Comparative Market Analysis of Samsung Electronics Vis A Vis Its Competitors
Comparative Market Analysis of Samsung Electronics Vis A Vis Its Competitors
Comparative Market Analysis of Samsung Electronics Vis A Vis Its Competitors
CERTIFICATE
This is to certify that the project entitled COMPARATIVE MARKET ANALYSIS OF
SAMSUNG ELECTRONICS VIS- A- VIS ITS COMPETITORS carried out by
Mr. , student of……………………, is here by accepted and approved as a credible work,
submitted in the partial fulfillment for the requirement of degree of BBA.
DECLARATION
I hereby declare that the project work entitled “COMPARATIVE MARKET ANALYSIS
OF SAMSUNG VIS-À-VIS ITS COMPETITORS” submitted to the
………………………………., is a record of an original work done by me under the guidance
of Mr…………….. , Faculty Member, Delhi Institute Of Rural Development, and this project
work has not performed the basis for the award of any Degree or diploma/ associate
ship/fellowship and similar project if any.
………
/ /
( )
Mr. ……….
TABLE OF CONTENT
PARTICULARS PAGE NO.
Acknowledgment
Abstract
CHAPTER 1
1.Introduction 1-6
a. Overview of the Consumer durable sector
b. Company profile
c. Comparative analysis
d. Consumer perception
2.Objective of Research 7
3.Limitation of the study 8
CHAPTER 2
CHAPTER 3
1. Conclusion 35
Bibliography
ACKNOWLEDGEMENT
“Appreciation can make a day, even change a life. Your willingness to put it into words is
all that is necessary”.
I would like to express my thanks and heartfelt gratitude to the Branch head of Samsung India
electronics private limited Mr. /……….. for allowing me to do my project in this organization
and for his constant help and assistance in all possible ways in completing this project
successfully.
I thank all the dealers, retailers & consumers for sharing valuable information with
me, which was very helpful for this project. .
Last but not the least; I thank my parents and teachers for bringing me up in a successful
environment and teaching me all the basic etiquettes and ethics required for my growth in an
organization.
ABSTRACT
“All human actions have one of these seven causes: chance, nature, compulsion, habit,
reason, passion and desire”. As a human being the major cause to take over this project was
reason. The reason is to accomplish my task, aim, and motive of enhancing my knowledge and
to know more about the consumer durable industry. Consumer durables have become
inseparable in this era of modernization and thus influence even the common men’s life. This
is one of the fastest growing industry with an growth of about 8% every year. Invention and the
launch of new technology is the most important tool of this industry. To maintain the quality of
products provided to the customers the companies dealing in the consumer durable products
has to undergo extensive study and research work. This project work is a small attempt to
understand the dealer, retailer as well as the consumer behavior in regards to the colour
television & Air conditioners and to find out the position of Samsung among its competitors.
This SIP project is being conducted on Consumer durables i.e. CTV & Air conditioner for
(Samsung India Electronics private limited), I am focusing on Comparative Market and
consumer behavior study of consumer durables of Samsung vis-à-vis its competitors i.e.
Sony, LG, Videocon, Haier, Bluestar. In CTV & A.C segment. For this the Survey was
conducted with a set of questionnaire containing the questions which helped in obtaining the
desired information from the dealers & retailers. In the next segment of study the consumers
has be targeted with a set of questionnaire for the desired information. Till date around 50
dealers And Retailers were approached in the North Delhi and surroundings. The information
was obtained through questionnaire as well as by the interview method. The copy of
questionnaire is being attached with this report. The method of personnel interview was also
adopted for those who were unwilling to give any information in writing. At present around 50
of such interviews have been conducted keeping in mind the requirements of the survey being
conducted.
This report also includes the analysis of around 10 year’s sales data. This data with the help of
Le square method is used to predict the future demand as well as the sales of Samsung.
1.INTRODUCTION
“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry and inquiry leads to investigation” Research inculcates scientific and inductive thinking
and it promotes the development of logical habits of thinking and organization.
The consumer durable market in India has seen a proliferation of brands and product categories
in recent years.Most major international brands from Japan, Korea, US, Europe and China have
been launched in India with varying degrees of success. One of the largest barriers to entry for
any brand in India is the distribution network.
1
The cost of servicing the network is huge for any brand. The consumer is aware of the cost-
benefit, or value for Money aspect. Financing options are crucial in case of high-priced
products. They increase the affordability for a Wider segment of population. Like in any
country, the consumer durable industry in India is largely dominated by colour televisions
(CTV), which account for 56% of the consumer durables industry.
Founded in 1938, Samsung Corporation is one of Korea’s most enduring and respected
corporations, having stood behind the advancement of the national economy for more than
three quarters of a century. At the origin of Samsung Group, Samsung Corporation was the
trading arm of the group, epitomizing its vibrancy and dynamism in the area of global trade. Its
designation in 1975 as Korea’s first-ever General Trading Company marked a new chapter for
its overseas operation, which since then grew into a scope truly worthy of a global trader.
Samsung Corporation’s entrepreneurship and achievement on the world scene have been a
major inspiration for Korea’s trading community.
In a continuing bid to expand its business area beyond the confines of international trade, in
1996, Samsung Corporation merged with Samsung Construction, and in 1997, launched into
the retail business. Currently, Samsung Corporation is engaged in two major business areas:
trading, construction. The organization consists of two business groups, with the retail business
headquarter under the trading group, and with the housing development headquarter under the
construction group.
The Trading Group, currently operating from its 71 overseas offices, exports semiconductors,
machinery, plants, iron & steel, chemical products and textile; and imports energy, chemical
products and machinery & equipment. In addition to trading, the Group carries out a variety of
other projects including overseas investment, project organizing services and energy & natural
resource development projects.
The Construction Group, a provider of construction and engineering services, is also a plant
builder and housing developer. To date, the group has to its credit Malaysia’s Petronas
building, the world’s highest edifice, 452m high, boasting 92 stories aboveground; New Busan
Port; Incheon Int’l Airport; Ulchin Nuclear Power Plant; and Raemian and Trapalace, the
apartment complexes. From energy resources to housing, each of these projects is a powerful
testimony to the group’s technological excellence. Last year, the group entered into a contract
to build the world’s highest building, Burj Dubai.
The Retail Business is buoyant and thriving with Samsung Plaza Bundang , a multi-feature
shopping center, and Samsung Internet Shopping Mall, familiarly referred to as “Samsung
Mall” as its two main platforms.
Comparative Analysis
What is comparative Analysis? In comparative Analysis we take our competitor’s products and
make comparison through consumer with our own products. Why Comparative Analysis?
Comparative Analysis comprises one of the most important tasks of marketing. It provides
information for marketing decisions. Problems are identified and investigated further by using
problem solving techniques with the objective of arriving at solution. The most important
innovation in the new approach is to study simultaneously different organizational forms of
business interest representation. The aim of the study is to point out the best among the
Variables that are being studied.
The study will also include the survey which will be targeting about 50 dealers in the area of
North Delhi. The main emphasis in the survey will be given on the sales of Samsung in
comparison to its competitors in CTV & AC segment, the consumer perception about the brand
will also be taken into consideration while conducting this survey.
The analysis of the buying behavior in respect to AC& CTV will be another important
component of my study. Buying behavior of the consumer is a study of how individuals make
decisions to spend their available resources (time, money & effort) on consumption related
items (what they buy, why they buy, where they buy, how often they buy and use a product or
service). The heterogeneity among people across the world makes understanding consumer
buying behavior an intricate and challenging task. The consumers’ identity, his beliefs, specific
needs, attitudes and the kind of product and brand available in that product category influence
his buying behavior. The marketing efforts of a firm have a profound impact on the buying
decisions of customers. Therefore the attempt of my survey will be to obtain an in- depth
knowledge of the customers buying behavior.
The effect of external variables on purchasing pattern of customer will also be considered here
the external variables refer to all those factors which will be affecting the consumer purchasing
decisions, these can be price of the goods and on its attitude to respond to functional needs.
The critical variable under this approach is the availability of adequate information about
purchase alternatives (price, product functionalities) to support the decisional process.
Another component of my study will be the analysis of the brand (Samsung) on four P’s i.e.
• Product
• Pricing
• Promotion
• Placement.
These are the four factors which help an organization to understand the market and help in
taking future decisions relating to the launch & the strengthening of the market for the brand.
Benefit to company:
1.Display Share Tracking: Display share tracking will help us to find out these
information
2 .Consumer perception: This is done with the aim of capturing the true words and
emotions of consumer, and in turn using this information to improve or developed products or
to determine people attitude toward the products.
As it is well known proverb of marketing that “Consumer is the king” it is mandatory for any
researcher to know the opinion of the consumer regarding the products on which he is going to
conduct the study. This research work will include a consumer questionnaire on the consumer
goods which has been taken as the part of the study the questionnaire mainly aims at .
This questionnaire will mainly help out in reaching at the actual consumer perception of the
consumers about the brand. This is done with the aim of capturing the true words and
emotions of consumer, and in turn using this information to improve or developed products or
to determine people attitude toward the products.
2. OBJECTIVE
The major objective of the study is to analyze the position of Samsung Vis-à-Vis its
competitors and to identify weak areas and provide recommendations for the sales. The
consumer durable market has grown considerably in last few years in India. With the growth,
the level of competition has grown as well. Literally every day companies come up with new
attractive offers to grab the better share of the market. The challenge is not only to get the new
customer but also to continue with the existing customers.
-Identify the Dealer and Consumer perception about the Samsung products with respect to its
competitors in CTV & AC segment.
Product
Pricing
Promotion
Placement.
Example:
What are the parameters on which consumer makes his purchase decision?
Parameters Rank
O Price ……….
O Packaging ……….
SCOPE OF STUDY:
The Data collected from the Dealer might not be very accurate to obtain the desired
information.
The sample size taken is small to make a universal statement.
The final conclusion can be also affected by some of the extraneous variables.
Though the study represents the position of Samsung in North Delhi. Due to small
sample size, the finding may not be a true representative and it cannot be generalized.
Biasness of the respondent.
Lack of sufficient information
Lack of the instruments to find out the reasonable outcome
Difficulty in gathering the reasonable data
It’s all about the future predictions and future is unsuitable
Secondary Data:
The secondary data for the project is collected from websites. The other data was collected
from the offer document and informal discussion with company members.
References are also taken from search engines.
Primary Data
2.Research Methodology
“Research is the systematic design, collection, analysis and reporting of data and findings
relevant to a specific situation or problem”. The objective of this section is to describe the
research procedure and methods that have been adopted for the achievement of the project
objectives.
a. Research Design: A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. My research is comparative in nature.
b. Method of Data collection: In order to study the consumer perception regarding the uses
of Samsung Products with respect to other companies in North Delhi both primary and
secondary data will be collected.
The study proposed to collect Primary data through questionnaire using survey
method. So as to give a precise, accurate, realistic and relevant data.
The secondary data as it has always been important for the completion of any report
provides a reliable, suitable, equate and specific knowledge. The data will collect
from various magazines, fact sheets newspapers and websites published by the
company
d. Sample Area: In order to make a comparative analysis study the consumer perception as
well as dealer & retailers perception of Samsung products with respect to its competitor, the
data for the study has been collected through a survey of Dealers/Retailers of North Delhi and
surroundings.
FOR (CTV)
For this purpose I conducted a survey with the sample size of 100. This sample includes the
dealers and the retailers in the area of North Delhi and surroundings. The questionnaire having
5 questions was prepared to obtain the desired information and the method of personnel
interview was also adopted for those dealers who were not interested in filling the
questionnaire and the data got is then analyzed and following are the results for the same.
The starting of my questionnaire with the question 1.Which of the following brands of
CTV, you are dealing in? This question mainly gives the idea that how many dealers and
the retailers are dealing in single and multiple brands Fig 1.0 shows that out of 100 dealers
and retailers who were part of survey in North Delhi and surroundings where 38 were
dealing in the single brand only and the others were dealing in multiple brands.
Dealers Ratio
singleBrand
multiple Brand
Fig 1.0
2. How many models do you display for each brand? Mainly the 15, 21, 29, LCD &
PLASMA were considered for the brands Samsung, Sony, LG, Haier, Videocon and the
major dealers and the retailers were interested in keeping the brand most sold. The fig 1.2
shows that out of the total survey the proportion.
5%
7%
14% 15 Inch
20% 21Inch
29 Inch
54%
LCD
PLASMA
Fig 1.1
This question also bought up an idea that lower end markets have more proportion of 15,
21 inch display as compared to that of high end market.
3. Which are the two highest selling models of each company in CTV & their
prices?
The models that were sold more in comparison to others for the same brand in the CTV
segment are as follows.
The highest selling Models
35%
30%
25%
20%
15%
10%
5%
0%
Samsung Sony LG Videocon Haier
Fig 1.2
Average demand for the brand has been also estimated with the findings of the same question.
8% Samsung
12% 26%
Sony
22% LG
32% Videocon
Haier
Fig 1.3
5. What is the price band for which the customer looks for while making purchase
decision? With this question the major objective of my survey was accomplished it reveals
what the consumer need in the particular segment as shown in the table below.
For this purpose I conducted a survey with the sample size of 100. This sample includes the
dealers and the retailers in the area of North Delhi and surroundings. The questionnaire having
5 questions was prepared to obtain the desired information and the method of personnel
interview was also adopted for those dealers who were not interested in filling the
questionnaire and the data got is then analyzed and following are the results for the same.
The questionnaire with the question
1.Which of the following brands of AC, you are dealing in? This question brought the fact
that how many dealers and retailers are dealing single and multiple brands of air conditioners
this shown in the fig: 1.10
Dealer Ratio
single Brand
multiple brand
Fig 1.9
Q2 How many models do you display for each brand?
In this question mainly the 1.0 ton, 1.5 ton and 2 ton capacity of both window split air
conditioner category were considered and the models displayed at each counter on an average
are as under:
Capacity Samsung LG Bluestar Videocon Haier
w/s w/s w/s w/s w/s
Q3 which are the two highest selling models of each company in AC & their
prices?
Each brand has its unique image for its product thus the highest selling models for each brand
also vary according to the quality features as well as demand for the products the highest
selling model for the each brand are as follows
Brand Model
Samsung 18QB
LG W18G2
Videocon SB1608
Bluestar WAM181YB
Haier HW12DX
Q4.To what extents, following brands of AC are preferred by customers?
The major brands preferred by the customers according to the options given are as follows
30%
25%
20%
15%
10%
5%
0%
Samsung LG Videocon Bluestar Haier
Fig 1.10
Q5. What is the price band for which the customer looks for while making purchase
decision?
This question mainly brought out the conclusion of which price brand generally the customer
looks for when he makes his purchase decision this is explained as under.
Q7 what is the expected percentage of customers who are willing to pay. Premium, or has
the Low-end customers the analysis of the data reveals that the proportion of premium
customers is around 78% as compared to that of low-end customers that comprise of only
22% .
Fig 2.0
Q8 what is the annual estimated sales of AC? After taking out the average of the low-
end and premium markets the results obtained are that the average annual sales of the
premium end market that comprises of 50 dealers and retailers was as under this analysis
work constitute the limited sample size and thus may no predict the correct figures. the
word season means the month of March, April, May, June.
35%
30%
25%
20%
15%
10%
5%
0%
Samsung LG Bluestar Videocon Haier
Fig 2.5
The sales date collected from the sources has been used to predict the future Samsung India
private limited by using the Least Squares Method
This method is widely used in Practice. It is a mathematical method and with its help trend line
is fitted to the Data in such a manner that the following two conditions are satisfied
(1) ∑(Y-Yc)=0
I.e. the sum of actual deviations of the actual values of Y and the computed values Y is
Zero
I.e. the sum of the squares of the deviations of the actual and computed values is least from
this line and hence the name method of least squares. The line obtained by this method is
known “as the line of best fit “
The method of least squares may be used either to fit a straight line trend or a parabolic
trend.
Yc= a+bX
Where:
Y0 = is used to designate the trend Values to distinguish them from the actual
Values of Y.
b represents the slope of the trend line or amount of change in Y variable that is
associated with a change of one unit in X variable. The X variable in the time series
analysis represents time.
a =∑Y/ N
= 35 3275344/10
= 35327534.4
b= ∑XY/ ∑X2
= 480903057/82.5
=5829127.96
Y= 35327534.4 + 5829127.96 X
= 35327534.4 + 32060203.79
= 67387738.19 $
Thus the estimated earnings for the year 2011 are $67387738.19
CORRELATION ANALYSIS
Explanation:
It is the technique of determining the degree of correlation between two variables incase
of ordinal data where ranks are given to the different values of the Variables. The main
objective of this coefficient is to determine the extent to which the two set of ranking are
similar or dissimilar. This coefficient is determined as under.
The Charles Spearman’s rank correlation Formula:
Eque 4.2
Solution:
Quality measure
= 1-6x30
2
5(25-4)
= - 0.5Answer
This indicates that there is a Negative correlation between Quality and Sales ranking i.e. when
the quality of the product improves the Sales ranking volume for the brands Fall down.
Design measures
= 1- 6x10
2
5x24
= -0.50 Answer
This indicates that there is a Positive correlation between Design and Sales ranking i.e. when
the design of the product improves the Sales ranking for the brands also increases.
Price measures
= 1- 6x15
2
5x24 2
= 0.25 Answer
This indicates that there is a Positive correlation between Price and Sales ranking i.e. when the
Price raises the Sales ranking for the brands also rises for the product
Features measure
= 1- 6x24
5x24
2
2
= -0.20 Answer
This indicates that there is a negative correlation between Features and Sales ranking i.e. when
the Features of the product improve the Sales ranking for the brands fall down.
= 1- 6x24
5x24
2
2
= -0.20 Answer
This indicates that there is a negative correlation between after sales services and Sales ranking
i.e. when the Features of the product improve the rank for the brands fall down.
Thus it can be concluded from the above observation that only the price and the Design
affect the ranks of the given brands in the positive manner and rest three variables have the
negative effect on the ranks of the brands which has been considered on their sales basis
QUESTIONNAIRE
For this purpose I conducted a survey with the sample size of 100. This sample includes
Businessman, Government employees, Private Employees and Housewives. This includes a
questionnaire having 10 questions and the data got is then analyzed and following are the
results for the same.
1) The first question is ‘which of the following Brands deal in consumer durables? ’
And as shown in the fig 1.1, the response was 100% positive
consumer durables
100%
1
Fig 2.6
2) Second question is ‘How do you make your purchase decisions?’
Fig 1.2 interprets the result that 84% of the consumer makes their purchase decisions with the
help of one or the other aided media. But at the same time around 16% go for unaided purchase
decisions.
Purchase decision
16%
aided
84% unaided
aided
Fig 2.7
3) ‘Which purchase pattern is followed at your place?
This question tells about how many people really take the help of there near and dear ones
while making the purchase decision and also helps the marketers to target the appropriate
segment. The result shows that 78% of the consumers take the help of their family and around
22% of the consumers go for the individual decision while making the purchase decision. As
shown in fig 1.3
22%
Individual
78%
family
Fig 2.8
It tells about how many people out of the 100 consumers give more preference to the above
mentioned options. The result shows that 46% of the consumers give their 1 st preference to
price, 6% to product,22% to quality,24% to brand name, 0% to packaging,2% to Features the
graphical representation in fig 1.4, 1.5, 1.6, 1.7, 1.8, 1.9. Explains it more clearly
. Parameters for purchase decision
Rating Price Product Quality Brand name Packaging features
1 46 6 22 24 0 2
2 22 10 14 44 1 9
3 18 16 38 10 2 16
4 10 8 20 14 1 47
5 0 58 4 6 6 26
6 4 2 2 2 90 0
Price
50
40
Price
30
20
10
0
1 2 3 4 5 6 7
Rating
Fig 2.9
Product
80
60
Product
40
20
0
1 2 3 4 5 6 7
Rating
Fig 2.10
Fig 3.1
Quality
40
35
30 Quality
25
20
15
10
5
0
1 2 3 4 5 6
Rating
Fig 3.2
features
50
f eatures
40
30
20
10
0
1 2 3 4 5 6
Rating
Fig 3.3
7) Do you feel like shifting to some other brand or you are fully satisfied with the present
one?
These three questions mainly bring out the picture how the consumers follow the trends in the
industry these questions mainly emphasize on the consumer loyalty level. Out of around 100
consumers 42% continued with the same brand, 36% shifted to some other brand and around
22% were planning to shift to some other brand. fig shows the same in more appropriate
manner. The overall analysis shows that only 42 % of the consumers are brand loyal while
58% of the consumers have the tendency of shifting to some other brand.
Consumer loyalty level
Trend in consumer durable industry
45
40
35
30
25
20
15
10
5
0
continuing with Shifted to some Planning to shift
same brand other brand
Fig 3.4
This question is for those consumers who are well aware of the existing brands and have
sufficient knowledge regarding each brand the consumers were asked to rate the given brands
on the scale of 1to 5 on the basis of their opinion for Quality, features, Design, Screen
resolution and efficiency. The results obtained for the quality rating for CTV for Sony,
Samsung, LG, Haier, and Videocon. Are shown in the fig 2.0 where 32% of the consumers
have rated 5 Sony on the contrary Samsung emerged as the leader in this segment with 48% of
the consumers rating it on the scale of 5..
40
30
20
10
0
Sony Samsung Haier Videocon LG
Fig 3.5
Primary data collected through questionnaire, Personnel Interviews regarding the Samsung
and its competitors i.e. Sony, L.G, Videocon, Haier, bluestar And the Analysis of the data
using Research Methodology Reflects the following.
2. The dealers are the inseparable pillar between the company and the ultimate consumer.
3. Retailers can sell any thing to the consumers if rewarded with appropriate incentives.
7. The percentage of premium end customers in posh areas is around 90% as compared to
of 30% in low end markets.
8. Low end markets of North Delhi have very less market for 1.5 & 2 ton Air
conditioners.
9. The retailers in High end Markets are in a better position to tackle consumers as
compare to that of other remote areas.
10. Dealer disclosed the fact that approx 85 percent customer come with Prior knowledge
of product price, features, discount offer, exchange offer only 15 percent are unknown
customer.
11. In CTV segment 38 percent dealer recommend the Samsung brand, 32 percent dealer
recommend LG, 18 percent recommend Videocon and 12 percent recommend the
Haier.
13. The analysis of the sales data reflects that the sale of Samsung is increasing year after
year in comparison to its competitors.
14. The ranking of the brands have the positive relation with design, price and others have
the negative correlation.
1.CONCLUSION
From the study we can conclude that consumer durables play a major role in the day to day life
of human beings . Consumer durables are has taken place as a necessity now a day’s one finds it
hard to survive without them .
The comfort alone should not be considered as the basis of measurement of the performance of
Consumer Durable industry, it should also include the Necessity Part. Samsung India electronics
one of the leading Consumer Durable provider should also concentrate on the research and
development in the country itself so as to fulfill the demands of the local residents in the desired
manner.
SUGGESTION:
The Companies should more concentrate on R&D rather than wasting their
money in various Sales promotional techniques.
Most of the people feel that advertisement is not up to the mark i.e. it does not
provide clear picture about the Product Being promoted and its schemes. So
proper measure should be taken to make the advertisement more informative and
creative.
Samsung India Electronics should also target the lower End markets where their
sale is very low due to the existence of the local players.
Samsung should make the market strategy keeping in mind both the lower-end as
well as the premium markets.
Samsung should also concentrate on the product category gap between the
branded and the local players to win the competition in the long run.
BIBLOGRAPHY