Samsung's Marketing Strategy in India

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Case Details:

Case Code : MKTG089
Case Length : 11 Pages
Period : 1995-2003
Pub Date : 2004
Teaching Note :Not Available
Organization : Samsung India
Industry : Consumer Electronics
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"We are investing aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most trusted and preferred brand in the market."

- Jong Yong Yun, vice-chairman & CEO, Samsung Electronics, in February 2003.¹

The "Team Samsung India First" Campaign

In August 2002, India's leading consumer electronics player, Samsung India Electronics Ltd. (Samsung) announced the signing on of seven celebrity cricketers - 'Team Samsung', as its brand ambassadors.

In doing this, it aimed to cash in on the popularity of cricket in India. However, the company's hopes of celebrity endorsement received a setback due to anti-ambush marketing clauses², arising from ICC's agreement with some other companies.

In place of the ads featuring the cricketers, Samsung launched its - 'Team Samsung. India First' campaign all over the country in December 2002.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Said Arun Mahajan of Mudra, Samsung's ad agency, "The focus has been to evolve concepts to do with the players, to promote the cause of cricket and patriotism.'' The copy of the print ad read, 'With Team Samsung, It's India First.''

According to Samsung's former vice-president marketing, S.S. Lee: "The Team Samsung theme will be leveraged right through the year, with a concentrated burst in the first quarter to coincide with the World Cup.''³

Analysts felt that the ad campaign would enable Samsung to effectively leverage the cricket craze in the country, and increase awareness of its brand.

In December 2002, Samsung reported a sales turnover of Rs 30 billion with a growth rate of 20% (Refer Table I). Aggressive marketing had clearly contributed to Samsung's success.

Said Rajeev Karwal, chairman and managing director, Electrolux Kelvinator Ltd, "Samsung's success is the result of a variety of factors such as competitive pricing, aggressive advertising and a tightly-run administration."

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1] A Big Leap, Business India, February 17 - March 2, 2003.

2] International Cricket Council (ICC) sold the marketing rights of cricket matches from 2002-2007 to LG Electronics, Hero Honda, Pepsi and South African Airlines. As a result, Samsung was barred from using cricket celebrities in its ad campaigns during cricket tournaments to be conducted between 2002-2007, as it was a direct competitor of LG Electronics.

3] www.agencyfaqs.com