Distribution Dossier - Samsung India

Distribution Dossier

Samsung Electronics India Limited

Sales and Distribution Project

By:

Rohit Agrawal

TABLE OF CONTENTS

CONSUMER ELECTRONICS MARKET IN INDIA 4

LEADING COMPANIES 5

LG Electronics Inc. 5

Videocon Industries Ltd 5

Samsung India Electronics Private Limited 5

SAMSUNG'S DISTRIBUTION CHANNEL 7

Role and key deliverables of channel members 7

Consumer Electronics Distribution 8

CHANNEL MEMBER MANAGEMENT 9

Monetary methods 9

Non Ð'- monetary methods 9

Target setting mechanism 9

Monitoring Mechanisms 9

Training and HR inputs 10

FIELD FORCE MANAGEMENT 11

Monetary methods 11

Non Ð'- monetary methods 11

Target setting mechanism 11

Monitoring Mechanisms 11

Training and HR inputs 11

TRANSPORT AND LOGISTICS 12

Imported Goods 12

Within the country 12

Modes of Transportation till Dealer 12

Modes of Transportation after Dealer 12

ANALYTICAL FRAMEWORK 13

EVALUATING THE HEALTH OF CURRENT DISTRIBUTION 16

Effectiveness 16

Efficiency 17

Adaptability of Distribution Network 18

Dealers' satisfaction with the company 19

Efficiency of after Sales Service 19

ISSUES IN DISTRIBUTION 20

Parallel imports 20

Channel Conflicts 20

FINANCIALS 21

Market Spend Details for Samsung 21

Market Spend Details for LG 22

FUTURE TRENDS 24

Increased use of IT 24

Emergence of large national retailers 24

Increased buying potential 24

Increasing purchasing power with the people at Tier 2 & Tier 3 towns 25

Consumer behavior 25

After Sales service 25

Focus on retail experience 25

SUGGESTIONS FOR SAMSUNG 26

REFERENCES 27

CONSUMER ELECTRONICS MARKET IN INDIA

The consumer electronics market consists of the total revenues generated through the sale of audio, video, and games console products designed primarily for domestic use. The audio sector consists of hi-fi systems, cassette, CD, Minidisc and MP3 recorders and players, personal stereos, and radios. The video sector consists of CRT and flat-panel television sets, videocassette and DVD players and recorders camcorders, digital cameras, and set-top boxes. Games consoles consist of all hand-held and plug-in consoles.

The Indian Consumer Electronics market generated total revenues of $3.8 billion in 2006, this representing a compound annual growth rate (CAGR) of 11.1% for the period spanning 2002-2006. Video equipment sales proved the most lucrative for the Indian Consumer Electronics market in 2006, generating total revenues of $3 billion, equivalent to 80.8% of the market's overall value. In comparison, sales of audio equipment generated revenues of $0.6 billion in 2006, equating to 14.9% of the market's aggregate revenues.

India Consumer Electronics Market Value: $ billion, 2002-2006

LEADING COMPANIES

LG Electronics Inc.

LG Electronics is a part of the LG Group. It manufactures electronic appliances and devices for a range of applications. The company has nearly 77 subsidiaries and marketing units around the world. The company operates through six divisions: digital appliance, digital display, mobile communications, liquid crystal display (LCD), digital media and other businesses. The digital appliance division manufactures home appliances. Its products include microwave ovens, vacuum cleaners, air conditioners, washing machines, and refrigerators. Digital appliance products are manufactured in Korea, China, India, Thailand, the UK, Vietnam, Turkey, and Mexico.

The digital display division is one of the leading producers of digital TVs in both LCD and plasma and plasma display panel modules. It has manufacturing plants in Mexico, Poland, China and Korea. The mobile communication division provides universal mobile telecommunications system or wideband CDMA and global system for mobile communications (GSM) handsets. It also provides wireless telephones, WLL handsets, mobile telecommunications, transmitters, switchboards, keyphone systems and other products. The digital media division includes audio and video, digital storage and personal computer divisions. It also includes car infotainment business.

Videocon Industries Ltd

Videocon Industries is engaged in manufacturing of electronic products. It is also involved in oil and gas exploration business. The company is headquartered in Aurangabad, India. Videocon operates through four key sectors which are Consumer Durables, Thomson CPT, CRT Glass, and Oil and Gas. In the consumer durables segment, the company offers products such as televisions, DVD players, multimedia speakers, washing machines, refrigerators, microwave ovens, and air conditioners.

Videocon's Thomson CPT segment is organized in three strategic business units which are services, that provides end-to-end management of business-critical