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“YOUR GALAXY IS IN YOUR
                  HAND”
         Jessica Walsh & Rabia Hill
Situation Analysis
 Company History
 SWOT
     Strengths, Weaknesses, Opportunities, Thre
     ats
 Current users
 Creative Sales
 Competitive Media
Company History
   Samsung Galaxy i7500
     4/27/2009
   Galaxy S
     June – November 2010
     Sales over 22 million
   Galaxy S II
     September – November
     Sales as of 2/23/2012 over 20 million
Samsung Galaxy Market
Vendors     Q4 2011  Q4 2011   Q4 2010  Q4 2010   Year over
            Shipment Market    Shipment Market    Year
            Volumes Share      Volumes Share      change
Apple       37.0     23.5%     16.2     15.9%     128.4%
Samsung 36.0         22.8%     9.6      9.4%      275.0%
Nokia       19.6     12.4%     28.1     27.6%     -30.6%
Research    13.0     8.2%      14.6     14.3%     -11.0%
in Motion
HTC         10.2     6.5%      8.7      8.5%      17.2%
Others      42.0     26.6%     24.8     24.3%     69.4%
Total       157.8    100.00%   102.0    100.0%    54.7%
Samsung Galaxy Market: Fiscal
Year 2012
Vender      FY 2011  FY 2011   FY 2010  FY 2010   Year over
            Shipment Market    Shipment Market    Year
            Volumes Share      Volumes Share      change
Samsung 94.0         19.1%     22.9     7.5%      310.5%
Apple       93.2     19.0%     47.5     15.6%     96.2%
Nokia       77.3     15.7%     100.1    32.9%     -22.8%
Research    51.1     10.4%     48.8     16.0%     4.7%
in Motion
HTC         43.5     8.9%      21.7     7.1%      100.5%
Others      132.3    26.9%     63.7     20.9%     107.7%
Total       491.4    100.0%    304.7    100.0%    61.3%
Five Quarter Market Share
Changes
Operating System Market
Share
                 Gartner      2.1        Nielsen   1.4   ComScore
          0.8
                                     4.7                 4.6 4.1
            11.7
      1.9
                                     16
             8.8                               47.3      14.9      46.3
                       50.9
                23.8                29.6
                                                          30

Android                 iOS
RIM                     Windows Mobile
Symbian                 Others
Bada
Manufacturer Market Share

                        22.8
          26.6
                                 Samsung
                                 Apple
                                 Nokia
                                 HTC
    6.5                          RIM
                          23.5   Others
          10.8

                 12.4
Strengths: Physical Device
   Powerful                    Large screen
    specifications              4g or 4g LTE data
   Phones available at         Fast processor
    different price points       speed (1.3-1.5 ghz)
   Different options of        Expandable storage
    phones                      Thin/Light
   Physical keyboard           Durable
    on some models
   High battery life
Strengths: Android OS
   Widely Accepted
   Customizable
   Side-loading Apps
   Multitasking
   Flash Support
   Easier approval for
    developers
   400,000 applications
     More free applications
Strengths: Samsung
   Customizable widgets
   Clean look
   Investment in
    technology, product
    design, and human resources
Weaknesses: Physical
Device
   Inconsistent from
    mid-range phones to
    high-end phones
   Lower internal
    storage
   “Cheap” build quality
   Bulky, may be too
    big for some users
Weaknesses: Android OS
   Less applications      Many phones from
    than iTunes             low-end devices to
   Less fluid              high end
    ecosystem                Creates clutter and
                              confusion
   More complicated
                             Different phones have
                              different Android
                              versions
                             May be overpowered
                              by phones’ user
                              interfaces
Weaknesses: Samsung
 Limited market share in ever growing
  segment
 Chances of attracting developers who
  are working on iPhone are slim
 Focuses on mass market instead of
  niche market
 Bland looking interface and widgets
     Overpowers Android OS
Opportunities
 Wide range of phones can address a
  large market
 Accepted by masses as the number one
  Android manufacturer
 Demand for cell phones driven by
  service providers or carriers
Threats
 Challenge by low cost mobile
  manufacturers on pricing front
 Threat on design and build quality by
  higher end mobile manufacturers
 Motorola dominates in the United States
  while Nokia dominates the European
  market.
     Dominates more than half of world market
   Aggressive competitors such as
    Apple, HTC, LG are eating into shares
Creative Sales: TV Ads
   “Calling All…”
   “Tutting: Unleash
    your Fingers”
   “Meet the Note”
   “Elephant plays with
    Galaxy Note”
     Ad Agency: The Viral
      Factory
     2,545,656 views as of
      4/30/2012
Creative Sales: TV Ads
   “The Next Big Thing”
     “I believe in a thing
      called love”
      ○ Super Bowl ad
     “Fanboys”
Creative Sales: Print Ads
Creative Sales: Print Ads
Competitive Media
 TV
 Magazines
 Internet
     Website
     YouTube
     Twitter
     Facebook
Marketing Plan
 Goals & Objectives
 Strategies
     Message
     Tagline & Leverage Point
   Audience
     Demographics & Lifestyle
 Geographic Emphasis
 Positioning
Goal
   Create lifestyle
      ○ Users will use phone for many parts of life
      ○ Become brand loyal and continuously upgrade
        to new Galaxy phones
      ○ Logo will be status symbol
Objectives
 Become market leader
 Gain at least 1% in market share by end
  of fiscal year 2013
 Increase sales and profits by 10% by the
  end of fiscal year 2013
Strategies
   Show how phone can be incorporated
    into user’s life
     Cognitive and affective appeals
   Cognitive
     Features and value
   Affective
     How features connect phone to user’s life
     and core values
Marketing Message
   Designed to keep current users who
    appreciate powerful specifications
     Keep from regretting purchase
     Encourage to purchase newer version of
     phone
   Modify message to also obtain new
    users by focusing on how it fits into
    specific lifestyle
     Multi-attribute approach
Marketing Message
 Focus on slice-of-life advertising
 Demonstration
 Informs of Samsung Galaxy
Tagline & Leverage Point
   “YOUR GALAXY IS
    IN YOUR HANDS”
     Gives access to not
      just the world, but the
      universe
     Personalize to
      individual lifestyle
     Stay connected with
      people most
      important
     Connects product to
      user’s core values by
      fitting into life
Branding
 Samsung = Quality and specifications
 Add graphic element to logo
     Easier to remember and identify
Audience
 18-30 year old users
 Male and female
 Different lifestyles and values
     Young & Social
     Social Addict
     Cocooning/Health Emphasis
     Value Based
Lifestyle
   Young & Social
     Like to stay connected
     Text
     Social Media
      ○ Facebook, Twitter, LinkedIn, Pinterest
     Social Games
      ○ Words with Friends, Draw Something
Lifestyle
   Social addicts
     Constant need to be connected
     Use any idle time to connect with people
     Start up conversation frequently
     On phone even while with others
Lifestyle
   Cocooning/Health Emphasis
     21-30 age range
     Healthy lifestyle
     Use phone as media player
     Get health tips and “virtual personal trainers”
Lifestyle
   Value based consumer
     Wants best phone for the price
     Don’t spend money frivolously
     Investment on high-involvement purchase
Positioning
   Product attributes technique
     Show features of phone
   Price/Value
     Worth the cost
     Future-proof
   Contrast
     Differentiate from other brands
     Not focusing on any brand in particular
Geographic Emphasis
Verizon                   AT&T
• 4G LTE                  • 4G LTE and HSPA+
• 203 cities covering 2   • 28 markets
  million +
                          • Future: Complete by the
• Future: 400 markets
  covering 2.6 million      end of 2013
Geographic Emphasis
Sprint                  T-Mobile
• WiMax                 • HSPA+
• 4G LTE will be in 7   • 4G LTE will launch in 2013
  markets by mid 2012
Traditional Media
   Television
     Traditional advertisements
     Product Placement
     On-Demand
 Radio
 Print Media
     Newspapers
     Magazines
Television
   Traditional                  Product Integration
     Still powerful medium        Lead to more favorable
                                    attitude
     Use entertaining
                                   Used in popular TV
      commercials
                                    shows with characters
     Scheduling                    many identify with
      ○ Mid-afternoon              Used seamlessly
      ○ Prime-time
      ○ Late-night
                                 On-Demand
                                   Offered by many cable
                                    companies
                                   Cannot be fast
                                    forwarded
Television shows
                            The Colbert Report
                            Modern Family
   Super Bowl              South Park
                            30 Rock
     Expensive but
                            CSI
      guaranteed to be      Dexter
      watched by many       SNL
                            ESPN Sports Center
   Comedies                True Blood
                            The Voice
   Reality TV              Extreme Makeover: Home Edition
                             House
   Sports Games            Bones
                            How I met your Mother
                            Grey’s Anatomy
                            American Idol
                            The Voice
                            Sponsorships
Radio
   Local focus             Internet Radio
   Reach users on way        Ensure ad is listened
    to or from work            to by free accounts
                              Consumer uses
   Types
                               ○ Homewoork
     Top 40
                               ○ Cooking
     Country                  ○ Working out
     Classic Rock
     Alternative Rock
     Rap
     R&B
Magazines
   Men’s Magazines              Women’s
     Sports                      Magazines
     Health                         Fashion
     Men’s lifestyle                Makeup
     Men’s health                   Health
     Provocative images             Women’s lifestyle
      of women                       Gossip magazines
     Esquire, GQ, Maxim,            Allure, Cooking
      Men’s Fitness, Men’s            Light, Cosmo, Star, O
      Health, ESPN, Sport’s           K!, Vogue, Better
      Illustrated, Golf               Homes & Gardens, In
      Digest                          Touch
Newspapers
   Can reach national      USA Today, Wall
    or local audience        Street Journal, New
                             York Times, Los
                             Angeles
                             Times, Washington
                             Post, Plain Dealer
Other IMC Tools
   Internet
     Website, blog, social media, internet
     advertising, online communities
   Alternative Marketing
     Buzz marketing, guerilla
     marketing, sponsored consumers, viral
     marketing
 Trade Shows
 Databases
 In-Store Promotion & Packaging
 Rebates & Bonus Packs
Website
 Home page
 Page to view all phones
 Individual phone pages
 Map of locations
 Online community
 Help & Support
 Reward Zone
Website: Home Page
 Video advertisement with a featured
  phone model
 Links to other pages
Website: All Galaxy Line
Phones
 Separates the Galaxy line from other
  Samsung mobile phones and other
  Samsung smartphones
 Filters on page to organize phone
     International/US
     Carriers
     Price
     Specific features
Website: Individual Phone
   Specifications and         Price
    features                     No contract/unlocked
   Virtual tour of phone         phone
                                 Renewing 2 year
   News about phone              contract
   Software updates              ○ Main line

   Forums                        ○ Family line
                                 New 2 year contract
   FAQ
                                  ○ Main line
   Reviews                       ○ Family line
   Accessories
Website: Store locator
   Show map with
    different stores that
    carry phones
     Best Buy, Radio
      Shack, Carrier stores
   Places to repair
    phones
   Price
   Current Stock
Reward Zone/Frequency
Program
   Encourage users to
    be brand loyal and
    keep purchasing
    Samsung products
   Use databases to
    retrieve information
   Prizes
       Accessories
       Credits
       Drawings
       Rebates
Online resources
   Blog
     Can respond to questions or criticism
     Post updates
     Voice opinions
   Online communities
     Allow Consumers to interact with each other
     Give each other tips
Internet Advertising
   Banners
     Used on mobile review websites
      ○ Target those interested in phones or those thinking
        of buying
   Video sharing sites
     YouTube, Hulu, channel sites, etc.
     Commercials where consumers must watch a
      certain amount of seconds
     Consumers must watch whole advertisement
     Used for same TV shows
Social Networking
   Facebook
     Target people based on interests
     Display ads
     Fan pages
     Liked pages
   Twitter
     Monitor what consumers say
     Sponsored trending topic
     #Hashtags
Alternative Media: Buzz
Marketing
   Buzz marketing
     Introduce phones at trade shows
      ○ YouTube reviews
     Start by using Twitter hash tags
      ○ Consumer stories #MyGalaxy
Alternative Media
   Viral Marketing
     Entertaining
     Persuasion not as obvious
     YouTube
   Guerilla Marketing
     T-shirts with logos
     Stickers
     Street teams and reverse graffiti
Alternative Marketing
   Sponsored Consumers
     Share their story
     Share how they use phone
     Reward them
Trade Shows
 Creates excitement for new phones
 Consumers at trade shows can try out
  phones
 Allows for early reviews and speculation
 Mobile trade shows
     CTIA The Wireless Association
     Mobile World Congress
     Consumer Electronics Show (CES)

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Samsung Galaxy Presentation

  • 1. “YOUR GALAXY IS IN YOUR HAND” Jessica Walsh & Rabia Hill
  • 2. Situation Analysis  Company History  SWOT  Strengths, Weaknesses, Opportunities, Thre ats  Current users  Creative Sales  Competitive Media
  • 3. Company History  Samsung Galaxy i7500  4/27/2009  Galaxy S  June – November 2010  Sales over 22 million  Galaxy S II  September – November  Sales as of 2/23/2012 over 20 million
  • 4. Samsung Galaxy Market Vendors Q4 2011 Q4 2011 Q4 2010 Q4 2010 Year over Shipment Market Shipment Market Year Volumes Share Volumes Share change Apple 37.0 23.5% 16.2 15.9% 128.4% Samsung 36.0 22.8% 9.6 9.4% 275.0% Nokia 19.6 12.4% 28.1 27.6% -30.6% Research 13.0 8.2% 14.6 14.3% -11.0% in Motion HTC 10.2 6.5% 8.7 8.5% 17.2% Others 42.0 26.6% 24.8 24.3% 69.4% Total 157.8 100.00% 102.0 100.0% 54.7%
  • 5. Samsung Galaxy Market: Fiscal Year 2012 Vender FY 2011 FY 2011 FY 2010 FY 2010 Year over Shipment Market Shipment Market Year Volumes Share Volumes Share change Samsung 94.0 19.1% 22.9 7.5% 310.5% Apple 93.2 19.0% 47.5 15.6% 96.2% Nokia 77.3 15.7% 100.1 32.9% -22.8% Research 51.1 10.4% 48.8 16.0% 4.7% in Motion HTC 43.5 8.9% 21.7 7.1% 100.5% Others 132.3 26.9% 63.7 20.9% 107.7% Total 491.4 100.0% 304.7 100.0% 61.3%
  • 6. Five Quarter Market Share Changes
  • 7. Operating System Market Share Gartner 2.1 Nielsen 1.4 ComScore 0.8 4.7 4.6 4.1 11.7 1.9 16 8.8 47.3 14.9 46.3 50.9 23.8 29.6 30 Android iOS RIM Windows Mobile Symbian Others Bada
  • 8. Manufacturer Market Share 22.8 26.6 Samsung Apple Nokia HTC 6.5 RIM 23.5 Others 10.8 12.4
  • 9. Strengths: Physical Device  Powerful  Large screen specifications  4g or 4g LTE data  Phones available at  Fast processor different price points speed (1.3-1.5 ghz)  Different options of  Expandable storage phones  Thin/Light  Physical keyboard  Durable on some models  High battery life
  • 10. Strengths: Android OS  Widely Accepted  Customizable  Side-loading Apps  Multitasking  Flash Support  Easier approval for developers  400,000 applications  More free applications
  • 11. Strengths: Samsung  Customizable widgets  Clean look  Investment in technology, product design, and human resources
  • 12. Weaknesses: Physical Device  Inconsistent from mid-range phones to high-end phones  Lower internal storage  “Cheap” build quality  Bulky, may be too big for some users
  • 13. Weaknesses: Android OS  Less applications  Many phones from than iTunes low-end devices to  Less fluid high end ecosystem  Creates clutter and confusion  More complicated  Different phones have different Android versions  May be overpowered by phones’ user interfaces
  • 14. Weaknesses: Samsung  Limited market share in ever growing segment  Chances of attracting developers who are working on iPhone are slim  Focuses on mass market instead of niche market  Bland looking interface and widgets  Overpowers Android OS
  • 15. Opportunities  Wide range of phones can address a large market  Accepted by masses as the number one Android manufacturer  Demand for cell phones driven by service providers or carriers
  • 16. Threats  Challenge by low cost mobile manufacturers on pricing front  Threat on design and build quality by higher end mobile manufacturers  Motorola dominates in the United States while Nokia dominates the European market.  Dominates more than half of world market  Aggressive competitors such as Apple, HTC, LG are eating into shares
  • 17. Creative Sales: TV Ads  “Calling All…”  “Tutting: Unleash your Fingers”  “Meet the Note”  “Elephant plays with Galaxy Note”  Ad Agency: The Viral Factory  2,545,656 views as of 4/30/2012
  • 18. Creative Sales: TV Ads  “The Next Big Thing”  “I believe in a thing called love” ○ Super Bowl ad  “Fanboys”
  • 21. Competitive Media  TV  Magazines  Internet  Website  YouTube  Twitter  Facebook
  • 22. Marketing Plan  Goals & Objectives  Strategies  Message  Tagline & Leverage Point  Audience  Demographics & Lifestyle  Geographic Emphasis  Positioning
  • 23. Goal  Create lifestyle ○ Users will use phone for many parts of life ○ Become brand loyal and continuously upgrade to new Galaxy phones ○ Logo will be status symbol
  • 24. Objectives  Become market leader  Gain at least 1% in market share by end of fiscal year 2013  Increase sales and profits by 10% by the end of fiscal year 2013
  • 25. Strategies  Show how phone can be incorporated into user’s life  Cognitive and affective appeals  Cognitive  Features and value  Affective  How features connect phone to user’s life and core values
  • 26. Marketing Message  Designed to keep current users who appreciate powerful specifications  Keep from regretting purchase  Encourage to purchase newer version of phone  Modify message to also obtain new users by focusing on how it fits into specific lifestyle  Multi-attribute approach
  • 27. Marketing Message  Focus on slice-of-life advertising  Demonstration  Informs of Samsung Galaxy
  • 28. Tagline & Leverage Point  “YOUR GALAXY IS IN YOUR HANDS”  Gives access to not just the world, but the universe  Personalize to individual lifestyle  Stay connected with people most important  Connects product to user’s core values by fitting into life
  • 29. Branding  Samsung = Quality and specifications  Add graphic element to logo  Easier to remember and identify
  • 30. Audience  18-30 year old users  Male and female  Different lifestyles and values  Young & Social  Social Addict  Cocooning/Health Emphasis  Value Based
  • 31. Lifestyle  Young & Social  Like to stay connected  Text  Social Media ○ Facebook, Twitter, LinkedIn, Pinterest  Social Games ○ Words with Friends, Draw Something
  • 32. Lifestyle  Social addicts  Constant need to be connected  Use any idle time to connect with people  Start up conversation frequently  On phone even while with others
  • 33. Lifestyle  Cocooning/Health Emphasis  21-30 age range  Healthy lifestyle  Use phone as media player  Get health tips and “virtual personal trainers”
  • 34. Lifestyle  Value based consumer  Wants best phone for the price  Don’t spend money frivolously  Investment on high-involvement purchase
  • 35. Positioning  Product attributes technique  Show features of phone  Price/Value  Worth the cost  Future-proof  Contrast  Differentiate from other brands  Not focusing on any brand in particular
  • 36. Geographic Emphasis Verizon AT&T • 4G LTE • 4G LTE and HSPA+ • 203 cities covering 2 • 28 markets million + • Future: Complete by the • Future: 400 markets covering 2.6 million end of 2013
  • 37. Geographic Emphasis Sprint T-Mobile • WiMax • HSPA+ • 4G LTE will be in 7 • 4G LTE will launch in 2013 markets by mid 2012
  • 38. Traditional Media  Television  Traditional advertisements  Product Placement  On-Demand  Radio  Print Media  Newspapers  Magazines
  • 39. Television  Traditional  Product Integration  Still powerful medium  Lead to more favorable attitude  Use entertaining  Used in popular TV commercials shows with characters  Scheduling many identify with ○ Mid-afternoon  Used seamlessly ○ Prime-time ○ Late-night  On-Demand  Offered by many cable companies  Cannot be fast forwarded
  • 40. Television shows  The Colbert Report  Modern Family  Super Bowl  South Park  30 Rock  Expensive but  CSI guaranteed to be  Dexter watched by many  SNL  ESPN Sports Center  Comedies  True Blood  The Voice  Reality TV  Extreme Makeover: Home Edition House  Sports Games  Bones  How I met your Mother  Grey’s Anatomy  American Idol  The Voice  Sponsorships
  • 41. Radio  Local focus  Internet Radio  Reach users on way  Ensure ad is listened to or from work to by free accounts  Consumer uses  Types ○ Homewoork  Top 40 ○ Cooking  Country ○ Working out  Classic Rock  Alternative Rock  Rap  R&B
  • 42. Magazines  Men’s Magazines  Women’s  Sports Magazines  Health  Fashion  Men’s lifestyle  Makeup  Men’s health  Health  Provocative images  Women’s lifestyle of women  Gossip magazines  Esquire, GQ, Maxim,  Allure, Cooking Men’s Fitness, Men’s Light, Cosmo, Star, O Health, ESPN, Sport’s K!, Vogue, Better Illustrated, Golf Homes & Gardens, In Digest Touch
  • 43. Newspapers  Can reach national  USA Today, Wall or local audience Street Journal, New York Times, Los Angeles Times, Washington Post, Plain Dealer
  • 44. Other IMC Tools  Internet  Website, blog, social media, internet advertising, online communities  Alternative Marketing  Buzz marketing, guerilla marketing, sponsored consumers, viral marketing  Trade Shows  Databases  In-Store Promotion & Packaging  Rebates & Bonus Packs
  • 45. Website  Home page  Page to view all phones  Individual phone pages  Map of locations  Online community  Help & Support  Reward Zone
  • 46. Website: Home Page  Video advertisement with a featured phone model  Links to other pages
  • 47. Website: All Galaxy Line Phones  Separates the Galaxy line from other Samsung mobile phones and other Samsung smartphones  Filters on page to organize phone  International/US  Carriers  Price  Specific features
  • 48. Website: Individual Phone  Specifications and  Price features  No contract/unlocked  Virtual tour of phone phone  Renewing 2 year  News about phone contract  Software updates ○ Main line  Forums ○ Family line  New 2 year contract  FAQ ○ Main line  Reviews ○ Family line  Accessories
  • 49. Website: Store locator  Show map with different stores that carry phones  Best Buy, Radio Shack, Carrier stores  Places to repair phones  Price  Current Stock
  • 50. Reward Zone/Frequency Program  Encourage users to be brand loyal and keep purchasing Samsung products  Use databases to retrieve information  Prizes  Accessories  Credits  Drawings  Rebates
  • 51. Online resources  Blog  Can respond to questions or criticism  Post updates  Voice opinions  Online communities  Allow Consumers to interact with each other  Give each other tips
  • 52. Internet Advertising  Banners  Used on mobile review websites ○ Target those interested in phones or those thinking of buying  Video sharing sites  YouTube, Hulu, channel sites, etc.  Commercials where consumers must watch a certain amount of seconds  Consumers must watch whole advertisement  Used for same TV shows
  • 53. Social Networking  Facebook  Target people based on interests  Display ads  Fan pages  Liked pages  Twitter  Monitor what consumers say  Sponsored trending topic  #Hashtags
  • 54. Alternative Media: Buzz Marketing  Buzz marketing  Introduce phones at trade shows ○ YouTube reviews  Start by using Twitter hash tags ○ Consumer stories #MyGalaxy
  • 55. Alternative Media  Viral Marketing  Entertaining  Persuasion not as obvious  YouTube  Guerilla Marketing  T-shirts with logos  Stickers  Street teams and reverse graffiti
  • 56. Alternative Marketing  Sponsored Consumers  Share their story  Share how they use phone  Reward them
  • 57. Trade Shows  Creates excitement for new phones  Consumers at trade shows can try out phones  Allows for early reviews and speculation  Mobile trade shows  CTIA The Wireless Association  Mobile World Congress  Consumer Electronics Show (CES)