Samsung in India: Brand Building a conglomerate when the reverse trend is through Customer Service witnessed in other countries – both developed as well as developing? With the This case, set in 2008, attempts to analyse Whirlpool's Product Innovation inception of Bharti Telecom (Bharti) in how to build brand in a hyper competitive 1985, Sunil Bharti Mittal laid the and Brand Building Strategies in industry like consumer durables industry foundations of an organisation that would India: Re-creating the Lost where brands matter the most and emerge as India's 'telecom conglomerate Magic? marketing efforts matter even more. This giant'. The company made a humble case study can very effectively be used to beginning with the manufacture of push This case is written to debate and discuss debate on what can be the unique platforms button handsets. However, 1992 marked the on the issue – In the presence of focused for competitive advantage in consumer turn of events for Bharti. The liberalisation and determined competitors, even a well- durable industry. Post liberalisation in 1991, of the Indian telecom sector in that year known and established player is capable of with the entry of multinational companies unleashed numerous opportunities for making all the possible incorrect strategic like LG, Samsung and Whirlpool, the Indian domestic and international players to tap moves. Established in 1996, Whirlpool of consumer durables industry has witnessed the lucrative Indian telecom market. India Ltd. (WIL) set out to capture the intense competition. In order to lure the Notwithstanding its small size, Bharti Indian market with its customer-centric customers, companies flooded the market Brands and Branding Brands and Branding Brands and Branding Brands and Branding Brands and Branding plunged into the bidding war for cellular approach. The company gained leadership with latest models, new features and latest licenses, successfully capturing the license in the direct-cool refrigerator segment with technology. To position their brands in the for providing cellular network service in a significant share in the washing machine minds of the consumers, these players New Delhi (Delhi). Making a mark with its market. However, with the entry of the adopted several brand-building strategies brand, Airtel, in the Delhi market, Bharti Korean conglomerates – LG and Samsung, apart from investing heavily on R&D and was confident of a triumphant journey. WIL's rise to success came to a halt. marketing. This case delves into the critical Contradictory to its aspirations, this early Competing for the same market space, success factors of the industry and the victory was followed by a string of these Korean players offered a host of factors that gave a few players market downturns. The company lost most of the technologically superior products at leadership in this industry. To create a subsequent cellular bids and found itself in affordable rates through a strong competitive edge, Samsung, the No. 2 troubled waters. Nevertheless, competitors' countrywide network. Promoted player, is emphasising on customer service. inability to exploit their winning cellular aggressively and backed by a customer care It is believed that customer service is a key bids proved a boon to Bharti. The eagerness service to please Indian customers, these influencing factor in the consumer durables of these companies to sell their cellular products took away the market share from industry. However, with other companies licenses to Bharti brought the company back WIL in less than a decade. The Korean also catching up, can Samsung create an into limelight. Banking on the opportunity, companies redefined the customer service edge? The case delves into what Samsung the company spread its cellular service to in the home appliances segment. To make needs to do to create a competitive new regions in the country. From being a a come-back into the Indian market, WIL, advantage in the highly competitive handset manufacturer, Bharti transformed under the direction of its new vice consumer durables industry. itself into a full cellular service provider president, Marketing, Shantanu Das Gupta, with a whopping 4.5 million customers in geared up to focus on offering innovative March 2003. However, the company is not products. To create a brand recall, the Pedagogical Objectives content with being only a 'telecom company hired celebrity couple Kajol and • To debate on the sources of brand- conglomerate'. In 2008, to gratify its Ajay Devgan as brand ambassadors. After building in a commoditised industry growing aspirations, Bharti declared its 3 years in the red, WIL finally witnessed a intentions of becoming India's 'finest net operating profit in 2008. However, • To understand Samsung India's brand- conglomerate by 2020'. Equipped with a with its market share still trailing behind building strategies youthful logo and new brand identity, Bharti its competitors, the case questions the • To analyse and debate on whether is determined to unveil another success sustainability of WIL’s turnaround. Samsung's focus on customer service story. However, many challenges lie ahead. would give it a competitive advantage Pedagogical Objectives over rivals. Pedagogical Objectives • To understand the nature of the consumer Industry Consumer Electronics/FMCG • To analyse the critical success factors in durables market in India and to analyse Reference MAR0103 building conglomerates and to the critical success factors in this market Year of Pub. 2009 understand the role of brand building in • To understand the reasons for WIL's rise Teaching Note Available a conglomerate vis-a-vis a single-business and fall in the consumer durables industry Struc.Assign. Available firm • To suggest alternatives for WIL to Keywords • To analyse and understand the factors become India's 'Best Home Appliances Rebranding, Repositioning, Strategic responsible for making Bharti's Airtel Company'. Postioning, Conglomerate, Branding, the No. 1 telecom brand in India Industry Consumer Electronics/FMCG Network Operator, Retail, Diversification, • To debate on the efficacy of Bharti's Reference MAR0104 Vision, Airtel, Bharti, Bharti Televentures decision to convert itself from a single- Year of Pub. 2009 business firm into a conglomerate Teaching Note Available • To examine the challenges that Bharti Struc.Assign. Available Bharti Enterprises' New would face in operating as a Keywords Conglomerate Brand Identity: conglomerate when a reverse trend is The Strategic Positioning being witnessed all across the globe. Competitive strategy, Product innovation, Challenges Brand building, Branding, LG, Samsung, Industry Telecom Whirlpool, Consumer Durables industry, This case study's primary objective is to Reference MAR0102 Marketing, CSFs, Competition, India, debate and discuss on: Does it make sense Year of Pub. 2009 Turnaround for a single-business firm from an emerging Teaching Note Available country like India, to transform itself into Struc.Assign. Available 2 www.ibscdc.org M A R K E T I N G M A R K E T I N G M A R K E T I N G M A R K E T M A R K E T I N G Keywords Retailing, Premium Brands, Brand Keywords M A R K E T I N G Personality, Marketing Strategies, Rebranding, Repositioning, Strategic Consumer Behaviour Lenovo-IBM Alliance, Cross-border Postioning, Conglomerate, Branding, consolidation, Price wars, Acer, Chinese Network Operator, Retail, Diversification, PC Industry, Critical Success Factors in PC Vision, Airtel, Bharti, Bharti Televentures industry, Branding, Brand Integration, Acer vs Lenovo: Asian Brands' Branding challenges, consumer goods, Global Ambitions Presonal Computers Heineken's Beer Branding: On the global personal computer map, Acer Bringing 'Starbucks Coffee emerged from obscurity to become the Experience' to Beer third largest PC company only behind Dell Capsule Hotels: A Case of and HP. But the company wasn't a smash Reverse Positioning? This case study, while providing a landscape hit over night. Staying true to its South of the beer industry, offers scope to discuss Asian culture, the company worked up the From luxury to budget to no-frills and the factors behind the declining market ladder, rather silently, building brick-by- boutique... the major hotel giants are share of beer. In the light of this, the case brick. On its way up, the company worked moving ahead with innovative concepts, also enables a discussion on the relevance out many hurdles – ranging from branding and the outcome – a never before choice of Heineken's concept of branded beer bars problems to facing near boycott from the for business as well as leisure travellers. at international airports. Apart from that then stalwarts in the business – and gradually Forging ahead amid stiff competition and the case also explores the challenges that overtook much bigger and older companies. industry growth nearing maturity, hoteliers Heineken would face in bringing the The long standing chairman Stan Shih put are constantly thinking of new value Starbucks experience to beer given the fact up a workman-like effort solving one innovations. One such innovation gave that coffee and beer are similar and problem after the other and steering the birth to the no-frills concept, based on a dissimilar in many ways. company in one of the most competitive typical Japanese capsule hotel along with considerable inspiration from low-cost Globally, as beer is regarded as a industries. All the way through, he stuck to the basics of the business, focusing on airlines and first class accommodation on homogenous product, breweries have long air flight. Particularly visible in popular been adopting unique ways to differentiate quality, quantity and low costs. Acer's Asian counterpart, Lenovo, made its mark in the regions of the US and Europe, they set a and create consumer preferences. However unique and distinct competitive position since the 1990s, the most preferred drink global PC market with a bang by taking over IBM's PC business. From then on, in the market. However, in an industry – Beer is being viewed as ordinary and old- where customers identify their lifestyle with fashioned.