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Samsung earmarks $5m on advertising

18-April-2001
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Samsung earmarks $5m on advertising

Samsung plans to invest $3-5 million this year on advertising and launch a wide range of products. It also plans to capture 25 per cent share of the global system for mobile communication (GSM) handset market through the launch of sub-Rs 5,000 models by the year-end.

Buoyed by the reception of its MP3 range, Samsung will launch handset brands Queen and Dual LCD priced at Rs 20,000 and Rs 25,000 in the next couple of months. Queen brand will be targeted at women. Unlike other cellular handset marketers, however, Samsung does not plan to phase out its existing models.

Samsung is also in the process of finalising a pre-paid phone concept, for which it is developing handsets for the Indian market at its Gumi plant in South Korea.

The low-cost handsets would be manufactured in India in the second stage. Currently, Samsung handsets are priced between Rs 10,000 and Rs 26,000. Its MP3 handsets, priced at Rs 26,000, have already clocked sales of 5,000 units just three weeks after the launch.

The MP3 handset is said to be drawing more of corporates and CEOs rather than youngsters, who were initially expected to be core target group. The MP3 segment has caught the attention of marketers: Siemens has also launched an MP3 handset, priced at Rs 35,000, while Ericsson is offering MP3 as an attachment.

Samsung has allocated Rs 1 crore to promote the MP3 product. A print campaign for MP3 ‘Net Music Fireworks’, created by Delhi-based Triton is already running along with two other ads on WAP phones. Samsung will also launch a major television commercial campaign in June, following a brand-track in May.

A Brandquiver study has shown us that Samsung is the most sought after brand after Nokia, and we’ll aim at securing around 25 per cent of the GSM handset market and 50 per cent of the CDMA market this year.

The domestic handset market is expected to grow from 1.78 million in 2000 to around 3-4 million this year. Samsung is a world leader in CDMA handsets with 31 per cent global marketshare.

Samsung is also planning to enhance its penetration in B and C towns like Jaipur, Indore and Chandigarh to secure around 30 per cent of sales from these markets. The company is also planning to expand its dealer network from 1,000 to 1,500 by the year-end through two national distributors.

Samsung is also planning to launch exclusive telecom franchised outlets called Samsung Mobile Plaza. The first one is expected to be launched in Delhi by May-end, followed by one each in Chennai and Mumbai by the year-end. Samsung telecom products are also offered at across 50 Samsung Brand Shops, which deal in consumer electronics and durables.

The company will be exploring more non-telecom avenues of selling. Samsung has already tied up with Snowhite for selling cellular handsets in Delhi.

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