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INTRODUCTION TO COMPANY (LG)

LG is the best TV selling brand in India till now. With the tag line Life¶s Good, LG positioning

is to differentiate. The market share shows that Samsung, LG and Sony are the main competitors

in India. The target audience of all three companies is almost same, but LG is superior because

of its strategy to tap rural markets also. LG Electronics offers wide range of LCD TVs, color

televisions, and Plasma TVs.

Their product on the basis of technology which appealed to the consumer on the basis of quality

benefits. Tagline__Life¶s Good tells its corporate philosophy to make people live better,

convenient and healthier.

Their positioning strategy is to make technologically intelligent and futuristic TV. LG has

differentiated its TV¶S using technology and features. The CTV range has µGolden Eye

Technology¶.

LG positioned itself as an Indian brand. They are hitting at the emotional attributes of Indian

consumer. For television market they are using child, because child plays the role of influencer

in purchase of TV set. Its communication message is totally based on health message like Golden

Eye technology.

Brand positioning: LG positioning their different brand of TV for different purpose and category

like LG Flatron TV sets, you can also opt for other sophisticated models such as LG LCD TV.

LG Plasma TV and very stylish LG Ultra Slim TV. If you are worried about the small size of

your room and how to choose a perfect TV set for it, the LG Ultra would be just right choice.

About 30% to 40% slimmer than any normal television. LG Ultra Slim television sets sre

available in 21´ and 29´. They can fit into aany small room and yet look elegant. Featuring

designer looks and Golden Eye Technology, they can redefine ³entertainment´ in true sense

Target and segment: all the class of people comes under the segmentation of LG because it has

product range according to the different price category. The business offices are also targeted as

well as the families whether it is middle class or upper class.

The main competitor of LG is Samsung , so we have to do the Competitor Analysis of LG

that is Samsung which is given as follows



INTRODUCTION TO SAMSUNG COMPANY

The Samsung Group was founded in 1938 by Lee Byung-chul (1910-1987). It was incorporated

in 1951 as Samsung Corporation. The meaning of the Korean word Samsung is "Tri-Star" or

"three stars".

Samsung was established in 1969 to manufacture black and white TV sets as the flagship

company of SAMSUNG CORPORATION. It was the third largest player in the Korean

electronics market after LG and Daewoo. Manufacturing bases a presence in around 47

countries, and approximately 64,000 employees. Samsung India commenced its operations in

December 1995. Its Core competency is in the field of semiconductors which is backed by its

R&D capabilities and manufacturing scale. It emerged as one of the most unique brands creating

innovative and superior digital products every year.

By 2001 it posted a net income of $2.2 billion. Samsung has very successfully leveraged its

association with Cricket and Cinema in the form of µTeam Samsung¶ and µSamsung IIFA

Award¶. Samsung¶s success has been due to a variety of factors: Successfully customize products

around a core design, Large product portfolio (occupy the entire spectrum for a broad market

play) and continuous innovation in its TV products. Samsung¶s current market share is 30.5%

after LG.

MISSION STATEMENT:

Samsung aims to become India¶s leading volume retailer in the consumer electronics segment.

SAMSUNG is dedicated to developing innovative technologies and efficient processes that

create new markets, enrich people's lives, and continue to make Samsung a digital leader.

VISION: ³Continuously striving to conquer new era in digital technology and products.´



ASSESSING COMPETITORS CURRENT OBJECTIVES

An assessment of current objectives provides valuable information concerning the intended

aggressiveness of the competitors in the market in the future. It also provides a context for

assessing the capabilities of competitors; that is, does the firm brand µA¶ have the resources to

successfully pursue such an objective? In the context of marketing planning, three basic product

objectives can be defined.

1. A growth objective usually implies increasing the brand units or market share, with profit

conditions being secondary.

2. The hold objective could be termed as consolidation objective.

3. Finally, a harvest objective, also referred to as milking, describes a situation in which

profit is paramount relative to market share.

Samsung TV¶s current objectives lie on growth category because they have cover up a good

market share and are in second position. Also they have keen focus to become first in its market

position. The main objectives of Samsung TV are as follows:

1. To Strengthen Exports

2. To provide quality products with continuous innovations.

3. To work more and more in order to gain customer satisfaction.

4. Reorientation of marketing activities.

5. Expansion of its Sales Infrastructure.6. Move to the Tier-II and Tier-III Cities.

7. To become a Mass product and still retain its leading edge technology

8. Tapping the ever growing High-end Consumer

9. Also tweaked its focus to concentrate on middle class segment.

10. To conquer new era in digital technology and products.

Thus it is clear from the above objectives that the ultimate objective of Samsung TV is growth, which is why they are increasing advertising expenditures, increasing promotional activity to

both consumers and distributors and also increasing distribution expansion in order to be in first

position in the market.



ASSESSEING COMPETITOR¶S (SAMSUNG) CURRENT STRATEGIES

In this stage we have to determine how Samsung TV are attempting to achieve their objectives.

This question is addressed by examining their past and current marketing strategies.

At the product level Samsung TV¶s marketing strategy can be thought of in terms of three major

components;

1. Target market selection,

2. Core strategy (i.e., positioning and differential advantage) and

3. Implementation (i.e., supporting marketing mix).

1. TARGET MARKET:

This will show us the description of the market segment(s) to which competing brands of LG TV

that is Samsung TV brands are being marketed. Samsung TV caters to both high and middle

market by providing a diversified product line. The market is segmented essentially in four broad

categories.

Low-End

Low-Mid

High-Mid

High-End

Now let us take a look what products of Samsung caters to which segment

Samsung flat TV 53cm (21), Price: Rs. 7, 000, Target market: Low-End



Samsung flat TV 74cm (29), Price: Rs.14, 000, Target market: Low-Mid

Samsung LCD TV LA32C630K1R , Price: Rs.47, 900, Target market: High-MID



Samsung LED TV UA46C6200UR , Price: Rs.130, 000, Target market: High-End

So it is difficult to say that Samsung targets a specific segment the range of products is as such

that it caters to all broad categories that are there in the market.

2. Core strategy (i.e., positioning and differential advantage):

This will show us the basis on which the rival (Samsung TV) is competing, that is, its key

claimed differential advantage(s). Differential advantage is critical component of strategy

because it usually forms the basis of selling proposition around which the brand¶s

communications are formed. It is also called brand¶s positioning. Following are the points which

will show us the differential advantage or brand positioning of LG TV¶s competitor that is

Samsung TV.

1. It emphasizes on Product Innovation and R&D, which has given the company a leading

place in the market (like their newly innovated LED and LCD products e.g. Samsung

Touch of Color UN32C5000QFXZA 32-inch, Samsung UN40C7000 40" 1080p 240Hz

3D LED LCD HDTV, Samsung LN37C550 37 Wi-Fi TOC LCD HDTV, Samsung

400CX-2 40" Widescreen Commercial LCD Display with Built-in TV Tuner). 2. A unique 'Octo Edge' technology is a Samsung master product for its TV¶s.



3. It provides 24-Hour Service availability in all the cities having the Authorized Service

Centre¶s.

4. It offers Free-Service Camp, organized annually throughout the country for the

servicing of Samsung TV Products.

5. After Sales Service, with a motto of 'Speed, Smile and Sure' is one of the primary

concerns of Samsung India in selling TV¶s.

6. They positioned itself as a brand which offers freshness and technologically strong.

7. Samsung TV successfully customized their products around a core design.

8. Their Large product portfolio occupies the entire spectrum for a broad market play.

9. Samsung has got a strong brand image in the minds of customers that is why it ranks

number 2 in TV market.

MARKETING MIX

Product

Samsung TV provides a diversified line of products of handsets in order to cater to different

segments. Currently it is providing a variety of more than twenty phones in the market. They

include the phones that were launch with the intention that they would compete with Nokia and

other brands and then there are some which are completely different.

Some categories of phones that are as follows

Samsung LCD TV

Samsung LED TV

Samsung Plasma TV

Samsung Ultra Slim TV

Samsung Flat TV



Within these series variety of sets are offered keeping in mind the pricing and the features that

have to be offered with it.

Price

The price range varies from Rs. 7, 000 ± 1, 70, 000 depending on the features and design of the

TV. The nature of the product is as such that it has to cater to various segments and obviously

you cannot charge a similar price to all the segments so this variability in price provides

flexibility,

Place/Distribution

Samsung has its own showrooms where their products are displayed and sold but primarily it is

sold through distributors. These distributors have contracts with Samsung TV¶s and they also

claim the warranty in case of any damage or malfunctioning of the product. Instead of this

Samsung TV are also displayed in retail outlets like Big Bazaar, Marks and Spencer etc.



Promotions

If we look at the promotional campaign of Samsung TV we see heavy use of celebrity

endorsement in all their advertisements whether print or media. They have used Abhinav Bindra

as its brand ambassador. Initially, Samsung¶s advertising activities was decentralized.

In 1999, Samsung unveiled a new slogan ± ³Samsung DIGITall: Everyone¶s invited´ Expressed

the company¶s aim ³FOR ALL GENERATIONS, FOR ALL CUSTOMERS AND FOR ALL

PRODUCTS.´

In 2001, Samsung added the word µWOW¶ to its marketing campaigns to show the admiration of

consumer for its innovative but affordable products. In May 2002, Samsung announced its plan

to extend its µDigitAll¶ campaign, by launching new global campaigns with different tag lines ±

µDigitAll Passion,¶ DigitAll Escape,¶ and DigitAll Wow.´

Also they are using child, because child plays the role of influencer in purchase of TV set.

Communication strategy of Samsung-Tag line ³Duniya Hai Gol´ has been proved to be

effective in brand recognition and recall and has promoted the product very well.



Samsung in India signed seven cricket celebrities to cash the image and popularity of cricket. In

order to create brand awareness, they come up with µTeam Samsung India´. Currently they appointed Olympic gold medalist Abhinav Bindra as brand ambassador for its consumer

electronics business.

DIFFERENTIAL ADVANTAGE ANALYSIS

It helps us to know where the competitors are strong and where the company is strong. A useful

way to examine competitors¶ capabilities is to divide the necessary information into five

categories that include:

1. Competitors¶ ability to conceive and design.

2. Competitors¶ ability to produce.

3. Competitors¶ ability to market.

4. Competitors¶ ability to finance.

5. Competitors¶ ability to manage.

So differential advantage analysis of LG TV competitor that is Samsung is given as follows-

1. Ability to conceive and design: In this we will be able to know Samsung TV¶s quality of

new product development efforts. Samsung has been proved to be effective in terms of

producing new product development and has provided a serious threat for LG in its product category. As Samsungs core strategy is Product Innovation and R&D and also

its designing, which has given the company a leading place in the market so we can say

that Samsung has got the effective ability in terms of conceive and designing the

products. Some examples are given below:

Example 1: Samsung LED TV



Samsung LED Backlighting Technology delivers breakthrough picture quality in an ultra slim

design. These TVs offer mega contrast ratios²the brightest white to the darkest black a TV is

capable of producing² and advanced internet connectivity features that let you download apps

to your TV.

LED TVs are highly efficient power consumers. Samsung¶s LED TVs in standard mode can be

up to 50 percent more efficient than the latest ENERGY STAR specifications.

Example 2: Samsung LCD TV



Lightweight, stylish and slim, our LCD TVs promise sharp, detailed images, smooth

motion quality, and Samsung¶s exclusive Touch of Color design.

This technology offers a diverse range of screen sizes, so you can have as much (or as

little) TV as you¶d like: anything from about 5´ all the way up to 65´.

Lifespan is excellent: typically, 60,000 hours (equal to about 20 years if used eight hours a

day). Some models are 3D capable and can convert 2D images to 3D with the touch of a

button.

We can use them as both a superb PC monitor and an amazing TV without sacrificing

picture quality.

Example 3: Samsung Plasma TV

With a slim and sophisticated design, Samsung Plasma TV offers an amazing picture with

smooth action scenes, the deepest blacks, and brightest whites.

Because it can track fast-moving images without motion blur, plasma is ideal for watching

action-packed sports or playing video games.

It works well in dimly lit rooms (which are great for watching movies), offers high contrast

ratios, gorgeously saturated colors, and allows for wide viewing angles.

2. Ability to Produce: Samsung is well able to produce TV sets with

an annual capacity of 4, 00,000 set. As the market share of Samsung TV is high

they are continuously involved in heavy production of quality products. Production



capabilities of Samsung TV have been found to be effective and efficient and as

such meeting the demand of its products.

3. Ability to Market: Samsung TV has been found to be aggressive in marketing of

their products. They are assessing their products through distributors under the

name of Samsung digital plaza and also through varied retail outlets like Big

Bazaar, Marks and Spencer etc. Also with Abhinav Bindra as its brand ambassador

they are promoting their products through print media, electronic media etc. which

is effectively backing up their marketing strategies.

Between 2007 and 2009, over 40 million HD TVs were sold in the U.S., most of

them close to or below $1, 000," indicating sound marketing strategy.

As the market share of Samsung TV is on second position we can say its marketing

ability is touching zenith.

4. Ability to Finance: Samsung is in good health in terms of its financial ability as a

result of which they are providing serious competition for LG TV. As Samsung is

able to produce high quality and varied categories of products we can say that the

company is financially sound. Their premium category of LED TV products whose

price range from 1, 20, 000-1, 70, 000 depicts that they are financially sound.

Their production level is very high(4,00,000 set annually) and also like currently

they announced that it had started mass production of screens for 3D LED TVs and3D LCD TVs, a bold move forward in a technology (first to do so) which is not

possible for a company with financial inability.

5. Ability to manage: With Yoon-Woo Lee as a Vice Chairman and CEO of

Samsung Electronics, Samsung¶s management of TV products is also found to be

effective. Innovation is crucial to Samsung's business. As new technologies are

being constantly introduced to the market, speed is essential for remaining

competitive in today's digital era, and new markets have to be pioneered

continuously. Through the interplay of creative, imaginative people; a global R&D

network; an organization that encourages collaboration and cooperation among

business partners all along the supply chain; and a strong commitment to

ongoing investment, Samsung has put R&D at the heart of everything we do



PREDICTING FUTUTE STRATEGIES OF SAMSUNG TV

On the basis of their current objectives, current product marketing strategies and their resources

discussed above the likely future strategies of Samsung TV will be as follows-

1. To maintain the balance between its technologies and design.

2. To be more innovative as the competition is going to be more intense because of major

players like LG and Sony.

3. To explore new markets or re visit their strategy in their existing markets.

4. Will focus on variety of cost reduction measures to restore the business to profitability.

5. To provide keen focus on the marketing related activities such advertising.

6. To gain customer satisfaction by customer value.

7.

To differentiate their product on the basis of technology which appealed to the consumer on the basis of quality benefits.

8. To achieve its aim by focusing on its Core Strategy

9. Work on strengthening its unique Brand Image by promotional activities, quality

assurance, designing and innovation.

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