Samsung's Marketing Strategy in India

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Case Details:

Case Code : MKTG089
Case Length : 11 Pages
Period : 1995-2003
Pub Date : 2004
Teaching Note :Not Available
Organization : Samsung India
Industry : Consumer Electronics
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt Ltd (RCSPL), owned by Venugopal Dhoot of the Videocon group. In 1998, RCSPL diluted its stake in Samsung to 26% and in November 2002, the FIPB4 cleared Samsung's proposal to buy RCSPL's remaining (23%) stake.

With Samsung buying the total stake of RCSPL, it became a wholly-owned subsidiary of its South Korean parent company. Initially, Samsung launched is operations in North India, and then slowly expanded its operations.

By January 1998, the company had a presence all over the country. Samsung announced profits of Rs.50 million on a turnover of Rs. 5.40 billion for the calendar year 1998. In 2000, Samsung set up an R&D center for the manufacture of CTVs at Noida (Uttar Pradesh) with a total investment of US$5 million. This center became Samsung's regional hub catering to the design requirements in India, Middle East and South East Asia.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

In 2002, Samsung established manufacturing facilities for colour televisions, microwave ovens, washing machines and air conditioners at Noida, Uttar Pradesh. It also had a presence in consumer electronics, information technology products, mobile phones and home appliances. Samsung's flagship businesses were consumer electronics and home appliances, which contributed more than 60% of its revenues.

In September 2002, Samsung won the First Prize in the Consumer Electronics category at the Annual 'Awards for Excellence in Electronics', instituted by the Department of Information Technology, Government of India.

S.S. Lee, Managing Director, Samsung, said, "It is indeed an honor to receive this Award and I am happy that our efforts to make Samsung a top electronics company in India have been recognized and appreciated.

Our focus on product planning, product quality, R&D are all geared towards providing our customers technologically advanced products with superior, consumer friendly features."

In 2002, Samsung reported sales of Rs.170 million with 26% growth over the previous year. Its consumer electronics business grew by 29% and contributed 60% to the total sales, and its home appliances division grew by 21%, contributing 40 % of the total sales...

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