Report on Summer Training

Survey of B2B business per consumer durable in Baddi area

Submitted to Lovely Professional University

(In partial fulfillment of theRequirements for the award of Degree of

Master of Business Administration)

Submitted by:Rajan Sharma

University Roll No - 2020060089.

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA(2007)

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CERTIFICATE OF COMPLETION

This is to certify that Mr. Rajan Sharma of MBA (IIIrd Semester), Roll no -2020060089 has

successfully completed his project titled “survey of B2B business per consumer durable in Baddi

area” under the guidance of Mr. Bhagat Singh (ASM – CSD & Corporate Sales). This is in the

partial fulfillment of his MBA curriculum (2007-2008).

Dated:

Mr. Bhagat Singh (Project Incharge)

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ACKNOWLEDGEMENT

It gives me immense pleasure to express my heartfelt gratitude to my respected guide Mr. Bhagat

Singh ( ASM – CSD & corporate Sales ) in Samsung India Electronic Pvt. Ltd. Chandigarh) for

providing me articulate guidance and ceaseless encouragement throughout my training. Despite

his numerous preoccupations, he always spared his valuable time to guide me at all stages of the

work. I am also thankful to Mr. Harjeet Singh ( ) and other employees to help me out at every

step during my summer training survey.

The project proved to be one of the most productive and knowledgeable experiences of my career.

It provided an opportunity to me to upgrade my skills and to sharpen my professional knowledge

by analyzing the collected data. It is hope that my endeavor will prove to be a successful one.

I express my grateful thanks to Dr. Anand Thakur (Lecturer of Lovely Professional University) for

all encouragement, inspiration, valuable guidance and support.

Rajan Sharma

MBA 2007-2008

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CONTENTS

1 INTRODUCTION OF THE SUBJECT...........................................................................................................- 6 -

1.1 MEANING OF B2B (BUSINESS TO BUSINESS)...............................................................................- 6 -1.2 B2B AND INDUSTRIAL RESEARCH.................................................................................................- 6 -1.3 MEANING OF THE CONSUMER DURABLE....................................................................................- 6 -

1.3.1 CLASSIFICATION ON DURABLE GOODS.....................................................................................- 7 -1.3.2 WHY THE DURABLE GOODS ORDER REPORT IS IMPORTANT................................................- 8 -1.3.3 RECENT DURABLE GOODS ORDER TRENDS..............................................................................- 8 -

1.4 LITERATURE REVIEW.......................................................................................................................- 8 -

2 INTRODUCION OF THE ORGANIZATION (SAMSUNG ELECTRONIC)......................................- 11 -

2.1 COMPANY PROFILE.........................................................................................................................- 11 -2.2 HISTORY & BACKGROUND............................................................................................................- 12 -2.3 TIMELINE & HISTORY.....................................................................................................................- 15 -2.4 MILESTONES......................................................................................................................................- 16 -2.5 KEY PEOPLE.......................................................................................................................................- 17 -2.6 KEY FACTS.........................................................................................................................................- 17 -2.7 SAMSUNG IN INDIA..........................................................................................................................- 17 -

2.7.1 SAMSUNG VALUES........................................................................................................................- 18 -2.8 SALE & MARKETING FUNCTION..................................................................................................- 18 -2.9 THE MANUFACTURING FUNCTION..............................................................................................- 19 -2.10 THE SOFTWARE R&D CENTER......................................................................................................- 21 -

2.10.1 RESEARCH AND DEVELOPMENT (R & D).............................................................................- 22 -2.11 VISION & MISSION............................................................................................................................- 23 -2.12 CAREER IN SAMSUNG.....................................................................................................................- 25 -

2.12.1 GLOBALLY RECOGNIZED POWER BRAND...........................................................................- 25 -2.12.2 INTERNATIONAL AWARDS......................................................................................................- 25 -2.12.3 EXCELLENT WORK CULTURE................................................................................................- 25 -

2.13 SAMSUNG GLOBAL..........................................................................................................................- 26 -2.13.1 THE DNA OF DIGITAL INNOVATION.....................................................................................- 26 -2.13.2 SAMSUNG ELECTRONICS – VISION STATEMENT................................................................- 26 -2.13.3 SAMSUNG ELECTRONICS BUSINESSES AT A GLANCE.......................................................- 26 -

2.14 SAMSUNG ELECTRONIC – GLOBALLY LEADING PRODUCTS...............................................- 27 -2.14.1 GLOBALLY RECOGNISED POWER BRAND...........................................................................- 28 -

2.15 TECHNOLOGY INNOVATION.........................................................................................................- 28 -2.15.1 STORAGE SOLUATION.............................................................................................................- 28 -

2.16 RETAINING CUSTOMER..................................................................................................................- 29 -2.17 COMPARISION OF SAMSUNG ELECTRONIC WITH ITS COMPETITIOR LG ELECTRONIC - 30 -2.18 SOCIAL CONTRIBUTION.................................................................................................................- 31 -2.19 RECENT ACHIEVEMENT OF SAMSUNG ELECTRONIC.............................................................- 32 -

2.19.1 SAMSUNG ELECTRONICS LAUNCHES ITS NEW RANGE OF FULLY.................................- 32 -2.19.2 SAMSUNG LAUNCHES REVOLUTIONARY ‘EYE FRESH TECHNOLOGY’ MONITERS IN HYDRABAD..........................................................................................................................- 33 -2.19.3 SAMSUNG TARGER 70% GROWTH IN DIGITAL MEDIA BUSINESS...................................- 33 -2.19.4 SAMSUNG LAUNCHES ITS 19” LCD TELEVISION IN INDIAN MARKET............................- 34 -

2.20 FINANCIAL POSITION OF SAMSUNG ELECTRONIC.................................................................- 35 -2.21 CAPITAL EXPENDITUR OF SAMSUNG ELECTRONIC...............................................................- 36 -2.22 CASH FLOW OF SAMSUNG ELECTRONIC...................................................................................- 37 -

3 OBJECTIVE & SCOPE OF THE STUDY................................................................................................- 38 -

3.1 OBJECTIVE OF THE STUDIES.........................................................................................................- 38 -3.2 SCOPE OF THE STUDY.....................................................................................................................- 38 -

4 RESEARCH METHODOLOGY................................................................................................................- 39 -

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4.1 RESEARCH DESIGN..........................................................................................................................- 39 -4.2 DATA....................................................................................................................................................- 39 -4.3 PROCEDURE OF DATA COLLECTION...........................................................................................- 39 -4.4 SAMPLING DESIGN...........................................................................................................................- 39 -

4.4.1 POPULATION.................................................................................................................................- 39 -4.4.2 SAMPLING UNIT............................................................................................................................- 39 -4.4.3 SAMPLE SIZE..................................................................................................................................- 40 -4.4.4 SAMPLING TECHNIQUE...............................................................................................................- 40 -

5 OBSERVATION AND ANALYSIS............................................................................................................- 41 -

5.1 SEGMENTATION OF MARKET.......................................................................................................- 41 -5.2 OCCUPATION/ PROFESSION OF RESPONDENT..........................................................................- 41 -5.3 RESPONSE OF SAMSUNG & OTHER BRAND IN CORPORATE.................................................- 42 -

5.3.1 AWARENESS ABOUT SAMSUNG BRAND IN CORPORATE SEGMENT.....................................- 44 -5.3.2 PEOPLE PERCEPTION TOWARDS SAMSUNG ELECTRONIC...................................................- 44 -

5.4 RESPONSE OF SAMSUNG & OTHER BRAND IN PHARMACEUTICALS COMPANIES.........- 45 -5.4.1 AWARENESS TOWARDS SAMSUNG E IN PHARMACEUTICAL.................................................- 46 -5.4.2 PEOPLE PERCEPTION TOWARDS SAMSUNG ELECTRONIC...................................................- 46 -

5.5 RESPONSE OF SAMSUNG & OTHER BRAND IN HOSPITALITY..............................................- 47 -5.5.1 BRAND AWARENESS IN HOSPITALITY........................................................................................- 48 -5.5.2 CUSTOMER PERCEPTION TOWARDS SAMSUNG ELECTRONIC.............................................- 48 -

5.6 RESPONSE OF SAMSUNG & OTHER BRAND IN NEW CONSTRUCTION...............................- 49 -5.6.1 WILL PEOPLE USED THE PRODUCT OF SAMSUNG ELECTRONIC.......................................- 50 -

5.7 FACTOR INFLUNCING FOR PURCHASING..................................................................................- 52 -5.8 CUSTOMER PERCEPTION TOWARDS SAMSUNG IN DIFFERENT SEGMENT.......................- 53 -

6 FINDING AND CONCLUSION.................................................................................................................- 54 -

7 SUGGESTION AND RECOMMENDATION..........................................................................................- 55 -

8 LIMITATIONS.............................................................................................................................................- 57 -

9 BIBLIOGRAPHY..........................................................................................................................................- 58 -

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CHAPTER-1

1 INTRODUCTION OF THE SUBJECT

1.1 MEANING OF B2B (BUSINESS TO BUSINESS)

Business-to-business, meaning that the focus is toward other businesses not consumers.

Retailers are typically B2C companies while manufacturers, wholesalers and other suppliers are

typically B2B companies. The term is generally used to refer to business-to-business commerce

on the Internet, but can be applied to offline relationships between two or more businesses as

well. In other words B2B is a handy term used to describe transactions, collaborations or other

interactions that span separate business entities. It is used to distinguish these external

interactions from those that occur within a single organization, and also from those that run from

businesses to individuals (i.e. business-to-consumer, or B2C).

1.2 B2B AND INDUSTRIAL RESEARCH

In this era of ever-increasing competition, managers do not have the time to focus effectively on

each and every aspect of their business. This exactly explains why a sizeable chunk of most

organizations' total expenditure is spent on outsourced services. One such area is business to

business and industrial research, which is aimed at servicing the information needs of

organizations interested in increasing their competitive advantage. Ideally, it is not just about end

consumer surveys. B2B and industrial research provides information pertaining to a whole gamut

of activities in the value chain, including decisions flow right from raw material sourcing to

manufacturing to distribution channel to end consumer in the B2B and industrial products and

services. It is also about new technologies, sales prospecting, pricing, demand forecasting and

exploring new market opportunities.

1.3 MEANING OF THE CONSUMER DURABLE

Consumer durables can be divided into two types: consumer electronics and consumer utilities.

Consumer electronics is basically entertainment systems like television, VCRs, audio systems

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and home theater systems. Consumer utilities are other household appliances like refrigerators,

washing machines, air conditioners, food processors, and vacuum cleaners. On most third world

countries, consumer durables like the refrigerator and television are most popular. The demand

for consumer durables is by and large seasonal. For example, the sales of air conditioners and

cooling products may increase in summer months, whereas other entertainment systems sales

may increase during a festive season, when there are plenty of discount options available. The

demand for consumer goods has been fuelled by the availability of consumer financing.

1.3.1 CLASSIFICATION ON DURABLE GOODS

1.3.1.1 HOME APPLIANCE

As customers, we focus on getting the best bargains. Discounts are always welcome. Many web

sites offer the best deals available on a particular product within 24 hours. They query other

websites (those that offer merchant reviews) for ratings and home appliance information and get

the best deals - discounts, rebates, gifts, free shipping and the like. Most of these web sites are

clearing houses for online promotions and discounts on virtually every category. There are

specific discount appliance web sites

1.3.1.2 HOUSE HOLD APPCIANCE

In a typical home, household appliances account for about 20% of the energy consumption.

Refrigerators and clothes dryers are said to consume the maximum energy. Every home

appliance has two price tags; one is its purchase price and the other, its operating cost (the cost of

operating the appliance during its lifetime). The purchase price could be thought of as a down

payment, while the operating cost would be paid every month along with the utility bills.

Refrigerators would last an average of 20 years; room air conditioners and dishwashers, about 10

years each; a washing machine's life span is about 14 years

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1.3.2 WHY THE DURABLE GOODS ORDER REPORT IS IMPORTANT

If durable goods orders are up, then you have a better chance of asking for that raise, and your

stocks and mutual funds will probably increase. That’s because businesses are confident, the

money is rolling in for new orders, and the next quarterly GDP report will be upbeat.

If durable goods orders are trending down, then you might want to think about looking for

another job, updating your skills, and increasing the percentage of cash or bonds in your

retirement portfolio. That’s because orders are dropping off, and the GDP report will not look

too optimistic when it comes out. This could cause a stock market shock, fears of recession, and

further slowing of the economy.

1.3.3 RECENT DURABLE GOODS ORDER TRENDS

The last economic downturn started in Q3 2000, when GDP declined .5%. The economy did not

really come out of that slump until Q2 2003, when GDP growth finally broke above the 3%

mark. Since then, GDP growth has averaged above 3% for the last three years. Durable goods

orders mirrored that trend exactly. Although February 2000 orders were 1% lower than the year

before, the rest of Q1 and Q2 were positive. However, in July and August orders were flat,

predicting the GDP downturn of Q3. Although Q4 seemed to stabilize, orders dove in January of

2001 to 11% lower than the year before. Orders didn’t consistently increase until September

2003. Through April of last year, durable goods orders showed increases in the double digits.

Since then, however, the trend has been declining. Since February, durable goods orders have

been lower than last

1.4 LITERATURE REVIEW

Aberdeen (June 2006) surveyed that to find the characteristics of B2B collaboration of

companies that are leading the way (i.e., the Best in Class) and to help your company measure

yourself against industry standards. Aberdeen conducted surveyed as a part of Supplier

Enablement Benchmark and a customer collaboration Benchmark. The Best in Class companies

have made the most progress towards Process Collaboration, while the Industry Average

companies are concentrating on scaling electronic communication, and the Laggard

organizations are still using mostly phone/email/fax communication. Electronic communication

involves using automated means to communicate data back and forth whereas process

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collaboration involves going beyond communication of data to enabling collaborative workflows

through the electronic communication platform. He concluded that Companies that have moved

to process collaboration with suppliers and customers report that they have been able to speed up

their planning and execution cycles and can reshape and react to demand much faster than

before. By exchanging richer information more quickly with trading partners, enterprises are able

to make more accurate plans and better midcourse corrections while improving cash-to-cash

cycles. They are also able to improve customer service performance and increase revenue

Forrester (March 6, 2007) According to this research B2B marketers can no longer afford to

emphasize lead volume over lead quality. This practice reduces sales efficiency, increases costs,

and fuels the gap between sales and marketing. What should B2B marketers do to mature their

lead management practices? Start by sitting down with sales to agree on the definition of a

quality lead. Then build or refine processes to capture lead quality information; validate, score,

and classify leads; improve lead routing precision and efficiency; develop programs to nurture

leads that don’t yet warrant sales attention; and define metrics that directly identify marketing’s

contribution to the sales pipeline and closed deals. So Forrester surveyed and spoken with

hundreds of B2B firms about their lead management processes. The maturity model we unveil in

this report has been reviewed and fine-tuned throughout the past six months with B2B firms

from the high-tech, manufacturing, business services, and distribution industries - enterprise and

SMB - through our B2B marketing workshops, events, and client interactions

Homer Jones (May 1954) studies the some aspects of demand for consumer durable goods; he

said that by consumer durable goods, I mean all those goods which yield consumption services to

the buyer over a considerable period of time. For the purposes of this paper, it appears desirable

to include not only household durable goods and personally owned automobiles but also owner

occupied houses. It also appears to me to be desirable to consider the stock of consumer durable

goods as part of our total stock of capital. They demand for all types of consumer durable goods

will be treated as demand for capital goods, they believe that the causes and effects of the

demand, and changes in the demand, for consumer durable goods are essentially similar to those

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pertaining to business durable goods, and our understanding of their role in the economic process

is best served by applying to them the analysis which we apply to other business durable goods.

Various types of business durable goods are far from homogeneous in their role with respect to

economic stability. The same situation applies o consumer durable goods. But by and large

business durables and consumer durables are sufficiently alike that they profit form the

application to them of the same tools of analysis.

If the demand for consumer durable goods is to be analyzed as having causes and effects similar

to those of other durable goods, it seems desirable to mention by way of premise or introduction

a few elementary and, presume, generally accepted characteristics of capital goods which makes

the demand for them particularly strategic in the economic system.

K. Storm & U. McCann (September 8, 2006) studied that the impact of B2B on purchase

decision. This studies looking at the impact of emerging online applications have on B2B

technology marketing, finds that blogs and Real Simple Syndication (RSS) are catching on more

quickly than previously thought. This year, for the first time, blogs have joined top-rated

communication tactics such as free-trial demos, Webcasts, and white papers as successful means

for attracting high-quality technology prospects, according to Marketing Sherpa's 2006 Business

Technology Marketing Benchmark Guide.

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CHAPTER - 2

2 INTRODUCION OF THE ORGANIZATION (SAMSUNG ELECTRONIC)

2.1 COMPANY PROFILE

Samsung Electronics Co., Ltd. (Korea: SEC)

250, 2-ga, Taepyung-ro, Jung-gu Seoul, 100-742, South Korea Phone: +82-2-727-7114

Fax: +82-2-727-7985

http://www.samsung.com

Samsung Electronics produces a wide variety of electronics products, including: DVD players,

mobile phones, colour monitors (number 1 globally), televisions, digital cameras, computers,

microwaves, refrigerators, air conditioners and washing machines. It is the world's leading

manufacturer of computer memory chips. It has grown dramatically in recent years, supported by

an aggressive marketing campaign in North America and Western Europe.

Samsung Electronics is the flagship of the Samsung Group, the biggest industrial business group

in South Korea and the group’s affiliated companies include credit card unit Samsung Card,

Samsung General Chemicals, Samsung Life Insurance, Samsung Securities, and its trading arm

Samsung Corporation.

In this region, SAMSUNG Asia Pvt. Ltd (SAPL) is the regional headquarters represented by

seven countries and 11 entities across Southeast Asia, and Australia. We employ a total of 6,400

employees in the region. SAPL has a large product portfolio comprising a wide variety of

household consumer electronics, memory products, mobile phones, IT products and LCD panels.

In recent years, SAMSUNG has evolved as a major consumer brand in the region. We

consistently clinch top 3 positions for televisions, monitors/LCD monitors, side-by-side

refrigerators, washing machines and DVD players across the South-East Asia Pacific region.

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In December 1990, SAMSUNG established its sales subsidiary in Singapore, known as the

Electronics Business Division (Consumer Electronics, Telecommunications, IT). Its primary

business and product focus is on the domestic sales of consumer electronics, IT and mobile

phones. Singapore is also the hub for Samsung’s regional memory business, procurement and

customer service.

The introduction of the mobile handset business in 1999 launched SAMSUNG into the highly

dynamic telecommunications industry. Our brand is stature continues to grow and we are now

the second largest mobile company in the South East Asia Pacific region.

Samsung’s goal is to be ranked among the world's top three digital technology companies by the

year 2010. We are the only company that integrates the core competencies of digital technology -

LCD panels, memory (DRAM, Flash, etc.), digital media (A/V & IT), digital appliances and

telecommunications - into a single business operation for the home and office and mobile

environments.

2.2 HISTORY & BACKGROUND

Founded in 1938, Samsung Electronics spans the globe with operations in 63 countries with

more than 50 affiliate companies. With revenues past 100 billion USDs, the company employs

around 230000 people across the world

Samsung means “three stars” in Korean. Lee Byung-Chull founded Samsung in 1938. It started

as a small trading company with forty employees, located in Seoul. The company did fairly well

until the Communist invasion in 1950 which caused great damage to his inventories. He was

force to leave and start over in Suwon in 1951. In just a year, the company’s assets had grown

twenty-fold. In 1953, Lee created a sugar refinery—the South Korea’s first manufacturing

facility after the Korean War. “The company prospered under Lee’s philosophy of making

Samsung the leader in each industry he entered” (Samsung Electronics). The company started

moving into service businesses such as insurance, securities, and department store. In the early

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1970s, Lee borrowed money from foreign companies to begin the mass communication industry

by launching a radio and television station (Samsung Electronics).

South Korean President, Park Chung-Hee’s regime during the 1960s and 1970s helped

Samsung Electronics and many other Korean firms. Park put great importance in increasing

economic growth and development, and assisted large, profitable companies, protecting them

from competition and aiding financially as well. His government banned several exterior

companies selling consumer electronics in South Korea. “To make up for a lack of technological

expertise in South Korea, the South Korean government effectively required foreign

telecommunications equipment manufacturers to hand over advanced semiconductor technology

in return for access to the Korean market” (Samsung Electronics). This enormously helped

Samsung to manufacture the first Korean dynamic random access memory chips.

“Furthermore, although Samsung Electronics was free to invest in overseas companies, foreign

investors were forbidden to buy into Samsung” (Samsung Electronics). Samsung quickly thrived

in the domestic market.

Samsung Group later formed several electronics-related divisions, such as Samsung Electron

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-and-white television set (Samsung

Electronics).

In the late 1980s and early 1990s, Samsung Electronics invested heavily in research and

development, constructing the company as a leader in the global electronics industry. “By the

1980s Samsung was manufacturing, shipping, and selling a wide range of appliances and

electronic products throughout the world” (Samsung Electronics). 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 (Samsung Electronics).

In 1993 Lee Kun-Hee, Lee Byung-Chull’s successor, sold off ten of Samsung Group's

subsidiaries, downsized the company, and merged other operations to concentrate on three

industries: electronics, engineering, and chemicals (Samsung Electronics).

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In 1992 Samsung become the largest producer of memory chips in the world.

In 1995, it built its first liquid-crystal display screen, eventually equalizing its technology to

Sony’s (Lee kun-hee).Samsung has also tried hard to improve its international image.

In 1998 Samsung has spent more than $6 billion on marketing, sponsoring the last five Olympics

and erecting a large video sign in Times Square in 2002 (Lee kun-hee).

Samsung is very involved in the Asian Games, contributing Samsung Nations Cup Riding

Competition, Samsung Running Festival, Samsung World Championship, and still many more

around the globe (Samsung Electronics).

Samsung India Electronics Private Limited (SIEL) is the Indian subsidiary of the US $55.2

billion Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. It is the hub of

Samsung’s South West Asia Regional Operations, and looks after its business in Nepal,

Bangladesh, Maldives & Bhutan besides India. SIEL commenced operations in India in

December, 1995. 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, and enjoys a sales turnover of over $

US 1 billion in a just a decade of operations in India.

Samsung in India has a presence in the following areas of business:

Consumer Electronics (CE)/Audio Visual (AV) Business

Home Appliances (HA) Business

Information Technology (IT) Business

Its operations are broadly divided into the following key sub-functions:

Sales & Marketing

Manufacturing

Software Centre Operations

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2.3 TIMELINE & HISTORY

  Jan Developed the first-ever speech recognition phone

   Developed innovative 8-chip stacking MCP technology

   Posted more than $10 billion in net profit

   Became the world’s top three companies with the most patents, launched patent-

based management

  Feb Released digital slim TV with the narrowest body depth

Released the first notebook PC with embedded terrestrial DMB receiver

Samsung Blue black phone, SGH-D500, was selected as "The Best Handset" at

3GSM global conference in Cannes, France

First commercialization of terrestrial DMB phone in Korea

Developed DDR3 DRAM

Developed the first wrinkle-free steam washer

  Mar Developed the first HSDPA terminal for commercialization and ultra-high speed

HSDPA system

  Cash payment to more than 15,000 SMEs

  Developed 82" TFT-LCD

  Developed 7 mega pixel camera phone

  Apr Became the official sponsor of Chelsea, the renowned English soccer club

  May Developed the world’s first OLED for 40" TV

Completed and announced standard dimension for 8 th and 9th generation LCD

panels

Released the first HD class PDP TV with 10000:1 contrast ratio

Began mass production of 70 nano processed 4 GB NAND flash memory

  June Accumulated production volume of large LCDs surpassed 100 million units

  Began upgrading digital audio business to the world’s top level

  Launched a new brand campaign with the theme of "Imagine"

  Released the first 5 mega pixel, 3x optical zoom camera phone

 Began mass production of 90 nano processed 1 GB DDR2 DRAM

  July Released the world's first 7 mega pixel camera phone

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  Aug Released the world's biggest DLP TV

  Sep Developed the world's first 50nm 16Gb NAND Flash

 Released the world's first Blue-Ray Home AV Center

  Oct Blue-black phoneⅡ(SGH-600) selected as the "Mobile Choice's Phone of the Year"

  Developed the world's first 70nm DRAM

 Developed the world's fastest speed graphic DRAM(GDDR4)

  Nov Developed the largest Flexible LCD Panel

  Dec Received "25 if Design (Germany) awards"

  Handset shipments reached over 100 million

2.4 MILESTONES

Year Milestones

1990 Electronics Business Division in Singapore established

1997 Achieved #1 market share position for refrigerators

1998Introduced first SAMSUNG mobile phone (SGH- 600) and captured 20 per

cent market share

2001Achieved #1 market share position for Side-by-Side (SBS) refrigerators and

TFT-LCD monitors

2001 Established D_Office (Electronic Info Filing System)

2003Record 1000 gamers, the largest in Singapore participate in the World Cyber

Games National final, supported by SAMSUNG as worldwide sponsor

2004

As official Olympic and Olympic Torch Relay sponsor, held Singapore 'Torch

Bearer' Challenge to send two Singapore citizens to run with the Olympic

torch in Greece

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04. 2004Achieved one month record sales of memory/LCD panel products over

US$160 million

2.5 KEY PEOPLE

Chairman Kun-Hee Lee

Vice Chairman and CEO Jong Yong Yun

President and Chief of Staff Hak Soo Lee

2.6 KEY FACTS

Key Numbers

Company Type Public (Korea: SEC)

Fiscal Year-End December

2002 Sales (mil.) $49,650

2002 Net Income (mil.) $5,878.5

2002 Employees 50,000

The sales and net income figures are consolidated

2.7 SAMSUNG IN INDIA

Samsung India is the hub for Samsung’s South West Asia Regional operations. The South West

Asia Regional 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 today enjoys a sales turnover of over US$ 1 Billion in just a decade of

operations in the country.

Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located all

over the country. The Samsung manufacturing complex housing manufacturing facilities for

Colour Televisions, Colour Monitors, Refrigerators and Washing Machines is located at Noida,

near Delhi. Samsung ‘Made in India’ products like Colour Televisions, Colour Monitors and

Refrigerators are being exported to Middle East, CIS and SAARC countries from its Noida

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manufacturing complex. Samsung India currently employs over 1600 employees, with around

18% of its employees working in Research & Development.

2.7.1 SAMSUNG VALUES

2.8 SALE & MARKETING FUNCTION

Headquartered in New Delhi, Samsung India has a network of 19 branches and 16 Area Sales

Offices (ASOs) located all over the country, and the number is expected to grow, as the

organization continues to expand its horizons.

The Sales & Marketing function at Samsung is primarily divided into two categories:

• Sales & Marketing (IT)

• Sales & Marketing (AV/HA)

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Apart from sales to households through its robust distribution channel, SIEL also has a huge

clientele in the Institutional Sales space. Therefore, there is a separate department devoted

completely to this function. It is the VMB (Vertical Market Business) department that is

responsible for making sales to institutions such as airports, hotels, banks, movie theatres,

etc.

Corporate Marketing is aimed at strengthening Samsung as a brand among the dealers,

distributors, and end customers. Hence, the activities covered under this function include

formulating and announcing promotional schemes for both the trade partners as well as the

end customers. Moreover, it also plays an instrumental role in ensuring brand visibility through

corporate sponsorships, and planning, managing and organizing various events and product

launches.

Another function of the sales & marketing function at SIEL is public relations, also known as

corporate communications. Here, the scope of activities includes maintaining liaison with the

media, organizing corporate social responsibility initiatives, website management, corporate

literature, etc.

2.9 THE MANUFACTURING FUNCTION

SIEL has its manufacturing facility at Noida, U.P. This is the state-of-the-art, high-tech facility

for manufacturing Color Televisions, Color Monitors, and Washing Machines & Refrigerators.

This manufacturing unit consists of sophisticated facilities with latest Auto Insertion Machines,

Auto PCB Tester, High Efficiency Module Conveyor, and all modern machines geared up for

High Speed, High Volume & Very High Quality Production. They firmly believe that continuous

innovation is the key to making path breaking improvement in Samsung product & process and

achieve productivity goals beyond imagination. Samsung uses many tools for innovation such as

“Reduced 7 Type of Wastage & Six Sigma”. Samsung commitment to grow through

continuous innovation has helped to improve productivity by 200% in the last 5 years.

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Samsung India is also instrumental in carrying out Hardware Research & Development at its

Noida R&D Centre. The focus of the R&D Centre is to customize both Consumer Electronics

and Home Appliances’ products to better meet the needs of the Indian customer. From color

televisions designed for higher sound output, to washing machines with special “Sari Wash

Course”, DNIe vision series of Flat CTVs especially designed for the Indian market to Samsung

mobiles with regional languages menus, the Samsung R&D Centre in India is helping the

company to continuously innovate and introduce products customized for the Indian market.

Samsung’s state of the art highly automated manufacturing facilities are located at the

Company’s sprawling Noida Complex. Enjoying the Number 1 position amongst all Samsung

subsidiaries in terms of productivity and having been ranked as the subsidiary with the ‘Best

Quality System’, Samsung India prides itself for its Manufacturing Value Innovation.

The manufacturing capacities of the Samsung products manufactured in India (as of Year 2004)

are:

PRODUCT CAPACITY DETAILS

CTV 1.5 million Curved & Flat TVs

Colour Monitor 1.5 million CRT & TFT LCD Monitor

Refrigerator 0.6 million Frost-free and Conventional Refrigerators

Washing Machine 0.5 million Fully Automatic and Semi Automatic

AC 0.4 million Window and Split ACs

Samsung India is working with and contributing to the development of the domestic component

industry in the country. The Company is working with its partners to improve their product

quality and processes. Thus, Samsung vendors are sent to different Samsung subsidiaries to meet

the Samsung overseas vendors in order to benchmark their own processes. Samsung is also

training its vendors on eco-partnership so that the components manufactured by them are ‘eco

21

friendly’ as per ROHS norms. Samsung products manufactured in India currently enjoy an

average localization level of over 50%.

2.10 THE SOFTWARE R&D CENTER

SIEL Software R&D Center was set up in September 2002 as a Software R & D Center in

Noida, U.P. SIEL Software Center is involved in the business of developing embedded and

desktop software for Samsung Electronics Corporation in a variety of areas related to Analog and

Digital TV, Monitors and other Multimedia technologies.

SIEL Software Center has successfully completed more than two hundred projects in

collaboration with Samsung Headquarters Visual Display and Digital Media divisions ( Korea).

SIEL Software Center engineers continuously strive to improve the performance and introduce

innovative features to make the end products more efficient and user friendly.

They design and implement some of the critical components for products such as next generation

CRT and Projection TVs, Plasma and LCD TVs, DLP TVs, Digital TV Set Top Boxes, DVD

Players, MP3/Video players, PDAs, 2D/3D Graphics Engines, Camcorders, Multimedia

applications etc., and believe in following optimized and stringent quality processes to build

these world leading products. SIEL Software Center plans to be certified at SPICE Level 3 by

2005 and CMMI Level 4 by 2006.

Samsung Electronics brings a very enriching entertainment experience to the consumers

worldwide through its cutting edge technologies. There aim is to revolutionize the way and break

the barriers to ride on the frontiers of technology to provide superior quality products to

Samsung's customers. There Engineers continuously strive to improve the performance and

introduce innovative features to make these products very user friendly. We follow optimized

and stringent quality processes to build these world leading products.

For SIEL Software Center to continue to remain a strategic and key R&D Center of Samsung

Electronics, it is important that every employee of SIEL Software Center contributes his/her

22

fullest potential and capabilities. SIEL Software Center is always looking for dynamic

individuals who are driven by ambition, youth, vibrancy and challenge.

2.10.1 RESEARCH AND DEVELOPMENT (R & D)

The company’s thrust on Product Innovation and R&D have given the company a competitive

edge in the marketplace. Samsung has set up Samsung India Software Centre (SISC) and

Samsung India Software operations unit (SISO) for software development at Noida and

Bangalore respectively. While the Samsung India Software Centre in developing software

solutions in Samsung’s global software requirements for hi-end television like Plasma and LCD

TVs, SISO is working on major projects for Samsung Electronics in the area of telecom: wireless

terminals and infrastructure, Networking, SoC (System on Chip) Digital Printing and other

multimedia/digital media as well as application software. In addition to working on global R&D

projects, SISO is also helping Samsung India’s CDMA business by focusing on product

customization for the Indian market. While the Samsung India R&D Centre has around 300

employees, SISO currently employs over 800 highly skilled professionals.

With an investment of over USD 100 million, SISO is charting out major growth plans in the

country, with its current focus being in the 4G & Multimedia area. SISO has already applied for

145 patents based on the software development carried out here in India. In fact, SISO has a

special Intellectual Property Team working on securing Patents for its breakthrough projects.

SISO plans to continue its focus on Multimedia & Protocol development; build a strong

competency in technology and focus on WCDMA technology and User Interface. Samsung India

is also carrying out Hardware R&D at its Noida R&D Centre. The focus of the R&D Centre is to

customize both Consumer Electronics and Home Appliance products to better meet the needs of

Indian consumers. From colour televisions designed for higher sound output, to washing

machines with special ‘Saree Wash Course’, DNIe vision series of Flat CTVs especially

designed for the Indian market to Samsung mobiles with regional language menus, the Samsung

R&D Centres in India are helping the company to continuously innovate and introduce products

customized for the Indian market.

23

2.11 VISION & MISSION

GROWING TO BE THE BEST

.

Samsung India aims to be the ‘Best Company’ in India by the Year 2006. ‘Best Company’ in

terms of both the internal workplace environment as well as the external context in which the

Company operates. Samsung aims to grow in India by contributing to the Indian economy and

making the lives of its consumers simpler, easier and richer through its superior quality products

“Our aim is to gain technological leadership in the Indian

Marketplace even as our goal is to earn the love and respect of

24

Leading the Digital Convergence Revolution

Vision

Digital – ε CompanyA company that leads the digital convergence Revolution through innovative Digital Products (Digital) &- ε Process

(ε)

Mission

Business Portfolio Restructuring Design –

Convergence - NetworkingBusiness Process

Innovation Speed- Simplicity

more and more of our Indian consumers.” By Mr. S.H. Oh, President & CEO (Samsung

South-West Asia Regional Headquarters)

Ever since its inception in1938, Samsung has continually refined its Mission statement to

respond to changes both in the world, and in itself. Whether it was “Economic Contribution to

the Nation”, “Priority to Human Resources”, or “Pursuit of Rationalism”, each slogan had the

quality of representing the most significant moments in Samsung’s history. Each of them

represented a different stage of Samsung’s growth from a domestic industrial leader to a global

electronics powerhouse.

Samsung Electronics, the flagship company of the Samsung Group currently positioned as a high

technology leader, has the following as its Vision and Mission.

There are two parts of being a "Digital-ε Company", and the first is clearly about being

"Digital" producing not just digital products, but products that inspire digital integration across

our entire company. The second part of being a "ε" is to use ε- Processes connecting R&D,

production, and marketing to customers, partners, and the market-disciplined approach is the

way we bring value to every part of our supply chain, including products data to and customer

relationship through Enterprise Resource Planning (ERP).

Samsung Electronics Global Mission & Vision would be achieved through nine action

values:

Continuous Innovation

Creativity

Challenge

Strategic Focus

Speed

Simplicity

Empowerment

Crisis Awareness

Customer Focus

25

2.12 CAREER IN SAMSUNG

2.12.1 GLOBALLY RECOGNIZED POWER BRAND

Samsungs Electronics strong performance both in terms of financial results and product design

has been recognized by various industry awards and rankings. It has been recognized as ‘The

fastest Growing Global’ brand, by Business Week/Interbrand and is ranked amongst the top

technology leaders in the world. Samsung enjoys a brand equity of US$12.5 Bn and is ranked

21st in the list of top 100 global brands.

2.12.2 INTERNATIONAL AWARDS

Samsung’s focus on design excellence has led to many of its products winning global

recognition. Samsung has won a total of 33 awards at top design contests in the US, Europe and

Asia. From coveted awards like IDEA to if design and Innovation 2004, various Samsung

products like Plasma Television and TFT-LCD Monitors have been awarded & recognized for

their design quality and performance.

2.12.3 EXCELLENT WORK CULTURE

The work culture at Samsung is based on the fundamental belief that employees are its most

important asset. Respect and genuine concern for each employee in the organization is the basic

principle on which the organization functions. We believe that by giving mutual respect,

recognition, trust, open communication, transparency and opportunities for growth, employees

will perform to their fullest potential and will be sincere, dedicated and committed to their jobs.

SAMSUNG India also strives to increase not only the efficiency of operations, but also the

overall quality of our work environment and our contribution to society as a whole.

At Samsung India we are trying to harness the potential of employees to the fullest extent so that

they become Super Excellent Employees and give Superlative Performance.

26

2.13 SAMSUNG GLOBAL

2.13.1 THE DNA OF DIGITAL INNOVATION

Samsung Electronics is a global leader in semiconductors, telecommunications, digital media

and digital convergence technologies with 2004 parent company sales of US$55.2Bn and net

income of US$10.3Bn. Employing approx. 113,000 people in over 90 offices in 48 countries, the

company has of 5 main business units: Digital Appliance Business, Digital Media Business,

LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized

as one of the fastest growing global brands, Samsung Electronics Corporation is the world’s

largest pro ducer of Colour Monitors, Colour TVs, Memory Chips and TFT LCD’s.

2.13.2 SAMSUNG ELECTRONICS – VISION STATEMENT

Recognizing that the ‘digital revolution’ is entering a new phase, Samsung Electronics has

transformed it’s operations by putting digital technology at the core. The company is committed

to being a market-driven solutions provider and leader in digital convergence. With core

competencies in semiconductors and CDMA technologies, Samsung Electronics creates digital

solutions for homes, mobile users and offices that enable seamless communications facilitate

business transactions, access to the internet and offer digital entertainment.

2.13.3 SAMSUNG ELECTRONICS BUSINESSES AT A GLANCE

From memory chips to digital TV’s, Display Monitors to Mobile Phones, Samsung Electronics

has channelised it’s core competencies in the field of semiconductors and backed it with it’s

R&D capabilities and manufacturing scale to emerge as one of the most unique brands creating

innovative and superior digital products every year. Some of the products manufactured by it’s

key business areas include:

27

2.13.3.1 DIGITAL MEDIA NETWORK

Leading developer and manufacturer of Digital TV’s, Colour Monitors, DVD Players, Printers

and all-in-one wireless devices such as NEXiO handheld PC.

2.13.3.2 DEVICE SOLUTION NETWORK BUSINESS

The world’s largest producer of DRAMs, SRAMs and TFT-LCDs. This business division has

also pioneered many remarkable innovations in the field of non-memory chips.

2.13.3.3 THE TELECOMMUNICATION NETWORK BUSINESS

A leading producer of CDMA handsets and among the top 3 GSM handset providers in the

world. Samsung Electronics continues to strengthen its global position, producing and marketing

CDMA, GSM and TDMA mobile phones as well as 3G handsets.

2.13.3.4 THE DIGITAL APPLIANCE NETWORK BUSINESS

A major presence in the home appliance market with a significant share of the global microwave,

internet refrigerators, air conditioners and other household product categories.

2.14 SAMSUNG ELECTRONIC – GLOBALLY LEADING PRODUCTS

Product DRAMs SRAMs TFT-LCDs

CDMA Handsets

Computer Monitors

TV Flash

Global M/S

31% 28% 22% 20.6% 21% 9.9% 27%

28

2.14.1 GLOBALLY RECOGNISED POWER BRAND

Samsung Electronics’ strong performance both in terms of financial results and product design

has been recognized by various industry awards and rankings. It has been recognized as ‘The

Fastest Growing Global’ brand, by Business Week/Interbrand and is ranked amongst the top

technology leaders in the world. Samsung enjoys a brand equity of US$12.5Bn and is ranked

21st is the list of top 100 global brands.

2.15 TECHNOLOGY INNOVATION

Samsung’s IT solution portfolio includes Mobile Computing Solutions, Printing Solutions,

Visual Display Solutions as well as Storage & Multimedia solutions. Samsung’s IT business is

channeled through a network of distributors and resellers and Samsung, in India has emerged as

the undisputed market leader in many product categories. Samsung also looks after the IT

hardware requirements of many of India’s blue chip businesses.

2.15.1 STORAGE SOLUATION

Samsung Electronics has been at the forefront of the global hard disk technology innovations for

many years now. Its R&D labs in USA & Korea have made possible some of the most defining

technologies, greatly improving reliability, speed & performance. In India, Samsung was one the

first brands to provide extended warranty options and introduce high capacity, high speed HDD’s

to cater to the growing needs of the industry.

29

The Samsung Optical Media Solutions includes DVD writers, DVD ROM’s as well as CD-RW’s

and Combo Drives. The Samsung range features the ‘OctoEdge’ technology, which is a

combination of eight unique features that gives Samsung Drives the power to read optical discs

in any format, in just about any condition – faster, quieter and much more reliably.

2.16 RETAINING CUSTOMER

Samsung considers 'After Sales Service' as a key differentiator for Samsung products. In order to

deliver prompt and easily accessible service, Samsung India has set up a widespread network of

company owned as well as Authorized Service Centers to service its customers. The Samsung

Service Plazas, as the Company owned Service Centres are called, are a first in the industry.

The Samsung Service Plazas serve as a one-stop shop for Samsung’s walk in customers.

Customers also get a chance to see the Samsung range of products and interact with Samsung

product specialists to know more about the company’s products and services. Samsung is also

increasing, the number ‘Samsung Prestige Service Plazas’ in smaller cities like Ludhiana &

Coimbatore to reach out to its customers.

To satisfy the needs of its Home Appliance customers, Samsung has set up state-of-the-art Home

Appliance Service Centres in 19 cities that are equipped with latest testing and measuring

equipments for servicing only Home Appliance products.

‘Speed, Smile, Sure’ is the motto for Samsung Service, as the Company seeks to satisfy more

and more of its customers with prompt and accurate service. The company adheres to a

turnaround time of 24 hours within the city where the Samsung Service Centre is located. A

Service Helpline number 30308282 gives access to Samsung Service throughout the country.

Samsung India organises a Free Service Camp on an All India basis, every year, for proactively

reaching out to customers and servicing their Samsung products.

‘10 second to loose a customer, 10 years to gain them back’ forms the guiding principle for

Samsung Service Team as it strives to satisfy the growing expectations of Indian customers

30

2.17 COMPARISION OF SAMSUNG ELECTRONIC WITH ITS COMPETITIOR LG ELECTRONIC

Samsung Electronics LG Electronics

1969 Company established 1958 GoldStar established

1970 First B&W TV produced 1962 Radio exports to U.S. and Hong Kong

1976 Succeeded in developing color TVs 1965 Manufactured first refrigerators in Korea

1978 Passed 4 million mark for B&W TVs production (World #1)/ Established SEA in U.S. / Export exceeds $100 million

1995 Company name changed to LG Electronics

2005 Become sponsor of U.K. Chelsea 1998 Developed world’s first 60 inch PDP TVs

2006 World #1 in LCD production for 4 consecutive years / 27th most respected company by Fortune / Developed world’s first 10 million pixel mobile / Selected best TV brand in U.S. / Two-door refrigerator ranked 1st in customer satisfaction by JD Power for 2 consecutive years / Mobile phone sales exceed $10 million in U.S.

1999 Joint company LG-Philips established for DevLCD business

2004 Developed world’s first DMB phones

2005 Marketed world’s first DMB notebooks / Developed world’s largest 102 inch PDP TVs / #1 world market share in CDMA

2007 TV factory being built in Russia

2006 Selected ‘Best Design Team of the Year’ by German Reddot Design / Digital electronics factory LGERA under the construction in Russia / Marketed world’s first next-generation dual format player SMB

▫ Address: Maetan-dong 416, Yeongtong-gu, Suwon-si, Gyeonggi-do ▫ Tel: +82-1588-3366

▫ Address: LG Twin Tower, Yeouido-dong 20, Yeongdeungpo-gu, Seoul ▫ Tel: +82-2-3777-1114▫ Website: http://www.lge.com/

31

▫ Website: http://www.sec.co.kr/ ▫ Business: Semiconductors, IT, multimedia, household electronics

▫ Business: Mobile, household electronics, digital media, digital displays

2.18 SOCIAL CONTRIBUTION

Samsung strongly believes that business has a defining role in building communities, and the

Samsung ‘Digital Hope’ program, is in keeping with the same spirit. Samsung DigitAll Hope

represents Samsungs long-term commitment to the people of India and its belief in the power of

technology to improve the lives of the Indian people.

It is now widely acknowledged that IT and computer literacy play a key role in the growth of

developing countries. Samsung DigitAll Hope is a social program that aims to bridge the gap and

narrow the divide between the ‘computer literates’ and the ‘computer illiterates’. As a global

leader in Digital Technology, Samsung is committed to the cause and is certain that this program

can play a very important role in the development of society at large.

Some of the key projects that have been carried out under the aegis of Samsung Digitall Hope

include, the “Hope Incubator Project”, by Development Alternatives, a Delhi based NGO and

“Empowering Disabled People through Education and Employment”, by the National Centre for

Promotion of Employment for Disabled People (NCEPDP). The “Hope Incubator Project”

created and implemented a “Fund” designed to help young first time entrepreneurs successfully

run their own business. Modelled as a revolving fund, it was initially used to promote

entrepreneurs in the districts of Bundelkhand, but has subsequently been extended to Punjab and

other areas as well. This revolving fund is enabling dozens of local young entrepreneurs to

service thousands of villagers, helping them to leap frog into the digital world.

Samsung has also supported the National Centre for Promotion of Employment for Disabled

People (NCEPDP) to provide Scholarships to brilliant disabled students and helped in the setting

up of the Disability Placement Unit which is handholding and mentoring hundreds of disabled

people in need of jobs.

32

Samsung firmly believes in supporting education and regularly organises Factory Visits for

School Children to the Manufacturing Facility at Noida as well as educational Quiz programs for

School Children.

Apart from education, Samsung has been actively associated with promoting Sports in India.

Samsung India’s association with the Indian Olympic Association commenced with the 1998

Bangkok Asian Games and ever since the Company has supported the Indian Contingent to the

Y2000 Sydney Olympics, Y2002 Busan Asian Games and the Y2004 Athens Olympics. The

Company even set up an Olympic Fund through which it provided Scholarship to five top Indian

athletes as they prepared for the Athens Olympics. The Five ‘Samsung Olympic Ratnas’ who

were supported include: Abhinav Bindra, Anjali Bhagwat, Anju B George, K M Beenamol and

Karnam Malleswari.

2.19 RECENT ACHIEVEMENT OF SAMSUNG ELECTRONIC

2.19.1 SAMSUNG ELECTRONICS LAUNCHES ITS NEW RANGE OF FULLY

AUTOMATIC WASHING MACHINES WITH SILVER NANO TECHNOLOGY

In July 2007 (New Delhi) Digital Technology Leader, Samsung India announced the launch of

its new 2007 range of Fully Automatic Washing machines in the country. The new range

comprising of 8 new Front loading and 6 Top Loading models is equipped with the Company’s

revolutionary Silver Nano technology and offers much differentiated design and performance

features.

While the Front loading washing machines have been launched in the capacities between 5kg to

6.5 kg; the top loading washing machines have been introduced in capacities ranging between

6.0 kg to 6.8 kg.

According to Mr. R Zutshi, Dy MD, Samsung India, “Based on our new, considerably

strengthened fully automatic product lineup, our technology differentiation and the channel

expansion that we are carrying out for our Home Appliances, we are expecting to increase our

33

market share to 27% in the Fully automatic segment by the end of this Year”

Samsung’s patented Silver Nano technology that the Washing machines are equipped with has

been developed by Samsung Electronics researchers who worked for three years to perfect the

technology. With over US$10 million invested in R&D, Silver Nano is the first technology that

combines the disinfectant and antibiotic properties of electrolytic silver Nano-particles (Ag+) in

washing machines to remove 99.9% of harmful bacteria. Set on "Silver Wash", the washer's

sterilization system generates silver particles that kill off bacteria and mold in the laundry load

without bringing the water to a boil. Thus, less electricity is needed to achieve a hygienic effect.

This process also treats the inside of the washing machine tub to kill bacteria and mold,

suppressing the odor and contamination that accompanies their formation.

2.19.2 SAMSUNG LAUNCHES REVOLUTIONARY ‘EYE FRESH TECHNOLOGY’ MONITERS IN HYDRABAD

In July 25, 2007 Digital Technology leader, Samsung India launch its new, advanced colour

monitor range in Hyderabad, comprising of ‘Eye Fresh Technology’ (EFT) Monitors, World’s

Slimmest CDT Monitor and the 19” Wide format LCD Monitor. Mr. Rahul Dravid, Captain of

the Indian team and ‘Team Samsung’ member formally launched the new monitor range in

Hyderabad along with senior Samsung officials- Mr. R Zutshi, Dy MD, Samsung India; Mr.

Harry Ahn, VP-IT and Mr. Sanjay Sharma, VP-IT, Samsung India.

2.19.3 SAMSUNG TARGER 70% GROWTH IN DIGITAL MEDIA BUSINESS

Launches its advanced, ‘NV’ Series, in Digital Still Cameras New, HD ready Q7 Series in Plasma TVs launched

In August 25, 2007 (New Delhi) Digital technology leader, Samsung India announced its plans

to achieve a 70% growth in its Digital Media business in the Year 2006. The Digital Media

business, which is a new thrust area within the Company's Audio Video portfolio, includes

34

products like Digital Still Cameras, Digital Camcorders, Digital Audio Players (MP3 Players)

and DVD Players.

Mr. R. Zutshi, Dy. Managing Director, Samsung India states that they plan to grow our

Digital Media business by launching wow, aspiration products like the NV Series as well as by

creating new product segments like the 6-in-1 multifunction camcorders within the Digital

Camcorder segment.

2.19.4 SAMSUNG LAUNCHES ITS 19” LCD TELEVISION IN INDIAN MARKET

In July 10, 2007 Digital technology leader, Samsung India today announced the launch of its 19”

Bordeaux LCD television in the Indian market. Samsung is the first Company to be introducing a

19” LCD television in the Indian market. States Mr R. Zutshi, Dy. Managing Director, Samsung

India, “The Samsung 19” LCD TV, given its features and affordability, will further incentives

Flat TV consumers to upgrade to the LCD television category.” The Bordeaux LA 19R7, which

is being launched nationally today, is priced at Rs 21, 000/-.”

The Company, which is targeting a 50% market share in the LCD television category, has with

the inclusion of the new model, 11 LCD models across its Sonoma Trenz, Bordeaux Art and

Mosel Blaque LCD series. The LA 19R7 will be the entry-level model across the Samsung LCD

range. This model represents a unique combination of performance and design, albeit in a

smaller package. It comes with advanced features like 600:1 Contrast ratio for crisper images;

1440 x 800 resolutions for clear images, High Definition Multimedia Interface (HDMI)

connection, PC input and Side AV that make this LCD television, a multimedia centerpiece. It is

also HD ready allowing the user to experience richer, more natural colours, deeper contrast and

greater picture clarity. This LCD TV comes with the option of Swivel Table top Stand or Wall

35

Mount inbuilt, which gives the customer the flexibility to place it as per his/her space

requirements and aesthetics.

2.20 FINANCIAL POSITION OF SAMSUNG ELECTRONIC

36

2.21 CAPITAL EXPENDITUR OF SAMSUNG ELECTRONIC

37

]

38

2.22 CASH FLOW OF SAMSUNG ELECTRONIC

39

CHAPTER – 3

3 OBJECTIVE & SCOPE OF THE STUDY

3.1 OBJECTIVE OF THE STUDIES

To know the market condition of Samsung product in Baddi area

To gain insight of consumer perception towards Samsung product

To know the position of Samsung in consumer mind

To know about Samsung major competitor in Baddi area

To know the satisfaction level of customer of Samsung regarding the service they

provided.

3.2 SCOPE OF THE STUDY

Today customer is money oriented person. He saw that where they will earn more profit

in low investment, so with the help of this study consumer will have proper image in

there mind while they will purchase durable goods

With the help of this survey customer while purchasing Home Appliance (HA) or

Consumer Appliance (CA) goods they have proper image in there mind that will product

is more reliable for him regarding there price, quality, service etc.

Moreover, the same project work would also help my classmates, junior fellows and

various associated persons and respected teachers at that time when they will purchase

home appliance and consumer appliance goods from the market.

40

CHAPTER – 4

4 RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

The research design in this study is descriptive. The research which has been used is exploratory

research as it emphasizes on discovery of ideas, insights & breaks the complex problem into

simple one.

4.2 DATA

Both primary and secondary data has been used for the purpose of the data collection. Primary

data has been collected by conducting personal interviews and administering an undisguised,

unbiased structured questionnaire to the respondents. The secondary data has been collected

from secondary sources of information that included websites, books and previous reports.

4.3 PROCEDURE OF DATA COLLECTION The procedure which has been used for data collection is through personal interview or by visit

himself in the organization, hotels, pharmaceutical companies, corporate offices & in new

construction companies.

4.4 SAMPLING DESIGN

4.4.1 POPULATION

All the respondent of Baddi industrial area in July-August 2007

4.4.2 SAMPLING UNIT

Target populations under the study are those individuals who have been dealing the other brands

of durable goods (home appliance and consumer appliance goods).

4.4.3 SAMPLE SIZE

The sample size for this project is 50.

41

4.4.4 SAMPLING TECHNIQUE

Non-Probability Sampling.

42

CHAPTER -5

5 OBSERVATION AND ANALYSIS

This chapter represents the analysis of primary data collected from the respondent of Baddi area

who are dealing with home appliance (HA) & consumer appliance (CA) / audio visual (AV)

goods. But I have mainly covered four segment that is corporate, pharmaceutical, hospitality &

new construction.

5.1 SEGMENTATION OF MARKET

Corporate

Hospitality

Hospitals

Educational Institute

Pharmaceutical

New Construction

Cross Promotional

5.2 OCCUPATION/ PROFESSION OF RESPONDENT

Table -5.2OPTION RESPONSE PERCENTAGE

Corporate 40 80

Hospitality 35 70

Educational Institute 10 20

Pharmaceutical 45 90

New Construction 33 66

Cross Promotional 2 4

Hospitals 3 6

43

Graph-5.2

Corporate

Hospitality

EducationalInstitutePharmaceutical

New Construction

CrossPromotionalHospitals

Response of survey in different segment

Inference-

The inference which is drawn above the table and chart is the segmentation of the market as

above mentioned e.g. corporate, hospitality, educational institute etc. and there responses which I

get through out the survey.

5.3 RESPONSE OF SAMSUNG & OTHER BRAND IN CORPORATE

Table – 5.3

Brand Response Percentage

Blue Star 15 30

Voltase 13 26

Samsung 12 24

LG 5 10

Hitachi 3 6

Others 2 4

44

Chart -5.3

0

5

10

15

20

25

30

Response Percentage

Bluestar

Voltase

Samsung

Lg

Hitachi

others

Response of samsung & Other Brand’s in corporate segment.

ResponseBlue Star

Voltase

Samsung

LG

Hitachi

Others

Response of samsung & Other Brand’s in corporate segment.

Inference

As per the survey, the above table and chart (5.3) respectively shows the responses of customer

in corporate segment and there awareness & preference towards the home appliance (HA) &

consumer appliance (CA) goods.

45

5.3.1 AWARENESS ABOUT SAMSUNG BRAND IN CORPORATE SEGMENT

Aware95%

NotAware

5%

Brand Awareness

Inference: - As per the survey the above diagram shows that approximately 95% people in the

corporate world are aware towards samsung brand and the remaining 5% people are less aware.

5.3.2 PEOPLE PERCEPTION TOWARDS SAMSUNG ELECTRONIC

Response

VeryGood48%

Good24%

Average20%

BelowAverage

8%

Customer perception in corporate

Inference: The above diagram shows that the perception of consumer toward samsung brand

46

5.4 RESPONSE OF SAMSUNG & OTHER BRAND IN PHARMACEUTICALS COMPANIES

Table 5.4

Brand Response Percentage

Blue Star 15 30

Voltase 14 28

Samsung 13 26

LG 5 10

Hitachi 2 4

Others 1 2

Chart -5.4

05

101520253035

Response Percentage

Blue Star

Voltase

Samsung

LG

Hitachi

Others

Response of samsung & Other Brand’s in corporate segment.

Inference

The above inference shows that consumer perception toward Home appliance & consumer

appliance goods like AC, freeze etc. and there preference.

47

5.4.1 AWARENESS TOWARDS SAMSUNG E IN PHARMACEUTICAL

Respone

Aware98%

NotAware

2%

Aware

Not Aware

5.4.2 PEOPLE PERCEPTION TOWARDS SAMSUNG ELECTRONIC

Rating Response Percentage

Very good 35 70

Good 10 20

Average 3 6

Below Average 2 4

Response

70%

6% 4%

20%

Very good

Good

Average

Below Average

Inference: - The above diagram shows the perception of people about samsung electronic

48

5.5 RESPONSE OF SAMSUNG & OTHER BRAND IN HOSPITALITY

Table -5.5

Brand Response Percentage

Blue Star 11 22

Voltase 14 28

Samsung 13 26

LG 9 18

Hitachi 2 4

Others 1 2

Chart- 5.5

0%

20%

40%

60%

80%

100%

Response Percentage

Others

Hitachi

LG

Samsung

Voltase

Blue Star

Response of samsung & Other Brand’s in Hospitality segment.

Inference

The above table and chart shows that the consumer preference toward home appliance and

consumer electronic goods. In this segment we will include hotels, bars, restaurants, saloons,

cyber café etc.

49

5.5.1 BRAND AWARENESS IN HOSPITALITY

Respone

Aware100%

NotAware

0%

Aware

Not Aware

Inference: - As per the survey, the above diagram mentioned that 100% people are fully aware

towards samsung electronic

5.5.2 CUSTOMER PERCEPTION TOWARDS SAMSUNG ELECTRONIC

Rating Response PercentageVery good 33 66

Good 12 24

Average 3 6

Below Average 2 4

Response

66%

6% 4%

24%

Very good

Good

Average

Below Average

50

Inference: - the above diagram shows that the consumer perception towards samsung electronic

5.6 RESPONSE OF SAMSUNG & OTHER BRAND IN NEW CONSTRUCTION.

Table-5.6

Brand Response Percentage

Blue Star 15 30

Voltase 14 28

Samsung 15 30

LG 4 8

Hitachi 1 2

Others 1 2

Chart-5.6

05

101520253035

Response

Percentage

Response of samsung & Other Brand’s in New Construction

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Inference

The above table and chart shows that the preference of customer, that they will prefer those

brand in future.

5.6.1 WILL PEOPLE USED THE PRODUCT OF SAMSUNG ELECTRONIC

Respone Yes70%

No30%

Yes No

Customer response

Inference: - As per the survey, 70% people says that they will purchase the product of

samsung electronic and the remaining 30% person deny to use samsung. Most of the people are

ever ready to purchase samsung product because of the quality, price, services etc of the

samsung electronic. And the remaining 30% deny purchasing the product of samsung electronic

because of non availability, services or quality etc.

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5.6.1.1 IF YES, THEN WHICH TYPE OF PRODUCT THEY PREFER

60

40

10

50

7

1

All of these

AC & LCD

Freeze

LCD's

AC

Inference: - As per the survey, the above diagram shows that the percentage of people in

different segment, who will prefer samsung brand. 60% prefer Ac’s, 40% prefer LCD’s, 10%

prefer Freeze & 7% prefer to buy all products which is mentioned above.

5.6.1.2 IF NO, THEN WHATS THE REASON

Reason Response Percentage

High Price 18 36

Service 16 32

Quality 11 22

Non Availability 3 6

Others 2 4

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High Price36%

Service32%

Quality22%

NonAvailabilit

y6%

Others4%

Inference:- As per the survey the above diagram shows that 36% people says that it’s an

expensive brand and 32% are not satisfied with samsung services, 22% are assume that its

quality is not goods and 6, 4% people are not preferring because of non availability and other

factor.

5.7 FACTOR INFLUNCING FOR PURCHASING

Factor Influence for Purchasing

0

10

20

30

40

Percentage 35 30 12 15 3

Advertis Packagi price promoti Friends

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Inference:- As per survey 35% people focus on quality in purchasing, 30% people focus on

advertisement.12% see attractive packaging and 15% focus on price and 5% focus on promotion

tools and 3% people are influenced by friends

5.8 CUSTOMER PERCEPTION TOWARDS SAMSUNG IN ALL SEGMENTS

40

35

18

11

Percent

BelowAverage

Average

Good

Very Good

Inference: - As per the survey the above diagram mentioned that the preference or perception

towards samsung electronic. So 40% people says that it’s a very good brand, 30% says good,

18% average, and the remaining 11% people says it’s a below average brand.

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CHAPTER – 6

6 FINDING AND CONCLUSION

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CHAPTER – 7

7 SUGGESTION AND RECOMMENDATION

On the basis of the research conducted and the key findings, I would like to give following

suggestions for upgrading the sale of Samsung Electronic the different segment of the market

like corporate, hospitality, pharmaceutical, new construction etc.

The company should use high promotion mix in order to increase its market share.

It can do that by aggressively advertising its product, cash discounts, pamphlets

etc. Advertising through TV & Radio is the best suitable media for penetrating

into the customers successfully. Advertisements should accentuate to make the

consumer aware of the product. In consequence, it should be prepared by

professional advertisement agencies.

As the demand for Home Appliance and consumer electronics is going to increase

day by day and there are many new competitors entering into manufacturing of

these products. So, the company should use appropriate marketing tools to

maintain its present level of Demand.

Company should adopt strict quality checks in order to maintain its quality and

also try to improve it constantly. Company should also work on increasing the

shelf life of electronic products and IT products.

Company should try to provide more or less uniform margin and strive to be at

par with the competing brand.

Packaging and designing should be made more comfortable for the consumers.

Packaging should also be very attractive to appeal to more and more customers.

Company should endow with the facility of replacing the defective products. This

will help the retailers more stock with them and there will be less chances of

unavailability of the product.

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The distribution of the product should be timely and also adequate. To do this.

The Company should provide a facility that there would be supply of the product

as soon as it is demanded

Consumer’s research should be done at fixed intervals and as and when required

so as to be in constant touch with the pulse of the masses.

To make the employee in the organization perfect in particular work they have to

provide them proper training time to time.

By shifting of employee from one department to another department, the

employee cannot be able to give their best which directly leads to inefficiency of

the organization.

An instant research of dealers should also be made to collect their suggestions.

These suggestions should be analyzed to remain in touch with the upcoming

trends of the market.

Company should increase the number of wholesaler’s outlets by taking into

consideration the population and the area under consideration.

Company should make an effort to utilize its R & D and Human resource in the

best possible way.

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CHAPTER – 8

8 LIMITATIONS

The concerned Project could have been extended further to a large sample size with

greater area under consideration.

More number of factors may also have been taken into consideration in to precede the

study in a more generalized way.

Due to small sample size, limited statistical test could be applied.

Respondents may get biased for there responses.

There may be some interpretation error.

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BIBLIOGRAPHY

Books

Kotler, p. (2006), Marketing Management, Pearson publishers Ltd. New Delhi

Peter Lynch John Rothchild. 1994 Beating the Street. Simon and Schuster Revised.

336

S.P. Gupta 2004 Statistical methods. Sultan Chand & Sons ISBN 81-5054- 181-9

Websites

http://www.samsung.com/AboutSAMSUNG/ELECTRONICSGLOBAL/

CompanyProfile/TimelineHistory/index.htm

http://www.samsung.com/in

http://www.samsung.com/sg/products/homeappliances.htm

http://www.wikipedia.org/history of samsung

Search engines

www.google.com

www.altavista.com

www.yahoo.com

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