ABSTRACT Market segmentation is the process of dividing consumers into different categories based on distinguishing characteristics.

The impetus behind market segmentation is that it helps retailers identify customers who are most likely to buy their products. Samsung Electronics (Mobile Division) operates in one of the most competitive markets of the world. According to the US Federal Communication Commission 67 new Smartphone devices are introduced every year. Samsungs mobile Galaxy SII is competing against world leaders such as Apple, BlackBerry, HTC, LG, Motorola, Samsung, and Sony Ericson. Microsoft also has joined the market by establishing a partnership with Finlands giant Samsung. Google, even though still is Samsungs software partner, has acquired Motorolas Mobile Division. In a smaller proportion but very competitive are Chineses ZTE, China Mobile and Baidu (leading Chinese search provider) with billions of dollars invested in research backed by the Chinese Government. Forbes Magazine has listed China Mobile as the number 1 Chinese company in the world. Under this Oligopolistic Competition, Samsung invests a significant amount of their annual budget in Marketing in order to get a strong Share-of-Voice and distinguish itself from the Noise of competitors. Their Coverage Strategy is arguably a Differentiated Marketing strategy as they have an Extended Product Line with separate offers for each of its segments. An example is Samsungs Mobile division there is: Galaxy Gio, Galaxy Mini, Galaxy Ace, Galaxy SII, Nexus S, Galaxy 551, Wave 723, Galaxy S, Galaxy 5, Galaxy 580 and Omina 7. Some may argue that Concentrated Marketing is the actual strategy of Samsungs Mobile Division as the market is Mobile Phone and Smartphones is the submarket. However its clear that with many different products under the Samsung

brand (i.e. mobiles, smartphones and tablets) the strategy is to: Differentiate and target different segments in the Mobile Market. This Project deals with Various Market Segmentation done in Mobile Industries. This Project mainly focuses on Various Market Segmentation done by Samsung in the Market. Marketing is one of the most important functions in business. It is the discipline required to understand customers' needs and the benefits they seek. Academics does not have one commonly agreed upon definition. Even after a better part of a century the debate continues. In a nutshell it consists of the social and managerial processes by which products (goods or services) and value are exchanged in order to fulfill the needs and wants of individuals or groups. Market segmentation is the process of identifying key groups or segments within the general market that share specific characteristics and consumer habits. Once the market is broken into segments, companies can develop advertising programs for each segment, focus advertising on one or two segments or niches, or develop new products to appeal to one or more of the segments. Companies often favor this method of marketing to the onesize-fits-all mass marketing approach, because it allows them to target specific groups that might not be reached by mass marketing programs.

INTRODUCTION

What is Segmentation ? Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics. Market Segmentation

Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference.

A market segment is a small unit within a large market comprising of like minded individuals.

One market segment is totally distinct from the other segment. A market segment comprises of individuals who think on the same lines and have similar interests. The individuals from the same segment respond in a similar way to the fluctuations in the market.

Basis of Market Segmentation

Gender The marketers divide the market into smaller segments based on gender. Both men and women have different interests and preferences, and thus the need for segmentation. Organizations need to have different marketing strategies for men 3

which would obviously not work in case of females. A woman would not purchase a product meant for males and vice a versa. The segmentation of the market as per the gender is important in many industries like cosmetics, footwear, jewellery and apparel industries.

Age Group Division on the basis of age group of the target audience is also one of the ways of market segmentation. The products and marketing strategies for teenagers would obviously be different than kids. Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines, apparels and so on

Income Marketers divide the consumers into small segments as per their income. Individuals are classified into segments according to their monthly earnings. The three categories are: High income Group Mid Income Group Low Income Group Stores catering to the higher income group would have different range of products and strategies as compared to stores which target the lower income group. Pantaloon, Carrefour, Shoppers stop target the high income group as compared to 4

Vishal Retail, Reliance Retail or Big bazaar who cater to the individuals belonging to the lower income segment.

Marital Status Market segmentation can also be as per the marital status of the individuals. Travel agencies would not have similar holiday packages for bachelors and married couples.

Occupation Office goers would have different needs as compared to school / college students. A beach house shirt or a funky T Shirt would have no takers in a Zodiac Store as it caters specifically to the professionals.

Types of Market Segmentation

Psychographic segmentation The basis of such segmentation is the lifestyle of the individuals. The individuals attitude, interest, value help the marketers to classify them into small groups.

Behaviouralistic Segmentation The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand.

Geographic Segmentation Geographic segmentation refers to the classification of market into various geographical areas.

Steps in Market Segmentation

1. Identify the target market The first and foremost step is to identify the target market. The marketers must be very clear about who all should be included in a common segment. Make sure the individuals have something in common. A male and a female cant be included in one segment as they have different needs and expectations. Burberry stocks separate merchandise for both men and women. The management is very clear on the target market and has separate strategies for product promotion amongst both the segments. A Garnier mens deodorant would obviously not sell if the company uses a female model to create awareness. Segmentation helps the

organizations decide on the marketing strategies and promotional schemes. Maruti Suzuki has adopted a focused approach and wisely created segments within a large market to promote their cars. Lower Income Group - Maruti 800, Alto Middle Income Group - Wagon R, Swift, Swift Dzire, Ritz High Income Group - Maruti Suzuki Kizashi, Suzuki Grand Vitara Suzuki Grand Vitara would obviously have no takers amongst the lower income group. The target market for Rado, Omega or Tag Heuer is the premium segment as compared to Maxima or a Sonata watch.

2. Identify expectations of Target Audience Once the target market is decided, it is essential to find out the needs of the target audience. The product must meet the expectations of the individuals. The

marketer must interact with the target audience to know more about their interests and demands. Kelloggs K special was launched specifically for the individuals who wanted to cut down on their calorie intake. Marketing professionals or individuals exposed to sun rays for a long duration need something which would protect their skin from the harmful effects of sun rays. Keeping this in mind, many organizations came with the concept of sunscreen lotions and creams with a sun protection factor especially for men. 3. Create Subgroups The organizations should ensure their target market is well defined. Create subgroups within groups for effective results. Cosmetics for females now come in various categories.

Creams and Lotions for girls between 20-25 years would focus more on fairness.

Creams and lotions for girls between 25 to 35 years promise to reduce the signs of ageing.

4. Review the needs of the target audience It is essential for the marketer to review the needs and preferences of individuals belonging to each segment and sub-segment. The consumers of a particular segment must respond to similar fluctuations in the market and similar marketing strategies. 5. Name your market Segment

Give an appropriate name to each segment. It makes implementation of strategies easier. A kids section can have various segments namely new born, infants, toddlers and so on. 6. Marketing Strategies Devise relevant strategies to promote brands amongst each segment. Remember you cant afford to have same strategies for all the segments. Make sure there is a connect between the product and the target audience. Advertisements promoting female toiletries cant afford to have a male model, else the purpose gets nullified. A model promoting a sunscreen lotion has to be shown roaming or working in sun for the desired impact. 7. Review the behavior Review the behavior of the target audience frequently. It is not necessary individuals would have the same requirement (demand) all through the year. Demands vary, perceptions change and interests differ. A detailed study of the target audience is essential. 8. Size of the Target Market It is essential to know the target market size. Collect necessary data for the same. It helps in sales planning and forecasting. OBJECTIVES OF THE STUDY

1. To study the meaning and concept of market segmentation

2. To study the impact of market segmentation on Samsung mobile 3. To study the impact of market segmentation on consumer buying behaviour

SCOPE OF THE STUDY It is important to understand why people and market needs to be divided into different segments. A segmented market is seen as an opportunity to effectively focus on particular customers. This appeals to potential customers and also marketers, as they know that this is what they will have to do.

This study also shows how Samsung, a mobile giant, segments its market and focuses its products efficiently towards the customers of a particular segment. This gives a competitive advantage to the company by serving its customers well.

10

LITERATURE REVIEW As consumer scepticism towards advertising is in its all time high, Samsung also focuses in direct interaction with its customers in order to influence others in their peers group. (Kotler, Brown, Adam, Burton and Armstrong 2007, p.346) Business is a subsystem of society, which has both a social and an economic role. Thus, a company must operate in a way that will make possible the production of benefits for society and, at the same time, produce profits for the company itself. (Davis, K. et al. 1980) The role of marketing in society means also responsibilities. In addition to economic and social responsibility, ecological responsibility is nowadays emphasized. According to some definitions, environmental responsibility is part of social responsibility. Improvement of marketing is related to the changing emphases of economic, social and environmental responsibility. Goodpaster and Matthews (1982) analyzed three patterns of thought, which can be distinguished for a company's social responsibility: 1. The invisible hand; 2. The hand of government; and 3. The hand of management. 1. The invisible hand view (promoted by e.g. Milton Friedman) concludes that the only social responsibilities of business organizations are to make profits and to obey laws. Free and competitive market-place will ensure the moral behaviour of companies. The common good is best served when individuals and organizations pursue competitive advantage.

11

2. The hand of government view (promoted by e.g. John Kenneth Galbraith) concludes that companies are to pursue rational and purely economic objectives. It is the regulatory hand of the law and political process which guides these objectives towards common good. 3. The hand of management view (presented by Goodpaster & Matthews) would put the responsibility of a company's actions into the hands of the company itself. It is concluded that the moral responsibilities of an individual may be projected into an organization, and that the concepts of an individual's responsibility and a company's responsibility are largely parallel. Therefore, organizations should be no less or no more responsible than ordinary persons.

12

RESEARCH METHODOLOGY Research is common parlance refresh to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners dictionary of current English lay down the meaning research as a careful investigation and inquiry especially through search for new facts in any branch knowledge. RESEARCH METHODOLOGY USED:Types of research:- the research is based on descriptive cum analytical research Data type:- The research is based on secondary data. Data sources:- Websites, books, newspapers etc. Data analysis and interpretation techniques:The study is based on the secondary data which has been collected from websites, journals, newspapers etc. The study may not involve test for sampling because the primary data is not collected for the purpose of study.

13

FINDINGS AND ANALYSIS Samsung Electronics (Mobile Division) operates in one of the most competitive markets of the world. According to the US Federal Communication Commission 67 new Smartphone devices are introduced every year. Samsung traditionally had a conservative image that focused on low-price products for the lower end of the market. With low prices it was able to compete in the lower-market whereas in the upper market it had lesser penetration. To penetrate the upper-market Samsung had to give up their lowermarket position and focus on innovation and perceiving a higher brand value. The following is the STP Analysis of Samsung Mobiles.

SEGMENTATION: One of the fundamental principles of marketing is the segmentation of the market. Segmentation means the splitting of the market into groups of end users who are: 1. Maximum similarity within each group 2. Maximum difference between groups.

Based on recent Marketing definitions, Behavioural and Psychographic Segmentation are the definitions that best represent Samsungs current Segmentation Strategy.

14

GEOGRAPHIC It has Samsung Guru Segment for rural areas as well as Galaxy segment for urban areas. Samsung is one of the largest manufacturers of mobile phones and it shares the highest cell phone customers with Samsung in India. It has something for everyone.

DEMOGRAPHIC Samsung has mobile phones for youth, age of 16-29, for businessmen etc. for middleclass youth it has Samsung Guru which is for govt. lower class workers also. Guru has many variants; it is coming in 3G also. It is a good option if you want to get a cheap 3G handset. Samsung Galaxy is a good option for youth as it has many attractive features as Wi-Fi, 3G. Galaxy is also for Businessmen. Samsung has partnered with IT industry leaders to bring you the most relevant enterprise solutions and the most comprehensive mobile implementation of Exchange ActiveSync. Decidedly adept in security concerns and the answer to your every business need, the Galaxy S II is ready for serious enterprise usage.

PSYCHOGRAPHIC Samsung mobile is available for those customers too who have their choice based on their lifestyle. Samsung came with some so fancy mobile phones specially for girls and cheaper touch screen stylish phones so that everyone can enjoy touch screen The rate of normal mobiles. Samsung has its range of mobile phones start from 1200to 32,000+.

15

TARGETING: After segmenting the market based on the different groups and classes, the targets need to be chosen. Samsung mobiles have the following target customers: Trendy young people. Professionals. Large businesses. The common cellular phone users. Organizations such as: services to public safety, the government, and both utility and manufacturing enterprises. Institutional sales for colleges. Target is not only number driven but also about acquiring and retaining customers.

POSITIONING: Positioning is about the customer perception about the brand as being different from the other brands on specific dimension including product attributes. The strategies adopted by Samsung to position itself in the Mobile Phone market are as follows: It focuses more on the real margin which comes from mid-to-high-end segments Samsung Concept Store Market making & category creation in small towns Wider Care Network Access to Samsung care line Pioneering in the 3G segment of mobile phones.

16

 Branded itself as a synonym for quality. Created a Unique Brand Image for itself as a high end value driven brand.

17

CONCLUSION Samsung traditionally had a conservative image that focused on low-price products for the lower end of the market. With low prices it was able to compete in the lower-market whereas in the upper market it had lesser penetration. To penetrate the upper-market Samsung had to give up their lower-market position and focus on innovation and perceiving a higher brand value. As higher quality was eventually perceived Samsungs prices also risen. With the introduction of the Apple iPhone and technology now been widely available Samsung has again repositioned as High Perceived Quality but the Galaxy SII, as a new product, is directly positioned against the iPhone 4. With its benefits and features matching the iPhone 4 but with prices slightly under the iPhone price Samsung believes it has a Competitive Advantage over its competitors. Based on recent Marketing definitions, Behavioural and Psychographic Segmentation are the definitions that best represent Samsung current Segmentation Strategy. Although Geographic and Demographic are highly important in Samsungs Segmentation Strategy the emphasis is on Behavioural and Physiographic Segmentation. The Australian Bureau of Statics shows that Smartphone Demographics are 20-40 years, with an income of 51-100K and Geographically located in urban city areas. As the whole market is concentrated in those Geographics and Demographics, Samsung has to focus on the physiology of Consumer Behaviour in order to differentiate itself from the market Noise

18

From the above project I have come to this conclusion that Samsung has implemented various segmentation strategies for its products on a large scale & becoming no.1 leader in the world of mobile phones. Samsung segments its market according to various variables. The main segmentation is done on the basis of price. As per my opinion Samsung had introduced various schemes to attract people & gain more goodwill into market. I would like to conclude that Samsung had been launching various new products & strategies throughout the year but still it is the no.1 brand leader in mobile phones. Many people around the globe are purchasing Samsung phones, as they are very cheap, good & efficient to operate. Samsung have used better & efficient market segmentation strategies to market its products according to various segments of customers in the market. Samsung as such has used all modern & good techniques to tackle problems of customers in market. Customer care & feedback is also given more importance. Better, efficient & advanced techniques are used to increase the sales of product. Also Samsung is largest manufacturer of mobile phones in India & also the no.1 leader in it. Various segmentation strategies are being enrolled into the market to increase the sales of the products. New models & their strategies are being well utilized to enhance the product.

19

DISCUSSION To identify segments, marketers examine consumers' interests, tastes, preferences, and socioeconomic characteristics in order to determine their patterns of consumption and how they will respond to various marketing strategies. The primary information marketers seek is why consumers purchase specific products or services but not others. Catalog retailers and direct-marketing firms make up some of the key users of market segmentation, although many other kinds of companies and organizations use this technique. A company cannot serve all customers in a broad market such as computers or soft drinks. The customers are too numerous and diverse in their buying requirements. A company needs to identify the market segments it can serve effectively. Here we will examine levels of segmentation, patterns of segmentation, market segment procedures, bases for segmenting consumer and business markets, and requirements for effective segmentation. Many companies are embracing target marketing. Here sellers distinguish the major market segments, target one or more of these segments, and develop products and marketing programs tailored to each instead of scattering. Market segmentation is the process of identifying key groups or segments within the general market that share specific characteristics and consumer habits. Once the market is broken into segments, companies can develop advertising programs for each segment, focus advertising on one or two segments or niches, or develop new products to appeal to one or more of the segments.

20

RECOMMENDATIONS First, to determine whether to segment a market, marketers must find out if the market can be identified and measured, which entails determining which consumers belong to specific market segments. Second, marketers must determine if the segments are large enough to be profitable. While marketers can easily divide the total market into smaller groups, these groups might be so small that they do not justify the expenses associated with market segmentation. Third, marketers must be able to reach the segments through their advertising. If the members of a particular segment do not share interest in a common magazine or television show, for example, then marketers have no way of reaching the segment and so the segment is superfluous. Fourth, marketers must gauge the responsiveness of the segments and find out if a proposed segment would likely respond to a marketing campaign. If it is not probable that a segment will react to a promotion, then the segment is not useful. Fifth, marketers must determine if the segments will change in the near future. Since it takes time to prepare a marketing strategy for specific segment and since it takes time for market segmentation to be profitable, creating segments where consumer needs and wants are likely to change would not be productive.

21

IMPLICATION OF FUTURE RESEARCH A major key to a companys success is its ability to select the most appropriate market segmentation because a company cannot target whole market. There are general guidelines for selection of target markets: Target market should be compatible with the organization goals and image. The target market should match the marketing opportunity with the companys resources. An organization should consciously seek markets that will generate a sufficient sales volume at a low cost to result in a profit. A company should select a market wherein the number of competitors and their size are small. The total markets for many products is to varied-too heterogeneous. This variation Is due to the differences in buying habits ways to use the products motives for buying etc. Market segmentation takes these difficulties into account.

22

RESOMMENDATIONS I would like to suggest that the Marketing areas for Sales should be increased. They should try to adopt new strategies to regain whole sales force in the market.

As far as launching of new models is concerned, the Company should try to offer sales of such products at an affordable Price.

The Company should try to bring more attractive offers & discounts to the customers of segments to make them more brands loyal towards them.

23

BIBLIOGRAPHY Book Reffered Kothari C. R., Research Methodology- Methods and Techniques, New Age International Publishers, 2007, 2nd Edition, pp. 26, 95, 111. Malhotra, Naresh K., Marketing Research, An Applied Orientation, Fourth Edition, Pearson Prentice Hall, 2005, Part II, pp. 71-340. Journal & article Dr. Philip Kotler the best advertising is done by satisfied customer (Armstrong and Kotler, 2002). Websites http://www.managementstudyguide.com/market-segmentation-steps.htm http://www.scribd.com/search? cat=redesign&q=project+on+samsung&sa.x=43&sa.y=15

24