Samsung Mobile India saw its market share increase from 11 per cent in 2009 to a little over 20 per cent in 2010, primarily due to the introduction of affordable SmartPhones and the consolidation of its leadership position in the TouchScreen segment. Ranjit Yadav, country head of the mobile and information technology (IT) division, talks to Swati Garg on the plans for 2011. Edited excerpts:
How was the 2010 performance?
Stellar in terms of growth, both in market share and volumes. We started the year with a market share in the early double-digits and we have grown by almost 10 per cent, making Samsung a strong number two in the handset market, in accordance with date provided by GFK Nielsen, our research indicator.
What are you targeting for 2011?
At our current pace, we should be able to get an additional market share of eight to 10 per cent in 2011, bringing our total to about 30 per cent. The key driver will be our forays into the SmartPhone segment, where we currently have 14 models and look to add more within an affordable range. Besides, we are looking to continue playing at our strengths -- the android phones in the sub-Rs 10,000 categories.
Diversification plans?
The primary area of new product introduction has been the Samsung Galaxy Tab, which we launched in November 2010. This also marked our foray into the tablet computer business. While the market might look crowded, we are the pioneers of the technology in India and we are hoping to corner 50 per cent of the tablet business by the end of 2011.
What would be growth drivers for the Tab?
One primary factor aiding growth of the Tab business in India will be augmentation of 3G technology. Broadband penetration in India is just a fraction of its actual potential. With the increasing adoption of 3G, there will also be the growth of access points and easy availability of technology. Increasing broadband penetration in the interiors of the country would also lead to a corresponding creation and growth of a market for the tablet personal computer (Tab PC) segment. It is this market we are looking to tap into.
What have you identified as key trends in the Indian mobile handset segment?
India is among the largest markets by way of volumes and, hence, is an attractive space for handset makers. The primary driver for market growth will be allocation of 3G.
The immediate repercussion will be that a huge chunk will upgrade their handsets to 3G-enabled phones. I feel a big turnaround will happen once the market feels the impact as a result of the demand upsurge.
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Samsung currently has 14 3G-enabled handsets and is ready to roll out some others in the coming months. Also, we have already started work on the 4G space handsets for the Indian market.
Your marketing initiatives?
As we have seen great numbers in terms of volumes in 2010, we will do more of what we have been doing. Aamir Khan will continue to be the face of our brand, because we think his persona goes well with the Samsung image. We will also continue our three-pronged strategy of television, print and digital media advertising. We are the on-air media partners for the Indian Premier League, 2011. We have planned product launches around the season.
Where do you see Samsung Mobile/IT placed at the end of 2011?
In the mobile handset space, we see a consolidation of our position as the number two player. For this, we are eyeing volume growth of about 50 per cent, year-on-year. We will also focus on the expansion of our offerings in the sub-Rs 10,000 category, along with better customisation of the product at right value propositions to suit local consumer demand.