lg project report
TRANSCRIPT
Project Report On
“ANALYSIS OF IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS Pvt. Ltd.
FOR L.C.D. TV IN NAGPUR CITY”
A report submitted to Rashtrasant Tukdoji Maharaj Nagpur University, in partial fulfillment of the award of the degree of
Bachelor of Business Administration, Specialization in MARKETING
For the Academic Session 2009-2010.
Submitted By:
Mayuri Kewalramani
Guided By:
Prof. Carol Poonekar
Department of Management Studies & Research, Tirpude College of Social Work,
Civil Lines, Sadar, Nagpur – 440 001.
C E R T I F I C ATE
To certify that Mayuri Kewalramani is a bonafied student of Department of
Management Studies & Research, Tirpude College of Social Work , Nagpur and
studying in BBA – III yr and has completed her project titled “ANALYSIS OF
IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG
ELECTRONICS Pvt. Ltd. FOR L.C.D. TV IN NAGPUR CITY” under my
guidance and supervision.
This project is submitted to Rashtrasant Tukdoji Maharaj Nagpur University in partial
fulfillment of academic requirement for the degree of Bachelor in Business
Administration, for the session 2009-2010.
I find the work comprehensive, complete and of sufficiently high standard to warrant
its presentation.
Prof. Carol Poonekar Principal
Date:
Place:
DECLARATION
The work presented in this project report titled “ANALYSIS OF IMPACT OF
SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS Pvt. Ltd.
FOR L.C.D. TV IN NAGPUR CITY” has been carried out by me under the
guidance of Prof. Carol Poonekar during the academic year 2009-2010. This work
has not been submitted in part or full for any other course conducted by Rashtrasant
Tukdoji Maharaj Nagpur University or for any other purpose.
Date: Mayuri Kewalramani
Place: BBA III
ACKNOWLEDGEMENT
I take this opportunity to convey my gratitude to those who provided me help during
the course of my study.
It is indeed a great pleasure to express my sincere thanks and great sense of gratitude
to Prof. Carol Poonekar for her valuable guidance, timely help and suggestions and
constant encouragement during my project work
You can also acknowledge the respective company professionals for their guidance
and support in your project.
Date: Mayuri Kewalramani
Place: BBA III
TABLE OF CONTENT
S.No. Contents Page No.
Chapter-1 Introduction 01-07
Chapter-2 Objectives 08
Chapter-3 Scope 09
Chapter-4 Limitations 10
Chapter-5 Hypothesis 11
Chapter-6 Research Methodology 12-17
Chapter-7 Data Analysis and Interpretation 18-28
Chapter-8 Conclusion/Findings 29
Chapter-9 Recommendations/Suggestions 30
Chapter-10 Bibliography 31
Chapter-11 Annexure 32-33
INTRODUCTION
“IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V”
Department of Management Studies & ResearchTirpude College of Social Work, Nagpur Report Submitted by:
Mayuri Kewalramani1
In trodu ction t o Samsung El ectroni cs
(SEC, Korean) (KRX: 005930, KRX:005935, LSE:SMSN, LSE:SMSD) is the
world’s largest electronics company, headquarters in Yeongtong-gu, Suwon,
South Korea. It is the largest South Korean company and the flagship subsidiary
of the Samsung Group.
Samsung Electronics is the global market leader in more than 60 products
including semiconductors as DRAM,SDRAM,flash memory and hard
drives,digital displays such as LCD displays, plasma displays, and OLED
displays,home electronics such as TVs DVD players, set-top boxes, mobile
devices such as mobile phones, MP3 players, digital cameras and camcorders,
computing products such as monitors, laptops, UMPCs, CD and DVD drives,
laser printers and fax machines and home appliances such as refrigerators,
washing machines, microwaves, ovens, vacuum cleaners and air conditioners.
In 2005, Samsung surpassed Japanese rivalry Sony for the first time to be rated as
the new leading and most popular consumer electronics brand in the world by
Inter brand. In 2007, Samsung Electronics handset division overtook American
rival Motorola, making it the world’s second largest mobile phone maker. At the
end of 2007, Samsung exceeded the $100 billion mark in annual sales for the first
time in its history. This achievement places the company, along with Siemens of
Germany and Hewlett-Packard of the U.S., among the top three companies in the
electric appliances and electronics industry.
“IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V”
Department of Management Studies & ResearchTirpude College of Social Work, Nagpur Report Submitted by:
Mayuri Kewalramani2
Co m p any P r ofile
Type Public
Founded 1969
Headquarters Suwon, Gyeonggi-do, South Korea
Key people CEO: LEE Yoon-woo
Former Chairman: Lee Kun-hee
Industry Consumer electronics,
Telecommunications,
Semiconductor
Products See Business areas,
Revenue ↑ US$ 110.350 billion (2008)
Net income ↓US$ 5.027 billion (2008)
Total assets ↓US$ 83.60 billion (2008)
Total equity ↓US$ 46.14 billion (2008)
Owners Kun-Hee Lee & Affiliates 17.57%,
Treasury Stocks(of Samsung)
13.07%, National Pension Service 5.90%
( as of September 31, 2009 )
Employees Over 164,600 (2008)
Parent Samsung Group
Website Samsung.com
“IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V”
Department of Management Studies & ResearchTirpude College of Social Work, Nagpur Report Submitted by:
Mayuri Kewalramani3
History:
1969: Samsung Electronics was founded in Suwon, South Korea as Samsung
Electric Industries, originally manufacturing electronic appliances
Such as TVs, calculators, refrigerators, air conditioners and washers.
1981: The company had manufactured over 10 million black and white TVs.
1988: The company merged with Samsung Semiconductor & Communications.
Co m p any brands
o Anycall – Mobile Phone brand
o Sens – Laptop computer brand
o Hauzen – Premium home appliances brand
o Zipel – Home refrigerator brand
o Yepp – MP3 player brand
o PAVV – TV brand name
o Kenox – Digital camera brand
“IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V”
Department of Management Studies & ResearchTirpude College of Social Work, Nagpur Report Submitted by:
Mayuri Kewalramani4
o SyncMaster – Monitor brand
o Zaigen – Samsung computer support centre
o Magic Station – PC brand
o Magic Bright – LCD display brand
o Ultra Edition – Slim Mobile Phone brand
o SpinPoint – PC Hard disk drive brand
o CLP – Laser printer brand
o Nexus – MP3 player and XM satellite radio
o VLUU – Digital camera brand
Market ascen dance
Samsung is a top rated electronic & IT brand. In 2006, Business Week rated
Samsung as 20th on the top 100 global brands and the Number 2 in the electronics
industry.Business Week also ranked Samsung as #20 in a ranking of the”Top 100
Most Innovative Companies” in a special report published April 24,2006.In
January 2007, Brand Finance ranked the company as the number 1 global brand in
electronics.
The semiconductor division of Samsung Electronics is the world’s largest memory
chip and second largest semiconductor manufacturer worldwide. In particular this
has been the case of DRAM and SRAM for over a decade. From 1999 to 2002,
Samsung conspired with Hynix Semiconductor Infineon Technologies, Elpida
Memory and Micron Technology to fix the prices of DRAM chips to American
computer makers. In 2005 Samsung agreed to plead guilty and to pay a$300
million fine, the second-largest criminal antitrust fine in the US history. Samsung,
the world’s largest LCD manufacturer, plans to begin its eight-generation
manufacturing line to make 57- inch panels during the second half of the year. In
2007, Samsung became the world’s second largest mobile phone manufacturer,
surpassing Motorola just behind Nokia.
“IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V”
Department of Management Studies & ResearchTirpude College of Social Work, Nagpur Report Submitted by:
Mayuri Kewalramani5
Corporate affairs
Key business areas
Samsung Electronics focuses on four areas :
Telecommunication Network, Digital Media, Semiconductor, and LCD Digital
Appliance. The main growing business areas related to LCD +Digital Media +
Semiconductor at 2006.as of 2009, Samsung Print was established as a separate
entity to focus on B2B sales and has released a broad range of Multi-Functional
Devices and Printers. As with all major Print equipments manufactures, Samsung
have developed and released supporting management software and utilities. The
main Print- Management software has been released as Syncthru WebAdmin
Service.
I n troduction to Sa l es Promotion
According to American Marketing Association, “those marketing activities other
than personal selling, and advertising and publicity that stimulates consumer
purchasing and dealer effectiveness such as display, shows and exhibitions,
demonstrations and various non-recurrent selling effort in the ordinary routine”.
Sales Promotion Activities adopted by Samsung Electronics
In the year 2009, Samsung will look at the activities of the various brands in
2008,especially as it relates to sales promotions. Their main focus will be on the
various sales promotions that took place last year, as it seemed all the brands were
agreed that, sales promotion is a strategic platform to reach out and connect with
the consumers.
“IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V”
Department of Management Studies & ResearchTirpude College of Social Work, Nagpur Report Submitted by:
Mayuri Kewalramani6
In addition to using advertising, public relations and personal selling, marketing
managers in Nigeria have found that sales promotion is useful to increase the
effectiveness of their promotional efforts. Sales promotion is the
Marketing communications activities, in which a short term incentive motivates
consumers or members of the distribution channel to purchase a good or a service
immediately, either by lowering the price or by adding value. Sales promotion is
important because it is usually cheaper than advertising and easier to measure. By
sales promotion, the marketer can evaluate the presice number of coupens
redeemed or the number of entries for the promo campaign.
Consumer sales promotion is targeted at the ultimate consumer market, while
trade sales promotion is directed to the members of the marketing channel such as
wholesalers and retailers. It works best in effecting behaviour rather than attitude.
Immediate purchase is the goal of sales promotion regardless of the form it takes.
Last year, many Nigerian brands rode on the leveraging power of sales promotion
to make more sales, increase revenue and profitability and stimulate emotional
reach to their consumers. It is more effective way to promote their goods and
services and also to reward the consumers. In 2009, Samsung stated a consumer
promo tagged, “Samsung Giveaway Promo” which final draw promo” which final
draw took place at the computer village, Ikeja, Lagos.
“IMPACT OF SALES PROMOTION ACTIVITIES OF SAMSUNG ELECTRONICS FOR LCD T.V”
Department of Management Studies & ResearchTirpude College of Social Work, Nagpur Report Submitted by:
Mayuri Kewalramani7
Sports SponsershipSamsung owns the professional soccer club Suwon Samsung Bluewings, the
baseball team Samsung Lions, the basketball team Seoul Samsung Thunders, the
women’s basketball team Samsung Bluefangs in South Korea. In 2005, Samsung
signed the biggest sponsorship deal in English football history with top
premiership team Chelsa.
OBJECTIVES
Objectives
• To study sales promotion activities used by Samsung Electronics Pvt. Ltd. In
Nagpur for LCD TV.
• To analyze the impact of above sales promotion activities on consumer sales.
• To identify problems, if any, in its sales promotion activities.
• To maximize the profit by increasing the sales volume of the company
• To promote the goods and services and also to reward the consumers at the
right time and in a better way.
• TO understand the perception of the customers about Samsung LCD T.V.
• TO know the reasons of liking and disliking of the customers.
SCOPE
Scope
The scope of the project has been discussed under the following 3 heads-
People of company involved
The target market segment analysis and the sales promotion activities involves the
personnel in the marketing department of the company. It is necessary to observe
and study the attitude and behavior of the staff members towards customers.
Geographical area covered
The sales promotion activities were to be organized in the Nagpur city. The
different areas in the city was covered for the project. People belonging to the
high as well as low income group are the owners of T.V.
Time factor
The sales promotion of Samsung as being so important as time stood constraint to
an exhaustive market study, which has to be adopted by the company at the right
time and in a right way.
The time-frame of the project is till November,09.
LIMITATIONS
Limitations
It is difficult to forecast the future of the company, due to close competition.
The project is restricted to Nagpur city.
HYPOTHESIS
Hypo thesis
All available brands have small target market.
Customers prefer LCD over TV.
The company will provide the free services to their customers.
RESEARCH
METHODOLOGY
Resea rch Metho dology
Sampling Plan:
First step involved in the sampling plan is to decide the population (Samsung’s
sales promotion activities are to be studied). Once the population is decided, the
researcher must concern him/her to find:
1. What sampling unit should be studied?
2. What should be the sample size?
3. What sampling procedure should be used?
4. What sampling method should be utilized?
Sampling Unit:
Sampling Unit is the basic thing to be decided (who is be surveyed).
For example: In a survey on the sales promotion activities of Samsung L.C.D T.V;
whether employees, managers, shopkeepers, families or a combination of all of
them is to be surveyed?
Sampling Size:
Second issue to be decided is the sample size (how many units to be surveyed?).
Of course the whole of the universe cannot be studied in a single research project.
The researcher has to select a relevant fraction of the population, which is a
representation of the entire population or universe.
The Sample Size of the project is 100.
Sampling procedure:
How to conduct the survey is the next step in sampling. Sampling procedure
depends upon the research objectives to be accomplished through the
investigation. It depends upon the nature of the research project. The researcher
must carefully weight the various alternatives available while deciding about the
sampling procedure.
Sampling Method:
The last but not the least issue to be decided in the sampling plan is to determine
the method (media) of sampling (how the selected units are approached?). The
sampling method or media refers to contact methods, e.g., telephone surveys, mail
surveys and personal interviews.
Surveys Techniques:
Once the researcher has decided to use survey method for collecting primary data,
he should make a decision in connection with the techniques of survey to be
employed viz.,
1. Personal Interview
2. Telephone Survey
Types of da ta
• Primary DataPrimary data is a data collected directly by the researcher which includes
questionnaire, telephone survey and personal interviews. The information
collected through all this is called as primary data.
• Secondary DataSecondary data includes those data which is collected for some earlier research
work and are applicable or useable in the study of project that has presently
undertaken by the researcher.
Tools of data collection
• Observation MethodObservation involves recording of events and action as they take place. The
researcher records the action, events and behavior of customers. Thus, there is
hardly any scope for collection of wrong, faulty or biased data in observation
method.
• Questionnaire
Questionnaire refers to a self-administered process where the respondent himself
read the questions and records his answer without the assistance of an interviewer.
Questionnaire may vary in different structure-
1. Close-Ended Question:
It specifies all the possible answers, and respondents make a choice among them.
It provide answers that are easier to interpret and tabulate.
For example:
From where do you prefer buying an L.C.D T.V?
Showroom
Dealer
Direct Company
Exhibition
2. Open-Ended Questions:It allows respondents to answer in their own words. If often reveals more because
they do not constrain respondents’ answers. They are especially useful in the
exploratory state of research, where the researcher is looking for insight into how
people think rather than in measuring how many people think in a certain way.
For example:
Are you aware of Samsung L.C.D T.V?
• InterviewIn interview schedule the list of questions will be discussed with the respondent in
personal by an interviewer who will record the answers given by the respondents.
BOOKS
A book is a collection of paper or other material with text, pictures or both written
on them, bound together along one edge, usually within covers. Library and
information science, a book is called a monograph to distinguish it from serial
periodicals such as magazines, journals or newspapers.
WEBSITE
A website may be the work of an individual, a business or other organization and
is typically indicated to some particular topic or purpose. Any website can contain
a hyperlink to any other website, so the distinction between individual sites, as
perceived by the user, may sometimes be blurred. Websites are written in, or
dynamically converted to, HTML (Hyper Text Markup Language) and are
accessed using a software program called a Web browser, also known as HTTP
client.
MAGAZINES
A magazine is a periodical publication containing a variety of articles, generally
financed by advertising, purchased by readers, or both. In practice, magazines are
a subset of periodicals, distinct from those periodicals produced by scientific,
artistic, academic or special interest publishers.
DATA ANALYSIS
AND
INTERPRETATION
Interpretation Of Collected Data
1. Rat ing of Samsu ng’s L. C.D. T.V
6370
60
50
40
30 2115
20 6
10
0
Exelent Good Fair Poor
Table s h owing rating of Sam s ung’ s L . C. D T.V
S.No. Ratings No. of Respondents
1. Good 21
2. Excellent 63
3. Fair 15
4. Poor 06
2. Custo mers Brand p reference for L. C.D T.V.
35
30
25
20
15
10
5
0
Table s h owing Customers Bra n d P reference for L .C.D T.V.
S.No. L.C.D Brands No. of Respondents
1. L.G 25
2. Samsung 25
3. Videocon 15
4. Sony 35
3. Fro m wher e do the custo mer s prefer buying an L.C.D T.V.
E x hibition Dea ler S howroom Direc t C ompa ny
8% 12%
47%
33%
Table showing the place from where the customers buy an L.C.D
T.V.
S.No. Place of buying an L.C.D T.V No. of Respondents
1. Exhibition 12%
2. Dealer 33%
3. Showroom 47%
4. Direct Company 08%
4. W h ich p ar a m eter in fl u ences the most at t h e time of purc h asi n g
an L.C.D T.V.?
45
40
35
30 Price
25 Product Feature
20 Durability
15 Service
10
5
0
Table s h owing the parameter that i n fl u e n ces t h e c u st o m ers m o st
at the time of purc h asing an L . C.D T.V.
S.No. Influencing parameter at the time
of purchasing L.C.D T.V.
No. of
Respondents
1. Price 32
2. Product Feature 45
3. Durability 11
4. Service 08
5. Cust o m ers p r i m e concern o r n eed for b uying Samsu n g L.C.D
T.V.
6% 3%
20%
P ic ture Q ua lity
S iz e
D ig ita l O utput
24 x 7 W ork ing
71%
Table s h owing the pr i m e co n c ern or ne ed of the customers f o r
buyi n g an L . C. D T.V.
S.No. Concern or need of
customers
No. of
Respondents
1. Picture Quality 71%
2. Size 20%
3. Digital Output 06%
4. 24^7 Working 03%
6. How frequently do you change yo ur T. V.?
59
60
50
40
30 2013
20 8
10
0
1 ‐3 years 3 ‐ 5 years More than 5 years till it last
Table s h owing the customers fr e que n cy of cha n ging t h eir T.V.
S.No. Frequency of changing T.V. No. of Respondents
1. 1-3 Years 08
2. 3-5 Years 13
3. More than 5 Years 20
4. Till it last 59
7. Wh ich ra n ge d o cust o mers p refer for purchasin g L.C.D T.V.?
90100
80
6028
40 18 22
20
0
11,000 ‐ 15,000 15,000 ‐ 19,000 19,000 ‐ 23,000 23,000 ‐ 27,000
Table s h owing the range which t h e c u stomers p refer for L . C.D
T.V.
S.No. Range of an L.C.D T.V. No. of Respondents
1. 11000-15000 18
2. 15000-19000 28
3. 19000-23000 32
4. 23000-27000 22
8. What d o customers thin k a b out the pricing of Samsung L.C . D
T.V?
13%
29%58%
H ig hly P ric ed
Modera tely P ric ed
L ow P ric ed
Table s h owing the pricing of Sam s u n g L . C.D T.V acc o r d ing to t h e
cust o m ers.
S.No. Pricing of Samsung L.C.D T.V. No. of Respondents
1. Highly Priced 58%
2. Moderately Priced 28%
3. Low Priced 13%
9. How did people kn ow about Samsung L.C.D T.V?
R e la tive s /F rie nds10%
N e ws pa pe rs
10%
Ne ig hbours7%
Adve rtis e me nt73%
Table s h owing how people are awa r e of Samsun g L . C.D T.V.
S.No. Awareness of customers for L.C.D T.V No. of Respondents
1. Advertisements 73%
2. Newspapers 10%
3. Relatives/Friends 10%
4. Neighbours 07%
10.Cust o m ers Sat i s f action with t h e serv i c es of salesmen at
Samsung.
No 18%
Y e s82%
Table s h owing customers sa t isfaction w i th the salesmen services at
Sam s un g .
S.No. Particulars No. of Respondents
1. Yes 82%
2. No 18%
11.Do customers have any compla ints for Sa msun g L.C.D T.V?
Table s h owing whether the h a ve any complaints f or Samsung
L . C.D T.V.
S.No. Particulars No. of Respondents
1. Yes 67%
2. No 33%
CONCLUSION/FINDINGS
Conclusio n/Findings
1. Many people are using Samsung L.C.D. T.Vs rather than regular T.Vs.
2. Most of the people use their L.C.D. T.Vs till it last.
3. Product feature and durability is the most influencing factor while buying
Samsung L.C.D. T.V.
4. Picture quality and size are the major concern of Samsung L.C.D. T.V.
5. Most of the people purchase Samsung L.C.D. T.V. from showroom.
6. Many people think that Samsung L.C.D T.V is highly priced.
7. Most of the people are aware of Samsung L.C.D T.V by advertisements.
8. Majority of the people have not used the Samsung L.C.D. T.V., otherwise the
rating of the T.V. is good.
9. Many people prefer buying Sony L.C.D T.V rather than Samsung L.C.D T.V.
10. Many customers have complaints for Samsung L.C.D T.V.
RECOMMENDATIOS/
SUGGESTIONS
Reco mmendations/Suggest ions
1. Company should focus on spending more money on promotional activities.
2. Company should establish a stronger distribution network because many of
their perspective customers want quick supply in various parts of Nagpur.
3. Samsung is yet to capture the market, so it should try to maximize the
customer base.
4. Samsung should open more service centers so that customers can get better
service anytime.
5. Samsung should give their customers something free with an L.C.D T.V. or
free services.
BIBLIOGRAPHY
BIBLIOGRAPHY
WEBSITES
1. WWW.SAMSUNG.COM
2. WWW.WIKIPEDIA.ORG
BOOKS
1. Marketing Mgt. –Philip Kotler
2. Marketing Mgt. –C.N. Sontaki
ANNEXURES
3. Which bra d do you prefer for L.C.D T.V?
L.G Samsung
Videocon Sony
Questionna ire
Name: Age:
Occupation:
1. Have you heard about Samsung L.C.D T.V?
Yes No
2. If yes, how would you would you rate Samsung’s L.C.D T.V?
Good Excellent
Fair Poor
n
4. From where do you prefer buying an L.C.D T.V?
Exhibition Showroom
Dealer Direct Company
5. While purchasing Samsung L.C.D T.V, which parameter influences you
at the time of decision making?
Price Product Feature
Durability Service
6. Which of the following is your prime concern/need?
Picture Quality Size
Digital Output 24x7 Working
7. How frequently do you change your T.V?
1-3 years 3-5 years
More than 5 years Till it last
8. What is your range for purchasing L.C.D T.V?
7000-11000 11000-15000
15000-19000 19000-23000
9. What do you think about the pricing of Samsung L.C.D T.V?
Highly priced Moderately priced
Low priced
10. From where did you know about Samsung L.C.D T.V?
Relatives Friends
Advertisements Neighbors
11. Are you satisfied with the services of salesmen at Samsung?
Yes No
12. Do you have any complaints for Samsung L.C.D T.V?
Yes No
13. Your Suggestions/comments on Samsung L.C.D T.V?
…………………………………………………………………………………