GREAT LAKES INSTITUTE OF MANAGEMENT

New Product
Development
Samsung Galaxy Tab – A Report
Abhay Sood – FT1104, Ayyappa Kancheela – FT11116,Mrinal Pathania – FT11135,
Manish Jairath- FT11429, Kunal Sinha –FT11130
Table of Contents
Concept Statement.............................................................................................................................................. 3
Data Analytics...................................................................................................................................................... 3
Recommendations............................................................................................................................................... 5
SPSS Data........................................................................................................................................................... 9

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Concept Statement
Here we present the all new 7-inch Tablet PC from Samsung which will enthrall all with its charisma. It
is an example of technological convergence at its best with all the features available which were
never available together. It can work as a smart phone, integrated 3G capabilities, Dual camera
capabilities and operate on Android 2.2 operating system. It is enclosed in plastic body weighing only
380 g much lighter than other competing tablet pc’s. The tablet has 802.11n Wi-Fi, Bluetooth 3.0, 3G
and a GPS chip.The inbuilt software and Android OS features a calendar, email and instant messaging
applications. It has a launcher for e-reading applications which starts Press Display when reading
newspapers, Kobo when reading e-books, and Zinio when reading magazines. Its CPU is a 1.0 GHz
Cortex A8 application and has 512 MB of RAM. The tablet has two cameras: a 3.2 MP camera (rear)
that comes with a LED flash and a 1.3 MP front camera for video calling.

Data Analytics

1) What is the top box score for purchase intention?

From the survey results, we find that size and applications form the top intent for
purchasing the product

2) Who are potential customers for the new product?

Potential customers are Post Graduates with Income level greater than 10 lacs. SPSS results
are at the end

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3) What is the likely competition for the new product among potential customers?
Apple iPad

4) How does the new product compare with likely competition on relevant attributes/benefits?

Following table gives an overview of different features and comparison of Samsung Galaxy
tab with Apple iPad.

Feature/Attribute Performance
Hardware Samsung's done a commendable job distinguishing the
Tab from the others with its contrasting front and back
surfaces. The screen and bezel do appear less glossy than
the iPad 
Screen While the Tab's resolution isn't as high as the iPad's 1024 x
768-resolution IPS panel, the screen does have better pixel
density, which translate to a crisper e-book and webpage
reading experience than the iPad. 
Operating System  it does provide some nice polish for average consumers
and on a tablet it adds more to the generic Android
smartphone experience. Since Android is free OS, chances
of getting more applications for free and one can easily
download many games and other new things.
Apps Samsung has done more than just throw on the stock
applications. These include e-reader, 3G capabilities, Wifi, 2
cameras. We think Apple has got more applications using
its app store. But this competitive advantage will not last
long as the operating system is capable of more and more
support for new features
Flash & Browsing For the most part, the browsing experience on the Tab is
rock solid -- pages loaded quickly over WiFi and scrolling /
zooming on most pages was snappy. the Tab differs from
that other tablet with its full Flash support.

5) Do people get the central idea/key benefit proposition of the concept?

Yes

6) What do people like/dislike about the new product? Are these likely to cause problems with
market performance when the product is introduced?
People like that the new product is compact and connectivity compared to its nearest rival
i.e. iPad. These attributes are easily imitable by competitors. Hence the company should
continue to offer more and more applications and price should be competitive compared to
apple. By introducing 3rd party operating system and support for 3rd party applications, we
feel this will act as a differentiating factor for sometime.

7) How much would consumers be willing to pay for a product based on this concept?

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 Based on the responses, we feel our product will get a decent market share if the product is
priced below Apple’s iPad.

8) What will be your overall recommendation for the new product? Should the company
proceed to the next stage? Or do you recommend refining the concept/repositioning the
concept? If yes, what changes would you recommend?
On the surface the product looks competitive. But I think a conjoint analysis on most
desirable attributes will give a finer picture.

Recommendations

What is the position of the new product? Does the new product have a competitive positioning?

Apple has legitimized the tablet category with its iPad and the Samsung Galaxy Tab sees the tier-one
brand go head-to-head with Steve Jobs’ creation.

Samsung is betting big on the tablet category with this device. It’s the first major manufacturer to
unveil a device targeting this segment but we expect a flurry of further announcement from an array
of other players.

The Galaxy Tab signals Samsung’s understanding that it takes more than hardware to be successful.
Allowing access to books, music and films is a major step forward as it ratchets up its competitive
positioning against Apple.

The 7in form-factor is very compelling. Rumours abound that Apple is evaluating a similar device
footprint for future iterations of the iPad to sit alongside its 9.7in older brother.

Success will depend on pricing. If positioned carefully, the Galaxy Tab could emerge as an operator-
friendly alternative to Apple’s iPad as it could be subsidised (with a contract) to extremely ultra low
price points in the run up to the lucrative holiday sales season.

This is the first of a torrent of Android tablets we expect to be launched in coming weeks. At the low
end, it’s going to be a complete bloodbath as no-name brands race to the bottom of the price curve.

The Galaxy Tab builds on the success that the Galaxy S [mobile phone] has been having since its
launch in June. With a 7in display, front and back camera, 16GB and 32GB storage plus SD card and a
price tag of around €600 (£500) before subsidy, the Galaxy Tab offers a good solution for those users
that have been thinking about getting a tablet but were waiting for something more price
competitive.

Samsung will have about 200 apps at launch that will be dedicated to the Galaxy Tab. All apps in its
Markets application store will, of course, run as well. But if the iPad experience is anything to go by,
it will be dedicated apps that will make the difference. It will be also interesting to see what will be
the consumers’ response to the subsidized model. The flexibility that you can have with iPad –
where, in the UK, I can buy a day pass for 3G, or a week or a month – has had a lot of success with
consumers who do not feel they have signed up their life yet to another contract.

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All that said, the recent Ofcom report on the UK shows that the trend for the 24-month contract is
growing. Subsidy on hardware is still what consumers see rather than total cost of ownership.

Which brand is the closest competitor to the new brand? Compare and contrast the two brands
(based on information you may have collected in other phases of the project) and comment on
their strengths and weaknesses. What are the implications for the new product?

Apple Ipad is the closest competitor to Samsung Tab.

Here we compare the Samsung Tab to Apple Ipad on various parameters:

Samsung Galaxy Tab vs iPad: display:

The Apple iPad incorporates a touch-sensitive IPS display that measures 9.7 inches across. It's
undoubtedly a gorgeous screen, boasting a resolution of 768 x 1,024 pixels.

Samsung has opted for a smaller display in the Galaxy Tab. It's still a decent size at 7 inches, which is
a full 2 inches bigger than the Dell Streak tablet-phone. It gets closer to the iPad's specification with a
resolution of 600 x 1,024 pixels, which looks superb on an LCD this size.

Samsung Galaxy Tab vs iPad: size & weight

Despite its size, the Apple iPad measures 242.8 x 189.7 x 13.4mm and weighs 680g (although it feels a
lot lighter when you hold it in your hand).

With its 7-inch display, the Galaxy Tab is obviously more compact. Samsung's quoted dimensions are
190.09 x 120.45 x 11.98mm, which makes it thinner than Apple's device. The Galaxy Tab weighs a
mere 380g, which is almost half the weight of an iPad.

Samsung Galaxy Tab vs iPad: wireless

As you'll know by now, the Apple iPad is available in two versions, one with 3G networking and one
without. We'll use the basic 16GB 3G + Wi-Fi version in this example. It means that Apple's lust-object
features data-only 3G/HSDPA connectivity, 802.11a/b/g/n Wi-Fi and Bluetooth 2.1 with EDR.

The Galaxy Tab arguably has a better specification. It also packs 3G/HSDPA (up to 7.2Mbps), but like
the Dell Streak, the Samsung tablet can be used to make phone calls (via a Bluetooth headset) and to
send/receive SMS/MMS data. The addition of 802.11b/g/n Wi-Fi and Bluetooth 3.0 complete a great
specification.

Samsung Galaxy Tab vs iPad: storage

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Again, using the basic 3G + Wi-Fi iPad in this comparison, both entry-level models feature 16GB of
internal memory. Of course, like Apple's iPhones, the iPad lacks any sort of expansion slot so you're
stuck with 16GB if you opt for that model. If you demand more storage, you'll need to look at the
32GB or 64GB models.

In contrast, you can expand the 16GB of memory in the basic Samsung Galaxy Tab (a 32GB variant will
also be available). Like its Galaxy S smartphone, the Tab features a microSD slot and will support
memory cards up to 32GB. This will boost the overall capacity of a 16GB model to 48GB and elevate
the roominess of a 32GB Tab to 64GB.

Samsung Galaxy Tab vs iPad: camera

The camera in the iPad... No. Wait. There is no camera in the iPad. The Galaxy Tab, meanwhile, boasts
a 3 Megapixel lens with an LED flash. In fact, it has TWO cameras. There's also an extra 1.3MP camera
on the front for basic QVGA video calling.

Samsung Galaxy Tab vs iPad: battery life

Apple claims a ten-hour battery life for its iPad, which compares to 7 hours quoted by Samsung for
the Galaxy Tab. We shouldn't be surprised. The Galaxy Tab is smaller and lighter, there's less space
for a meaty Li-Ion cell.

Samsung Galaxy Tab vs iPad: performance/usability

In terms of performance, it's hard to separate the two. Both can rev up a 1GHz engine - the iPad is
powered by Apple's own A4 chip, while the Galaxy Tab uses a ARM Cortex A8-based 'Hummingbird'
processor. It also gets some extra graphical grunt from a PowerVR SGX540 core.

The big difference is in the software. Apple newest updates to the already impressive iOS4 will
include a new Game Center, TV rentals, iTunes Ping functionality and AirPlay wireless streaming.
Apple's App Store is also a colossus, boasting an unrivalled 250,000 apps.

The Galaxy Tab, meanwhile, runs Android 2.2 (Froyo) and can match the iPad for multi-touch control,
pinch-to-zoom and general speediness. The Android Market might have fewer apps (around 70,000+
at last count), but Android still boasts one thing that the iPad doesn't have - Flash 10.1 support.

And the rest...

The iPad also includes A-GPS functionality (3G + Wi-Fi models only) and a built-in digital compass. It
can playback H.264 video up to 720p and doubles up as a e-reader thanks to Apple's own iBooks app

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and downloadable Kindle software. Prices start at £429 for the 16GB Wi-Fi only model, rising to £699
for the full-whack 64GB Wi-Fi + 3G variant. Ouch.

As for the new Galaxy Tab, it will come with built-in gyroscopic and geo-magnetic sensors, plus A-GPS
or even full-blown GPS - Samsung's press release is vague on the details. It has its own iBooks rival
too in the shape of 'Readers Hub', which has access to 2 million books, over 2,500 magazines and
more than 1,600 newspapers. Samsung has yet to reveal pricing details, which will probably be set by
the mobile carriers who sell it.

While the iPad is still the most desirable tablet computer available, the Galaxy Tab will provide some
stiff competition. Especially if it's sold at a sub-£300 price point.

Samsung's device can't match the iPad for screen loveliness or battery life. But it steps up the
technology battle by including a built-in camera and expandable memory.

With Android rapidly improving and Samsung currently producing some of the best mobile hardware
on the planet, the prospects for the Galaxy Tab look bright. As ever, seeing the new device, holding
it, surfing the web and watching videos on it will be key.

Comment on market heterogeneity with respect to the position of the new concept/product. You
have to take the factor scores for the new product for each individual and estimate the standard
deviation or variance. This estimate can be used to comment on factors on which there is greater
difference of opinion among consumers. What is the implication of having such differences? (Is it
good or bad? And how should the manager handle it?)

The target market is quite diverse in terms of features and price. We have a variety of tablet makers
providing various attributes to their product thus generating a trade off between no. of added
features and price. There are high end products like Apple Ipad which provide a lot of applications
but are expensive and there are products like the Dell Streak which provides minimal features but is
extremely low on price. Our product intends to reduce this trade off by providing an optimal no of
important and frequently used features at a lower price, thus creating a niche positioning for itself in
the market. There is a new and emerging consumer demand that Samsung can satisfy.

DESIGN IMPROVEMENTS FOR THE NEW PRODUCT

Based on the survey result, product is reasonably placed well compared to its peers. But right
combination of attributes can be identified only after conjoint analysis. Based on the discussions with
various respondents and reviews online following improvements can be done for the product:

 The batter y life could be extended upto 10 hours from the current 7 hours.

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  The screen size could be a little bigger.

Promotion:

Samsung Galaxy is trying to produce a buzz in the social media space before the launch of
the product. They have a dedicated channel on ‘YouTube’ where they uploaded a 30 sec teaser of
the new product. After a fortnight, one more video was uploaded mentioning the important
features of the product and its usability. This created quite a buzz on their official website as well.
They used social networking websites like ‘Facebook’, ‘Flickr’ , etc to connect to their target
audience by having promotional contests, online games ,etc.
Further, just before the launch they intend to use print media and also the traditional sources
of marketing like TV, billboards, etc to supplement their promotional activities.

SPSS Data
Regression: A regression is done taking the dependent variable as the likelihood of purchase and the
independent variables as age, income and education. The result is included:

Coefficientsa

Model Standardized
Unstandardized Coefficients Coefficients

B Std. Error Beta T Sig.

1 (Constant) .928 .261 3.557 .001

Age .041 .086 .066 .479 .634

Income per year (in lakhs) -.184 .068 -.413 -2.701 .009

Education .052 .096 .078 .539 .592

a. Dependent Variable: How likely would you be to purchase the product described above if it were available in
your local store?

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From the result it is clear that income of individuals is a significant factor for the purchase decision
making.

After analysing the data, our marketing campaign will be effective if our target customers have the
following profile in order of preference:
1. Have income more than 10 lakhs.
2. Between 26-30 yrs in age.
3. Post graduate by degree.

Attached are survey results. Following coding has been done to have both dependent variable
(Willing to buy) and independent variable to be continuous.

  1 2 3 4
Age 20-25 26-30 31-40 >40
Income <3 3 to 5 5 to 9 >10
Educatio Graduatio
n College n Post Graduation  

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