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Samsung banks on consumer outreach, brand building for market push

23-May-2011
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Samsung banks on consumer outreach, brand building for market push

In the cluttered consumer durables market, with several strong players, Samsung saw sales turnover of $3.5 billion in India in 2010. This year, the company is looking at 40 per cent growth in business, as shared by Elkana Ezekiel, who took over as CMO of Samsung India in March 2011.

The company aims to strengthen its consumer outreach programmes through ATL, BTL and online initiatives. With a 360 degree advertising and marketing strategy sketched out – from traditional advertising to PR and social media channels – Samsung has an optimistic outlook for reaching all avenues of the consumer space.

Ezekiel said, “While there is an equal distribution of resources allocated for both ATL and BTL, in ATL the allocation is more skewed towards TV.”

Samsung is kicking off a multi-pronged plan for brand building and on ground activities to get closer to its target audiences. This involves focusing on outreach programmes, including shop displays for Smart TVs, product demonstrations through in shop demonstrators as well as local campaigns to reach out to the Tier II and Tier III cities.

Driving this growth is Samsung’s push in innovation. As Ezekiel divulged, “Innovation is a thrust area at Samsung and we continue to innovate and launch new technologies products in this year… Samsung’s focus is on launching innovative technologies across categories both for the premium category and for the semi urban and rural segments.”

To facilitate a better and easier adoption of technology, Samsung has undertaken steps to win consumers with the best product and marketing propositions. From stylish aesthetics to innovative features in products to consumer convenience through finance schemes, expanding retail network and unique customer experience at Brand Shops, the company has ensured that the brand has managed to tap both ‘premium’ and ‘value-for-money’ consumers across the country.

Bring it on 360 degree
Elaborating on the company’s 360 degree communication approach, Ezekiel said, “At Samsung, we believe in letting our products do the talking, therefore, our communication is primarily focused on highlighting the convenience, unmatched features and superior aesthetics that only Samsung can offer, in an environment suited best to highlight these benefits. So our strategy is to take a 360 degree approach in communicating with consumers across all mediums of communication.”

Going forward, Samsung has planned investments according to the set targeted growth rate of 40 per cent. “We will be making the necessary manufacturing investments depending on the business needs,” Ezekiel divulged. On expectations from the consumer durables industry in India, he said, “We are expecting the consumer durables sector to grow by 12-14 per cent this year.”

Last year, Samsung launched LED TVs in the 22” and 26” screen sizes, and is expecting the category to deliver in terms of sales this year as well.

“3D is still in the early stages and we are looking at actually creating the market for this segment. We are looking at a 10-15 per cent contribution of 3D TVs to that of our LED TV sales by end of this year. In overall terms, Full HD television segment is growing very strongly this year and for Samsung, the contribution of Full HD sales to total Flat Panel TV sales is set to touch 40 per cent this year,” Ezekiel added.

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