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?

…………………………………………………………………………………