Project on Samsung

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  (Korean: Ã
) 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.

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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 ‡
is "Tri-Star" or "three stars". The Samsung Group is composed of numerous international affiliated businesses, most of them united under the ‡
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.

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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. ³By 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. c

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Samsung India Electronics Private Limited (SIEL) is the Indian subsidiary of the US $55.2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. Headquartered in New Delhi, SAMSUNG India has widespread network of sales offices all over the country . SAMSUNG India is the hub for SAMSUNG¶s South West Asia Regional operations. The South West Asia Headquarters, looks after the SAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. SAMSUNG India which commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 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).

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c SAMSUNG India is the hub for SAMSUNG¶s South West Asia Regional operations. SAMSUNG India has segmented their products into five categories. ‡ Samsung Electronics website { 
 
 
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c   < c c 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.

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

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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..


 


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

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The main consumer promotion tools are as follows;

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c c 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.

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c 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.

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

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c c 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).

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

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

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c c Cross promotions involve using one brand to advertise non-competing brand.

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c These are useful articles imprinted with an advertiserîs name, given as gifts to consumers. „

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

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

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‡ccc‡  c c c 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. c

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c 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  from the competitorîs 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.

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   c c c c c 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.

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c 2Type 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.


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c c 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.


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c c 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.

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

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