A A

PROJECT REPORT PROJECT REPORT

ONON

( Advertisement & Sales promotion )

Submitted To:Submitted To: Submitted By:Submitted By:

Mrs. Yogita sharma Himani khatri

INDEXINDEX

PARTICULARS Sr.No. Introduction of Topic

Introduction of Company

Objective of the study

Research Methodology

Data analysis

Limitation

Recommendations

Conclusion

Annexture

Bibliography

Introduction of Introduction of company………company………

The Samsung Group (Korean: 삼성 그룹) 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 (三 星 ) 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 Group삼성 그룹

Type Public (Korean: 삼성 그룹)

Industry Conglomerate

Founded 1938

Founder(s) Lee Byung-chul

Headquarters Samsung Town, Seoul, South Korea

Area served Worldwide

BACKGROUND…BACKGROUND…

The Samsung Group is a multinational conglomerate corporation headquartered inSamsung Town, Seoul, South Korea. It is the world's largest conglomerate by revenuewith 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, mostof them united under the Samsung brand including Samsung Electronics, the world'slargest electronics company, Samsung Heavy Industries, the world's second largestshipbuilder and Samsung C&T, a major global construction company.Samsung has been the world's most popular consumer electronics brand since 2005and is the best known South Korean brand in the world. Samsung Group accounts formore than 20% of South Korea's total exports and is the leader in many domesticindustries, such as the financial, chemical, retail and entertainment industries.

History History

In 1938, Lee Byung-Chull founded Samsung, a small trading company withforty employees located in Daegu. The company prospered until the Communistinvasion in 1950 when he was forced to leave Seoul and start over in Busan. Duringthe war, Samsung's businesses flourished and its assets grew twenty-fold. In 1953, Leestarted a sugar refinery. The company diversified into many areas such as insurance,securities, and retail. In the early 1970s, Lee borrowed heavily from foreign interestsand launched a radio and television station. Samsung Group later formed several electronics-related divisions, such as SamsungElectronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., andSamsung Semiconductor & Telecommunications Co., and grouped them togetherunder Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-and-whitetelevision set.

In the late 1980s and early 1990s, Samsung Electronics invested heavily in researchand development, investments that were pivotal in pushing the company to theforefront of the global electronics industry. “By the 1980s Samsung wasmanufacturing, shipping, and selling a wide range of appliances and electronicproducts throughout the world”. In 1982, it built a television assembly plant inPortugal; in 1984, it built a $25 million plant in New York; and in 1987, it builtanother $25 million facility in England.The 1990s saw Samsung rise as an international corporation. Samsung's constructionbranch 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 thetallest structure ever constructed. In 1993 and in order to change the strategy sold offten of Samsung Group's subsidiaries, downsized the company, and merged otheroperations 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 ininvestments 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 theworld's second-largest chipmaker after Intel. In 1995, it built its first liquid-crystaldisplay screen. Ten years later, Samsung grew to be the world's largest manufacturerof liquid-crystal display panels. In 2006, S-LCD was established as a joint venturebetween Samsung and Sony in order to provide a stable supply of LCD panels for bothmanufacturers. Samsung Electronics, which saw record profits and revenue in 2004and 2005, overtook Sony as one of the world's most popular consumer electronicsbrands, and is now ranked #19 in the world overall. Behind, Nokia, Samsung is theworld's second largest by volume producer of cell phones with a leading market sharein the North America and Western Europe.

SAMSUNG ELECTRONICS IN SAMSUNG ELECTRONICS IN INDIAINDIASamsung India Electronics Private Limited (SIEL) is the Indian subsidiary of theUS $55.2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul,Korea. Headquartered in New Delhi, SAMSUNG India has widespread network ofsales offices all over the country . SAMSUNG India is the hub for SAMSUNG’s SouthWest Asia Regional operations. The South West Asia Headquarters, looks after theSAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides

India. SAMSUNG India which commenced its operations in India in December 1995enjoys 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 todayenjoys an awareness level of over 65% and a positive opinion of over 80% in thecountry today (source: BAS 2007). Initially, a player only in the Colour Televisionssegment, 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 digitaltechnology. SIEL is the market leader in high end digital television (Plasma, LCD).

PPRODUCT PORTFOLIO OF RODUCT PORTFOLIO OF SIELSIEL

SAMSUNG India is the hub for SAMSUNG’s South West Asia Regionaloperations. 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 Introduction of TOPIC:TOPIC:

ADVERTISEMENT AND SALES ADVERTISEMENT AND SALES PROMOTION:PROMOTION:

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

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

SALES PROMOTION: SALES PROMOTION:

The short-term incentive to encourage trial or purchase of a product orservice refers to sales promotion. Whereas advertising offers a reason to buy;sales promotion offers an incentive to buy. Since sales promotion directlypush up the sales, increasing number of companies are undertaking salespromotion 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 anddemonstration);trade promotion(price off, advertising and display allowances andfree goods);and business and sales force promotion(trade shows andconventions, contests for sales reps and specialty advertising..

PromotionPromotion

Samsung Innovative promotion and advertising initiativesSamsung Innovative promotion and advertising initiatives

To establish trust and confidence among Indian consumers, Samsung did active promotion andadvertising by taking the following initiatives.Samsung India associated itself with the ruling passion of the Indian mass consciousness:Cricket. Samsung launched the Team Samsung campaign with the stars of the Indiancricket team, which caught the imagination of an entire nation. In 2004, Samsung alsobrought to India what was possibly the biggest cricketing spectacle of this decade, thehistoric India vs. Pakistan cricket series - ‘The Samsung Cup’.

Not confining itself to cricket, Samsung sponsors the Indian contingent to the Olympicsand the Asian Games. It also ran training programmes for deserving Indian athletes underthe Olympic Ratna banner. Samsung has also helped bring to India, for the first time, theOlympic torch relay. Samsung also brings every year to India - the World Cyber Games,which is regarded as the Olympics of the Cyber world.

Samsung 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 asdownloads on Samsung mobile phones.

Product placement was done in movies and popular television serials like ‘Jassi’ whereSamsung products were set in lifestyle environments.

For Microwaves, Samsung ran a Kitchen-on-Wheels programme where mobile kitchenswith microwave ovens went to various localities demonstrating the advantages ofmicrowave cooking.

Samsung branded its products as superior technology and environment friendly ones. TheSamsung refrigerators and ACs incorporate a revolutionary new technology called SilverNano 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 and3D shower waves keep in mind the health conscious public of today.

Launched a special marketing campaign for Flat TVs including a focused advertisingcampaign ‘Duniya Hai Gol, TV Flat’ and attractive exchange offers. As a result, flatscreenTVs make up over 50 per cent of Samsung’s TV sales compared an industryaverage of 17 per cent.

Customized products for Indian ConsumersCustomized products for Indian Consumers

Samsung understands the local cultural sensibilities to customize its products accordingto the Indian market. It has set up a “usability lab” at the Indian Institute of Technology inNew Delhi to customize Samsung products to meet the specific needs of Indianconsumers. This industry-institute partnership is helping Samsung to study and analyze

consumer response in aspects of product design, including aesthetics, ergonomics andinterface.Through its research done on consumer preferences in India, Samsung has concluded thatIndian consumers want more sound oriented products. Thus, the Samsung televisions forIndia have a higher sound capacity than their foreign counterparts.For the semi-automatic segment of Samsung washing machines, Samsung has introducedfor the first time in India a feature called Super Dry. It is present in three of Samsung’ssemi automatic models and dries the clothes better than the rest.Samsung washing machines have an additional menu that takes care of the local Indianwardrobes. They also have a ‘memory re-start’ that takes care of the frequent powerfailures in India.57 |

SALES PROMOTION TOOLS:SALES PROMOTION TOOLS:

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

Consumer Promotion ToolsConsumer Promotion Tools

The main consumer promotion tools are as follows;

Samples:Samples:

They are offers of a trial amount of a product. It consists of invitingprospective 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 ordiscounted.

Coupons:Coupons:

Coupons are certificates that give buyers a saving when they purchasea specified product. Coupons can be mailed, placed in advertisementsor included with other products.

Rebates:Rebates:

Rebate is also known as cash refund offers. Rebates are offers torefund part of the purchase price of a product to its customers whosend a proof of purchase to the manufacturer. These are likecoupons except that the price reduction occurs after the purchaseand not at the point of sale.

Price Packs:Price Packs:

Cents-off deals or price packs offer consumers savings by way ofreducing prices that are marked by the producer directly on thepackage.

Premiums:Premiums:

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

Prizes:Prizes:

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 ordraws the most popular prize offering promotions.

Tie-in Promotions:Tie-in Promotions:

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

Cross Promotions:Cross Promotions:

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

Advertising Specialties:Advertising Specialties:

These are useful articles imprinted with an advertiser’s name, given asgifts to consumers.

Patronage Rewards:Patronage Rewards:They are cash or other awards for the regular use of company’s productsor services. They are values (in cash otherwise) that are proportional toone’s patronage of a certain vendor or a group of vendors. They aim atbuilding brand loyalty.

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

PURPOSEPURPOSE OF STUDY….

Sales promotion tools vary in their specific objectives. They may be used

to attract new customers, to reward loyal customers and to increase therepurchase rates of occasional users. Sales promotion usually targets brandswitchers because non-users and users of other brands do not always noticea promotion. Sales promotions are thus also seen as a tool for breaking downloyalty to other product.Sales promotions also let manufacturers adjust to short term changes insupply and demand and differences in customer segments. They also letmanufacturers to experiment by varying prices. Sales promotions also lead togreater 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:OBJECTIVES:The specific sobjectives set for sales promotions will vary with the type ofthe target market. For consumer promotions, objectives include encouragingpurchasing of larger sized units, building trial among non-users and attractingswitchers away from the competitor’s brands. For trade promotions, objectivesmay include; including retailers to carry new items and higher level ofinventory, encouraging off-seasonal buying, of-setting competitive promotions,building brand loyalty of retailers and gaining entry into new retail outlets. Thesales force promotions help in encouraging support of a new product or

model, encouraging more prospecting and stimulating off-seasonal sales.Butmost importantly, sales promotion should be focused on consumer relationship building.

RESEARCH RESEARCH METHODOLOGY:METHODOLOGY:

Research design is the arrangement of condition for collection andanalysis of data in a manner that aims to combine relevance to the researchpurpose with economy in procedures. The research design used for this study isDescriptive Research. It focuses on the accurate description of the variables inthe 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 surveyresearch. The sampling design followed in the survey is simple random

probability sampling in which each population element has a known and equalchance 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:Data Collection Methods:

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

Primary Data:

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

Secondary Data:Secondary Data:

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

s

LIMITATION OF LIMITATION OF STUDY :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.

DATA DATA ANALYSIS……..ANALYSIS……..

ANALYSIS

AGE GROUP AGE GROUP

INCOME GROUP (PER ANNUM IN INCOME GROUP (PER ANNUM IN THOUSAND)THOUSAND)

18-209%

21-2533%

26-3011%

31-3537%

36 Above10%

75-10017%

100-12557%

125-15011%

150-17511%

175 above4%

THREE ELECTRONICS COMPANIES THAT COMES IN THREE ELECTRONICS COMPANIES THAT COMES IN

YOUR MIND.YOUR MIND.

Things that you looked while Things that you looked while

purchasing an electronic item ?purchasing an electronic item ?

LG Samsung Videocon Haier Others0

10

20

30

40

50

60

70

10

58

20

10

2

Reliability Looks Low main-tenance

cost

Reliability (less chances of breakdown)

Least physical effects

Low price

0

10

20

30

40

50

60

70

80

68

71

75

69

3332

How did you get to know about SamsungHow did you get to know about Samsung

that you are having at present?that you are having at present?

Adv. Fam. Inf. Frn`s Rc. Fmly Rcm.0

5

10

15

20

25

30

35

40

45

Reliability Looks Low main-tenance

cost

Reliability (less chances of breakdown)

Least physical effects

Low price

0

10

20

30

40

50

60

70

80

68

71

75

69

3332

I preferred Samsung than other because I preferred Samsung than other because

of…?of…?

L.M.C. Looks Low Price less physical efforts

0

10

20

30

40

50

60

70

80 71

14

33

66

Adv. Fam. Inf. Frn`s Rc. Fmly Rcm.0

5

10

15

20

25

30

35

40

45

Respondents may QUESTIONNAIREQUESTIONNAIRE

CONSUMER SURVEYCONSUMER SURVEY

Name: ______________________

Address: _____________________

Q1. Please mention your age group

18-20 21-25

26-30 31-35

36- Above

Q2.) Please mention your income group (per annum in thousand)

75-100 100-125

125-150 150-175

175 & above

Q3) Gender

Male Female

Q4) Martial Status

Married Unmarried

Q5) please mention your occupation ?

Officials Clerical or Salesmen

Student First Jobbers Retired

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

LG .

Videocon.

Samsung.

Haier

Whirpool

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

Friend’s recommendation

Dealer’s recommendation

Q9) which other electronic item would you have preferred to buy?

LG others

Videocon 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

CCONCLUSION….ONCLUSION….

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

BIBLIOGRAPHY…..BIBLIOGRAPHY…..

BBOOKS AND JOURNALS REFERREDOOKS AND JOURNALS REFERRED::

SAMSUNG Electronics annual report,2009

Marketing Management, 12th Editiono By: Philip Kotler and Kevin Lane Keller

WWEBSITESEBSITES::

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