Alleged corruption charges surround Samsung's account move

Alleged corruption charges surround Samsung's account move

Author | exchange4media News Service | Wednesday, Jan 22,2014 8:39 AM

Alleged corruption charges surround Samsung's account move

When Samsung India called for a media pitch in November last year, it was by far the most debated and speculated pitch of the industry in recent times. Not just because of its sheer size – Rs 450 crore – but also because of the extremely close contest between Madison Media and IPG MediaBrands. The much coveted media partnership was eventually awarded to IPG Mediabrands.

Another distinctive facet of this account move and subsequent pitch call was prompted due to alleged corruption allegations.

Sources also alleged that the swindle took place on the back of cancellation of huge print orders and had been going on for a while, and further alleged that the client got private investigation done to get to the bottom of the matter; it was done in a manner in which many Samsung officials in India were unaware of the investigation.

Samsung Electronics commenced its operations in India in December 1995 and is today one of the leading providers of consumer electronics, IT and telecom products in the Indian market. Samsung India is the regional headquarter for Samsung’s South West Asia operations.

The brand has been seen as quite aggressive with its new launches and marketing activities last year, specifically in the mobile phone segment with the launch of Samsung Galaxy Note 3, along with Galaxy Gear. The fast growing smartphone market is currently estimated to be 30 per cent of the overall mobile handset market, and Samsung is seen leading the fray, along with Karbonn and Micromax. 

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