-supply situation in recent times as growth levels have tapered off.
Major players:-
The major players in the consumer durables industry, operating in different sectors such as air conditioners, washing machines, refrigerators & television include:
Blue Star Ltd., Mirc Electronics Ltd., Whirlpool of India Ltd., Philips (India) Ltd., BPL Ltd., Sony Corporation Ltd., Samsung India Ltd., LG Electronics India Ltd., Videocon International Ltd.
Entry of Samsung in India
Emerging Markets (EMs) with large consumer bases and untapped demand constitute the major growth opportunities for the multinationalsand global companies. However, not all companies are successful in establishing a foothold, leave alone operating profitably, in such markets. For most, it takes years of struggle before they can even breakeven. Marketing is difficult in such EMs because of little or no market data, non-existent or poorly developed distribution systems, lack of regulatory discipline, and where regulations exist, a propensity to change them frequently and unpredictably.
Samsung entered India in December 1995 as a 51:49 joint