Samsung Analysis and Marketing Plan Essay
Purpose of Report
This report involves the development of a marketing plan for 12 months from February 2012 to January 2013 for the launch of Samsung Hybrid Smart TV in February 2013 in Singapore which has new motion feature. Samsung Hybrid is being innovated to satisfy the social needs of technology savvy and family orientated group. As a fast-paced and busy country, Singapore like to have many features in one device to multicast.
In the current technology, most of the people are enjoying on a “touch” sensation on their smartened or tablet PC. Samsung Hybrid’s uniqueness lies in becoming the first to have a built-in motion sensor that enables consumers to interact and control the TV without the need to use a remote control. Based on Samsung market research data has being shown that consumers are indeed looking for a feature like Samsung Hybrid. This allows us to plan and expand our market structure to achieve our organization’s vision.
Scope of Report
There are 3 stages that will guide us through the marketing plan to make Samsung Hybrid a success.
Stage 1 The macro-environment, market and competitors analysis will be conducted to evaluate for Samsung Hybrid.
Stage 2 Identify the marketing objectives and strategies for Samsung Hybrid.
Stage 3 Implementation and Budget for Samsung Hybrid from February 2012 to January 2013.
1. 1 Company Profile & Product Information
Samsung is one of the world’s leading electronics companies which are world recognized by its quality products.
Samsung portfolio consists of televisions, home appliances, mobile handsets, printers and many more. Samsung distributes its product through its authorized distributor and ensures their products to be in accordance based on procedures by their quality checks. In 2011, our net profit was 13. Trillion won, due to the strong sales of smartness comparing to previous year it declined of 15%. Revenue increased to 6. 7% posted 165 trillion won and operating profit decreased to 6. 05% posted 16. 2 trillion won.
Samsung branding strategies are world class design and innovation to make lifestyle interesting, creative and classy. Now, Samsung is setting up a platform for Singapore developers to create applications for smart TV which can surf, login Faceable and twitter. Previously, Samsung has created a design competition for amp targeting youngsters to design a hip product; this has drawn 2000 designs mainly from students. In this way, Samsung has strengthened the connection with the communities. Smart TV series 8 NIXON ECHO Bubble Marketing Plan By esoteric
Political Samsung to obtain an IN Permit or OUT Permit through [email protected] (including controlled and non-controlled items) before goods can be imported or exported in out of Singapore. For certain high-technology goods subjected to export control by the exporting country. Singapore importer may advise us to provide an Import Certificate and Delivery Verification (ACID) from Singapore Customs. Goods that are covered by an ACID must be imported into Singapore straight. Generally, under patent law the owner of the invention obtains a 20-year monopoly to prevent others from making, using or selling the invention without his consent.
The Intellectual Property Office of Singapore (IPSO), a statutory board, is the lead government agency that advises on, administers intellectual property (P) laws, promotes IP awareness and provides the infrastructure to facilitate the development of ‘P. An IPSO’ work has become increasingly important is in leading negotiations on IP issues in Singapore growing network of Free Trade Agreements with other countries.
Economic Singapore expecting GAP growth of 5. % in 2012, with inflation remaining relatively high at 5. 5% for upcoming months before slowing down to 2-3. % in the second half of the year. 1 As inflation eases away, business will pick up slowly while employment still stays at a high rate. Overall, the high employment evens out the impact of high inflation rate.
Social Corporate Social Responsibility (CARS) Samsung makes every effort to listen to the views & resolves issues of internal and external stakeholders and incorporate them into CARS initiatives, led by CARS Liaison Office and CARS executives, as it is essential for sustainable growth.
CARS awareness is provided for employees to highlight CARS importance and standards. As part of Samsung Engineering’s initiatives to increase awareness about the environment for children and teens around the world, they Joined with UNEVEN in 2006 and launched Concentration program, interacting with children from all over the world. Tuna Echo-Generation website was launched during the Tuna International Children Youth Conference providing a connecting platform for young people worldwide to share their thoughts, exchange ideas on initiatives to help preserve and protect the environment.
By participating in forum, they are able to share their own stories and photos about the environment. 2 advertise on social networking sites such as You Tube, Faceable & twitter which is easily accessible to know the latest technology introduced worldwide. As the technology is pretty advance consumers might take a longer time to adapt on the function of the feature. We will create an inbuilt troubleshooting menu guide to prompt the consumers on any enquires. We also will be launching a roadster to let consumers have the feel of how smart their TV can react by using gestures.
Singapore new internet economy Singapore aggressive role in adopting of Internet technology is the ranked top in Asia-Pacific region. The internet awareness of our population is estimated to be close to 100%. Singapore with the help of favorable regulatory regime is influential to the world going online. 3 Growing Industry TV technologies for Asia countries have registered a substantial 27% increase in overall sales revenue this year.
These segments have been experiencing production price erosion, with average prices dropping 20% from 2010, hush having greater affordability and increases demand in this region. Singapore, with tremendous growing technologies, will embrace new Smart TV’s favorably; while nearby countries are new potential markets in future.
Market segmentation Demographics and Behavioral segmentation are chosen to identify potential customer market portion by knowing customers’ social needs.
For demographics segmentation the age is 25 to 55, family orientated, socializing and play online games. For Behavioral segmentation part, they can watch, surf as well as interacting with the TV and this can also strengthen family bonds. They are the positive users, open minded, ready to accept and learn new technology. Targeting Market There are five criteria which we will be using to become our target segments. Firstly is market size, right now we are focusing in Singapore. Creativity and technology are well encouraged in this small, but well developed country.
We expect this market to grow significantly. By introducing new features to our Smart TV, we can outpace growing competition. For how we are reaching out to our customers, media etc.. Lastly, we have allocated a budget for this commercial use so that we will not overspend beyond our limits. Positioning Apart from stating Samsung Hybrid with its unique feature, we also want to know the ideas in customers’ mind by using these four steps:
Identify the important features for Samsung Hybrid.
Discover how customers rate other smart TV with Samsung Hybrid’s unique feature.
Discover where Samsung Hybrid is being projected in customers’ mind.
Repositioning Samsung Hybrid in the minds of targeted customers.
The uniqueness of Samsung Hybrid is eliminating the need to have a remote control to start up your TV, Just by waving your hand. It is simple, easy and you do not need to be a genius. With this, Samsung Hybrid will become the hottest topic in the market and indirectly will attract the interests of the customers. Therefore, we want to fix Samsung Hybrid as the family household’s first choice.
Samsung will be using the following 5 steps of approach that lead to marketing actions.
Step 1 Samsung Hybrid is a new product so we need to find out whether consumers are receptive about the new motion feature added onto the smart TV. The measure of success of this objective will be looking at the current features versus the proposed new feature.
Step 2 By developing the research plan, Samsung will be facing competition with time which we need to complete the research within 12 months and the possible funding of the research plan.
We will need to analyze the data and to could come up with a decision on whether to incorporate the new feature into our Smart TV, the approach we are targeting on will be using via the statistical data.
Step 3 We are creating a set of survey which consists f six types of question to potential customers for our primary data. As for secondary data, we searched through using internet, flipping the newspaper and magazines.
Step 4 Step 5 Based on the findings in step 4, it had concluded that customers prefer motion than the other two features.
We had listed our marketing plan, implementing and evaluating the results.
Samsung seeks to achieve:
1 . To accomplish the number in sales of 42300 units by earning a profit of from the period of Feb. 2013 to Jan 2014
2. To increase our market % share in the TV product category
3. Marketing Mix Strategies
3. 1 Product
Samsung Hybrid is classified under shopping product where most consumers will be comparative over price, style and quality.
By having a rather competitive and fairly expensive pricing, we stressed to differentiate ourselves from our competitors by having better and more innovative promotion strategies, and pride ourselves by maintaining a constant product quality revolution in technology, touch screen panels and internet age, we introduce Samsung Hybrid, a Smart TV with motion functionality. Samsung categories in product line, where produces not only Smart TV, but also more on electronic devices such as Mobile, home appliances, camera/cam-corded, PC and Peripherals.
These range of products are usually sold in home appliances retail stores that carry all brands, and are closely priced for comparisons. Valued added service All Samsung Hybrid customers are offered a post sales service, by providing them by free delivery, installation and carry back their existing TV when they are using it for a trade in. Also, we will be giving them extra 3 years for warranty coverage during our roadster promotion, as well as 30 days one-to-one exchange if there is any technical fault.
Stage new product development process
Stage 1: New product strategy development There is an increase of close substitute goods from various brands. Samsung wish to provide more enhancements or to provide a more advanced technology than other brand. Our SOOT analysis have proven that Samsung have the potential to capture the eye of the prospective customer, which they will continue to support our brand.
Stage 2: Idea generation Samsung are continuing to develop new features to market customers who enjoy living with the latest technology.
We will generate new features from the comment or feedback provided by our existing customer. We will also work with DIED, to come with new ideas to solve the existing common issues. DIED is one of the most recognized global design firm which is highly efficient in generating many ideas within a short time.
Stage 3: Screening and Evaluation. Screening and evaluation is a stage whereby new innovations ideas are made, by considering feedbacks from both internally and externally. For internal approach, colleague will analyses the technical feasibility of new innovations to decide if the objectives are being met.
As for external approach, surveys are conducted to get feedbacks from consumers. Samsung will also be conducting incept tests by providing minor modifications to the existing Smart TV sets to test its capability, get feedbacks on how they can apprehend the product, and what are the other recommended enhancements needed for improvisation of this new product.
Stage 4: Business Analysis A crucial and final stage specifying the features and marketing strategies needed for introducing the product to the market. Financial projections are scrutinized before development of the prototype.
Stage 5: Development Most ideas for creating a new product don’t work at the very first time. With a prototype, it allows us to define the primary faults or issue to be adjusted before launching the product. Once concept test are completed, it will be brought up to the shareholders and CEO for presenting this new idea to get an POP from them. Also ensuring this new product will also meet the reasonable cost of manufacturing with the required quality.
Stage 6: Marketing Testing Exposure of new actual products to prospective consumer is a stage for market testing.
After product evaluation, it will be tested again for getting consumers feedback. Competitors from Samsung will only produce a number of new Smart TV, selecting internal staff from ACH department to give their personal review and feedback.
Stage 7: Centralization Centralization will be the final stage for the new product process whereby full-scale productions and sales commences when it is launched. Critical positioning is also needed to ensure our innovative idea turns into a profitable shopping product.
Being highly costly among all the stages, Samsung must make sure that meticulous attention is put forth to include an analysis on economic, technological, social and competition factors before developing a strategically well- implemented marketing plan to ensure a successful product launch. Product Life Cycle of Samsung Hybrid All product sales trends can be determined by the product life cycle diagram, which reflects 4 stages, from development of a marketing plan, to the time when a product is phased out. Samsung hybrid is now in the product development stage.
Introduction stage (Beebe to Paper – 3 Months) During the first launch of our new product into the market, Samsung are focused in creating high customer awareness & product knowledge, by having a product launch roadster. It is the 1st of its kind technology, thus skimming price strategy will be employed. Growth (May to Octet – Months) The growth stage is at a period where there will be an increase in revenue. Sales will be increasing as there are more customers are aware of our product. After the successful initial product launch, with more customer awareness, demand increases.
Therefore, sales will also increase further when more resellers are interested in carrying it. Pricing will be maintained as Samsung can enjoy in increasing demand with the only brand with this unique feature. Maturity (Novel to Ganja – 3 Months) At maturity stage, sales revenue will begin to slow down and will be approaching to the point where the inevitable decline will commence. In addition, competitors will be stepping forward to challenge their new product against us. Samsung will focus on how to perpetual customer’s loyalty. Samsung will be having special discounts and promotion bundle to attract the customers.
Decline (Beebe – 1 Month) This stage occurs when the product reaches its peak in the maturity stage and begins a downward slide in sales. This will cause a decrease in the sales revenue as more new production from competitors will be launch into the market. Samsung will be maintaining the reduced price and lowering down the marketing expenses which will be focusing on the upcoming new product.
Skimming Pricing Samsung adopts market skimming pricing for hybrid range as we are confident it would be the upcoming “IT” product, with a new product feature no one in the market has come up with, a Smart TV with motion sensor.
With the growing trend in technology, connectivity and social networking, trend followers are consistently looking for the coolest IT products which packs a great deal of features and combining products into one. With the high development and research costs to incorporate Kinetic motion sensors into the frame of the TV, setting a higher enable us to maximize profits before our competition starts to set in. In the IT industry, new products and new technology are being introduced every few months, and when competitors come out with the same product in future, prices would likely be adjusted to remain competitive.
Thus, using a skimming price enables us to get the most profit before lowering our costs. A higher pricing not only gives a perspective of a higher quality product with a greater value, we believe that trend followers are willing to pay for its superior pricing.
Cost-Plus Approach Samsung will be computing a final price by looking at the fixed ND the variable cost during producing the new product. This is to ensure that Samsung Hybrid will be moving in an upslope for its revenue and profiting. Break Even Calculations Branding Strategies Samsung is one of the most recognized brand that in Singapore.
Regardless of Smart TV, tablet, mobile phones or PC peripherals, Samsung has been introducing innovative product, increasing brand loyalty, thus overtaking Sony and L. G as a leading consumer electronics brand and now is ranked 17. 5 Samsung will continue to serve their existing customer by offering them more benefit when they are purchasing any product.
We will launch Samsung Hybrid into Singapore market through a one-tier indirect marketing channel of distribution.
Samsung Electronics Corporation Limited (Singapore) will be the distribution center which will perform a variety of distribution functions, responsible for product quality check and sales distribution in Singapore. The diagram below shows the indirect marketing channel of distribution.
Samsung Semiconductor Distributor Samsung Electronics Corporation Limited Consumers With the above channel, consumers will be benefit from here. We will provide goods and services that consumers want, to help buyers to perform free delivery service and also provide free maintenance service for the first year.
Vertical Marketing System
Samsung uses Corporate Vertical Marketing System for worldwide distribution, including Singapore. It is a forward integration process Samsung Singapore. By using this type of marketing system, it enables to reduce distribution costs, and have an increased control over the places of distributions. However it also increases capital investments and fixed costs, nevertheless Samsung s least being affected by it as it is well within their capabilities by being the leading electronics brand.
Samsung cooperates closely and distributes to a few chosen large resellers like Harvey Norman, Courts and Best Denim. It coordinates and target to achieve efficient distribution to target markets that is located not only in town area, and also at neighborhood malls to ensure convenience for customers. Selective Distribution Strategy Samsung will manufacture the product in China and imports it to corporate owned distributor in Singapore before being distributed to the selective resellers. Information is an important aspect when customers choose to buy products.
We ensure that Samsung Hybrid is placed at a place easily seen, with special and vibrant videos playing on our screen, to attract customer’s attention. Other than display, Samsung sales staff would be positioned at the various stores, to help to educate the customers on the product features and have demonstrations on the spot. Customers are able to test out our motion sensor feature from playing some interactive games provided. Other than information, convenience is also important. The selected resellers are positioned in almost all of the shopping centers in
Singapore, from town area, to neighborhood malls ensuring easy accessibility and able to buy our product when shopping for other home appliances. A good variety of Smart TV’s are available in the few resellers, so the customers are able to do comparisons on the functionality, feature and pricing of the range of Smart TV. We are confident that the customers would be awed by our Samsung Hybrid motion sensor feature which is the one and only in market now. Logistics process and customer service We ensure that customer satisfaction is well maintained by providing prompt and free delivery when you purchase our Samsung Hybrid.
Not only do we deliver, but we also help our customers to install it wherever you want it. Our technicians will then help to configure the TV and connect it to your modem, and also giving our customers an easy to understand explanation on how to use the TV. Other than that, we also have a rah technical hotlist to provide customers with help. Credit can also be used when buying from resellers, ensuring affordability. A one year warranty card will also be issue when purchasing, to ensure increased customer satisfaction in our products.
Promotion is one of the most important aspects in the racketing mix, it determines how effectively and efficiently we communicate with current and new customers. With an ever improving technology, more people are looking forward to see a product which combines all into one, but with the simplicity of usage. In an effort to raise awareness, marketing strategy is implemented; it will then influence the customers favorably and will satisfy customers’ need at the same time achieving our company’s objectives.
With this strategy, it would increase our customers’ knowledge on our new product feature and encourage them to purchase our Smart TV. Introduction stage (months: Feb. 2013 to April 2013)
– Advertising During the introduction stage, we will be doing mass advertising through different mediums like broadcast, internet and prints. 1) Broadcast Advertising – Tape will be engaging Mediator Advertising to broadcast our advertisement in Channel 5, 8 and Channel U. The advertisement will be allocated in an hourly time slot from noon to pm.
As our target customers are mainly people who favor watching TV, we will incorporate more broadcast advertising in our promotion strategy. With creative and humorous advertisements, it enables to create awareness of our new feature and at he same time have a deep impression on our product.
2) Internet Advertising With the increasing internet users in Singapore and worldwide, it would not only be an excellent channel with high accessibility and also a much lower cost to advertise.
Advertisement will be done on a websites such as Youth, Faceable, Twitter and Samsung official website.
3) Prints Advertising By engaging Mediator Advertising, we will publish our product posters at various bus stops island wide, and also advertise at MR. station which located at central area where there are more crowds ND there will be prints on public transports such as bus, MR. and taxi as there will be increased exposure when they move about. Plus, magazine advertisements like Hardware Zone, All Stuff and TO.
Growth Stage (months from May 2013 to Cot 2013) – Sales Promotion In this stage, customers will enjoy discounts and get the chance to know and experience our new product through events and loyalty programmer. This is the time where customers will start to purchase our product and increase our company profit.
1) Roadster for official launch of Samsung Hybrid A pre-launch online event will be held prior to the official road show launch, for customers to register their interest in Samsung Hybrid. The 1st 100 to register with us will get a $200 cash rebate voucher when they purchase our Samsung Hybrid at the launch.
There will be 2 parts of the road show, the 1st wave of promotion for the initial 2 days, the 2nd wave for the rest of the week.
2) Discounts and Packages During the road show event, we will give a 15% discount for the first 88 customers who purchase our TV. For the 1st wave, we offer free extended warranty. For the 2nd wave, we will sell our product in a Smart TV package which including sound system, DVD player and Karaoke set with a special price.
3) Loyalty programmer We will be having a loyalty programmer for our Samsung users and we allowed them to trade-in their used TV to get a 20% cash rebate.
Maturity Stage (2 months from Novo 2013 to DCE 2013) – Direct marketing Customers will generate queries for purchase through direct communication or they will visit the retail outlets.
1)Credit card rebates Walk-in customers will enjoy cash rebates while purchasing Samsung Hybrid when payment was made by Visa or Master credit card. This privilege will be available at all retail stores.
2) Deals at IT shows By having cooperation with IT show organizers, frequent IT shows are held every few months to attract customers to purchase IT products at a promotion.
Samsung Hybrid will also be our main feature there, as it is the newest addition to our TV product range. We will have attractive promotional price and bundles for sale at the IT shows.
3) Online Marketing Customers are able to purchase our product through our online stores. No extra surcharge, free goods delivery and services and customers who purchase online will be entitled to special discounts.
Setting the Promotion Budget Objective and Task Method
1) Determine promotion objectives
2) Outlines the tasks to accomplish those objectives
3) Determines the promotion cost of performing these tasks
Detailed Implementation Plan
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With the current world revolving around technologies and innovations, it has become an essential part of our everyday lifestyle. With this in mind, Samsung has put together an intensive analysis looking at needs & wants, economics, social, political, and technological factors, to find out our target market, competitive factors that would influence our product and pricing strategy. We came out with Samsung Hybrid, a Smart TV with motion feature.
Combining Kinetic functions with TV that have internet capabilities, not only you can watch while you surf, you can also command your TV with a wipe of your hands. With this, Samsung believes we can capture the hearts of our target market from a youngster to a working adult, a TV where you enjoy no matter it is with your families or having some relax time after work. By having a well-planned and timely implemented strategy, we ensure that all our sales targets are being met throughout the whole product life