Samsung Mobile revamps sales and distribution in India

KOLKATA: Samsung Mobile, the world's second largest mobile phone maker, is revamping its sales and distribution structure in India. The company will set up 17 sales offices in key smaller markets, decentralise operations till the
branch level and rope in more distributors. Samsung feels its latest initiative will help insulate it from the slowdown in sales and also double market share in India by end-2009.

The company claims to enjoy 8% market share in the Indian mobile phone turf. "We are undertaking a restructuring exercise in the organisation. The new branch offices will strengthen our response to the needs of end consumers by
supporting the channel better. We also plan to restructure our distribution network," Samsung Telecom country head Sunil Dutt told ET.

Samsung, which had one single distributor in North, has appointed four more distributors for the region. "We plan to have a zonal distribution structure from our earlier strategy of having just a distributor for each of the regions. We have also appointed a dedicated national distributor for the organised retail business to drive efficiency. Previously, the retail chains were serviced by the regional distributors," said Mr Dutt.

Incidentally, Samsung had strengthened its position in the Indian market by appointing regional distributors last year. "We doubled our sales volume in 2008. We are recruiting now to enhance our sales and marketing function. In
terms of the product launch, we plan to roll out 30-odd handset models this year," Mr Dutt said.

The company will focus on touch phones, dual-SIM phones, music and entry-level handset models. "In the entry level, we have decided to offer better functionality and features instead of stripping down prices. Dual SIM phones are growing in the metros since most people in these markets have more than one telecom connection," said Mr Dutt.

Samsung India has decided to focus on mobile phones and IT products in 2009. In line with this, the company has doubled its network of micro retailers for notebooks. "We are in the process of recruiting sales personnel for the
branch offices as well as the notebook business where we made a foray last month," Samsung India VP (corporate HR) Sanjay Bali said.

The company has doubled its IT division manpower in 2008 and set up a separate monitor and printer divisions. It has also set up a specialist team for its B2B business under the IT division.