Samsung bullish on 'Build Your PC'

CIOL Bureau
New Update

NEW DELHI: Samsung Electronics India Information Technology Ltd's (SEIIT) marketing initiative in introducing its PC as a lifestyle product and enhancing customer's experience seems to have paid dividends as the company's PC has stormed the smaller towns and cities. Deliberately staying away from the metros, the company's initial focus has been in the D and E class cities to tap markets hitherto neglected by other vendors.

Samsung claims to have achieved that through a careful selection of partners. This has been backed by its marketing campaign, which consciously did not mention prices and configuration, instead emphasized on the need of the customer.

The company, which made its foray into the PC space in October 2002 with its buildurpc (BUPC) brand, is happy with its performance in the East and the Northern regions of the country. The East performed unexpectedly well for the company bringing in 50 percent sales. This is because SEIIT happens to be the only IT vendor to seriously invest in market building activities in the East.

Ivy Computers in UP and Uttaranchal, Majority in Rajasthan, Millennium Computers in Punjab, Chandigarh, J&K and Haryana have represented the company. In the East, the company has tied up with Jalan Infotech and Syntech, and in the West with Sameer Electronics.

It has recently tied up with Redington India to distribute its PCs in the Western region. With its metro launches impending on May 15, Ivy Computers in Delhi and Redington in Mumbai would look after the two cities.

Said Princey Bhatnagar, National Manager, BUPC, "PC vendors have all along been selling configuration to customers with an emphasis on the speed of the processor. We have tried to change that by selling how the computer can enhance a customer's life by bringing more value for money." And in order to do that it is not important to sell processor speed.

Processor cost comprise just 13 percent of the cost of the PC. There are so many other components that make up a PC and which can make a difference in the overall computing experience. Samsung vends over 90 percent of the components that go into making a PC. Since the positioning was to step away from selling configuration and to focus on selling a lifestyle item, Samsung had to launch a PC which was an integrated offering without talking about the parts that go into making the PC.

Based on its experience of, Samsung offers PC in three categories: PCs for style, the PC for value and the PC that is positioned at a low price point. However, the focus would be on the first two categories away from the low-end PC, which would at any point not comprise more than 10 percent-15 percent of the total sales.

The company is hopeful of a 50 percent year on year growth from its PCs. Among its other initiatives would be to increasingly combine its partners in consumer electronics and IT. The company plans to buy space in the consumer electronic goods shops and in lifestyle stores so that it draws more customer inquires.