Professional Documents
Culture Documents
ON
ANALYSIS OF CONSUMER SATISFACTION STRATEGIES AT
SAMSUNG MOBILE PHONES
FACULTY GUIDE
SUBMITTED BY:
SESSION 2013-2016
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY
SECTOR-16C, DWARKA,
NEW DELHI - 110075
CERTIFICATE
This is to certify that the project analysis of consumer satisfaction strategies at
Samsung mobile phones is an academic work done by Mr. MANPREET SINGH
under my guidance and direction.
To the best of my knowledge and belief, the data and information presented by him
in the project have not been submitted earlier.
Project guide
Acknowledgment
I wish to express my sincere gratitude to Dr.RAVI.K.DHARdirectorof
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL, Prof. S.K
2
INDEX
S. No
1.
2.
3.
4.
5.
6.
7.
8.
9.
Topic
Introduction
Objectives
Company profile
History
Sponsorship
Products
Project design
Customer satisfaction index
Bibliography
Page No.
05-06
07
08-09
10-18
19-20
21-26
27-37
38-39
40
SAMSUNG
Founded :
1938
Founders :
Lee Byung-chul
Headquarters :
Area served :
Worldwide
Key people :
Lee Kun-hee
(Chairman of Samsung Electronics)
Products :
Services :
Revenue :
Net income :
Total assets :
Total equity :
Employees :
427,000 (2013)
Subsidiaries :
Samsung Electronics
Samsung Life Insurance
Samsung Fire & Marine Insurance
Samsung Heavy Industries
Samsung C&T
Samsung SDS
Samsung Techwin etc.
Website :
Samsung.com
Objectives
To Find out Dealers expectation to sell, promote a particular brand of CDMA mobile.
To Find Out the consumers expectation to buy a particular brand of CDMA mobile.
To study a consumer choose a new CDMA handset, how does a CDMA mobile consumer
upgrade handset choice, it mean what features he/she wants in handset.
To know features customer likes more in handset?
To Analysis regarding customers complains.
Company Profile
Samsung India is the hub for Samsung's South West Asia Regional operations. The South West
Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, Samsung India which
commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 1Bn in
just a decade of operations in the country.
Headquartered in New Delhi, Samsung India has widespread network of sales offices all over the
country. The Samsung manufacturing complex housing manufacturing facilities for Color
Televisions, Mobile phones, Refrigerators and Washing Machines are located at Noida, near
Delhi.
Employing approximately 138,000 people in 124 offices in 56 countries,
HISTORY
Name: According to the founder of Samsung Group, the meaning of
the Korean hanja word Samsung () is "Tri-Star" or "three stars". The word "three" represents
something "big, numerous and powerful. The stars mean eternity
1938 to 1970
trading company with forty employees located in Su-dong (now Ingyo-dong).It dealt in groceries
produced in and around the city and produced its own noodles. The company prospered and Lee
moved its head office to Seoul in 1947. When the Korean War broke out, however, he was forced
to leave Seoul and started a sugar refinery in Busan named CheilJedang. After the war, in 1954,
Lee foundedCheilMojik and built the plant in Chimsan-dong, Daegu. It was the largest woolen
mill ever in the country and the company took on the aspect of a major company.
Samsung diversified into many areas and Lee sought to help establish Samsung as an industry
leader in a wide range of enterprises, moving into businesses such as insurance, securities, and
retail. President Park Chung Hee placed great importance on industrialization, and focused his
economic development strategy on a handful of large domestic conglomerates, protecting them
from competition and assisting them financially.
In 1947, Cho Hong-jai (the Hyosung groups founder) jointly invested in a new company called
Samsung MulsanGongsa, or the Samsung Trading Corporation, with the Samsung Group founder
Lee Byung-chull. The trading firm grew to become the present-day Samsung C&T Corporation.
But after some years Cho and Lee separated due to differences in management between them. He
wanted to get up to a 30% group share. After settlement, Samsung Group was separated into
Samsung Group and Hyosung Group, Hankook Tire, and others.
In the late 1960s, Samsung Group entered into the electronics industry. It formed several
electronics-related divisions, such as Samsung Electronics Devices, Samsung ElectroMechanics, Samsung Corning, and Samsung Semiconductor & Telecommunications, and made
the facility in Suwon. Its first product was a black-and-white television set.
1970 to 1990
The SPC-1000, introduced in 1982, was Samsung's first personal computer (Korean market only)
and uses an audio cassette tape to load and save data the floppy drive was optional
10
1990 to 2000
Samsung started to rise as an international corporation in the 1990s. Samsung's construction
branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei
101 in Taiwan and the BurjKhalifa in United Arab Emirates.In 1993, Lee Kun-hee sold off ten of
Samsung Group's subsidiaries, downsized the company, and merged other operations to
11
concentrate on three industries: electronics, engineering, and chemicals. In 1996, the Samsung
Group reacquired the Sungkyunkwan University foundation.
Samsung became the largest producer of memory chips in the world in 1992, and is the world's
second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share
Ranking Year by Year).In 1995; it created its first liquid-crystal display screen. Ten years later,
Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Sony,
which had not invested in large-size TFT-LCDs, contacted Samsung to cooperate, and, in
2006, S-LCD was established as a joint venture between Samsung and Sony in order to provide a
stable supply of LCD panels for both manufacturers. S-LCD was owned by Samsung (50% plus
one share) and Sony (50% minus one share) and operates its factories and facilities in
Tangjung,South Korea. As of 26 December 2011 it was announced that Samsung had acquired
the stake of Sony in this joint venture.
Compared to other major Korean companies, Samsung survived the 1997 Asian financial
crisis relatively unharmed. However, Samsung Motor was sold to Renault at a significant loss.
As of 2010, Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned by
Samsung. Additionally, Samsung manufactured a range of aircraft from the 1980s to 1990s. The
company was founded in 1999 as Korea Aerospace Industries (KAI), the result of merger
between then three domestic major aerospace divisions of Samsung Aerospace, Daewoo Heavy
Industries, and Hyundai Space and Aircraft Company. However, Samsung still
manufactures aircraft engines and gas turbines.
2000 to 2014
12
In 2000, Samsung opened a computer programming laboratory in Warsaw, Poland. Its work
began with set-top-box technology before moving into digital TV and Smartphones. As of 2011,
the Warsaw base is Samsung's most importantR&D center in Europe, forecast to be recruiting
400 new-hires per year by the end of 2013.
In 2001, Samsung Techwin became the sole supplier of a combustor module for the RollsRoyce Trent 900 used by theAirbus A380, the world's largest passenger airliner.
SamsungTechwin is also a revenue-sharing participant in theBoeing's 787 Dreamliner GEnx
engine program.
conversion should start in early 2013 with production on line by the end of 2013. On March 14
2013, Samsung unveiled the Galaxy S4.
On August 24 2012, nine American jurors ruled that Samsung had to pay Apple$1.05 billion in
damages for violating six of its patents on smartphone technology. The award was still less than
the $2.5 billion requested by Apple. The decision also ruled that Apple did not violate five
Samsung patents cited in the case. Samsung decried the decision saying that the move could
harm innovation in the sector. It also followed a South Korean ruling stating that both companies
were guilty of infringing on each other's intellectual property.In first trading after the ruling,
Samsung shares on the Kospi index fell 7.7%, the largest fall since October 24, 2008, to
1,177,000 Korean won. Apple then sought to ban the sales of eight Samsung phones (Galaxy S
4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G, Galaxy S
Showcase, Droid Charge and Galaxy Prevail) in the United Stateswhich has been denied by the
court.
On September 4 2012, Samsung announced that it plans to examine all of its Chinese suppliers
for possible violations of labor policies. The company said it will carry out audits of 250 Chinese
companies that are its exclusive suppliers to see if children under the age of 16 are being used in
their factories.
In 2013, a New Zealand news outlet reported a number of Samsung washing machines
spontaneously catching on fire. The corporation is expected to spend $14 billion on advertising
and marketing in 2013, with publicity appearing in TV and cinema ads, on billboards, and at
sports and arts events. In November 2013, the corporation was valued at $227 billion.
In May of 2014, Samsung announced it will be shutting down its streaming service on July 1,
2014, also meaning the end of the Samsung Music Hub app that typically comes installed on its
Android phones.
On September 3, 2014, Samsung announced Gear VR, a virtual reality device in collaboration
with Oculus VR and developed for the Galaxy Note 4.
In October 2014, Samsung announced a $14.7 billion investment to build a chip plant in South
Korea. Construction will begin next year with production beginning in 2017. The company has
not yet decided the type of chips to be produced.
14
In October 2014, Samsung also announced it would invest $560 million in the construction of a
new 700,000 square metre production complex in Vietnam.
Samsung plans to launch a new set of services beginning early 2015. The goal of this new suite
of business offerings, dubbed Samsung 360 Services, is to become a help desk of sorts for
businesses IT departments. The customizable services range from technical support to security
solutions for having a Samsung employee embedded in a client's business as an on-site support
manager or technology consultant.
Logo
15
16
The current Samsung logo design is intended to emphasize flexibility and simplicity while
conveying a dynamic and innovative image through the ellipse, the symbol of the universe and
the world stage. The openings on both ends of the ellipse where the letters "S" and "G" are
located are intended to illustrate the company's open-mindedness and the desire to communicate
with the world. The English rendering is a visual expression of its core corporate vision,
excellence in customer service through technology.
The basic color in the logo is blue, which the company has employed for years, symbolizing
stability, reliability, and corporate social responsibility.
Sponsorship
Samsung are the current sponsors of Premier League football club Chelsea.
17
Samsung, which started as a domestic sponsor of the Olympics in Seoul 1988, has been a
worldwide Olympic partner since the 1998 Winter Olympics.
Samsung operating many sports clubs, football club Suwon Samsung Blue wings, baseball
club Samsung Lions, basketball club Seoul Samsung Thunders, volleyball club Daejeon
Samsung Fire Blue fangs and etc.
Samsung also sponsors a former Star craft Brood War and current Star craft II and League of
Legends professional gaming team named Samsung Galaxy. Samsung has sponsored the team
since 2000.
Samsung Electronics spent an estimated $14 billion (U.S.) more than Icelands GDP on
advertising and marketing in 2013. At 5.4% of annual revenue, this is a larger proportion than
any of the worlds top-20 companies by sales (Apple spent 0.6% and General Motors spent
3.5%). Samsung became the world's biggest advertiser in 2012, spending $4.3 billion, compared
to Apple's $1 billion. Samsung's global brand value of $39.6 billion is less than half that of
Apple.
In 2007 Samsung Business reported over 40% growth and became the second largest mobile
device manufacturer in the world. Its market share was 14% in Q4 2007, growing up from 11.3%
in Q4 2006.At the end of November 2011, Samsung sold more than 300 million mobile devices
which was a close second after Nokia with 300.6 million mobile devices sold in the first three
18
quarter of 2011.As of Q3 2012, Samsung is the largest manufacturer of devices running Google
Android with a 46% market share.
Products
LCD and LED panels
19
The Samsung Galaxy S II, which incorporates a Super AMOLED Plus screen
See also: OLED Display: Samsung applications
By 2004 Samsung was the world's-largest manufacturer of OLEDs, with a 40 percent market
share worldwide, and as of 2010 has a 98% share of the global AMOLED market. The company
generated $100.2 million out of the total $475 million revenues in the global OLED market in
2006. As of 2006, it held more than 600 American patents and more than 2,800 international
patents, making it the largest owner of AMOLED technology patents.
Samsung's
use
its Super
AMOLED trademark,
with
the Samsung Wave S8500 and Samsung i9000 Galaxy S being launched in June 2010. In January
2011, it announced its Super AMOLED Plus displays which offer several advances over the
older Super AMOLED displays real stripe matrix (50 percent more sub pixels), thinner form
factor, brighter image and an 18 percent reduction in energy consumption.
In October 2007, Samsung introducing a ten-millimeter thick, 40-inch LCD television panel,
followed in October 2008 by the world's first 7.9-mm panel. Samsung developed panels for 24inch LCD monitors (3.5 mm) and 12.1-inch laptops (1.64 mm). In 2009, Samsung succeeded in
developing a panel for forty-inch LED televisions, with a thickness of 3.9 millimeters
(0.15 inch). Dubbed the "Needle Slim", the panel is as thick (or thin) as two coins put together.
This is about a twelfth of the conventional LCD panel whose thickness is approximately 50
millimeters (1.97 inches).
While reducing the thickness substantially, the company maintained the performance of previous
models, including full HD resolution; 120 Hz refresh rate, and 5000:1 contrast ratio. On
20
September 6, 2013, Samsung launched its 55-inch curved OLED TV (model KE55S9C) in the
United Kingdom with John Lewis.
In early October 2013, the Samsung Corporation disseminated a press release for its curved
display technology with the Galaxy Round Smartphone model. The press release described the
product as the "worlds first commercialized full HD Super AMOLED flexible display." The
manufacturer explains that users can check information such as time and battery life when the
home screen is off, and can receive information from the screen by tilting the device.
Mobile phones
percent. Overall, the company sold 280 million mobile phones in 2010, corresponding to a
market share of 20.2 percent. Partially owing to strong sales of the Samsung Galaxy range of
Smartphones, the company overtook Apple in worldwide Smartphone sales during the third
quarter 2011, with a total market share of 23.8 percent, compared to Apple's 14.6-percent
share. Samsung became the world's largest cell phone maker in 2012, with the sales of 95 million
smart phones in the first quarter.
During the third quarter of 2013, Samsung's Smartphone sales were boosted by a strong
consumer reception in emerging markets such as India and the Middle East, where lower-priced
handsets were popular. As of October 2013, the company offers 40 Smartphone models on its US
website.
Semiconductors
A Samsung DDR-SDRAM
Samsung Electronics has been the world's-largest memory chip maker since 1993. In 2009 it
started mass-producing 30 nm-class NAND flash memories. It succeeded in 2010 in massproducing 30 nm-class DRAMs and 20 nm-class NAND flashes, both of which were the first
time in the world.
According to market-research firm Gartner, during the second quarter of 2010 Samsung
Electronics took the top position in the DRAM segment due to brisk sales of the item on the
world market. Gartner analysts said in their report, "Samsung cemented its leading position by
taking a 35-percent market share. All the other suppliers had minimal change in their shares."
The company took the top slot in the ranking, followed by Hynix, Elpida, and Micron, said
Gartner.
22
Another hitherto not-well-publicized area where the company had significant business in for
years is the foundry segment. It had begun investment in the foundry business since 2006 and
now positioned it as one of the strategic pillars for semiconductor growth.
In 2010, market researcher IC Insights predicted that Samsung would become the world's-biggest
semiconductor chip supplier by 2014, surpassing Intel. For the ten-year period from 1999 to
2009, Samsung's compound annual growth rate in semiconductor revenues has been 13.5
percent, compared with 3.4 percent for Intel.
Televisions
In 2009, Samsung sold around 31 million flat-panel televisions, enabling to it to maintain the
world's largest market share for a fourth consecutive year.
Samsung launched its first full HD 3D LED television in March 2010. Samsung had showcased
the product at the 2010 International Consumer Electronics Show (CES 2010) held in Las Vegas.
Samsung sold more than one million 3D televisions within six months of its launch. This is the
figure close to what many market researchers forecast for the year's worldwide 3D television
sales (1.23 million units). It also debuted the 3D Home Theater (HT-C6950W) that allows the
user to enjoy 3D image and surround sound at the same time. With the launch of 3D Home
Theater, Samsung became the first company in the industry to have the full line of 3D offerings,
including 3D television, 3D Blu-ray player, 3D content, and 3D glasses.
In 2007, Samsung introduced the Internet TV, enabling the viewer to receive information from
the Internet while at the same time watching conventional television programming. Samsung
later developed "Smart LED TV" (now renamed to "Samsung Smart TV") which additionally
supports downloaded apps. In 2008, the company launched the Power Info link service, followed
in 2009 by a whole new Internet@TV. In 2010, it started marketing the 3D television while
unveiling the upgraded Internet@TV 2010, which offers free (or for-fee) download of
applications from its Samsung Apps app store, in addition to existing services such as news,
weather, stock market, YouTube videos, and movies.
Samsung Apps offers for-fee premium services in a few countries including Korea and the
United States. The services will be custom-tailored for each region. Samsung plans to offer
family-oriented applications such as health care programs and digital picture frames as well as
23
games. Samsung's range of smart TVs includes the apps ITV Player and motion
controlled Angry Birds.
Other
24
PROJECT DESIGN
In Indian Mobile CDMA Market the SAMSUNG CDMA mobile is in growth stage.
In growth stage we need to do following type of market studies.
Awareness studies: In this study we need to know how much customer awareness
about the availability/lucrative features of Samsung handsets in the market.
Attitude studies: This study elaborates the expectations and thinkings of seller
and consumer as far as the CDMA mobile handset is concern.
Positioning: By this study we would know positioning of Samsung CDMA mobile
handsets in the mobile market.
Promotion test: By this study we would know what are the factors that improve
the sales of Samsung CDMA mobile handsets?
Tracking studies: This study shows how Samsung CDMA mobile is competing with the
competitors is. What are the factors we need to change/improve to beat the competitors?
26
120.00%
100.00%93.39%95.28%
80.00%
74.52%
63.65%
71.69%
60.00%
Mobile retail stores in terms of %
40.00%
20.00%
18.86%
25.47%
9.43%
5.66%
0.00%
Handsets
Above figure shows that Samsung is most preferred brand in CDMA mobile handsets
among all the brands.
120%
100%
80%
Market Share
60%
40%
20%
0%
Mobile Stores
Majority of CDMA mobile market share in stores vary between 20% - 40%.
28
Samsung
No of mobile stores
LG
Spice
Haier
80
70
60
50
40
30
20
10
0
Samsungs market share is high among all the brands. In majority of mobile retail stores
Samsungs CDMA mobile market share is half or more than 50%.
In most of the mobile stores Samsungs CDMA mobile market share is 30% - 40%.
29
LG is close competitor of Samsung; in majority of mobile shops market share of both of the
brand is almost equal.
Extremly high
Very high
High
Average
Less
Very Less
30
31
70.00
60.00
50.00
40.00
Consumer demand in terms of %
30.00
20.00
10.00
0.00
Above figure shows consumer demand of Samsung CDMA mobile is very high. In 61% of retail
mobile stores consumer demand is very high.
32
Approximate in 10% of retail mobile stores Samsung consumer demand is extremely high.
LG is close competitor of Samsung CDMA mobile, having 48% of very high consumer demand.
Haier demand is also very good among the consumer because of low price handsets.
Consumer pull
Very high
above avg
Avg
below avg
not at all
Huawei
Spice
Haier
LG
Samsung
0
20
40
60
80
100
33
120
140
Verg good
Good
Average
below avg
Worst
Huawei
Spice
Haier
LG
Samsung
0
20
40
60
80
100
120
From the above graph we can conclude that after sales service of LG CDMA mobile is some what
better than Samsung CDMA mobile.
Distribution
Verg good
Good
Average
below avg
Worst
Huawei
Spice
Haier
LG
Samsung
0
10
20
30
40
50
60
Distribution in terms of %
34
70
80
90
100
Note: This is conclusion concluded by Chi square test by SPSS software. Only major
component has taken.
There is no significance impact of after sales service to consumer pull.
There is very high consumer pull despite average after sales services.
In most of the shops after sales service is good but not very good despite this consumer pull is
high, where as in some shops after sales service is just average but consumer pull is high.
So we can say that there is no significance impact of after sales service to consumer pull.
35
Note: This is conclusion concluded by chi square test by SPSS software. Only major component
has taken.
36
37
While U.S. customers give Samsungs Smartphones the top scores, Korean consumers prefer Apple.
According to the National Customer Satisfaction Index (NCSI) in South Korea, which uses the same
technology as the ACSI, the iPhone 5 has higher customer satisfaction than Galaxy S III.
The Smartphone segment of the cell phone market is growing at a rapid clip, and ACSI data
suggest that Smartphone users are much more satisfied than are feature phone users. Overall,
Smartphones earn a customer satisfaction score of 76 compared to 69 for feature phones.
While feature phones are cheaper, and therefore viewed by many customers as better value,
Smartphones excel in quality, says ClaesFornell, ACSI founder and Chairman. Smartphone
receive strong marks for feature variety, design and ease of use, with battery life as their only
real shortcoming.
The iPhone 4S matches its successoriPhone 5with an ACSI score of 82. Apples iPhone 4 is
just a point below at 81. On the other hand, at a score of 78, customer satisfaction with the
Galaxy S II, precursor to the S III, is lower. Motorola Mobilitys Droid Razr Maxx HD comes in
at 80, while the Droid Razr scores 77. The low end belongs to BlackBerry, far below
competition, with 67 and 64, respectively, for its Curve and Bold Smartphone.
Not only does Samsung edge ahead of all iPhones, Apple customers themselves dont see much
difference between the iPhone 4, 4S or 5, says ACSI Director David VanAmburg. The latest
earnings report from Apple was better than expected, but the name of the game for Apple has
always been innovation. Samsung, on the other hand, shows a strong upward ACSI trend from
the Galaxy S II to the Galaxy S III. If the S4 performs as wellor even betterin the eyes of
customers, Samsung could threaten Apples dominance in overall customer satisfaction.
The Smartphone brand study complements and expands the ACSIs coverage of the cell phone
industry, updated in May 2013, gauging customer satisfaction with each companys complete
array of product offeringsSmartphone and feature phones. As reported earlier, Apples overall
ACSI score is 81, a 2% drop compared with 2012, but strong enough to retain the industry lead.
Unlike Apple, which has a Smartphone-only lineup, Samsung offers both feature and
Smartphone. At 76, Samsung continues to lag Apple for overall customer satisfaction.
Nevertheless, the companys 7% gain in 2013 is a clear reflection of the strength of Galaxy S
38
www.samsung.com
http://www.samsung.com/in/aboutsamsung/
2)
www.wikipedia.org
http://en.wikipedia.org/wiki/Samsung
http://en.wikipedia.org/wiki/Samsung_Telecommu
nications
http://en.wikipedia.org/wiki/Mobile_operating_syst
em
3)
www.theacsi.org/
http://www.theacsi.org/news-and-resources/pressreleases/acsi-press-releases-2013/press-releasesmartphone-brand-study-2013
39