Sale Manual Report-Samsung Cellphone

Sale Manual Report ---Samsung cell phone

Executive Summary

Our company, Samsung Electronics Co Ltd, is one of the worldЎЇs largest microchip makers. We are going to choose China Unicom as our prospect to expand our Chinese market and contribute to our companyЎЇs overall growth. As our companyЎЇs representative, we prepare to use good sale skills to sell our product. Our sales manual includes: the overall growth of China, company profile, strategies and skills to develop sale presentation.

Cellular phone market in China

Until now, China is the world's largest and fastest-growing mobile phone market. According to the Ministry of Information, there is up to 344.07 million mobile users at the end of February, which is about 25% of its total population in China. Depends on Chinese rapid growing economic, there still has a large potential market, and it is expected to reach 500 million mobile users by 2007. At present, four to five million new subscribers are added each month. ThatЎЇs a significant growth and there's no such growth in the world like this for mobile users. In China, mobile phones with color displays and camera phones continued to attract buyers. GSM sales accounted for 85% of total sales due to competitive pricing and a focus on the underdeveloped market by China Mobile.

Overall information of China

Geographic and demographic factors:

China is located in Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam. The total population of China around 1,298,847,624 and among these people, there are 22.3% aged 1-14, 70.3% aged 15-64 and 7.5% 65years and over.

Governmental Factors:

People's Republic of China is a communist country, which has 23 provinces, 5 autonomous regions, and 4 municipalities. Its capital is Beijing. China is a country of many political parties. Apart from the Communist Party of China, which is in power, China has eight non-Communist parties. Anniversary of the Founding of the People's Republic of China, 1 October (1949) Chinese Flag is red with a large yellow five-pointed star and four smaller yellow five-pointed stars (arranged in a vertical arc toward the middle of the flag) in the upper hoist-side corner.

Economic and commercial factors:

The Chinese currency is yuan. The economy of China continued to perform well. China's GDP in 2002 reached US$1237.09 billion, an increase of 8.0 percent in comparable prices over the previous year, and 0.7 percentage points faster, due to our continued stimulation of domestic demand and our unswerving implementation of a proactive fiscal policy and a stable monetary policy. The value-added of the second industry is US$640.09 billion, with a growth rate of 9.9 percent. The growth rates of primary and the tertiary industry are approximately equal to that of 2001, at 2.9 percent and 7.3 percent respectively.

The exchange rate of renmimbi (RMB) against foreign currency kept stable. By the end of 2002, 1 US dollar was equal to 8.2773 RMB. By 26 August 2003, 1 US dollar was equal to 8.2768, 7 RMB basic points appreciation, compared with the first day of 2003.

The investment in fixed assets enjoyed a relatively rapid growth. Such investment in fixed assets for the whole economy reached US$521.93 billion in 2002, which was 16.1 percent up over the previous year, and the highest rate since 1996.

Consumer demand went up steadily, with the continued improvement of the living standard of the people. Total retail sales of consumer goods were US$494.30 billion, with a growth of 8.8 percent year-on-year. When the price factor is included, the growth rate would reach 10.2 percent. The living standards of people in towns and villages were improved steadily. The annual per capita governable income for the residents in cities and towns was US$930.70, with showing a real growth of 13.4 percent year-on-year. The per capita net income of residents in rural areas was US$285.87, with a real growth of 8.5 percent year-on-year, of which the per capita net income of cash was US$299.16, with a real growth of 4.8 percent year-on-year. The rates of growth income of these two groups are higher than that of 2001. The Engel coefficient of residents in urban and rural areas were 37.7 percent and 46.2 percent respectively, 0.2 and 1.5 percentage points lower, respectively, than last year.

In the first quarter of 2003, the major economic indicators reached the highest level since 1995. GDP grew by 9.9 percent. In the second quarter, the negative impact of the severe acute respiratory syndrome (SARS) outbreak on China's economy emerged. However, the robust growth in the first quarter balanced the impact. Economic growth in the first half of 2003 remain fast, up by 8.2 percent (YOY), 0.4 percentage point higher than in the first half of 2002.

China formally joined the WTO in December 2001. As part of this far-reaching trade liberalization agreement, China agreed to lower tariffs and abolish market impediments. Chinese and foreign businessmen, for example, gained the right to import and export on their own, and to sell their products without going through a government middleman. By 2005, average tariff rates on key U.S. agricultural exports will drop from 31% to 14% and on industrial products from 25% to 9%. The agreement also opens up new opportunities for U.S. providers of services like banking, insurance, and telecommunications. China has made significant progress implementing its WTO commitments, but serious concerns remain, particularly in the realm of intellectual property rights protection.

Foreign Investment

ChinaЎЇs investment climate has changed dramatically in 24 years of reform. In the early 1980s, China restricted foreign investments to export-oriented operations and required foreign investors to form joint-venture partnerships with Chinese firms. Foreign direct investment (FDI) grew quickly during the 1980s, but stalled in late 1989 in the aftermath of Tiananmen. In response, the government introduced legislation and regulations designed to encourage foreigners to invest in high-priority sectors and regions. Since the early 1990s, China has allowed foreign investors to manufacture and sell a wide range of goods on the domestic market, and authorized the establishment of wholly foreign-owned enterprises, now the preferred form of FDI. However, the Chinese governmentЎЇs