Distribution Dossier – Samsung India
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Distribution Dossier
Samsung Electronics India Limited
Sales and Distribution Project
Rohit Agrawal
TABLE OF CONTENTS
CONSUMER ELECTRONICS MARKET IN INDIA
LEADING COMPANIES
LG Electronics Inc.
Videocon Industries Ltd
Samsung India Electronics Private Limited
SAMSUNGS DISTRIBUTION CHANNEL
Role and key deliverables of channel members
Consumer Electronics Distribution
CHANNEL MEMBER MANAGEMENT
Monetary methods
Non Ð- monetary methods
Target setting mechanism
Monitoring Mechanisms
Training and HR inputs
FIELD FORCE MANAGEMENT
Monetary methods
Non Ð- monetary methods
Target setting mechanism
Monitoring Mechanisms
Training and HR inputs
TRANSPORT AND LOGISTICS
Imported Goods
Within the country
Modes of Transportation till Dealer
Modes of Transportation after Dealer
ANALYTICAL FRAMEWORK
EVALUATING THE HEALTH OF CURRENT DISTRIBUTION
Effectiveness
Efficiency
Adaptability of Distribution Network
Dealers satisfaction with the company
Efficiency of after Sales Service
ISSUES IN DISTRIBUTION
Parallel imports
Channel Conflicts
FINANCIALS
Market Spend Details for Samsung
Market Spend Details for LG
FUTURE TRENDS
Increased use of IT
Emergence of large national retailers
Increased buying potential
Increasing purchasing power with the people at Tier 2 & Tier 3 towns
Consumer behavior
After Sales service
Focus on retail experience
SUGGESTIONS FOR SAMSUNG
REFERENCES
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 markets overall value. In comparison, sales of audio equipment generated revenues of $0.6 billion in 2006, equating to 14.9% of the markets 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.
Videocons Thomson CPT segment is organized in three strategic business units which are services, that provides end-to-end management of business-critical