Professional Documents
Culture Documents
Samsung Marketing Plan
Samsung Marketing Plan
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B. Availability of Resources
2010 Marketing Plan
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5.1
develop a 3D gaming system, researching the gaming market was essential. According
to DMW Media, global video game sales totaled 41.9 billion dollars in 2009 and are
expected to grow 10.3% to 68.3 billion in 2012. Game console sales are expected to
reach 34.7 billion dollars in sales by 2012 with a 6.9% annual growth rate.
5.2
surpass HDTV sales at the same point in HDTVs life. FutureSource also says that by
the end of 2010, 6.2 million 3D TVs will have been sold worldwide, with 1.2 million of
those being sold in Europe. 10 million are expected to be sold in 2011, and 50 million by
the year 2015.
5.3
Focus Group
To gain a better idea understanding of the consumer market, we organized a
focus group. The focus of the study was on what the current consumer felt about the 3D
products available, and what improvements could be made in the eyes of the consumer.
The group consisted of 10 average consumers, 5 men and 5 women. 5 of the people in
the group had used our Samsung 9000 Series 3D 1080p LED HDTV, while the other 5
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First we had an open discussion with the five participants that had used the 9000
series. The feedback about the 9000 series was extremely positive. This is what the
users had to say about the products advantages;
so clear it leaves people in awe. 3D feature is awesome, although very limited library at
present time. Works well with my 3D receiver as well.
Consumer #2 - For the price of the TV my expectations were high and for the
most part they have been met, brilliant color and crisp picture. Action scenes are
awesome. Sound is really not too bad if you have a small or medium sized-room.
Technical support offered via 1800 number helps tremendously for parts of set-up that
are a little difficult for the average person.
Consumer #3 - Before buying I was one of those people that ridiculed the idea of
wearing bulky green glasses to watch 3D - but the other day found the whole family
bunched up to watch "cloudy with a chance of meatballs" it was great! I now cringe
every time I am forced to watch something that is not High Definition. Regarding the
much-heralded Internet and TV and LAN functions I had my expectations up high. I
connected to Samsung services and setup DivX reasonably easy to gain access. The
TV updated a couple of times to upgrade Firmware but it was painless - first upgrade
through wireless and following wired. I find my Windows Home Server files easily and
watch them flawlessly. I send the sound to my amplifier from the optical connection with
no problems.
store because I was skeptical about the contrast ratio being lower in the c9000 but the
9000 looks better. The Picture is smoother and clearer, no blur at all. The difference in
price is definitely not just how thin it is which is incredible to look at. This TV is an
amazing display of technology.
Consumer# 5 - We've been looking for a HDTV for some time and think that
we've found the perfect one. The picture (even without the 3D) is AMAZING and with
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The pros of the 9000 series are clear. The group had a basic agreement that the
picture, the 3D and the overall design of the TV were of high quality and one of a kind.
However, we also asked them what the cons of the TV were, so that we could get a feel
for what future TVs should have based off of our assessment of what the group says.
These are the cons they came up with.
Consumer #1 - Set-up if you aren't technology savvy may take assistance. For
the on-line Apps, if you have more than one Samsung product you have to set up
separate accounts and passwords for each product. Remote 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.
than indifferent options such as weather settings and other bloatware. Contacting
Samsung support only confirmed and I was told that it is all over the board - 1 TV - one
Netflix login no matter which producer. Am I allowed to not care about all the others and
expect more from a top of the line TV? - 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
personalize your TV experience? The workaround is to reset the account every time
someone new wants to use it and then re-register with new Netflix information - this
could be coded in to the software if Netflix or is it DRM essentially is stopping this ability.
Another word of caution for this beautiful piece of furniture; After having hung it on the
wall and worked with the wires a few times - the motion of tilting the TV out to gain
access causes the Aluminum to get very slight indents - this can only be viewed by a
very critical eye along the edge against light. Lastly I can possibly hold my breath longer
than the remote holds a charge - so I added it on to a multifunction remote from a
competitor and avoided that problem.
Consumer #3 - Bought this TV for its design and the remote. All the electronic
and connection are in the stand and you have to remove a black part and stick it to the
2010 Marketing Plan
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was a little tricky to setup the TV. The remote connects over the internet to the TV as
well. Sometimes this works and sometimes it does not. Same with watching content
over the internet. The TV gets a lot of errors, then it will work great and then it gets
errors again. Spent hours trying to fix it, but still not reliable...Remote works terrible in
infrared mode. It takes a lot of pointing and changing positions to get the TV to respond.
However, if the Wi-Fi mode is working, the TV responds perfect.
Consumer #5 - Unfortunately the hefty price will only get you the cool factor.
Dont get me wrong, but this TV is obviously targeted to a consumer that cares more
about the looks of the set itself than its performance. The picture is about as good as
the C7000 but not nearly as good as the C8000 which is admittedly Samsung's flagship
for the masses
The next five participants that we asked to be a part of the group have never
used a 3D TV. Overall they know very little about them and what they do know, is only
has been seen on television advertisements. Some of the questions that we asked
were, would you buy a 3D TV? What do you think would have to change in the 3D TV
market to persuade you to buy one? Finally what do you think about the concept of 3D?
Do you like it? What dont you like about it? The answers we received were simple:
All five participants said that at this time, they would not buy a 3D TV due to the
cost. With the current state of the economy, they agreed that spending that much
money on a TV 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.
Another suggestion was that all programming would have to be in 3D. One participant
2010 Marketing Plan
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When asked about their opinions about 3D in general, 2 really had no opinion
because they were just now becoming accustom to HDTV, and 3 others said that they
enjoy it, but hated having to wear glasses to watch TV and that the total cost was not
worth the experience. One participant said, I dont need what I watch to be jumping
out at me. I dont want to be watching a football game and have it seem like Im about
to get tackled.
In conclusion, the focus group gave us a great idea of how productive 3D TVs
will be. The participants that have used one had more positive things to say than
negative. The things that were mostly complained about such as the remote control and
the cost will vary no matter what. If the remote control is a main problem with the TV
instead of the picture quality, or the sound quality, then Samsung has done a good job
with the product. As far as getting new customers to change their mind about not
wanting one, that will come as more 3D TVs are released and information about the
advantages of them become available. If the quality is there and the cost is right, then
the 3D TV market will prosper as the HDTV market did when it encountered the same
problems, and according to the numbers the 3D TV market will double in the next year,
and triple by 2012.
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6.0 Objectives
6.1 Enter in to the 3D video gaming market through a partnership with Microsoft.
In order to capitalize on the growing video gaming market, we intend on entering
into a partnership with Microsoft to develop a virtual gaming product. Short term, we
would like to couple 3D TV technology with a dominant video gaming console like the
XBOX 360. By the year 2020 we intend on launching a virtual gaming product.
6.2 Launch a comprehensive ad campaign that focuses on SEs competitive
advantage in 3D technology.
An ad campaign focusing on our competitive advantage in technology would be
highly effective in selling more 3D TVs 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 TV sales by 5% in a 6month period following the launch of the campaign.
6.3 Maintain market dominance throughout the Glasses era and prepare the
market for a glassless 3D TV.
Having already established a firm hold on the 3D market, we would like to
maintain our position as market leaders in 3D technology with the use of 3D glasses. As
the market evolves closer to glasses free technology we would like to prepare the
market for our product release in 2014. Our objective is to see our market share remain
at 88% until the release of our glasses-free product in 2014.
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7.0 Strategies
7.1 Enter in to the 3D video gaming market through a partnership with Microsoft.
By entering the gaming market we believe that we can capitalize on the untapped
3D gaming market for significant profit opportunities. Entertainment software is one of
the fastest growing industries in the U.S. economy. The industry is creating jobs
and producing revenue for communities across the nation. In addition, the
industry continues to grow as an entertainment medium. We believe that a
partnership with Microsoft will allow us to use the XBOX 360 gaming console,
coupled with our advanced 3D technology to bring a new 3D experience to
gaming. It is our short term goal to create a gaming package available to
consumers that will include a Samsung 3D TV, glasses, a Microsoft XBOX 360,
and 3D compatible games to offer an in home experience that consumers cannot
find elsewhere.
According to data compiled by the NPD Group, a global market research
company, computer and video game companies posted strong sales in 2009. The
industry sold 273.5 million units, leading to $10.5 billion in revenue. Of these sales:
1) Game console software sales totaled $8 billion with 176.7 million units sold;
2) Computer game sales were $538.4 million with 23.5 million units sold; and,
3) There were $1.9 billion in portable software sales with 73.2 million units sold.
The most popular game genres in 2009 were "Action" and "Sport Games," each of
which accounted for more than 18 percent of all games sold. In addition, of the games
sold in 2009, 60 percent were rated "Everyone (E)" or "Everyone 10+ (E10+)." The
NPD Group's data also indicates that only 17 percent of games sold last year were
rated "Mature (M)." 41% of gaming consoles sold in the U.S. were produced by
Microsoft, making them the most beneficial candidate for partnership. These particular
genres are the genres most compatible with 3D technology. We believe that in the long
term, we can couple our competitive advantage in 3D technology with Microsofts
competitive advantage in video gaming to create an enhanced 3D experience
comparable to virtual reality. The target market of these particular products tend to place
2010 Marketing Plan
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8.0 Tactics
8.1 Enter in to the 3D video gaming market through a partnership with Microsoft.
We believe that with a proper business proposal, Microsoft will be highly
interested in a partnership as market research suggests that 3D gaming is going to be a
very profitable industry in the near future. After the partnership is achieved we intend on
turning the focus of our R&D spending (7Billion annually) towards producing a virtual
reality gaming experience alongside Microsoft. This will allow us to bring a technological
innovation to the market that would be far beyond anything anyone else can provide. To
associate with gaming products even more, we are seeking an agreement to make
Gamestop, and EB Games official dealers of our 3D televisions. This will give us an
instant upper hand on the market.
8.2 Launch a comprehensive ad campaign that focuses on SEs competitive
advantage in 3D technology.
With the upcoming super bowl season, we would like to advertise our 3D TV
during the most highly watched event in America. There is no better stage to advertise a
3D TV on than during the super bowl. A majority of our target market for our TVs will be
watching and it would be a fantastic opportunity to advertise directly to our market. This
would also serve beneficial to our gaming market because a majority of video games
played are sports games. Print ads will also be placed in Game Informer magazine and
in ESPN magazine to more effectively reach our target market.
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9.1 Enter in to the 3D video gaming market through a partnership with Microsoft.
To enter in to the gaming market with Microsoft, we plan on focusing our R&D
budget (7 billion in 2010) solely on producing a virtual reality gaming platform. This
budget includes the research necessary to develop the product. We would like another
20 billion to fund production, distribution, customer service, and market research.
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10.0 Metrics
10.1 Enter in to the 3D video gaming market through a partnership with Microsoft.
Samsung joined forces with Microsoft XBox in April of 2005 to become exclusive
HDTV worldwide marketing partners. As a part of the deal, both companies agreed to
install over 25,000 HDTVs Xbox retail kiosks worldwide. Half of this budget is
designated strictly for the United States. Microsoft agreed to incorporate Samsungs
branded products, as well as instances of Samsungs logo throughout the first high
definition game that would be released. Now that 3D technology is out on the market,
another Microsoft deal with 3D gaming would be ideal for Samsung. Since we have
already held a partnership with Microsoft Xbox, this should give us a very large
advantage in striking another deal to produce a 3D game that would add to the gamers
experience.
10.2 Launch a comprehensive ad campaign that focuses on SEs competitive
advantage in 3D technology.
Samsung started to release TV commercials before the release of the first 3D TV.
We used main sporting events, award shows, and primetime TV series as our main
targeted time slots. The word of 3D TVs spread very quickly and ultimately helped the
release of our product go straight to the top. Our advertisements will focus on illustrating
2010 Marketing Plan
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12.0 References
http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-is-setfor-big-growth.htm
http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-itspromises/
http://www.samsung.com/us/video/tvs/UN65C8000XFXZA
http://www.businessweek.com/magazine/content/10_03/b4163052960824.htm
http://www.businessweek.com/technology/content/dec2009/tc20091230_436389.
htm
http://www.koreatimes.co.kr/www/news/tech/2010/09/129_69283.html
http://www.crunchgear.com/2010/08/13/how-is-3d-tv-doing-some-data-fromjapan/
http://www.mullen.com/2010/09/3d-tv-marketers-take-note/
http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-beworth-17-billion-2014
http://ces.cnet.com/8301-31045_1-10433274-269.html
http://findarticles.com/p/articles/mi_m0EIN/is_20100326/ai_n52924274/?
tag=content;col1
http://ezproxy.lmunet.edu/login?
url=http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?
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http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-is-setfor-big-growth.htm
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http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-itspromises/
http://www.samsung.com/us/video/tvs/UN65C8000XFXZA
http://www.businessweek.com/magazine/content/10_03/b4163052960824.htm
http://www.businessweek.com/technology/content/dec2009/tc20091230_436389.
htm
http://www.koreatimes.co.kr/www/news/tech/2010/09/129_69283.html
http://www.crunchgear.com/2010/08/13/how-is-3d-tv-doing-some-data-fromjapan/
http://www.mullen.com/2010/09/3d-tv-marketers-take-note/
http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-beworth-17-billion-2014
http://ces.cnet.com/8301-31045_1-10433274-269.html
http://findarticles.com/p/articles/mi_m0EIN/is_20100326/ai_n52924274/?
tag=content;col1
http://ezproxy.lmunet.edu/login?
url=http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?
vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-6091890821ff%40sessionmgr113
http://ezproxy.lmunet.edu/login?
url=http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?
vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-6091890821ff%40sessionmgr113
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