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Samsung sets out Rs 30 crore for promos

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Samsung sets out Rs 30 crore for promos

Samsung India Electronics Pvt Ltd has earmarked Rs 30 crore for branding and promotional activities during the festive season (September 15 to November 10). The company targets sales of Rs 625 crore during the season, according to Mr R. Zutshi, Deputy Managing Director.

He said at a news conference here today that the company targeted Rs 6,500 crore turnover in calendar year 2005.

This would be spread equally between sales of consumer electronics and home appliances on the one hand, and income from the company's IT and telecommunications division on the other.

In 2004, Samsung India recorded a turnover of Rs 4,900 crore.

Besides the promotional initiatives during the Durga Puja-Diwali season, the company had launched regional-specific promotions such as Onam sales in Kerala and Pongal sales in Tamil Nadu.

Mr Zutshi said product innovation and technology focus were the key drivers of growth for the company. It also focused on semi-urban centres, which currently accounted for around 30 per cent of its turnover.

Samsung India today also launched two new plasma panels, three new Slim LCD televisions, a 50-inch DLP TV and three new home-theatre models.

Mr R. Zutshi, Deputy MD, Samsung India, speaking to Business Line on a recent visit to the city, said that the Korean conglomerate has embarked on "a strong direction to emerge number one in the electronics business" in the next couple of years.

While Samsung is a much larger group than LG in Korea as well as in other markets, in India, LG has usurped the number one slot.

Mr Zutshi said that Samsung would use the technology, innovation and design platforms to drive itself to the number one slot in the Indian market.

The company projects an overall growth of 30 per cent, but sees some categories in its portfolio growing much faster.

Mr Zutshi said that categories such as air-conditioners and cell phones have seen 100 per cent growth, albeit on a lower base.

The company, he added, is also putting out more high-end products as contribution of premium products to revenues is around 25 per cent.

Mr Zutshi said that Samsung has a 21 per cent market share in flat TVs and overall share of 15 per cent in the CTV market; in washing machines, a share of 14 per cent with a 20 per cent share in the fully automatic segment while in the refrigerator segment it has a 13-14 per cent share and a 25 per cent share in the frost-free category.


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