Samsung: Becoming the ‘Brand of Choice’ for Millennials

Millennials in India:

India is one of the youngest major economies globally, in contrast to other countries such as the US, large
European countries, China, etc. where an imminent situation of declining working-age population awaits the
markets. Millennials, a population group in the age bracket of 18-35 years, forms the majority mass and
constitutes nearly 34% to the India’s total population and is expected to stay so in the foreseeable future
(Exhibit 1).

Millennials in India are characterized by high levels of disposable incomes and differ from their previous
generations by their lifestyle choices, consumption pattern, significant need for convenience, and brand
preferences. While most of the monthly income of the millennials is spent on essentials, followed by education
and utilities, the incremental income is primarily spent on entertainment and eating out (32.7%), apparel and
accessories (21.4%) and electronics (11.2%). Unlike previous generations, savings account for only 10% of
both overall and incremental income of the millennials, thus providing a consumption boost to the market.
Millennials, with their low inclination towards savings and increasing spending capacity, provide brands with
vast opportunities (Exhibit 2).

However, it is imperative for brands to understand the mind-set of these young customers and offer the right
set of products/services to them, as they vastly differ from Gen X. 83.8% millennials have access to faster
interest speed via 3G/4G connection as compared to 16.5% for India overall. They spend ~17hrs every week
time on online activities primarily on their mobile phones (Exhibit 3). Social media and online product/service
reviews form an important part of the millennials’ shopping journey and those already shopping online look
beyond just bargains. (Exhibit 4).

Millennials contribution towards the growth of various segments within the consumer markets is expected to be
particularly prominent as this trend-setting group redefines the consumer story going forward. Brands need to
adapt quickly to make the consumer journey of millennials more engaging.
Samsung Context:

Samsung is one of the world's leading technology companies, specializing in IT & Mobile products, consumer
electronics, semiconductors, memory, and system integration. Samsung Electronics commenced its operations
in India in December 1995 and is India’s largest smartphones and consumer electronics brand.

Consumers are at the centre of everything Samsung does and this can be seen in its ‘Make for India’ initiative.
It has been ranked as ‘India’s Most Trusted Brand’ for two consecutive years (2017 and 2018). As a
technology leader, Samsung is at the core of the shift in consumer trends led by the millennials.
Project Challenge

Study the dimensions across the millennial lifecycle to assess the key drivers for their decision making to
answer the following key questions –

1. How is the typical consumer lifecycle and buying journey different for millennials?
2. What are the big trends and possible evolution of preferences for millennials?
3. What are the key brand differentiators that resonate with millennials?

Stitch these drivers together with the perceived gaps in the Samsung eco-system to develop a strategy for
Samsung to become the “Brand of Choice” for millennials.

Suggested Dimensions
An indicative framework of dimensions are mentioned below. However, participants are free to go beyond the
below mentioned dimensions to support their solution. Identify a few critical dimensions for a detailed analysis.
Exhibit 1: Millennials in India are the largest working population group globally

Source: Deloitte - Trend-setting millennials

Exhibit 2: Millennials are driving the shift towards consumption economy

Source: Deloitte - Trend-setting millennials

Exhibit 3: Millennials an online generation

Source: Deloitte - Trend-setting millennials, Morgan Stanley

Exhibit 4: Millennials are a social group and look beyond bargains while shopping

Source: Deloitte - Trend-setting millennials, Morgan Stanley