Brands and Branding

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Brands and Branding

Samsung in India: Brand Building through Customer Service Whirlpool's Product Innovation and Brand Building Strategies in India: Re-creating the Lost Magic? This case is written to debate and discuss on the issue – In the presence of focused and determined competitors, even a wellknown and established player is capable of making all the possible incorrect strategic moves. Established in 1996, Whirlpool of India Ltd. (WIL) set out to capture the Indian market with its customer-centric approach. The company gained leadership in the direct-cool refrigerator segment with a significant share in the washing machine market. However, with the entry of the Korean conglomerates – LG and Samsung, WIL's rise to success came to a halt. Competing for the same market space, these Korean players offered a host of technologically superior products at affordable rates through a strong countrywide network. Promoted aggressively and backed by a customer care service to please Indian customers, these products took away the market share from WIL in less than a decade. The Korean companies redefined the customer service in the home appliances segment. To make a come-back into the Indian market, WIL, under the direction of its new vice president, Marketing, Shantanu Das Gupta, geared up to focus on offering innovative products. To create a brand recall, the company hired celebrity couple Kajol and Ajay Devgan as brand ambassadors. After 3 years in the red, WIL finally witnessed a net operating profit in 2008. However, with its market share still trailing behind its competitors, the case questions the sustainability of WIL’s turnaround. Pedagogical Objectives • To understand the nature of the consumer durables market in India and to analyse the critical success factors in this market • To understand the reasons for WIL's rise and fall in the consumer durables industry • To suggest alternatives for WIL to become India's 'Best Home Appliances Company'. Industry Reference Year of Pub. Teaching Note Struc.Assign. Consumer Electronics/FMCG MAR0104 2009 Available Available

This case, set in 2008, attempts to analyse how to build brand in a hyper competitive industry like consumer durables industry where brands matter the most and marketing efforts matter even more. This case study can very effectively be used to debate on what can be the unique platforms for competitive advantage in consumer durable industry. Post liberalisation in 1991, with the entry of multinational companies like LG, Samsung and Whirlpool, the Indian consumer durables industry has witnessed intense competition. In order to lure the customers, companies flooded the market with latest models, new features and latest technology. To position their brands in the minds of the consumers, these players adopted several brand-building strategies apart from investing heavily on R&D and marketing. This case delves into the critical success factors of the industry and the factors that gave a few players market leadership in this industry. To create a competitive edge, Samsung, the No. 2 player, is emphasising on customer service. It is believed that customer service is a key influencing factor in the consumer durables industry. However, with other companies also catching up, can Samsung create an edge? The case delves into what Samsung needs to do to create a competitive advantage in the highly competitive consumer durables industry. Pedagogical Objectives • To debate on the sources of brandbuilding in a commoditised industry • To understand Samsung India's brandbuilding strategies • To analyse and debate on whether Samsung's focus on customer service would give it a competitive advantage over rivals. Industry Reference Year of Pub. Teaching Note Struc.Assign. Consumer Electronics/FMCG MAR0103 2009 Available Available

a conglomerate when the reverse trend is witnessed in other countries – both developed as well as developing? With the inception of Bharti Telecom...
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