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Samsung to spend record Rs 100cr on S7 promotions to get an edge over Apple

Thursday, March 3, 2016, 22:30
This news item was posted in Business category and has 0 Comments so far.

KOLKATA: The fight between Samsung Electronics and Apple in India is set to intensify, with the Korean company planning to spend a record sum on marketing and promotion for the new flagship Galaxy S7 and S7 Edge that will be unveiled next week and its US rival drawing up a counter-strategy. Samsung may invest about Rs 100 crore on marketing its latest smartphones, which will be launched in India around March 8 and go on sale from the third week of March at prices that could match Apple’s iPhone 6s models. It has asked dealers to ensure maximum mileage for the Samsung brand on shop floors, three senior industry executives said. To take on Samsung, Apple has told dealers that it will have additional consumer promotion and is considering reducing prices on some models. The company has lined up a counter-marketing budget of Rs 30-40 crore, the executives said. “This is the first time Apple is reacting to a flagship launch from Samsung in India, signifying how important the Indian market is emerging for both the smartphone giants,” said one executive. “While Samsung is tightening the trade, Apple has told us to expect something big.” Samsung India has issued an advisory linking payments to dealers to the visibility of its branding on store fronts and inside. It asked retailers to ensure its brand billboard is the first one above the shop entrance and only its brands be displayed on store walls. Industry executives said Samsung may offer the Galaxy S7 and S7 Edge at a cheaper rate than the Rs 50,000-plus launch price for last year’s flagship Galaxy S6. The company is looking at a price of about Rs 45,000 to compete with iPhone 6s that’s selling at Rs 44,000-45,000. The Korean company has advised dealers that any discounting will entail strict disciplinary action, including blacklisting, since it does not want a price war on the new models, industry executives said. Apple distributors have started taking feedback from the key trade partners in India on the level of support that might be required to counter Samsung’s new launches. “Samsung’s recent launches such as Galaxy A5 and A7 had gained a lot of share, which has already irked Apple. Apple has now informed the traders that it will offer additional consumer and trade promotion on its entire line up and may also cut prices,” a senior trade partner of the company said. Emails sent to Samsung India and Apple seeking comment did not elicit any response till Thursday press time. Both companies are fighting to dominate the premium smartphone segment in India, where handsets are priced over Rs 30,000. The Galaxy S7 and S7 Edge are crucial for Samsung, which wants to be the clear leader in this segment. Apple, too, does not want to lose ground after chief executive Tim Cook recently talked about investing more in India to gain lead. Recent market share reports have failed to identify a clear leader in the

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