Distribution Dossier - Samsung India

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Distribution Dossier
Samsung Electronics India Limited

Sales and Distribution Project

By:
Rohit Agrawal

TABLE OF CONTENTS
CONSUMER ELECTRONICS MARKET IN INDIA4
LEADING COMPANIES5
LG Electronics Inc.5
Videocon Industries Ltd5
Samsung India Electronics Private Limited5
SAMSUNG'S DISTRIBUTION CHANNEL7
Role and key deliverables of channel members7
Consumer Electronics Distribution8
CHANNEL MEMBER MANAGEMENT9
Monetary methods9
Non – monetary methods9
Target setting mechanism9
Monitoring Mechanisms9
Training and HR inputs10
FIELD FORCE MANAGEMENT11
Monetary methods11
Non – monetary methods11
Target setting mechanism11
Monitoring Mechanisms11
Training and HR inputs11
TRANSPORT AND LOGISTICS12
Imported Goods12
Within the country12
Modes of Transportation till Dealer12
Modes of Transportation after Dealer12
ANALYTICAL FRAMEWORK13
EVALUATING THE HEALTH OF CURRENT DISTRIBUTION16
Effectiveness16
Efficiency17
Adaptability of Distribution Network18
Dealers' satisfaction with the company19
Efficiency of after Sales Service19
ISSUES IN DISTRIBUTION20
Parallel imports20
Channel Conflicts20
FINANCIALS21
Market Spend Details for Samsung21
Market Spend Details for LG22
FUTURE TRENDS24
Increased use of IT24
Emergence of large national retailers24
Increased buying potential24
Increasing purchasing power with the people at Tier 2 & Tier 3 towns25 Consumer behavior25
After Sales service25
Focus on retail experience25
SUGGESTIONS FOR SAMSUNG26
REFERENCES27

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...
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