 "\"Our finance-linked sales have more than doubled\"")
What is the most interesting sales promotion you have engineered so far?
We have always worked towards providing our consumers with innovative sales promotions and these promotions have actually benefited our consumers tremendously. Having said that, the various finance-related schemes that include 0 per cent finance, equated monthly installments (EMI) and the cash-back offer launched early this year have been widely accepted and have become very popular with our consumers.
Who was the primary target for the promotion?
Primarily, we are targeting consumers who are looking at upgrading their devices to the high-end smartphones from mid-segment smartphones and feature phones.
Why was the promo designed in such a manner?
From our learnings in the last one year, we sensed a strong interest in the market for our high-end devices. Our main objective is to make smartphones accessible for all. To that end, Samsung has worked out series of innovative finance schemes to help consumers upgrade their devices. We have offered finance schemes on a bouquet of Galaxy range devices, namely Galaxy Note 800, Galaxy SIII, Galaxy Grand, Galaxy Note II and the Galaxy camera. Also, we were one of the first original equipment manufacturers to offer our customers a cash-back guarantee; earlier, only e-commerce websites provided consumers such a guarantee. Today, our smart devices portfolio ranges from smartphones to tablets and the Note category. We offer the widest range of smartphones priced between Rs 5,240 and Rs 40,300 across screen sizes based on the Android platform
Can you elaborate on the media plan?
Samsung introduced the finance-linked schemes with the launch of the Samsung Galaxy Own Now campaign in January this year. This was a 360-degree campaign with a focus on television, print and digital. As part of this campaign, we had offered an EMI scheme on five Galaxy devices, wherein there is no interest, down payment or processing fee for Galaxy devices initially. These devices include Galaxy Note 800, Galaxy SIII, Galaxy Grand, Galaxy Note II and Galaxy Camera, and our latest launch Galaxy S4.
When we saw the success of the finance schemes, we decided to launch another offer. In the second quarter of 2013, we offered 15 per cent cash back on ICICI and Standard Chartered credit cards for our flagship products. Then, when we achieved the 15-million landmark for our Galaxy series, we announced a special celebratory offer for our flagship model Note II. Today, Samsung is offering flat Rs 10,000 cash back when a customer exchanges an old phone for a Galaxy Note II. While this sale promotion is still on, the cash-back schemes on other handsets have ended.
What were the challenges in floating finance-related schemes?
The finance schemes can only be availed of by customer who own credit cards.
Can you give an idea of the impact of these schemes on the sales and the brand?
Our finance-linked sales have more than doubled during the promotion period. Samsung is currently leading the smartphone sales battle in India by a neat margin.
Will such schemes work in the future?
Such promotional tools are introduced for a limited period only and are relevant for specific products. having said that, anything that makes financing easier will always work in India.
Dont sales promotions harm a company/brand in the long term?
We believe that a successful sales promotions results in higher sales volumes for the company even it is for a short period. Therefore, it makes complete business sense.
We have always worked towards providing our consumers with innovative sales promotions and these promotions have actually benefited our consumers tremendously. Having said that, the various finance-related schemes that include 0 per cent finance, equated monthly installments (EMI) and the cash-back offer launched early this year have been widely accepted and have become very popular with our consumers.
Who was the primary target for the promotion?
Primarily, we are targeting consumers who are looking at upgrading their devices to the high-end smartphones from mid-segment smartphones and feature phones.
Why was the promo designed in such a manner?
From our learnings in the last one year, we sensed a strong interest in the market for our high-end devices. Our main objective is to make smartphones accessible for all. To that end, Samsung has worked out series of innovative finance schemes to help consumers upgrade their devices. We have offered finance schemes on a bouquet of Galaxy range devices, namely Galaxy Note 800, Galaxy SIII, Galaxy Grand, Galaxy Note II and the Galaxy camera. Also, we were one of the first original equipment manufacturers to offer our customers a cash-back guarantee; earlier, only e-commerce websites provided consumers such a guarantee. Today, our smart devices portfolio ranges from smartphones to tablets and the Note category. We offer the widest range of smartphones priced between Rs 5,240 and Rs 40,300 across screen sizes based on the Android platform
Can you elaborate on the media plan?
Samsung introduced the finance-linked schemes with the launch of the Samsung Galaxy Own Now campaign in January this year. This was a 360-degree campaign with a focus on television, print and digital. As part of this campaign, we had offered an EMI scheme on five Galaxy devices, wherein there is no interest, down payment or processing fee for Galaxy devices initially. These devices include Galaxy Note 800, Galaxy SIII, Galaxy Grand, Galaxy Note II and Galaxy Camera, and our latest launch Galaxy S4.
When we saw the success of the finance schemes, we decided to launch another offer. In the second quarter of 2013, we offered 15 per cent cash back on ICICI and Standard Chartered credit cards for our flagship products. Then, when we achieved the 15-million landmark for our Galaxy series, we announced a special celebratory offer for our flagship model Note II. Today, Samsung is offering flat Rs 10,000 cash back when a customer exchanges an old phone for a Galaxy Note II. While this sale promotion is still on, the cash-back schemes on other handsets have ended.
What were the challenges in floating finance-related schemes?
The finance schemes can only be availed of by customer who own credit cards.
| The idea behind a good sales promotion campaign is to reach consumers at the borderline. The ‘Samsung Galaxy own now’ campaign created compelling offers to lure this set of fence sitters. It’s a known fact how consumers the world over, especially in emerging economies, watch the US closely. High-end brands like Apple and Sony often don’t feel the need to push sales via promotions. So they miss out on a large number of aspirers. On the other hand, with cash-backs and EMI options, Samsung is trying put a similar or better (than Sony) product in the hands of consumers at a slightly less price. The company also understands that gone are the days when sales promotion were planned for 15 days. Today the duration of a sales promotion campaign has to be two-three months at least. This is because shorter promotions sometimes fail to reach consumers who end up feeling left out after these activities end. With this sale promotion, Samsung has demonstrated that it is more important to put its brands in the consumer’s hands and not just in her mind. Harmindar Sahni |
Can you give an idea of the impact of these schemes on the sales and the brand?
Our finance-linked sales have more than doubled during the promotion period. Samsung is currently leading the smartphone sales battle in India by a neat margin.
Will such schemes work in the future?
Such promotional tools are introduced for a limited period only and are relevant for specific products. having said that, anything that makes financing easier will always work in India.
Dont sales promotions harm a company/brand in the long term?
We believe that a successful sales promotions results in higher sales volumes for the company even it is for a short period. Therefore, it makes complete business sense.
Vineet Taneja
Country head, Mobile & Digital Imaging Business, Samsung