Inspire the world, Create the future.

1.0 Executive Summery

Samsung Electronics has proven to the business world that they are one of the most prestigious technology companies in the industry. With more technology advancements than our market can handle at this point and time, Samsung has paved the way for the future in electronics. One of the most popular new toys in the market today, is the unbelievable ! "#. "he first ! "# was launched in $arch of %&'&, and has already had a ma(or impact on the market. With the release earlier this year, Samsung dominated the market, controlling nearly )&* of the total share. Samsung+s product, the )&&& series "#, is incomparable to competition with its ultra,thin screen, measuring only &. inches in width. "he )&&& series also comes with a full color spectrum that makes for an incredible viewing e-perience. .lthough Samsung is dominating the ! market, we still have very detailed strategies and tactics that we believe will give us an increased competitive advantage over our competition. "he company+s main emphasis the past couple years has been on integration, union, and encouraging innovation. Samsung is always preparing for the ne-t big item to hit the market, which is why their technology is so far ahead of all leading competitors. /n the future, we plan to enter the ! video gaming market with a partnership with $icrosoft. "his will give us access to all of $icrosoft+s gaming technology, in which we will combine with our 0uality of sound and viewing stations to create the ultimate gaming e-perience. Of course, throughout our (ourney through this market, we will continue to provide the best ad campaigns for the public so that they will never forget our product. We will put as much prominence as possible in the sleek design and the one of a kind ultra,thin panel, only available in the Samsung )&&& series. 1y having an effective ad campaign, we will be able to catch the eye of many different target groups. Our ma(or target groups are men around the ages of mid twenties to late thirties, 2aucasian males, with a new and growing family. Studies show that this category is more likely to buy the "#, along with a gaming system, than other aged males. We are also targeting 2ube "ubers. "his is a group that consists of young people who grasp onto new technology 0uickly. "his group is a large part of the ! "# market right now. /f the discussed strategies and tactics are successfully carried out, Samsung and the )&&& series ! "#, will hold the top spot in the television market for years to come. When this market starts to decline, Samsung has the technology ready for the ne-t big wave of televisions, ! "# without glasses.

2010 Marketing Plan

Inspire the world, Create the future.

2.0 Situation Analysis

2.1 Samsung Electronics Vision Statement: /nspire the world, 2reate the future. "hese si- words coined the vision statement for Samsung Electronics 3SE4 in early %&'& in correspondence with the release of its first ! television. "his vision statement is a part of SE+s #ision %&%& plan, and is considered the motto of the decade for the industry leading organi5ation. "his new vision captures Samsung+s dedication to inspiring its communities by leveraging Samsung+s three crucial strengths6 7ew "echnology, /nnovative 8roducts, and 2reative Solutions. /t also promotes new value for Samsung Electronics+ core networks6 /ndustry, 8artners, and Employees. Samsung+s commitment, set forth through their vision statement, is to contribute to a better world and a richer e-perience for all. 2.2 Current Strategy: Samsung+s current strategy in the ! television market is to sei5e a dominant market share while the market is being pioneered and to maintain the ma(ority market share throughout the stages of the ! television life cycle. With the recent release of ! "#s into the market in early %&'&, the product is still considered to be in the introduction stage of the product life cycle. While Samsung introduced its new slogan, 9/nspire the world, 2reate the :uture,9 the company;s strongest emphasis in the last two years has been on convergence and integration. Samsung has re,organi5ed their corporation to encourage cross,pollination and innovation. "his is demonstrated by the progressive approach to the market that Samsung has taken, acknowledging the lack of immediate growth in the market, and innovating to prepare for the potential growth in the market. "he current strategy being implemented is merely preparation for the growth potential in the ! television market. Samsung reali5es that the growth of the ! television market is dependent on the volume of ! content available. !ue to the market+s dependability on other industries to produce ! content, Samsung has incorporated an effective plan to accelerate the availability of the content. "his segment of the current strategy was addressed by Samsung+s recent partnerships with, ! content industry leading, partners "echnicolor and !reamWorks 8ictures.

2010 Marketing Plan

Inspire the world, Create the future. "his current strategy has been effective, considering that, as of October %&'&, the aggressive early launch plan has assisted Samsung in ac0uiring an <<* share of the ! television market in the =.S. Samsung+s current strategy also includes the e-pectation that their dominance and innovation in the >igh,!efinition "elevision 3>!"#4 market will carry over as the ! content availability increases. "his current strategy can also be seen in Samsung+s advertising efforts, as they launched a '%.%? million dollar marketing campaign in :ebruary in the =@. 2urrently, the strategy is established as progressive, meaning that Samsung is withholding the latest innovations fro the !,"# market. Samsung has entered into a transitional phase, as they introduce the newest segment in the television market, and await the arrival of appealing ! content to compliment their technology. Samsung+s previous strategies have thrived in the constantly evolving television market, innovating and pioneering new markets while developing break through products at competitive prices. Samsung has positioned themselves throughout the past five years to dominate the ne-t generation of !,"# market. Samsung+s dedication to innovation in the flat,panel "# market has resulted in their ability to deliver the breakthrough products and superior values that will keep them at the forefront of the global "# market. Samsung began their dominance of the digital television market in %&&? and retained their top position until %&&) when, greenhorn to the market, #i5io took the top spot. /n %&&?, Samsung achieved their first 7o. ' $arket Share ranking in the >igh !efinition television 3>!"#4 market. .lthough they lost the 7o. ' market share of Ai0uid 2rystal !isplay 3A2!4 televisions, %&&? proved Samsung to be a step ahead of the competition. "hey performed well enough that year to earn the %Bth spot on the World+s $ost .dmired 2ompany list by :ortune $aga5ine. %&&B brought Samsung the si-th consecutive year with the 7o. ' market share for A2! screens. Samsung pioneered advanced ! technology, launching a ! !A8 "# in %&&B, and a ! 8lasma,"# for %&&<. /n %&&<, Samsung led the global "# market for the third consecutive year as they continued to intrigue customers with outstanding picture 0uality, elegant li0uid,crystal be5el styling, and advanced interactive and connectivity options that allow customers to en(oy pictures, movies, and music from the /nternet, their own home network, or =S1 devices. /n %&&), Samsung introduced the newest line of >!"# that was certain to be a 2010 Marketing Plan 3

Inspire the world, Create the future. global hit, the Aight Emitting !iode "elevision 3AE!,"#4. "he AE!,"# lineup Samsung offered was the ne-t advancement in A2! technology, replacing the conventional cold, cathode fluorescent lamp backlighting with eco,friendly AE! backlighting. "he result of this new market segment Samsung created was a full,featured "# with superior picture 0uality, stylish ultra slim enclosures, and dramatically lower power consumption. %&&) also brought success for Samsung+s brand,recognition campaign as the Samsung brand entered :ortune+s "op "en list of the World+s "op Clobal 1rands. Samsung forged a new market by launching their elegant and revolutionary, Aight Emitting !iode 3AE!4 television. Worldwide, Samsung sold & million flat,screen television sets, maintaining the 7o. ' market share of :lat 8anel "#s 3:8"#4 the fourth year running. Such achievements firmly establish Samsung+s leadership both in popular demand and in producing top,0uality products. /n $arch %&'&, Samsung was the first company in the world to market a full >!, ! AE!,"#, reinforcing the organi5ation+s leadership within the industry. .lthough Samsung is a world leader in the television market, the product mi- has more depth than simply home entertainment accessories and cell phones. "he "# business and the $obile 8hone business, are key components in the Samsung 1usiness 8ortfolio. "he "# business holds the top position in the current market. AE! "#s, which has shown e-plosive growth in the latest market, is a flagship product within the "# business. A2! "#s and $onitors have also maintained top positions in their respective categories. Samsung seeks to sustain leadership through constant innovation and development in new technology, such as !. Samsung also inhibits a world leading Semiconductor business unit, from which they transferred && engineers to the "# business unit. "his transfer relocated the top performing engineering team in the company, providing the employees with healthy performance bonuses every year, and keeping the "# business unit highly productive and competitive. "his in house access to human capital has allowed Samsung to maintain the top position in the marketplace. %&'& has undoubtedly been the breakthrough year for the revolutionary ! "# technology, assuring a very busy year for Samsung. With the release of Series B&&&, Series <&&&, and Series )&&& 3AE!,"#4 televisions, Samsung has garnered high media 2010 Marketing Plan 4

Inspire the world, Create the future. and consumer praise for perfectly reproducing the range of full >! ! images and delivering true,to,life and easy,on,the,eyes picture 0uality. Samsung has been charting the future of television through their ! "# releases, of which include AE!,"#, A2!,"# and 8lasma,"# as well as ! 1lu,ray players, ! home,theater systems and total ! solutions that combine ! active glass with ! content. Samsung+s current strategy is to enrich the television e-perience and the power of the products by maintaining the superior picture 0uality. SE has also began to enrich a deepened value to customers by continued communications and by differentiated products, such as e-panded /nternet,"# features and the launch of the Samsung application marketplace, Samsung .pps. "hese strategic efforts strengthen the premium brand image Samsung looks to uphold and assists them in sei5ing and maintaining the 7o. ' market share ranking. With competitors simply following the trend of Samsung+s breakthrough innovations in the market, saying that Samsung is a step above the competitors would be an understatement. With the ! "# market segment being introduced, several companies have identified it as the ne-t big trend in the home entertainment market and aim to capitali5e on the potential growth by entering the market. Some of the top competitors are Sony, AC Electronics 3AC4, $itsubishi Electronics, #i5io, and 8anasonic. 2urrently, none of Samsung+s competitors can offer a product to rival the picture 0uality of the Samsung. 2ompanies like #i5io, however, look to undercut the 0uality aspect of Samsung+s product by offering a cheaper, lower 0uality, alternative product more accessible to mass market. Samsung will eventually see significant competition in the ! "# market. "heir greatest competition may come from their most recent prominent competitor, #i5io. While Samsung maintains 0uality as a ma(or selling point, #i5io+s focus is to appeal to the mass market by lowering their 0uality standards so they can sell the product for less. #i5io is a market share leader but an innovative follower, in a market where consumers will be forced to pay for the new technology and will appreciate the 0uality due provided by Samsung, which in turn will negatively impact #i5io. .t Samsung, creativity, collaboration and e-cellence are the hallmarks of leadership. Samsung has attracted the world+s most talented managers as they work 2010 Marketing Plan 5

Inspire the world, Create the future. continuously evolving the company+s culture to better support their employees. Samsung fosters innovative ideas that advance technology, creates new products, and improves the everyday life of their customers. "he organi5ations leadership consists of veterans of the Samsung brand. $ost individuals in top positions have spent well over thirty years with the organi5ation. "his employee retention indicates stability and accelerates growth within the organi5ation. Samsung is a very customer oriented organi5ation, offering product support online, by phone, or in stores. Samsung+s current strategy, taking a transitional approach to the ! "# market, while launching several new advertising campaigns to increase awareness of the new technology, can be seen as very effective due to the role they play in the market. =nderstanding the potential growth the market will see, Samsung has taken innovation to the ne-t level by developing several different ! products, which could eventually lead to them attaining complete ! "# market dominance. "he environment of the Samsung organi5ation breeds innovation and creativity, allowing Samsung to develop products and that will move them a step closer to there goal of maintaining dominance of the ! market. 2.3 Consumer Profile: With the development of ! "# technology, Samsung+s target market is easily identified as the Early .dapter. .n early adapter is a consumer who has a very 0uick rate of diffusion, the rate at which the market accepts a new product or product idea. One Strategy .nalytics Survey identified 2ube "ubers as the most likely consumers of products available in the ! "# market. "hese early adopters to new technology, are usually affluent young men who have redefined cool from having fast muscle cars, to being good at computer games. 2ube "ubers, are twice as likely to e-press interest in receiving ! "# programming at home. "hese consumers represent a rather small eight,ten percent of the overall population. "hey are most likely young, mid twenties to late thirties 2aucasian males, educated and married. "hey seem to be the most likely candidates to show interest in buying the newest generation of the television market. .long with the 2ube "ubers, the broader target market tends to be families with young children. =nderstanding that children are more likely to show interest in the 2010 Marketing Plan 6

Inspire the world, Create the future. development of ! technology, Samsung and other companies will try to appeal to the children with the intention of captivating the market of families with children between ages two and fourteen. One common factor of all ! product consumers is their likely geographic location. "he target audience for ! "#s will mostly be found in or near bigger cities. "hese locations must be considered the prime market areas due to the likelihood of the availability of ! content in urban areas rather than away from cities in the more technologically constrained rural areas. $ost consumers of ! "# products will buy them via e,commerce with fewer buys being made in retail stores. $ost e, commerce suppliers offer free, or cheap installation and deliveries. Supplying more convenience to the consumer than the average retail store. With the ma(ority of the sales in the ! "# market e,commerce, Samsung will still be selling a significant share in high,end electronics stores such as 1est 1uy 3=S4 and >> Cregg 3=S4. When defining the psychographic segmentation of the consumers of this market, Sue Shim, 2hief $anaging Officer, Samsung, defined the target consumer as someone immersed in the "# e-perience, an early adopter, and an individual who is a thought or opinion leader amongst peers. "he individuals Samsung looks to target, value the home entertainment e-perience as prior generations would have valued an evening at the theater. Samsung+s ! "# product usage will increase as the content becomes more available, and Samsung has taken steps to accelerate the rate at which this ! content arrives. /n $arch %&'&, Samsung announced partnerships with "echnicolor and !reamWorks 8ictures, two industry leading ! content providers. With these partnerships, Samsung developed packages of products for the market incorporating ! content from !reamWorks 8ictures and Samsung+s ! "# products, offering the consumers the full package for the ultimate at home entertainment e-perience. "his combination of content and product demonstrated the innovative practices at work within Samsung, and helped them achieve their goal of the 7o. ' market share in the ! "# market as it was pioneered. "he only deterrents from the traditional patterns of purchase in the "# market are the decline in the current global economy and pro-imity of the latest transition in the television market to >!"#. "he transition from standard definition to >!"# is still 2010 Marketing Plan 7

Inspire the world, Create the future. growing and many 0uestioned Samsung for the release of ! "# while new market segments are still growing in the >!"# market. "he importance of customer service to encourage the growth of ! "# industry is infinite. Samsung has established a plan to interact more with the target consumers and e-pose them to the products available. $arket forecasts pro(ect sporting events in ! will attract consumers, and with the release of content such as ES87+s new ! channel, the potential growth for the market is opened to a new segment of ! entertainment, the sports fan. .cknowledging that, Samsung took the initiative to begin demoing their available ! "# products on site at sporting events at kiosks, offering fans the opportunity for e-posure. "he seasonality of sales for Samsung is crucial, however they have identified the period between "hanksgiving and 7ew Dears, the fourth 0uarter, as their most prolific 0uarter of the year.

3.0 Com etitive Analysis

1efore comparing the products available from Samsung and its competitors, one must understand that many market forecasts have been done, predicting the potential room for growth in the ! "# market share available. "hese forecasts also predict the total share of the market that the ! industry will capture out of the entire television market. Samsung has studied these numbers and implemented release plans and pricing strategies based on these market forecasts. "he results of these forecasts are as follows6 E.% million ! "#s will be sold in %&'& 3the launch of the market4 representing three percent of the entire "# market. 1y %&'F, forecasts pro(ect over < million ! "# sets being in homes representing '* of the entire "# market. Samsung has established %&'F as the ne-t big year of releasing the ne-t generation of ! products such as ! sets that do not re0uire the use of shutter glasses, eliminating another inconvenience factor the current market bears. :or comparative product analysis, we will use the most popular selling class of ! television sets with the most beneficial and uni0ue features. "he ?? inch class is considered the most popular model of ! "#s. :or most competitors the model chosen is similar to that of Samsung, however the differences can be seen in the 0uality and the price. :or Samsung the model was the )&&& Series AE! ?? inch class ! >!"#. "his 2010 Marketing Plan 8

Inspire the world, Create the future. model was released in %&'& at a 2onsumer Electronics Show and won the award for $ost 1rilliant /nnovation for the industry that year. "he )&&& series boasts an ultra slim . ' design 3the si5e of a pencil4, it comes with a premium accessory package, cinema, 0uality ! and groundbreaking picture 0uality for %! content, and it is also a Smart "# with web,connected Samsung .pps. "his products slim design is accompanied by one of the most consumer conscious accessories introduced in the television market, the remote control. "he remote control for this set is a touch screen handheld panel that allows the consumer to stream live television to the remote even if you leave the room so you never miss a moment of your favorite entertainment. "he 0uality and design of this product goes unmatched, as does it price, G?, ))).

3.1 Sony Cor oration Sony is a Hapanese company that uses web advertising as a dominant feature. "hey offer different videos and 8!: documents on their websites to help customers understand their business. "heir videos offer different features about different products such as their "#+s. When typing into Coogle, Sony does not come up first, however, 1est 1uy was one of the leaders, who sell Sony "#+s. >owever their customer service falls short of SE according to consumer reports. "he Sony product for the ! "# market falls under its 1ravia class, and sells for G%,))). 1ravia boasts similar features, as most competitors have had no choice but to follow the trends of Samsung. Sony finds itself in the top five of the market share of the previous trends of the television market, usually in the top three until recently being bumped down to fifth recently in the :8"# market. Sony seemingly finds itself in the television market as it finds itself in every other aspect of the entertainment market segments ranging from film production to $8 players and gaming consoles. /t is a large organi5ation focused on improving current products and using other organi5ation+s innovations to take a share of the market.

2010 Marketing Plan

Inspire the world, Create the future. 3.2 !itsu"is#i $nc. $itsubishi /nc. is also a Hapanese company with a #ery broad product mi-, and a marketing theory that anything is possible. "hey .im to release their ! "#s mainly through private company sales rather than in nationally acclaimed retail stores like most brands. $itsubishi has continued to use and perfect !A8 technology, created by "e-as /nstruments, while Samsung has moved on from !A8 and has released some beautiful 8lasma, A2! and AE! ! "#s. $itsubishi+s difference is in its picture 0uality, although !A8 offers great picture 0uality the technology has many drawbacks such as bulb replacement and interior cleaning to maintain picture 0uality that hinder consumers from buying their product. $itsubishi is the most recent follower of trends by recently adopting the Smart "# idea and integrating /nternet connectivity into the unit. "his late adaptation and constant need for upkeep to maintain picture 0uality and absence of variations in the products available in the ! market limit $itsubishi to a small market share. 2oncluding that $itsubishi+s broad range of products, and lack of resources available to consumers, e0uates to poor customer service practices. 3.3 Panasonic $nc. 8anasonic, another Hapanese company, is another competitor finding its way to the top three market shares in the "# market. 8anasonic aims to be the 7o.' Creen /nnovation 2ompany in the Electronics /ndustry by %&'<, the '&&th anniversary of their founding. .fter Samsung initiated an une-pected price war with 8anasonic at the opening of the ! market, they announced an e-pectancy to miss sales targets for the first year. !emonstrating Samsung+s sound knowledge of good pricing strategies keeping competitors on edge. 97o one can keep up9 with price cuts by Samsung in the world+s biggest "# market, Doshiiku $iyata, a managing e-ecutive officer at Osaka, based 8anasonic;s, "# business, said in an .ugust & interview with 1loomberg. 9/t+s become unclear whether we can reach our target9 of selling one million ,! sets in the year to $arch ', he said. 8anasonic+s product for the comparative analysis is the ?? inch class #iera, priced at G , ?&. 8anasonic+s premier ! product differs in the backlight composition, opting to use plasma for the opening of the ! market. With plasma however, comes the looming fear of having to replace the backlight in the 2010 Marketing Plan 10

Inspire the world, Create the future. television as is necessary for plasma. >owever, the AE! backlight Samsung offers is far superior to the picture 0uality of a plasma television. "he pricing strategy of 8anasonic is in 0uestion as well, considering the plasma technology is much cheaper to produce yet the price is similar to that of AE! backlight set. 3.% &' Electronics $nc. AC Electronics is a @orean company. AC Electronics /nc., ranking as the world;s second,largest maker of flat,screen "#s, said it aims to strengthen its presence in the burgeoning ! "# market, seeking to grab a share larger than its target for the li0uid, crystal display 3A2!4 "# market. AC is eyeing %? percent of the global ! "# market this year, which amounts to )?&,&&& sales based on an annual market forecast of .< million units. "hat compares with AC;s '? percent market share target for A2! "#s, or %? million units. 92onsidering the downward trend of 3our4 market share in the general "# market, it is our goal to lift our market share in ! "#, which will lead the ne-t "# market,9 @won >ee,won, e-ecutive vice president and head of AC;s A2! "# business unit, told a press conference, declining to provide a specific sales target. AC had focused on the mass market. /nitially AC+s ob(ective was to create a footprint among the si5able middle class, and other than its aggressive pricing, there was little to distinguish it from other consumer durable companies. AC+s premium product in the ! lineup is the ?? inch class /nfinia model, AE! pro(ection full ! >!"#, priced at G ,)B&. One ma(or drawback with this product is the label of being a !,Ieady "#, in comparison to a !,Enabled "# like that of Samsung+s ! "# product line. "his factor and the passive approach AC has in the television market will limit the shares they will get in this early phase of the ! "# product life cycle. 3.( Vi)io $nc. #i5io is a market share leader in the industry, but its claim to success is in its ability to follow technology and market trends. #i5io+s vision is to be the industry leader in consumer electronics by consistently delivering the latest technologies at the most affordable price. "his mission allowed #i5io to take the 7o. ' market share in A2! televisions in %&&), the first time in si- years anyone but Samsung held the coveted ranking. #i5io also found itself in the ! "# market soon after other brands such as Samsung pioneered the way. =sing the best of innovations other companies have had, 2010 Marketing Plan 11

Inspire the world, Create the future. #i5io has developed cost efficient production methods that allow them to undermine the 0uality of the products slightly and the price for what they sell at significantly. #i5io+s product for comparison is the ?? inch class :ull .rray "ruAE! A2! ! >!"#, this product sells for G%,F)).

%.0 S*+, Analysis

%.1 Strengt# A. High Quality Innovative Products - Brand Prestige Samsung+s ! "# market products lead the industry as they have pioneered the launch of the new market segment in early %&'&. Samsung+s AE! "# product line has earned the prestige of the best picture 0uality available in the market by 2onsumer Electronics Ieports. "hose very products are also leading the way in innovation in the way of style and appeal to consumers, as Samsung released the )&&& Series, which is the thinnest ! "# available at . ' inches. Samsung is also working to lead the market by offering a range of top 0uality award winning products developed specifically for the ! market. Samsung is a strong corporate brand known for its 0uality products and advanced technology use. "he brand prestige that Samsung looks to carry over from the AE!, A2! and 8lasma markets, hoping consumers will easily identify the brand and associate it with it high 0uality products from an organi5ation dedicated to providing market leading products. Samsung focuses more towards the innovations and tries to keep improving products to attract more consumers and capture more market share. >oping to captivate the interests of more target consumers, SE demonstrates its aggressive approach to accelerating the diffusion rate of the ! market by offering over a third of their AE! products as ! enabled devices. "he robust market position coupled with strong brand e0uity imparts significant competitive edge to the company regarding scale and recognition, which in turn augers well for the company+s e-pansion plans. B. Availability of Resources 2010 Marketing Plan 12

Inspire the world, Create the future. Samsung recently transferred && engineers from their very prominent semiconductor business unit within the organi5ation, and established a new television business unit. "he relocation of these engineers has allowed SE to develop market products far beyond the technology and innovative capacity of competitors. SE+s semiconductor business unit from which they transferred those engineers, is successful enough for competitors in the television market to buy the technology from SE to use it in their own products. 2ompanies like Sony and AC, SE+s biggest competitors in the ! market currently buy their semiconductors used for production of there ! "#s from Samsung, giving SE the ability to dictate the technology used by its competitors. With control over competitors technology SE can assure there dominance of the ! "# market share, by staying a step ahead of the competition selling them technology SE has been using for some time. C. Constant Focus on R& Samsung Electronic has been regularly strengthening its research and developments 3IJ!4 function. "he company devotes significant resources and attention to develop consumer,preferred products with innovative and distinctive features. /t is evident from the fact that, the company invested appro-imately ?.&* of its revenue in IJ! activities over %&&< and %&&). "he company plans to enhance the spending to nearly @IW), && billion 3GB billion4 in %&'&, up from @IWB,E&& billion 3GE billion4 in %&&). "he company has deployed nearly F%,&&& people in the research activities across its F% research facilities around the world. "hese efforts in IJ! have allowed for SE to develop technologies for products such as a ! "# that doesn+t re0uire glasses, which has been developed but Samsung is waiting to develop the market and for competitors to catch up. :urther, the company owns several research centers across the world. /ts IJ! network spans si- centers in @orea and '< more in nine other countries, including the =S, the =@, Iussia, /srael, /ndia, Hapan and 2hina. "hese IJ! activities helped the company to launch various new products in the recent past. %.2 *ea-nesses A. !ac" of Association #ith $ %a&ing Content 13

2010 Marketing Plan

Inspire the world, Create the future. =nlike SE+s competitor Sony, Samsung does not have a direct association with content provider for ! gaming. .cknowledging that the ! gaming segment will account for a substantial market share, one could infer Sony+s association with gaming consoles like 8layStation as a competitive advantage over Samsung. .s we define our market, the target consumer is someone who more than likely played or still plays video games. Sony+s 8layStation is the first to launch ! gaming content, however with this being the only aspect of the ! market that Samsung does not currently play a role in, it is identified as a weakness as it could allow a competitor to gain ground in SE+s market share. B. High Quality' High Price =nderstanding SE prides itself on having very high 0uality products, one can infer that SE can (ustifiably charge the highest price for those renowned products. "o maintain a dominant market share as the market for ! "#s e-pands, SE+s establish target consumer will have to e-pand. With the target consumer established economically as the upper level of the middle class and all levels of the upper class currently, the target will have to e-pand to incorporate all members of the middle class. "he timeframe for this target to be e-panded would be %&'F as the ne-t trend in ! "#s is introduced, being the "#s that do not re0uire the use of shutter glasses. "he impact on customers this weakness represents is minimal, considering the 0uality of the product is unmatched. "o the consumer who is concerned more with 0uality than price the impact is none, but to the average financially conscious "# buyer our product may lose appeal when compared to the cheaper alternatives in the market. %.3 + ortunities Samsung Electronics has entered into strategic agreements with some of the well,known companies of the world in the recent past. :or instance, during Hune %&&), the company signed a patent cross license agreement with "oshiba for semiconductor technologies. "oshiba is the leading player in the 7.7! flash memory market with thousands of patens under its name. "oshiba is also in the forefront of innovations in this product category with several new technologies under its credit. 1y signing the 2010 Marketing Plan 14

A. (trategic alliances that enhance the co&)any*s )roduct offerings

Inspire the world, Create the future. cross licensing patent agreement with "oshiba, Samsung Electronics continues to have access to important 7.7! flash process technology as well as multi level cell flash memory design /8 relevant for future 7.7! flash generations. Earlier in %&&<, the company entered into partnership agreement with 7etfli-, the world;s largest online movie rental service. .s for the agreement, the companies would offer consumers the ability to instantly stream movies and "# episodes from the 7etfli- Web site directly to their living rooms through Samsung;s 1!,8%?&& and 1!,8%??& 1lu,ray disc players. "he agreement enabled the Samsung Electronics to introduce advanced features in its products, resulting in improved customer offerings. "he company has been able to form strategic alliances with some globally renowned players who are strong in there respective domains. .lliances such as these will not only help the company tap newer avenues of business but also help the company develop newer landscapes for revenue growth. B. Partnershi) to access $ ga&ing content Establishing a partnership with a company in the video game industry would be ideal to increase the amount of ! gaming content. .lthough this segment of the market is currently minimal, the surplus of content could influence consumers so that the segment could increase. . partnership with a company like $icrosoft could have an impact on the market greatly. "he timing of this opportunity would be immediately, the sooner the partnership begins, and the sooner the content could be produced, presenting an opportunity for the market to e-pand. "his would increase brand recognition of Samsung by associating it with products such as $icrosoft+s K1OK E& and their other products to come. "his partnership would also increase customer satisfaction by ac0uiring the only segment of the ! market Samsung is not associated with.

%.% ,#reats A. $ %a&ing +ar"et - (ony 2010 Marketing Plan 15

Inspire the world, Create the future. "he fact that Sony offers the 8layStation gaming console, they have a foot in the door with the consumers who have interest in ! gaming, which could potentially represent a significant share of the market. Sony+s 8layStation is the first gaming console to launch ! gaming content. "his relationship between the two products allows Sony to sell both products together at a discount offering not only a product to view ! content, but also a gaming console with abilities that allow consumers to play ! games. >owever, with our target defined as cube tubers, the ma(ority of consumers Samsung looks to target will not fall under this gaming segment. "he severity of this threat could begin being analy5ed as ! gaming content arrives in the market, which will be begin during the 2hristmas buying season of %&'&. With only a very few titles becoming available over the course of its first few months in the market, it will be Huly %&'' at the earliest before the significance of the ! gaming market segment can be determined. B. (lo# diffusion rate for $ ,.lso representing a threat is a slow diffusion rate for ! technology. "he "# market has been rapidly, the evolution of >! "# and flat screen "#s is the most recent change the market has endured, with the ne-t being !. $ost consumers of lower economic classes or slow adapters have (ust recently made the transition to >! "#s, discouraging them from immediately making another buy such as that of a ! "#. Samsung will be doing everything they can to accelerate the diffusion rate for ! "#s. With most market forecasts predicting the change will occur within the first five years, Samsung should be able to measure the success of their efforts within the first two years after the product was launched as an indicator. "his threat could effect Samsung e-ponentially as Samsung has invested billions of dollars in IJ! for ! products, a slow rate of diffusion would slow down the rate at which Samsung reaches its goals for profitability.

%.( Conclusions:

2010 Marketing Plan

16

Inspire the world, Create the future. !ue to Samsung+s superiority in the general "# market, the threats as you can tell are minimal. >owever, in the strategies and opportunities sections you will find what we are doing to reduce the risk of these threats having an affect on Samsung+s market share. !eveloping a partnership with $icrosoft will be a vital component to developing the ! gaming content availability, which is the only relevant competitive advantage other than pricing. .s Samsung introduces new ! products to the market, the price of there current products will drop, making them more readily available to lower class consumers and e-panding the target market for their ! products. %.. !ar-eting !ix %...1 Pro/uct Samsung offers the most diverse product mi- in the ! market, offering AE!, A2! and 8lasma ! "#s. Samsung+s cash cow product in the ! market however, is the AE! )&&& series. Features ,?? or FE class AE! backlight display ,. ' thin, the thinnest "# available ,"he most technologically advanced television remote, with which, you can stream live television to if you leave the room of the main display and view content directly on the A2! screen on the face of the remote Advantages ,"he distinct advantage to buying a Samsung ! "# for the consumer is the knowledge that they have bought the most cutting, edge, technologically advanced "#, in the ! market. ,"he remote is the only one of its kind, offering consumers a distinct feature they cannot get from any of SE+s competitors. ,Samsung+s )&&& series is the thinnest "# ever produced. 2010 Marketing Plan 17

Inspire the world, Create the future. ,Samsung offers the best ! packages, consisting of ! starter kits, ! home theater surround sound, ! capable blue ray players, and the highest 0uality ! "#s. Benefits ,.mong the benefits of this product, the increase in customer satisfaction, due to the 0uality of the product, will be unmatched by competitors. 1ecause Samsung produces such a diverse product mi-, they can meet all the needs of the ! "# consumers with the products they offer, at a very competitive level. %...2 Price "he price of the )&&& series is G?,))). >owever, Samsung+s diverse product miof ! "#s ranges from G',%&&,GB,&&&. %...3 Promotion Samsung has launched various advertising campaigns, spending billions of dollars across three continents, 7orth .merica, Europe and .sia. Eight billion dollars has been spent in Europe alone, and three billion in .sia. 7either of which compare to the twelve billion dollar campaign launched in the 7orth .merica, predominantly the =S, from where EE* of the ! "# market e-ists. "hey also have and will continue to use celebrities such as singing group, "he 1lack Eyed 8eas, to promote their products. "hey use these celebrities in advertisements seen by the public, but also at some of there biggest events in which they display the product and allow the consumers at the events to e-perience Samsung !.

%...% Place 2010 Marketing Plan 18

Inspire the world, Create the future. "hese products will be sold mostly online, where customers can find deals for free shipping and set up. "his also offers consumers the opportunity to analy5e reviews and physically see features of our products rather than hear them from a retail store associate. Samsung+s products will not be offered in wholesale stores or super centers like Wal,$art or "arget, but the consumer will have the opportunity to purchase them in specialty electronics retail stores like 1est 1uy and >> Cregg.

(.0 !ar-et 0esearc# 1in/ings

(.1 Vi/eo 'ame !ar-et 1ecause we intend on entering into a partnership in the future with $icrosoft to develop a ! gaming system, researching the gaming market was essential. .ccording to !$W $edia, global video game sales totaled F'.) billion dollars in %&&) and are e-pected to grow '&. * to E<. billion in %&'%. Came console sales are e-pected to reach F.B billion dollars in sales by %&'% with a E.)* annual growth rate. (.2 *#at lea/s us to "elieve 2e can sell 33 ,Vs in t#is mar-et4 .ccording to :utureSource, ! "# sales have been healthy and are beginning to surpass >!"# sales at the same point in >!"#+s life. :utureSource also says that by the end of %&'&, E.% million ! "#+s will have been sold worldwide, with '.% million of those being sold in Europe. '& million are e-pected to be sold in %&'', and ?& million by the year %&'?. (.3 1ocus 'rou "o gain a better idea understanding of the consumer market, we organi5ed a focus group. "he focus of the study was on what the current consumer felt about the ! products available, and what improvements could be made in the eyes of the consumer. "he group consisted of '& average consumers, ? men and ? women. ? of the people in the group had used our Samsung )&&& Series ! '&<&p AE! >!"#, while the other ? had never used a ! "# and were simply asked what they thought about the idea of purchasing one and the overall concept of ! "#+s. 2010 Marketing Plan 19

Inspire the world, Create the future. :irst we had an open discussion with the five participants that had used the )&&&

series. "he feedback about the )&&& series was e-tremely positive. "his is what the users had to say about the products advantagesL Consumer #1 , :ound it easy to mount on the wall. "# is so thin and picture is so clear it leaves people in awe. ! feature is awesome, although very limited library at present time. Works well with my ! receiver as well. Consumer #2 , :or the price of the "# my e-pectations were high and for the most part they have been met, brilliant color and crisp picture. .ction scenes are awesome. Sound is really not too bad if you have a small or medium si5ed,room. "echnical support offered via '<&& number helps tremendously for parts of set,up that are a little difficult for the average person. Consumer #3 , 1efore buying / was one of those people that ridiculed the idea of wearing bulky green glasses to watch ! , but the other day found the whole family bunched up to watch 9cloudy with a chance of meatballs9 it was greatM / now cringe every time / am forced to watch something that is not >igh !efinition. Iegarding the much,heralded /nternet and "# and A.7 functions / had my e-pectations up high. / connected to Samsung services and setup !ivK reasonably easy to gain access. "he "# updated a couple of times to upgrade :irmware but it was painless , first upgrade through wireless and following wired. / find my Windows >ome Server files easily and watch them flawlessly. / send the sound to my amplifier from the optical connection with no problems. Consumer #4 , "he picture 0uality is ama5ing. / compared it to the c<&&& at the store because / was skeptical about the contrast ratio being lower in the c)&&& but the )&&& looks better. "he 8icture is smoother and clearer, no blur at all. "he difference in price is definitely not (ust how thin it is which is incredible to look at. "his "# is an ama5ing display of technology. Consumer# 5 , We;ve been looking for a >!"# for some time and think that we;ve found the perfect one. "he picture 3even without the !4 is .$.N/7C and with the ! is beyond our e-pectations. We paired it with a Samsung >"/1 and love the combination. Cood going SamsungM 7ice (ob on this one.

2010 Marketing Plan

20

Inspire the world, Create the future. "he pros of the )&&& series are clear. "he group had a basic agreement that the

picture, the ! and the overall design of the "# were of high 0uality and one of a kind. >owever, we also asked them what the cons of the "# were, so that we could get a feel for what future "#+s should have based off of our assessment of what the group says. "hese are the cons they came up with. Consumer #1 , Set,up if you aren;t technology savvy may take assistance. :or the on,line .pps, if you have more than one Samsung product you have to set up separate accounts and passwords for each product. Iemote control sometimes does not pick up signal so you can;t watch the show on it when you leave the room, and there is a very short battery life on remote control. Consumer #2 - =nfortunately it is /$8OSS/1AE to utili5e these profiles for other than indifferent options such as weather settings and other bloatware. 2ontacting Samsung support only confirmed and / was told that it is all over the board , ' "# , one 7etfli- login no matter which producer. .m / allowed to not care about all the others and e-pect more from a top of the line "#O , Samsung should be cutting edge as they are with design and functionality and they should be able to code the software to make sensible use of these profiles , why else would you have them apart from wanting to personali5e your "# e-perienceO "he workaround is to reset the account every time someone new wants to use it and then re,register with new 7etfli- information , this could be coded in to the software if 7etfli- or is it !I$ essentially is stopping this ability. .nother word of caution for this beautiful piece of furnitureL .fter having hung it on the wall and worked with the wires a few times , the motion of tilting the "# out to gain access causes the .luminum to get very slight indents , this can only be viewed by a very critical eye along the edge against light. Aastly / can possibly hold my breath longer than the remote holds a charge , so / added it on to a multifunction remote from a competitor and avoided that problem. Consumer #3 - 1ought this "# for its design and the remote. .ll the electronic and connection are in the stand and you have to remove a black part and stick it to the back if you want to hang it. Aot of connection problem with the W/ :i or Ethernet, have to reconnect all the time, both for the "# and the remote / have the latest router 2010 Marketing Plan 21

Inspire the world, Create the future. available which works fine with all other devices. "he remote is disappointing and the touch screen a pain to use. "he selection of the source is a painL / have not found a way to remove the unused sources. /mage 0uality is certainly the best available but identical to the <&&& Consumer #4 1ig complaint would be setup and reliability of internet features. /t was a little tricky to setup the "#. "he remote connects over the internet to the "# as well. Sometimes this works and sometimes it does not. Same with watching content over the internet. "he "# gets a lot of errors, then it will work great and then it gets errors again. Spent hours trying to fi- it, but still not reliable...Iemote works terrible in infrared mode. /t takes a lot of pointing and changing positions to get the "# to respond. >owever, if the Wi,:i mode is working, the "# responds perfect. Consumer #5 - =nfortunately the hefty price will only get you the cool factor. !on+t get me wrong, but this "# is obviously targeted to a consumer that cares more about the looks of the set itself than its performance. "he picture is about as good as the 2B&&& but not nearly as good as the 2<&&& which is admittedly Samsung;s flagship for the masses "he ne-t five participants that we asked to be a part of the group have never

used a ! "#. Overall they know very little about them and what they do know, is only has been seen on television advertisements. Some of the 0uestions that we asked were, would you buy a ! "#O What do you think would have to change in the ! "# market to persuade you to buy oneO :inally what do you think about the concept of !O !o you like itO What don+t you like about itO "he answers we received were simple6 .ll five participants said that at this time, they would not buy a ! "# due to the cost. With the current state of the economy, they agreed that spending that much money on a "# was unnecessary and irresponsible unless you can honestly afford it. When asked what would have to change in the market for them to feel comfortable buying one they agreed again that the price would have to come down. .nother suggestion was that all programming would have to be in !. One participant said, with the E,&&& dollars / spent on the "# / could feed my family for a long time, or even make upgrades to our lifestyle without buying a new television. .nother said, 2010 Marketing Plan 22

Inspire the world, Create the future. with "#+s changing year to year from >!"# to ! "#, it feels like it costs a fortune to stay caught up when the smart thing to do is to wait for a new "# to be introduced, and when the prices fall for the older ones go get one of those, they are all the same to me anyway. When asked about their opinions about ! in general, % really had no opinion others said that they because they were (ust now becoming accustom to >!"#, and

en(oy it, but hated having to wear glasses to watch "# and that the total cost was not worth the e-perience. One participant said, / don+t need what / watch to be (umping out at me. / don+t want to be watching a football game and have it seem like /+m about to get tackled. /n conclusion, the focus group gave us a great idea of how productive ! "#+s will be. "he participants that have used one had more positive things to say than negative. "he things that were mostly complained about such as the remote control and the cost will vary no matter what. /f the remote control is a main problem with the "# instead of the picture 0uality, or the sound 0uality, then Samsung has done a good (ob with the product. .s far as getting new customers to change their mind about not wanting one, that will come as more ! "#+s are released and information about the advantages of them become available. /f the 0uality is there and the cost is right, then the ! "# market will prosper as the >!"# market did when it encountered the same problems, and according to the numbers the ! "# market will double in the ne-t year, and triple by %&'%.

..0 +"5ectives

..1 Enter in to t#e 33 vi/eo gaming mar-et t#roug# a artners#i 2it# !icrosoft. 2010 Marketing Plan 23

Inspire the world, Create the future. /n order to capitali5e on the growing video gaming market, we intend on entering into a partnership with $icrosoft to develop a virtual gaming product. Short term, we would like to couple ! "# technology with a dominant video gaming console like the K1OK E&. 1y the year %&%& we intend on launching a virtual gaming product. ..2 &aunc# a com re#ensive a/ cam aign t#at focuses on SEs com etitive a/vantage in 33 tec#nology. .n ad campaign focusing on our competitive advantage in technology would be highly effective in selling more ! "#+s to developing market. We want to make it known that Samsung was the first to pioneer this technology, therefore, they are getting the most advanced product in the market. Our goal is to increase "# sales by ?* in a E, month period following the launch of the campaign. ..3 !aintain mar-et /ominance t#roug#out t#e 6'lasses7 era an/ re are t#e mar-et for a 6glassless7 33 ,V. >aving already established a firm hold on the ! market, we would like to maintain our position as market leaders in ! technology with the use of ! glasses. .s the market evolves closer to glasses free technology we would like to prepare the market for our product release in %&'F. Our ob(ective is to see our market share remain at <<* until the release of our glasses,free product in %&'F.

8.0 Strategies
2010 Marketing Plan 24

Inspire the world, Create the future. 8.1 Enter in to t#e 33 vi/eo gaming mar-et t#roug# a artners#i 2it# !icrosoft. 1y entering the gaming market we believe that we can capitali5e on the untapped ! gaming market for significant profit opportunities. Entertainment software is one of

the fastest growing industries in the =.S. economy. "he industry is creating (obs and producing revenue for communities across the nation. /n addition, the industry continues to grow as an entertainment medium. We believe that a partnership with $icrosoft will allow us to use the K1OK E& gaming console, coupled with our advanced ! technology to bring a new ! e-perience to gaming. /t is our short term goal to create a gaming package available to consumers that will include a Samsung ! "#, glasses, a $icrosoft K1OK E&, and ! compatible games to offer an in home e-perience that consumers cannot find elsewhere. .ccording to data compiled by the 78! Croup, a global market research
company, computer and video game companies posted strong sales in %&&). "he industry sold %B .? million units, leading to G'&.? billion in revenue. Of these sales6 '4 Came console software sales totaled G< billion with 'BE.B million units soldL %4 2omputer game sales were G? <.F million with % .? million units soldL and, 4 "here were G'.) billion in portable software sales with B .% million units sold. "he most popular game genres in %&&) were 9.ction9 and 9Sport Cames,9 each of which accounted for more than '< percent of all games sold. /n addition, of the games sold in %&&), E& percent were rated 9Everyone 3E49 or 9Everyone '&P 3E'&P4.9 "he 78! Croup;s data also indicates that only 'B percent of games sold last year were rated 9$ature 3$4.9 F'* of gaming consoles sold in the =.S. were produced by $icrosoft, making them the most beneficial candidate for partnership. "hese particular genres are the genres most compatible with ! technology. We believe that in the long term, we can couple our competitive advantage in ! technology with $icrosoft+s competitive advantage in video gaming to create an enhanced ! e-perience comparable to virtual reality. "he target market of these particular products tend to place an emphasis on having the latest and greatest technology and through this partnership, it is our belief that we can capitali5e on these tendencies. 2010 Marketing Plan 25

Inspire the world, Create the future. $icrosoft has selected Samsung as the e-clusive >!"# worldwide marketing partner for the ne-t,generation Kbo- high,definition 3>!4 gaming platform. "he announcement was made during media day at the >ome Entertainment E-po at the 7ew Dork >ilton, which was held from .pril %),$ay '. .s part of this marketing deal, both companies will install over %?,&&& Samsung >!"#+s in $icrosoft Kbo- retail kiosks worldwide, with half that total budgeted for the =nited States. "he new % ,inch Samsung A2! "# will be paired at retail with the new Kbo- console, which offers a super,fast '%,mil/i,second pi-el switching speed and enable 9intense action while overcoming any motion artifacts,9 the companies said. "he global marketing and promotional alliance between $icrosoft and Samsung Electronics will include cinema, 8OS, television, print, online and various other media efforts, with further details becoming available in coming months. $icrosoft;s first high,definition game will incorporate Samsung branded products as well as instances of Samsung;s logo as part of the overall >! gaming e-perience. "his will mark the first time $icrosoft incorporates a consumer electronics technology partner with the Kbo- console and games, the companies noted. /n commenting on the deal, 8eter Weedfald, senior #8, consumer electronics and 7orth .merica corporate marketing for Samsung Electronics .merica, said, 9Caming has become a primary force for innovation in the entertainment and technology industries9 and called $icro, soft;s >! Kbo- 9the best ne-t,generation game console and a key driver in the global >!"# revolution.9 !etails on the ne-t,generation Kbo- were scant from Edward 1land, global marketing general manager of $icrosoft;s home and entertainment division for Kbo-, e-plaining that its ma(or introduction will be held at the E show in Aos .ngeles the week of $ay 'E. 1ut he did note that 9no decision has been made as yet for a blue,laser format9 for Kbo-. 1land noted that 9either 1lu,ray or >! !#! would be acceptable9 and that the ne-t,generation Kbo- would be 9e-tendable9 in that area. Weedfald added chat Samsung has also. 7ot selected a blue,laser format as of yet. 7egotiations between Samsung and $icrosoft on this alliance took around a year, Weedfald said. 1oth companies en(oy a long,standing relationship as strategic and tactical business partners. $icrosoft Kbo- currently incorporates Samsung technology, and Samsung will 2010 Marketing Plan 26

Inspire the world, Create the future. continue to be a tech driver for the ne-t,generation Kbo- video game console, the companies said. 2onsidering the long,term relationship held between the two companies with the >! format, we believe that a deal focusing on the ! format is highly likely and would be beneficial for both parties involved.

8.2 &aunc# a com re#ensive a/ cam aign t#at focuses on SEs com etitive a/vantage in 33 tec#nology. Samsung holds a ma(or competitive advantage when it comes to ! technology. /t is our goal to launch an ad campaign that makes the consumer associate ! technology with Samsung. We want to stress the fact that Samsung was the first to pioneer the ! "# and that our "#+s are the most technologically advanced in the market. Our goal is for the consumer market to associate Samsung "#+s with the best in the market when it comes to 0uality and technological advancement. We believe that if we launch an ad campaign that sends the message of 0uality and lu-ury we will see a rise in our company sales. 2onsumers are not aware of our 0uality products compared to the rest of the market and through the campaignL we aim to make them very aware. Our main message trough this ad campaign is going to preach the need for 0uality and convince consumers that if you are going to have a ! "#, you should have the best. We want to convince the customers that if they are going to spend a larger amount of money on an e-pensive product like a ! "#, they deserve the best, Samsung. 8.3 !aintain mar-et /ominance t#roug#out t#e 6'lasses7 era an/ re are t#e mar-et for a 6glasses9free7 33 ,V. Even though we have the technology to provide a glasses free ! "#, we would like to let the market develop through a glasses era so that we can release the best product possible in %&'F. 1ecause we posses such a large share of the current market, we would like to grow and maintain what share we do have to gain as much profit as possible during this stage of the technological life cycle. !uring this waiting period before the product release in %&'F, we would like to gain a comfortable amount of 2010 Marketing Plan 27

Inspire the world, Create the future. market share so that the launch of the new product has a 0uality brand image to fall back on. "he glasses,free "# will be relatively e-pensive and if there is a successful ! "# generation preceding it, the chances of it succeeding greatly increases. "his ob(ective is crucial to Samsung+s long,term success in the ! "# market because if e-ecuted properly, Samsung will be established as the leading provider for ! technology for years and years to come.

:.0 ,actics
:.1 Enter in to t#e 33 vi/eo gaming mar-et t#roug# a artners#i 2it# !icrosoft. We believe that with a proper business proposal, $icrosoft will be highly interested in a partnership as market research suggests that ! gaming is going to be a very profitable industry in the near future. .fter the partnership is achieved we intend on turning the focus of our IJ! spending 3B1illion annually4 towards producing a virtual reality gaming e-perience alongside $icrosoft. "his will allow us to bring a technological innovation to the market that would be far beyond anything anyone else can provide. "o associate with gaming products even more, we are seeking an agreement to make Camestop, and E1 Cames official dealers of our ! televisions. "his will give us an instant upper hand on the market. :.2 &aunc# a com re#ensive a/ cam aign t#at focuses on SEs com etitive a/vantage in 33 tec#nology. With the upcoming super bowl season, we would like to advertise our ! "# during the most highly watched event in .merica. "here is no better stage to advertise a ! "# on than during the super bowl. . ma(ority of our target market for our "#+s will be watching and it would be a fantastic opportunity to advertise directly to our market. "his would also serve beneficial to our gaming market because a ma(ority of video games played are sports games. 8rint ads will also be placed in Came /nformer maga5ine and in ES87 maga5ine to more effectively reach our target market.

:.3 !aintain mar-et /ominance t#roug#out t#e 6'lasses7 era an/ re are t#e mar-et for a 6glasses9free7 33 ,V. 2010 Marketing Plan 28

Inspire the world, Create the future. 1y advertising and effectively selling our glasses re0uired televisions, we will continue to increase our market share until the release of our glasses,free television. .fter we increase sales of our ! "#+s we hope to gain a reputation for providing the most technologically advanced product in the ! market. "o do so we intend on providing the highest 0uality products and customer service to maintain the products we have already sold. "his goal will be met with the proper e-ecution of goals one and two.

;.0 1inancial $m act of t#e !ar-eting Plan

10.1 1ive year sales forecasts:

;.1 Enter in to t#e 33 vi/eo gaming mar-et t#roug# a artners#i 2it# !icrosoft. "o enter in to the gaming market with $icrosoft, we plan on focusing our IJ! budget 3B billion in %&'&4 solely on producing a virtual reality gaming platform. "his budget includes the research necessary to develop the product. We would like another %& billion to fund production, distribution, customer service, and market research.

;.2 &aunc# a com re#ensive a/ cam aign t#at focuses on SEs com etitive a/vantage in 33 tec#nology. 2010 Marketing Plan 29

Inspire the world, Create the future. .n average ad during the super bowl is G'.' million dollars for one &,second spot. We would like a ?&& million dollar advertising budget to effectively advertise for a si-,month period. ;.3 !aintain mar-et /ominance t#roug#out t#e 6'lasses7 era an/ re are t#e mar-et for a 6glasses9free7 33 ,V. "his goal will be achieved with the daily operating cost and should not increase the average spending per year. ;.% $ncome statement< =alance s#eet< an/ o erating costs. See "ables .ttached.

10.0 !etrics
10.1 Enter in to t#e 33 vi/eo gaming mar-et t#roug# a artners#i 2it# !icrosoft. Samsung (oined forces with $icrosoft K1o- in .pril of %&&? to become e-clusive >!"# worldwide marketing partners. .s a part of the deal, both companies agreed to install over %?,&&& >!"#+s Kbo- retail kiosks worldwide. >alf of this budget is designated strictly for the =nited States. $icrosoft agreed to incorporate Samsung+s branded products, as well as instances of Samsung+s logo throughout the first high definition game that would be released. 7ow that ! technology is out on the market, another $icrosoft deal with ! gaming would be ideal for Samsung. Since we have already held a partnership with $icrosoft Kbo-, this should give us a very large advantage in striking another deal to produce a ! game that would add to the gamers+ e-perience. 10.2 &aunc# a com re#ensive a/ cam aign t#at focuses on SEs com etitive a/vantage in 33 tec#nology. Samsung started to release "# commercials before the release of the first ! "#. We used main sporting events, award shows, and primetime "# series as our main targeted time slots. "he word of ! "#+s spread very 0uickly and ultimately helped the release of our product go straight to the top. Our advertisements will focus on illustrating the picture 0uality and effects of the new product. . ma(or emphasis will also go on displaying the sleek, ultra thin design that is a main key in our advertising strategy. .s of 2010 Marketing Plan 30

Inspire the world, Create the future. Hune %&'&, when our first product was released, we controlled )&* of the ! market. Our advertising strategy is e-pected to maintain our market dominance.

11.0 Contingency Plan

11.1 3ominance in t#e 33 !ar-et. What if Samsung falls out of the top spotO 2urrently, Samsung holds a dominant market share. >owever, due to the resources implemented in IJ! at Samsung, they have developed glasses free "#s, a technology superior to that of its competitors. Withholding that technology until the ! market has been established allows them to use this technology as a contingency plan if they do not meet their goals of sustaining that dominant market share. "his technology represents the ne-t trend in the "# market, specifically the ! "# segment. 11.2 Alliances. What if Samsung lost their partnership with content providersO Samsung currently holds two significant (oint ventures with !reamWorks and "echnicolor. !reamWorks announced this year that they will produce nothing but ! movies from now on. /f we lost partnerships with either or both of these companies, we would look to start a new partnership with 8i-ar .nimations or other ! production companies. 8i-ar is becoming a top notch movie production company, releasing movies like :inding 7emo, "oy Story, and "he /ncredibles, among numerous others. "he latest movie released was "oy Story , which ended up being the second highest grossing animation film of all time, with GF'? million. We feel that with this partnership, we could make a great profit with animated movies targeted towards small children and developing families.

2010 Marketing Plan

31

Inspire the world, Create the future.

12.0 0eferences
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2010 Marketing Plan

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