The difficulties of cross-border estates - Free Essay Example

Sample details Pages: 11 Words: 3342 Downloads: 9 Date added: 2017/06/26 Category Law Essay Type Narrative essay Level High school Did you like this example? Comment on and describe the particular difficulties arising in cross border estates, i.e. a person dying with assets in several jurisdictions. Cross border estates have inherent difficulties that centre on the legal and fiscal consequences when the investor dies. Don’t waste time! Our writers will create an original "The difficulties of cross-border estates" essay for you Create order There are varying rules in the different countries and various operations in regard to succession. Some countries devolve the entire estate on the direct heirs whilst other countries allow the succession to be determined by the authorities. In some countries there is a policy of forced heirship[1]. Further problems exist in the levying of taxes on the estate. It may be difficult to decide which jurisdiction should levy the taxes[2]. This could be crucial to the estate as the tax might be higher in some jurisdictions. For the heir it is obviously preferable if the country operating the lowest taxation system taxes the estate, however the heirs do not have any input in this decision. Through the recognition of trusts the Hague convention has attempted to address the issues on the taxation of estates[3]. In some instances estate taxes have been avoided by the assets being placed in a trust. There have been problems when such trusts have been settled as where occasionally a gift tax char ge has been levied. There have been attempts within the European Union to try to introduce some form of regulation on the rules of succession so that there are clear guidelines on the rules of succession and the issue surrounding the jurisdiction in which the inheritance is table in[4]. Under the present system some countries regard habitual residence or domicile as the deciding factor on succession rights whilst other countries base their decision on nationality. Other European states have adopted a policy of determining the estate in the terms of immovable and movable items[5]. To give an example of how this works under the present system, if an English person after retirement decided to go and live in France then French law would regard him as habitually resident in France whereas English law would regard him as domiciled in England. Any movable items would be subject to succession in both English and French law. Once the owner of the estate dies the division of the estate becomes difficult as the movable items are governed by succession rules in 2 different countries. This can be demonstrated by the case of Barbier (C-364/01) 2003[6] in which the European court made it clear that an inheritance of property constituted a movement of capital. In this case the court held that the Dutch authorities were in breach of Article 56 of the Convention due to the restrictions placed on the successors of the estate on the grounds of nationality. In Van Hilten-Van der Heijden (Free movement of capital) [2005] EUECJ C-513/03 (23 February 2006) the problem of cross border estates was highlighted. The case came to the attention of the courts after the death of Mrs van Hilten-van der Heijden in November 1997. Up until the beginning of 1988 she had been resident I the Netherlands. Between 1988 and 1991 she moved first to Belgium and then to Switzerland. Her estate contained immovable property in the Netherlands, Belgium and Switzerland as well as investments in secu rities in the Netherlands, Germany, Switzerland and the USA. Bank accounts were also discovered in the Netherlands and Belgium. The heirs of the estate where taxed under Swiss inheritance tax laws, Article 3(1) of the SW 1956, which was upheld by the Inspector following an appeal by four of the heirs. The heirs brought a further action against the inheritance tax in the European Court of Justice. This court held that Article 3(1) of the SW 1956 is a national measure which effectively restricts the free movement of capital[7]. They found that this was a direct breach of Article 73b of the convention (now Article 53). The decision of the ECJ was that the inheritance tax had been wrongly imposed. It was also decided by this court that Directive 88/361 Annex I XI clearly covered inheritance of property within Member States with regard to the free movement of capital and should be adhered to. A simplification on the rules of inheritance where there are cross border estates ahs been attempted by the EU[8]. In a report to the EU Directorate à ¢Ã¢â€š ¬Ã¢â‚¬Å" General for Justice in Home Affairs in 2002 the conflict of law relating to wills and succession was studied[9]. Several recommendations emerged from this report, one of which was that the last habitual residence of the deceased should be the deciding factor in determining the jurisdiction for the wills and succession[10]. Other recommendations centred on the taxation of the estate and recommended that the jurisdiction on such taxes should apply to movable and immovable items belonging to the deceased and should be made with reference to the last habitual residence. The report also proffered the suggestion that a testator should be able to designate whether he wishes the law of his nationality or the law of his habitual residence to apply to his whole estate[11]. The report believes this might be achieved by having a uniform European Certificate of Inheritance and a Central Wills Register. It is anticipate d that these changes might well be implemented by 2007 following the green paper review issued by the Directorate General for Justice and Home Affairs of the EU Commission in 2005[12]. At present different countries have varying interpretations of residence and of deciding on domicile issues[13]. A review paper issued by the Inland Revenue in 2003 addressed this issue and attempted to simplify residence and domicile problems. The report compared the rules on residence and domicile in the UK with other countries around the world. The findings of the report showed that in most countries residence is viewed as where the person habitually lives[14]. All countries viewed the taxation on residence to encompass all worldwide income as taxable. Where the person is domiciled in one country but resident in this can cause distinct problems. There is a possibility that a double taxation of their assets could occur[15]. The double taxation issue has been addressed in some countries by the use of treaties with other countries[16]. Treaties exist between the Republic of Ireland and the UK as of 1978[17]. This was aimed at preventing taxation of properties in both jurisdictions upon the ownerà ¢Ã¢â€š ¬Ã¢â€ž ¢s death. Other treaties with other countries exist for the same purpose[18]. The basic format for the treaties is that inheritance tax is charged in the country in which the property is located[19]. Without the treaties the country of domicile would also be entitled to charge inheritance tax on the asset. Using the treaties the country of domicile gives a credit to the beneficiaries for the tax that has already been paid. Where the deceasedà ¢Ã¢â€š ¬Ã¢â€ž ¢s assets are in a country with no such treaty the country concerned may apply a form of unilateral relief. This is however a discretionary power and need not be adhered to. Legislation in most countries attempts to provide some form of protection to provide for the dependents of the deceased, although problem s still arise with cross border estates that can lead to the dependents paying higher inheritance tax than they would have paid had the taxation been applied to the habitual residence rather than the country of domicile. A further complication can arise as the dependents might find that they do not have an automatic right to inherit and might have to apply to the court to secure their inheritance. In many civil law countries the principle of forced heirship ensures that enforceable fixed shares are given to certain categories of beneficiaries. The Inheritance (Provision for Family and Dependents) Act 1975 section 1(1) in the UK only protects the family of the deceased if the deceased dies domiciled in England or Wales. Once the recommendations of the green paper[20] come into force the Act will be reformed and will allow dependents of the deceased to claim against the estate regardless of any impact of the deceased not being domiciled in the UK at the time of their death[21]. There is a distinction in the UK between administration and the estate[22]. In the UK an estate can be vested in personal representatives who are allowed to charge for their services. These representatives are tasked to collect together all the assets, pay any debts and distribute the remainder to the beneficiaries. This distinction does not exist I civil law countries. Within civil law countries assets are automatically transferred to the heirs. The difficulty faced by the executors appointed in the UK is that they may have difficulty proving any title to the assets as they are not recognised by other countries[23]. The rules of forced heirship in civil law countries can mean that up to three quarters of the deceasedà ¢Ã¢â€š ¬Ã¢â€ž ¢s estate can be given to reserved heirs despite the content of the testatorà ¢Ã¢â€š ¬Ã¢â€ž ¢s will. With someone of UK origin who is habitually resident in another country where the rules of forced heirship apply the beneficiaries in the UK might n ot receive their full entitlement under the terms of the will. When looking at immovable items these generally come under the jurisdiction of the country in which they are held and as such are subject to the rules of taxation and succession applicable in that country. Disposal of overseas assets can be complex and the right to administer the estate might involve adhering to certain protocol of the country in which the assets are held. It is usual for a solicitor to handle such matters though a successor to the estate can opt not to if they wish. The first thing that is needed to deal with overseas property is a Grant of Representation from the Probate office[24]. This grant allows the personal representative to deal with the deceasedà ¢Ã¢â€š ¬Ã¢â€ž ¢s assets and administer the estate. A separate grant will be required for each country in which assets are held. If it is necessary to prove the will, then the first grant to be applied for should be the domiciled country of th e deceased. Within the grant of representation there is a grant of Probate and a Grant of Letters of Administration. The Grant of probate gives the executors the authority to gather the assets and distribute them in accordance with the will. If there is no will, then a Grant of Letters of Administration has to be obtained by the persons entitled to inherit[25]. The rules of intestacy applicable to the country of domicile of the deceased will also apply if there is no will[26]. If there is a will and that will have been contested then the country of domicile will have jurisdiction over settling the issues. Inheritance tax can be avoided in the UK by placing the property in a trust for the beneficiaries. This would make the property settled property but could only be excluded from inheritance tax if the person placing the property into trust was domiciled outside the UK when the settlement was made. UK law allows a person to change their domicile by choice[27]. This can be achie ved by them changing their residence to a different place from their domicile at birth and can show that there is a clear and fixed intention to make this residence their permanent home. Evidence of this intention can be adduced from certain actions of the party concerned such as the purchase of a property in that country or the purchase of a burial plot[28]. When looking for the intention of the party concerned the immigration department will look for such evidence and may be swayed by a statutory declaration of that party in respect of their intention to remain domiciled in the new country. It is the responsibility of the person changing their domicile by choice to prove that this is their intention. The proof required is not the balance of probabilities test but that of proof beyond reasonable doubt. If this cannot be proved then the country of domicile would revert to the domicile of origin. If spouses are both domiciled in the UK then the transfer of capital between them dur ing their lifetime is exempt from inheritance tax. Where the person transferring the assets is domiciled in the UK but the spouse is domiciled elsewhere then any capital transferred may be subject to inheritance tax. If the transferor is domiciled outside the UK and the spouse is domiciled in the UK then there might be a full exemption to inheritance tax. Further difficulties could arise with cross border estates if the deceased had become insolvent before his death[29]. The Insolvency Act 1986 s336 entitles the spouse of the bankrupt to the matrimonial home irrespective of her spouseà ¢Ã¢â€š ¬Ã¢â€ž ¢s bankruptcy. This ruling only applies under UK law which means that the rules of bankruptcy in other countries could leave the spouse without a home as the whole estate might be subject to possession by the creditors. Some countries do not recognise the rights of the spouse to the matrimonial home[30]. Where the marital property is not in the country of domicile the rights of the s pouse might not be recognised automatically which could mean that the spouse could find herself without a home if the deceased is insolvent. Assets that are bought and sold in other countries can cause difficulties in the administration of cross border estates. In the UK tax is levied on property or assets held in a foreign country once those items are sold and the money reinvested back in the UK. Some people have been able to avoid the UK taxation system when buying property in other countries although very few are successful at doing this. The conclusion that can be drawn from the above is that cross border estates can cause an assortment of problems for the relatives of the deceased. The largest problem is in collecting all the assets of the estate together and in deciding which country will have jurisdiction for the collection of inheritance tax[31]. The difficulty with immovable and movable objects can cause further problems as some parts of the estate will be subject to inheritance tax in one jurisdiction whilst other items might be taxed in a different jurisdiction. Immovable items are always taxed in the country of origin which means that anyone considering buying an overseas property should look at the inheritance tax rules of that country before buying the property. Movable items are generally taxed according to the persons domicile or habitual residence[32]. There can be some instances where two countries can claim jurisdiction over the movable item. In these circumstances the court must decide which country should have jurisdiction. In assessing the assets of the deceased most countries adopt the principle of habitual residence, however in the UK the taxation rights are recognised with regard to the domicile of the deceased. As mentioned above the UK allows citizens to change their domicile of choice the effect of which would be that if the person were originally domiciled in the UK but adopted another country as his domicile of choice all the assets of his estate would be subject to the taxation laws of the newly domiciled country irrespective of any movable items that might still be held by the deceased in the UK. Spouses generally only obtain an automatic right to possession of the marital home if they are both domiciled within the UK or if the property was placed in trust for the spouse by the transferor whilst domiciled out of the UK. There is no unilateral recognition of wills in other countries and this can cause difficulties for executors who might not be recognised by other countries as having any title to the deceasedà ¢Ã¢â€š ¬Ã¢â€ž ¢s assets. The further difficulty with wills not being recognised unilaterally as mentioned above could mean that the wishes of the testator might not be adhered to and heirs the testator did not wish to receive anything from the estate might receive the bulk of the estate[33]. Bibliography Hayton, DJ, The Law of Trusts and Equitable Remedies, 11th Ed, 2001, Sweet a nd Maxwell Sornarajah, M., The International Law on Foreign Investment, Cambridge: Cambridge University Press (1994) Bridge, M Stevens, R, Cross-border Security Insolvency, 2001, Oxford University Press Ross, S Inheritance Act Claims: Law and Practice,2005 Sweet Maxwell Organizations, Reorganizations, Amalgamations, Divisions and Dissolutions: Cross-Border Assets, Double Taxation and Potential Relief Under the U.S. Canada Tax Treatyà ¢Ã¢â€š ¬Ã‚ , Georgia Journal of International and Comparative Law, v. 26 No. 2, 1997, with Professor C. Manolakas. Green Paper Succession and wills {SEC(2005) 270} https://ec.europa.eu/justice_home/doc_centre/civil/studies/doc/testaments_successions_summary_en.pdf https://ec.europa.eu/justice_home/doc_centre/immigration/work/doc/com_2004_811_en.pdf https://ec.europa.eu/justice_home/news/consulting_public/successions/contributions/contribution_ls_appa_en.pdf https://eur-lex.europa.eu https://europa.en.int/comm/justice _home/doc_centre/civi/doc/com_205_065_en https://www.canter-law.co.uk https://www.gov.uk https://www.europarl.europa.eu/hearings/20051121/juri/frimston_en.pdf https://www.eurunion.org https://www.friendsprovident.co.uk https://www.hmrc.gov.uk https://www.hm-treasury.gov.uk https://www.icaew.com https://www.lawgram.com https://www.morganmcmanus.com https://www.murraybeith.co.uk https://publications.parliament.uk/ https://swarb.co.uk https://www.taxireland.ie/documents/uk_agreement.pdf https://www.taxjustice.net https://www.thursfields.com https://www.ukvisas.gov.uk Table of Cases Barbier (Free movement of capital) [2003] EUECJ C-364/01 (11 December 2003) McMahon Ors v McGrath Ors [2005] EWHC 2125 (Ch) (07 October 2005); HIH Casualty General Insurance Ltd Ors v McMahon Ors [2006] EWCA Civ 732 (09 June 2006) Ospelt and Schlossle Weissenberg Familienstiftung (Free movement of capital) [2003] EUECJ C-452/01 (23 September 2003) Van Hilten-Van der Heijden (Free movement of capital) [2005] EUECJ C-513/03 (23 February 2006) Table of Statute Inheritance (Provision for Family and Dependents) Act 1975 European Communities (Personal Insolvency) Regulations S.I. No. 334/2002; 1 [1] https://www.itpa.org/open/summaries/copen92s.html#b [2] https://www.murraybeith.co.uk/pages/news_article.php?id=13 [3] https://www.lawgram.com/resources/publications/MEuropeanEstateAdministrationLU.pdf [4] https://www.eurunion.org/partner/summit/Summit9805/invest.htm [5] https://www.thursfields.com/PDF_Files/3 Cross Border Estates.pdf [6] Barbier (Free movement of capital) [2003] EUECJ C-364/01 (11 December 2003) [7] Ospelt and Schlossle Weissenberg Familienstiftung (Free movement of capital) [2003] EUECJ C-452/01 (23 September 2003) [8]https://ec.europa.eu/justice_home/doc_centre/civil/studies/doc/testaments_successions_summary_en.pdf [9]https://ec.europa.eu/justice_home/news/consulting_public/successions/contributions/contribution_ls_appa_en.pdf [10] https://europa.en.int/comm/justice_home/doc_centre/civi/doc/com_205_065_en [11] https://www.europarl.europa.eu/hearings/20051121/juri/frimston_en.pdf [12] Green Paper Succession and wills {SEC( 2005) 270} [13] https://www.thursfields.com/PDF_Files/3 Cross Border Estates.pdf [14] https://www.taxjustice.net/cms/upload/pdf/e_0803.pdf; https://www.hm-treasury.gov.uk/media/A37/8B/adres273kb03.pdf [15] https://www.morganmcmanus.com/html/pdf/CrossBorder_Estates.pdf [16] https://www.icaew.co.uk/librarylinks/index.cfm?AUB=TB2I_25798 [17] https://www.taxireland.ie/documents/uk_agreement.pdf [18] US/UK Double taxation convention signed July 2002 Article 22; https://www.hmrc.gov.uk/international/usa.pdf [19] https://www.hmrc.gov.uk/cto/glossary.htm [20] https://ec.europa.eu/justice_home/doc_centre/immigration/work/doc/com_2004_811_en.pdf; https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52005DC0065:EN:NOT [21] https://www.thursfields.com/PDF_Files/3 Cross Border Estates.pdf [22] https://www.lawgram.com/resources/publications/MEuropeanEstateAdministrationLU.pdf [23] https://www.lawgram.com/resources/publications/MEuropeanEstateAdministration LU.pdf [24] https://www.morganmcmanus.com/html/pdf/CrossBorder_Estates.pdf [25] https://www.canter-law.co.uk/private_client/grant.html [26] https://www.morganmcmanus.com/html/pdf/CrossBorder_Estates.pdf [27] https://www.friendsprovident.co.uk/doclib/ctst8.pdf [28]https://www.ukvisas.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPagec=Pagecid=1038489160281 [29] McMahon Ors v McGrath Ors [2005] EWHC 2125 (Ch) (07 October 2005); HIH Casualty General Insurance Ltd Ors v McMahon Ors [2006] EWCA Civ 732 (09 June 2006) [30] European Communities (Personal Insolvency) Regulations S.I. No. 334/2002; https://www.publications.parliament.uk/pa/ld199900/ldhansrd/vo000615/text/00615-34.htm [31]https://www.direct.gov.uk [32] https://www.friendsprovident.co.uk/doclib/ctst8.pdf [33] https://www.swarb.co.uk/lisc/WilPr19981998.php

Is Reincarnation Believe That The Soul Never Dies

People who believe in reincarnation believe that the soul never dies. Our soul continues to be reborn throughout time, possibly because the soul did not finish what they wanted, or needed to in their previous lives, before their body passed away. What the soul did in their initial life and their previous past lives reflects where they will be in their next life, which is known as the â€Å"Law of Karma.† Reincarnation is, â€Å"The eternal cycle of birth, suffering, death, and rebirth,† (â€Å"Reincarnation,† 2014). Where the soul comes back to earth in a new human body or form,† (â€Å"What is Reincarnation?† 2014). In the United States, a survey was taken to see how many Americans in Western cultures believe in reincarnation. Twenty percent of the surveyed Americans stated they believe reincarnation exists. Twenty percent said they were unsure and sixty percent said reincarnation does not exist (Walter, 2012). Reincarnation is believed to have started in the east, however it remains a more popular belief in the Western society, (Alberecht, 1987). No earlier than 300 B.C did the idea of reincarnation reach some form of acceptance. The first complete mention of reincarnation was briefly stated in the Brihadaranyaka Upanishad, which is an advanced philosophical and mystical text (Swami Krishnananda, 2014). There are many religions and belief systems around t he world that believe in reincarnation including, Hinduism, Buddhism, Sikhism, and Jainism, (â€Å"Reincarnation Facts and Resources,† 2013). InShow MoreRelatedHave You Ever Wondered If You Have Lived More Than Once?1260 Words   |  6 PagesHave you ever wondered if you have lived more than once? Or what happens after death? Many believe that you continue to live after death, but how is it possible and why so? Today I will inform you about the concept of reincarnation. 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Marketing Strategy of Samsung in India Free Essays

string(121) " technical flaws like display in the mobiles, gas kit leakages in frost-free refrigerators etc which are to be improved\." Section B Submitted by –Harsh Golan About Samsung: The Samsung Group is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. It is the world’s largest conglomerate by revenue. The Samsung Group is composed of numerous international affiliated businesses, most of them united under the Samsung brand including Samsung Electronics, the world’s largest electronics company, Samsung Heavy Industries, the world’s second largest shipbuilder and Samsung C, a major global construction company. We will write a custom essay sample on Marketing Strategy of Samsung in India or any similar topic only for you Order Now Samsung has been the world’s most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world. Samsung Group accounts for more than 20% of South Korea’s total exports and is the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries. Samsung India Electronics Private Limited (SIEL) is the Indian subsidiary of the US $55. 2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. Headquartered in New Delhi, SAMSUNG India has widespread network of sales offices all over the country. SAMSUNG India is the hub for SAMSUNG’s South West Asia Regional operations. The South West Asia Headquarters looks after the SAMSUNG business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. SAMSUNG India which commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. From being a virtually unknown entity in the Year 1995, brand SAMSUNG today enjoys an awareness level of over 65% and a positive opinion of over 80% in the country today (source: BAS 2007). Initially, a player only in the Color Televisions segment, it later diversified into color monitors (1999) and refrigerators (2003). Today, it is recognized as one of the fastest growing brands in the sphere of digital technology. SIEL is the market leader in high end digital television (Plasma, LCD). STP APPROACH OF SAMSUNG: Segmentation: Segmenting is the process of dividing the market into segment based on customer characteristics needs. Segmenting consists of: 1. Geographic segmentationation: it is nearly present in 14 countries but has maintained a nearly same price and quality tag worldwide. 2. Demographic segmentation: it has motto of ‘everyone’s invited’ so it produces goods for nearly every segment, from tech-savvy to gamers to middle class family. It has something in sort for you. Targeting: Is the process of focusing on a particular market with a particular product . ?LOCAL MARKET ?TEIR 1 CITIES ?TEIR 2 CITIES NICHE MARKET. Samsung produces goods for both tier1 and tier 2 cities and its nearly all electronic goods are available in both cities. The differences can be seen is the in tier1 cities it has exclusive Samsung showrooms while in tier2 and below cities it usually shares counter with other competitors . Also goods like smart phones and android phones, expensive models of TVs like 3d etc are found in tier1 cities . in tier2 and below cities it becomes a mass producer of electronic items at reasonable cost. Positioning: Samsung has positioned itself as â€Å"Digital technology leader†. In 1990 group chairman, Kun-Hee Lee(Lee), initiated transformation from a low-end OEM into a world-class electronics company and now Samsung came to be perceived as a company with exciting product portfolio. TOP Olympic Sponsor for the 2008 Beijing Olympics and Olympic Partner for the 2008 Olympic Torch Relay. Manavjit Singh Sandhu was its Olympic Brand Ambassador and launched the program ‘Spread the Olympic Flame’ ? APPOINTS OLYMPIC GOLD MEDALIST ABHINAV BINDRA AS BRAND AMBASSADOR FOR ITS CONSUMER ELECTRONICS BUSINESS ? APPOINTS AAMIR KHAN AS ITS BRAND AMBASSADOR FOR MOBILE PHONES ? New, spunky, tagline – ‘Next is What? ’ It is being used in all of ‘Samsung Mobiles’ communication material. Product Strategy: Samsung Electronics India manufactures a wide range of consumer electronics and home appliances. These products include: 1)Mobile phones with the accessories, )Television, Audio player, Video player, 3)Camera, Camcorder, 4)Home appliances, 5)PC, Peripherals and Printers. In the mobile phone industry, Samsung has the second largest share in the market with 19. 6% as per November 2010 consensus. The mobile phone market share is shown in Annexure 1. In the Indian mobile market, Samsung is the second largest player after Nokia with product line extending to over fifty products. The product line includes some of the most preferred mobile phones like Samsung Guru series, Corby series and many more. Recently Samsung has launched its Samsung galaxy series in the Indian market. Samsung is also into manufacturing televisions, audio players, video players, blu-ray players, home theatres and multimedia players. In India, Samsung is the first to bring the concept of LED technology in televisions. Samsung’s products, in this category, are known for their innovativeness and technology . These products are the first preference of the consumers who seek technology at an affordable cost. Samsung also manufactures digital cameras and camcorders. This product category includes world class products like Samsung NX series. Samsung digital cameras offer a diverse product line equipped with the most sought after features. Samsung cameras have always been recognized for their fine technology and optical innovations in such things as auto focus and â€Å"optical zoom† capabilities. These products, though, high on technology are an affordable option for those who have an edge for their photography hobbies. In the home appliances segment, Samsung manufactures refrigerators, microwave ovens, smart ovens, air conditioners and washing machines. All of these products define Samsung’s competitiveness and vision in terms of product innovations like silver nanotechnology, twin cooling etc. At present, Samsung is the leading home appliances manufacturer and many of products are the best in their respective sub-segments. Personal computers, peripherals and printers are also the part of Samsung’s innovative and high-end technology product line. These include laptop notebooks, VDAs, music speakers, Internal and external hard drives, optical disc drives and printers. Though, Samsung is not yet a leader in this segment but its inclination of high end technology shows into these products also. For Samsung, there is still scope for improving their products quality in the Indian market. The products sometimes develop technical flaws like display in the mobiles, gas kit leakages in frost-free refrigerators etc which are to be improved. You read "Marketing Strategy of Samsung in India" in category "Papers" Since, Samsung competes on the basis of the innovation and technology in the current market scenario; this plays a very important role in their major sales not only in India but in the whole world as a whole. As far as the after product service of Samsung is concerned, it needs major improvement in terms of contacting with customers. Since service is intangible, it needs to be provided as quickly as possible. Reducing the retention time in providing value to the customers can add to big advantage for Samsung considering the current market conditions. Place strategy: Samsung electronics employs different place strategies for different products. When we talked to marketing representative he said the whole of Samsung electronics India has divided its distribution systems into various regions on basis of demand and number of dealers per region for example we visited what he called the vidharba region. Samsung uses supply chain to enhance differentiation, increase sales and penetrate new markets and channels. It efficient supply chain is transparent, so that all the players in the supply chain have the right information at the right time about the movement of the products within the chain. This means lower inventories, elimination of waste, and reductions of costs. In addition to the intangible benefits like quick feedback from customers help in launching new products. Samsung has 24 state-level distribution offices and a direct dealer interface. The direct dealer interface helps the company to get quick feedback from dealers, and enables it to launch products according to consumer needs. Samsung also believes in JIT (Just-in-Time) concept to its dealers. To minimize time overruns, Samsung delivered its products directly from its factories to its Regional Dispatch Centers (RDCs) and from there to dealers. SIEL is having three types of distribution system: 1)A one-level channel contains one selling intermediary, such as retailer. 2)A two-level channel contains two intermediaries. In consumer markets, these are a wholesaler and a retailer. 3)A three-level channel contains three intermediaries. Other strategies: †¢Shop-in-shop: Samsung is ensuring a presence in most big malls and multiplexes; even in the multi-brand outlets, as the focus there is to create a shop-in-shop atmosphere. In the shops where we conducted studies we found around 30-50% of counter share was of Samsung. Thus Samsung believes in â€Å"jo dikhta he vo bikta he†. †¢The exclusive showrooms: Samsung India has set up a widespread network of over 80 exclusive showrooms comprising Samsung Digital home (focusing on high-end digital audio-video products such as MP3 players, camcorders and LCD/plasma/3D TVs). The Samsung Digital home goes beyond the concept of a Digital Plaza or a Brand Shop because in it, they are trying to create a more interactive environment and providing a more lifestyle orientation to the display, so that the customer can visualize the products in his/her own home settings. Samsung will add another 30 showrooms to its existing 100-odd this year. Over the next few months, the existing Samsung Digitall Homes will all be rebranded Samsung Plaza, in keeping with the global practice. Until now, India was the only market where Samsung followed a dual showroom strategy – larger (2,500 sq ft and more) outlets were dubbed Samsung Digitall Home, while smaller showrooms were called Samsung Plaza. It is not just about a name change, though. Samsung India also wants uniformity in appearance and sales experience at each of these showrooms – that means an emphasis on product demonstration, not just display. Pricing Strategy: Samsung believes in providing good products at reasonable prices to its customers. Samsung’s technology plank communications helped the company to gain market share, even though it did not offers any discounts or exchange scheme when it entered India. Samsung focuses on cost-cutting measures to keep its price low which helps to combat the discount schemes of the local companies. Samsung drastically reduced its operational costs which enabled the company to keep low prices for certain products and extract higher profit margin from premium products. Samsung India posted revenue of $2. 2 billion last year and this is expected to go up to $3. 5 billion this calendar year. Samsung’s global revenue is $116. 8 billion. The focus of its competitors is to penetrate in the rural and semi-urban mass markets. But Samsung insists that it’s a high end technology driven player. That’s why the urban areas are still a focus area for it and only 30 per cent of revenue comes from rural and semi-urban India. Howsoever in past few years samsung India.. Deputy Managing Director, Ravinder Zutshi says â€Å"Still, focusing on the premium customer will get you only so far – India is still a market powered by volume-growth the current strategy is to gain greater reach among the masses – not through pricing, but through product innovation†. he vehemently rejects the price warrior tag, though. â€Å"Samsung is not a price warrior but today we are as competitively priced as our rivals. The focus is on expansion and deeper market penetration,† he adds â€Å"We are aiming at market leadership not only in the premium category of products but also mass categories like flat televisions† It is difficult to achieve the ambitious targets keeping in mind the pricing strategy of Samsung. But, they believe that it takes time to ensure your supremacy in market share. Once you get your brand perception right in the minds of the consumers as a brand that delivers the best technology and gives you value for money, then ultimately market share goes up. Now Samsung has changed its policy a bit and instead of just remaining a high-end technology driven brand it tried to change its image to sell products to the huge number of middle income families in India. It started pricing its products on the â€Å"value for money† concept, keeping in mind the price sensitivity of Indian consumers. But still Samsung has the repute of being a premium brand, aggressive in launching newer models with the latest technology and at economic costs throughout the world. Promotion Strategy: â€Å"Turn on Tomorrow† â€Å"We are investing aggressively in marketing to transform our company to be truly market driven and to establish our Samsung brand as the most trusted and preferred brand in the market. † – Vice-chairman CEO, Samsung Electronics Promotion stands for various activities the company undertakes to communicate and promote its products to the target market. The Making of a Global Brand When Samsung decided to become globalized, it acquired a new corporate identity by changing its logo and that of the group. In the new logo, the words Samsung Electronics were written in white color on a blue color background to represent stability, reliability and warmth. The words Samsung Electronics were written in English in process of globalization drive. The logo was shaped elliptical representing a moving world – symbolizing advancement and change†¦ To capture the retail market for consumer electronic goods, such as TVs, washing machines and microwave ovens, it formed partnerships with retailing giants like Best Buy. Advertising and Promotional Strategies To promote the ideas, goods or services advertising is important and in this course it launched promotion depicting product transformation into more advanced models, in course of time. This depicts the importance that they give to the research and development and making people understand that they are not just trend followers but are trend setters. Samsung launched corporate advertisements highlighting its technologically superior goods as they entered into the Indian market, and positioned itself in the mindset of consumer as the products are known for its quality like: †¢Samsung branded its products as superior technology and environment friendly ones with refrigerators and ACs incorporate with revolutionary new technology called Silver Nano Health System that ensures freshness and bacteria free environment. Also, it launched the â€Å"Bio† range of products. †¢Launched a special marketing campaign for Flat Tvs including a focused advertising campaign â€Å"Duniya Hai Gol, TV Flat† and attractive exchange offers. Adding to these, Samsung launches an extensive ad campaign in all sorts of media (like print, electronic) whenever a new product is being launched. These create public awareness and add to these media hoarding at major junctions and displays at point of purchases are done. Also, it offers special incentives like price off, patronage rewards, etc during festival season in order to create an incentive to buy the product, and a special ambience is created during the festive offers at the point of purchases to give the feel of Indian nativity of the company. Samsung built trust and confidence by their active promotion and advertising. Associations with various others across the world made the globally known and built its image on its association. †¢The partnership between Samsung mobile and SSAFW (Sanlam South African Fashion Week) shows the fusion of art, fashion and technology. It radiates technological elegance and stylish panache, by joining forces off SSAFW and enhances techno-fashion centered brand. †¢Samsung India associated itself with the ruling passion of Indian consciousness: Cricket. It launched a Team Samsung campaign, which caught the imagination of the entire campaign. Also, in 2004 it bought biggest spectacle debate of this decade to India vs Pakistan cricket series – â€Å"The Samsung Cup†. †¢Not confining itself to cricket, Samsung sponsors the Indian contingent to the Olympics and the Asian Games. It also ran training programmes for deserving Indian athletes under the Olympic Ratna banner. Samsung also helped India to bring the Olympic torch relay to India. †¢Samsung also brings the World Cyber Games, which is regarded as the Olympics of the Cyber World to India every year. †¢In mobile phones, Samsung tied up with a noted painter Satish Gujral for his paintings to be available as downloads on Samsung mobile phones. †¢Product placements were done in movies and popular television serials where Samsung products were set in lifestyle environments. For microwaves, Samsung ran a Kitchen-on-Wheels programme where mobile kitchens with microwave ovens went to various localities demonstrating the advantage of microwave cooking. Sports Partnership (Globally): †¢Samsung sponsored Olympic Winter Games in 1998 and will officially sponsor bOlympic Games and Olympic movements for the next 8 years and this would only enhance their global image. Samsung was official sponsor of telecommunications equipment category from 1998 to 2010. †¢Sponsors of English premiership club Chelsea FC, the premiership known globally and attract a good number of audiences all across the globe. Samsung also signed a partnership deal with Mexican football Team Club Deportivo Guadalajara for six years in 2008 and provides plasma and LCD screens for team’s new stadium Estadio Chivas, indirectly promoting the brand. †¢ In 2009, signed a 3 year deal with Brazillian Football Team Palmeiras, having their logo on shirts and products to the club. †¢Samsung Super League with International Federation for Equestrain Sports and FEI Nations Cup, the world’s oldest and best renowned equestrian series. †¢Also sponsors rugby league team Sydney Roosters in Australian National Rugby League. It is the sponsor of Essendon Football club in A – League. †¢Sponsor of NASCAR Nextel Cup, French People’s Baseball Team, running festival in Taiwan, and professional StarCraft team (Samsung Khan). †¢Official HDTV sponsor of the National Football League (NFL). †¢Official IAAF (International Association of Athletics Federations) partner of 2009 (Berlin, Germany) and 2011 (Daegu, South Korea), IAAF World Championships in Athletics and 2010 IAAF world Indoor Championships. Brand Ambassador: Samsung in India have various brand ambassadors for various divisions. Aamir Khan for mobiles, Priyanka Chopra has been recently chosen as brand ambassador for home appliances, Olympic Gold Medalist Abhinav Bindra for consumer electronic business. Aamir Khan was apart a various ad campaigns like Next is What, Wave, Galaxy series and so on. He is known in the industry as Mr. Perfect and they are using that indirectly to show that their mobiles are perfect. Also as Samsung is sponsor for Olympics the image of Abhinav Bindra, who is the first Indian individual Gold Medallist at Olympics. Annexure 1: Annexure 2: Samsung Product Line Samsung India product line as on the Samsung India website: The product line has been divided into five main categories as shown in the above figure. The mobile phone category has been divided into eight different sub-categories: The Tv/Audio/Video category is divided into five sub-categories: The Camera/Camcorder category contains: The Home appliances category has five main sub-categories: The PC/Peripherals category includes: How to cite Marketing Strategy of Samsung in India, Papers