the korean takeover lg samsung takeover of indian markets

7/28/2019 the Korean Takeover LG Samsung Takeover of Indian Markets

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The Korean Takeover

of Indian Consumer Electronics Market

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OBJECTIVE

The Presentation deals with the inroads made by Korean

Consumer Electronics giants SAMSUNG & LG to Indian

Markets with specific reference to SAMSUNG ELECTRONICS(Global Economic factors not taken into Consideration)

Your Success is not only a function of something you have done but alsosomething your Competitors didnt.

- Sun Tzu (The Art of War)

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QUICK VIEW

Product offerings (Slide 4)

SWOT Analysis (Slide 5-8)

Branding & Marketing Campaigns (Slide 9) Distribution Systems (Slide 10)

An Example Case (Slide 11)

Reasons for Emergence (Slide 12)

Looking Ahead (Slide 13)

Conclusion (Slide 14)

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Televisions Audio and Video Products Mobile Phones and Smart Phones Information Technology Products

Laptops, Personal Computers, Printers, Scanners, Cameras Home Appliances

Micro Wave ovens, Washing Machines, Refrigerators, Dish

washers

* Product offerings inclusive of but not limited to..

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STRENGTHS

Technologically advanced Contemporary products withSuperior and Consumer friendly features

Heavy investment in Local R&D for adaptation of productsdesigned for Global customers to suit Local tastes

o Global products with features to satisfy local needs Volume and Value driven business (Unlike Margin driven)

Competitive Pricing

Aggressive Advertising

Tight run and Market driven administration

Products manufactured within India giving the products anindigenous feel

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WEAKNESSES

Lack of proper distribution network in initial stages (Front endoperations )

Lack of proper sourcing network (Back end operations)

Poor Brand recall and Poor Unaided and Aided awareness

Joint partnership with Videocon, Hence could not exercise fullcontrol

Indian requirements were different from those of GlobalCustomers

All products of Samsung were designed in Seoul

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OPPORTUNITIES

Japanese Companies like Sony, Phillips catered only to theaffluent and had less penetration in rural India

Japanese not too interested in Indian Markets, They weremostly focused on U.S and European markets

Indian companies lacked financial wherewithal to invest incutting edge technology

Consumers aspirations and awareness about technology werehigh

Absence of After sales service

Other companies considered India to be a market forTransactions (Short Term) while Samsung considered it to be aMarket for business (Long Term)

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THREATS

Stringent Foreign ownership rules of Government

Competitors had First mover advantage

Japanese thought to be Masters of Technology

Koreans perceived to be their poorly imitating cousins

No initial idea about Market conditions

Did not yet develop as a Global brand

o Samsung decided to enter Foreign Markets and open itself to

Globalisation in 1993 and entered Indian Markets in 1994

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BRANDING & MARKETING CAMPAIGNS

Initially all advertisements concentrated on the Technologicalachievements

Team SamsungIndia First (Aug,2002)

7 Celebrity Cricketers signed up

Promoted Cause of Patriotism and Cricket

Heavily increased Brand awareness

30% Growth rate in Sales Turnover (INR 30 Billion)

Olympics (Aug,2008)

Sponsor of Indian Olympics Team

Support for Select Olympic Athletes including Ace shooterand Beijing Olympics Medal Winner Abbhinav Bindra , whichincreased brand association

Conducted Biggest ever National level School Level Quiz onOlympics

Regular endorsements by Bollywood personalities

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DISTRIBUTION NETWORKS

Consolidated Distribution systems but retained dealershipmodel unlike growing Consumer Electronic Giants of that timelike Apple

Direct Dealer interface for quick feedback from Dealers

When Pagers came in July,1995 Samsung provided one eachto all Dealers, Technicians across Metros for faster feedbackand Communication

18 State Level Distribution offices for faster delivery of productsas and when order is asked for

LG realized that early on and adopted a top-down approach:The smallest villages have remote area offices (RAOs) withindividual budgets and separate servicing and marketingteams

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SAMPLE CASE OF CUSTOMIZATIONWashing Machines

In many households Washing Machines are operated by DomesticHelp Who can neither read or understand English. So Samsungintroduced Speech Technology that gives instructions in LocalLanguages.

Signified Companys stand ------ Not Just Localisation, Micro-Localisation

* First implemented by LG in 2007

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REASONS FOR EMERGENCE

Focus on Customer Satisfaction, Brand Loyalty

Pioneered Replacement Purchase drives

In 1990s vans painted with Companys logo toured major citieswith Engineers on call for Service visits

Now Samsung has 1 website, 2 dedicated captive call centers(6 Regional Languages), 900+ Service centers and 7000+Engineers

Improvement in Quality and Speed of service

o Turnaround Time reduced to under 24 hours

Initially, Koreans werent too familiar with Cricket andBollywood but they too joined the bandwagon soon enough

o Provided World Cup to World Cup (4 Year) guarantee on TVs

and Refrigerators during 2004 world cup

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LOOKING AHEAD Penetration levels of company are far from saturation

Approximately 55000 villages still await electrification

Falling Product cycles and Rising Disposable incomes

To uphold Public affection shown during the Legal Showdownwith Apple

A bigger, and better SAMSUNG for the Company andCustomers

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CONCLUSION

1993 Corporate Rebranding for Globalisation drive

o SAMSUNG word written in English

o White coloured letters on blue background

o Logo shaped elliptical representing a moving world,

Symbolizing advancement and change

Sponsored 1998 Seoul Olympics

o Got introduced to World audience

o Birth of a Global brand

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__________________________/\___________________________

Thank You.

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the korean takeover lg samsung takeover of indian markets

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