Financial Daily from THE HINDU group of publications
Thursday, Jun 12, 2003
Financial Daily from THE HINDU group of publications Thursday, Jun 12, 2003 |
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Info-Tech
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Marketing Marketing - Strategy Samsung mulls `$ biz sales' model for PCs Our Bureau
HYDERABAD, June 11 TARGETING a total sales of 100,000 PCs this calendar year, the Information Technology and Telecommunication division of Samsung India Electronics Ltd is planning to launch what it describes as "$ business sales" model like Dell and is looking at a big push in Government applications and the education sector. Describing this division as the "future business" of Samsung India, Mr Princy Bhatnagar, Country Manager, Build Your PC (BuPC), said the company was eyeing 12 per cent market share and had zeroed in on class D and E towns. "We are also looking at offering our range of products for the new and emerging "prestige buyer", who wants to buy the very best from the market." "We are currently evaluating the right business model for the launch of $ business sales model. Typically, PC buyers located under the Electronic Hardware Technology Park and Software Technology Parks can avail of certain exemptions under excise and customs duty when they are procuring them for use. This means the sale is paid in dollar terms and they are billed in dollars," Mr Bhatnagar explained. "Typically, companies in the Karnataka and Andhra Pradesh, who account for significant PC sales in the country, are likely to benefit from such a facility. Even though the product is manufactured within the country, a company can avail of this payment option. And since most companies purchase in bulk, this augurs well for them," he explained. "We entered this segment about nine months ago beginning with the North and North-East region, a market where no one had addressed. Already we have covered Jharkhand, West Bengal, Goa, and soon plan to enter some parts of North India. The South launch has just about begun. We have taken a conscious decision to look at opportunities in class D and E cities and towns, with emphasis on semi-rural and rural areas. This we did so as we found that the metros and major cities were showing signs of sluggish growth. And the untapped potential of the rural areas was being neglected. We see a big growth from small and medium enterprise segment and home users," Mr Bhatnagar explained.
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