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Samsung

Samsung

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I.

Positioning Statement Samsung embodies style and technology for the young professional, with its cutting edge design and superior connectivity features. Samsung's positioning statement is one that asserts its differentiation vis-à-vis other mobile phone providers. In the local market where myriad choices abound, Samsung's sleek exterior design, accompanied by its selection of soft and hard features, render it an optimal purchase for the young, technologically updated professional. II. SWOT based on primary and secondary research Strengths

Strong global presence Diversified product line Technology Design Weaknesses

Customer perception of weak product attributes like Durability Camera / Video quality, User friendliness Voice clarity, Value for money Incompatibility with different software platforms

Opportunities

Increasing mobile market High % of Younger population Strong customer demand for innovative products & Low Landline penetration Threats value-added features

Increasing competition Decreasing product margins

Exhibit 2: Sources of Information and Key Influencers Apart from the above data. price. Profile behavior and decision making process Visiting a Samsung concept store revealed some purchase habits of potential Samsung clientele. They have been identified as the primary target market because of their higher levels of disposable income as opposed to students who subsist on allowance. and point of purchase promotion. Television was noted as the primary communication channel from which product knowledge was gained. Also gleaned from our FGD and UAI are the aforementioned qualitative determinants of perception of value. Potential buyers who amble into the store are well researched and informed. and 5) Usability/User-friendliness. This is also manifest in their verbal request for specific features and for units falling within predetermined price ranges.III. In terms of purchase decision. consisting of emerging and experienced members of the working force. Samsung's secondary market falls within the age range of 15 to 25. The predisposition of the teenage segment to yearn for the latest mobile phone models is driven by peer pressure and the desire to be identified as keeping abreast with the latest trends. This is evident in their already having a selection of models in mind prior to store visit. A more detailed discussion on these two segments follows below: Exhibit 1: Primary and Secondary Market Segments IV. This age group consists of midteens and new members of the workforce. This segment. 4) Durability. interviews have allowed us to conclude that a considerable majority begins their pre-purchase activities by comparing several brands in terms of desired and available features. Qualitative Value Proposition Qualitative features aligned with Samsung's value-proposition are 1) Style/Design. peers and colleagues advice was a primary influence. 2) Technology. Prioritized Segments Based on the output of our UAI and our research. we have deduced that the features which distinguish Samsung from its competitors are primarily appreciated by young urban professionals. are versed in new technology as they are constantly updated by colleagues and possess aspirations towards advancing in their careers. V. 3)Value for Money. Cross-referencing overt behavior in the shop with data obtained from the UAI reveals three primary sources of information in cellular phone selection. These criteria were .

In this respect. Samsung can be more aggressive in terms of marketing the slimness of their units as well as the wireless capabilities. which we can aspire to increase by 15%. Using these figures. Creating a series of cellular phones that exemplify style. New or extension It is recommended that new product lines be added in order to directly address the needs of the primary and secondary market.98M Samsung users. Samsung's website reads: 'groundbreaking mobiles with the slimmest profiles in the world that let you live life to the fullest'. however. the slimness of the handset is not tantamount to differentiation. On a model-to-model basis however. 2007 data place Samsung as the third highest mobile company. Samsung can push their products by marketing its mobile phones as entertainment gadgets with the opportunity for membership in the Samsung in' club . VI. The Nokia N-series is geared at video and entertainment while Sony Ericsson's walkman-phone and Cybershot phone series build on the Halo Effect of the original Sony Walkman and Sony Cybershot cameras. compared with Nokia. The conducted survey placed Samsung as either second or third in terms of brand recall. This translates into 5. Product Strategy In the Philippines. not many are aware of this distinctive feature. substantiated by shifts in ranking towards first or second with brand awareness as the criteria. technology and professionalism is necessary in order to drive the sales of Samsung cellular phones. their marketing campaign and product differentiator remains weak. On the lower end segment. respectively. as it shares the market as the Motorola Razor series. On the physical aspect. interest. An increase in the marketing budget.6M anticipated market should allow Samsung a projected 7. Future surveys should indicate an improvement. as well as the introduction of two sub-brands should heighten awareness. and purchase intent. evidenced in subsequent surveys. In addition. Sony Ericsson. . a.59M size in the year 2008. VII. the 50. Samsung's brand equity is not particularly strong in terms of its promotion of its cellular phone series. which is more widely recognized for its sleekness.ranked primary in terms of what would-be mobile phone buyers seek when they select an optimal unit. Samsung has smoother curves on the edges compared with Motorola. garnering 13% market size of 46M. and Motorola. majority of Samsung phones will trounce Motorola in terms of slimness. individuality. the proliferation of Samsung kiosks. Qualitative & Quantitative Marketing Objectives Samsung's marketing efforts should be oriented towards increasing its market share and sales volume of its mobile phones. These findings were present among 53% of the respondents. given that the market is projected to increase at a rate of 10% per annum. Samsung can differentiate by niching on the Wi-Fi market as there is currently no brand that can claim market leadership in this category. Aggressive and strategic marketing programs should be launched with the end goal of improving brand recall.

weekly.11n/g/b). WAP. Bluetooth/Infrared. This focus on the Wi-Fi and high-end networking will provide Samsung a competitive edge as it addresses the connectivity and networking needs of its primary target market. The convergence of mobile phones and Wi-Fi technology signifies the creation of new programs and streaming applications that take advantage of capabilities of the internet at broadband speed. Other noninternet connectivity capabilities will include Bluetooth and Infrared. and slim phone will satisfy all the mobile and connectivity needs. whether daily. The sequence of connectivity search will be based on the user's configured preference. 5 mins). The IPX edition will be marketed as the phone with limitless connectivity. This application will allow the user to block specific schedules. such that his/her assistant can suggest appointments and activities within currently free time slots. always connected to the user by automatically scanning and selecting the best connection source among different connectivity options available in the location the user is in. This suite will include "Mobile Mail. IPX will however be relying on the network capabilities of the mobile phone line carrier's other network technologies. and Wi-Fi (802. The IPX operating system will be based on open source architecture so as to entice the developers' community and generate suitable software applications. such as Internet. MS-Office Functions and Synchronization with computing / networking devices. The product will be installed with Samsung's operating system software that is designed to enhance connectivity as well as integrated productivity programs which are essential for professionals. whose format is more familiar." a real-time email application software that automatically receives email messages.By adding the two new segments/series: Executive Series and Entertainment Series. users with the same "Mobile Mail" application can request for access to view the user's schedule. It will constantly check for new emails. WAP. This revolutionary. stylish.g. Select users can also send . These connection options include previous as well as the latest wireless technologies such as WiMAX. This series is aimed at providing executives the power of computing and networking anywhere and everywhere. GPRS. Executive Series (For the Primary Target Market): The executive series will be equipped with features suitable for professionals. utilizing a format similar to the Microsoft Outlook email application in computers. EDGE. every 2 mins. This mobile office' is packaged in a small handheld device that will not be limited to the downloading speed of GPRS and EDGE technologies. The application's user interface design will bear the look and feel of personal computers. wherein a secretary schedules appointments as well as other activities for his/her superior. higher retention and value addition will be ascertained. In addition. HSDPA. thereby creating a limitless range of software applications. This will be a benefit in an office setting. depending on the user preferences (e. Samsung IPX will create an atmosphere of always on. One of the distinct features of "Mobile Mail" is the calendar & scheduler. Mobile office applications will include a productivity suite to match the needs of the professionals on the go. The set-up facilitates scheduling for the IPX user. or monthly. The flagship of this executive series will be the Samsung Internet Phone eXtreme or Samsung IPX.

Bundling this application will allow users to maximize their connectivity options and allow users to use Skype Mobile to connect to a Skype-installed PC with Skype without extra charges. will still have to pay for the connectivity services (3G. as well as document maker compatible with most of the widely accepted document formats such as MS word. which will be similar to the Skype available for PC. Users will be able to maximize their reach in connecting to other countries. HSDPA. Since the IPX phone will have a touch screen feature. as well as a look and feel similar to the PC. This feature is aimed at preventing potential thieves from benefiting from stolen IPX phones. This will allow users to view the page at larger fonts and images. Samsung will have a finger print reader and software installed on a phone unit level instead of on the current SIM card level. To further enhance connectivity. MS excel. Web browsing will be made more convenient by allowing users to visit previous page history by swiping their thumb on the screen. by providing valid ID's and documents). This will allow them to create and read email document attachments. instantly receiving responses from the recipient (IPX user). such that swiping it to the right will bring them to the next page. In case the user cannot access the locked phone. since the phone will have a regular keypad. This feature will prevent other would-be users (apart from the owner) from using the phone. who will have the option of accepting or rejecting the invitation to add to his/her schedule. IPX users will again be notified about the appointment as the schedule date approaches. he/she can request that the phone be unlocked in any Samsung's service centers. bundled music player softwares will be will be among the phone features. Accepting the invitation will automatically update both users' calendars with the details of the appointment. a hidden USB port with an aesthetically pleasing cover located at the bottom will be available to users who prefer the use of standard keypads so that they can connect their preferred keyboard. One of the unique features of IPX is its security. users can see all the pages in a tiled view consisting of the previous 5 pages they visited. however. while minimizing cost.g. even if other SIM card is inserted. To support tie-ups with Napster or other online music vendors. IPX mobile phones will also have . etc) provided by mobile phone line carriers. and leftward to the previous page. In doing this. with the condition that the user can prove that he/she is the owner of the unit (e. PDF reader). Moreover. IPX series will be launched with the "Skype Mobile" program. Users. The productivity suite will also include a document reader (eg. WiMAX.invitations for meetings or appointments. and scroll through other areas of the page and view them together with as smaller ones. unless they are connected to a free Wi-Fi hotspot. a user's browsing habits will not be compromised as the browser will allow him to tinker with the view by zooming in and out through the webpage via his finger. This software will allow users to directly connect to Napsters'/music vendors' server and download music files directly.

Samsung Energy. on top of its functionality. The Samsung entertainment series will provide users in the secondary target market "mobility with style".g. the mobile will be regarded as an accessory. Branding / Rebranding For Samsung to boost its the corporate identity. With either sophisticated or sporty designs. "Samsung. games." The concept is similar to that utilized by Motorola (MotoRazor. b. This strategy will help leverage upon the existing strong brand equity of Samsung in the "appliance" industry. This will be updated real-time with the latest virus definitions and patches. E! series will also have access to online music/video vendor such as Napster to allow users in this segment to directly connect online and downloading their choice of music. and video. as well as camera facing the user.). game developers will be welcome to create mobile gaming programs in line with the taste of the younger users. Samsung E! will feature connectivity on its handsets. Since the phone will have a Samsung operating system be based in open source architecture. Samsung . the phone will not be equipped with a touch screen display as well as productivity suite. Other features of the IPX include a five (5) megapixel digital video camera equipped. enabling him/her to use 3G capabilities for video phone. however. it will have limitless gaming facilities.an anti-virus installed for free. phones will be equipped with features such as Bluetooth. and "Mobile Meeting" and allow professionals to conduct and attend online video conferences. a sophisticated built-in speaker and headphone will be included so as to satisfy the needs of the MP3loving younger segment. as well as its reputation for product innovation. Diverse colors will complement the user's. etc. an online application for chatting will be bundled to enable them to socialize and meet new people. A five (5) megapixel digital camera equipped with flash will be included to match this groups usage style. In order to adapt to changing trends. music. camera. we recommend the re-branding of mobile phones under the umbrella brand. Instead. Moreover. Furthermore. Moto-Flip. Like the Samsung IPX series. the E! series will have removable covers/casings to allow users the option for different colors and styles which fit their tastes and personalities. Exhibit 3: Connectivity Model Entertainment Series (For the Secondary Target Market): Samsung Energy! or Samsung E! is a stylish and colorful slim phone for the fashionista preppies and yuppies. We propose to incorporate Samsung in the product nomenclature (e. Samsung IPX.

ringers and wallpapers that are designed specifically for Samsung mobile phonemodels. c. there will be a provision for different Tiers of Service' for Samsung Elite Card holders . With the entertainment series. there is an option for upgraded warranty by payment of a nominal charge.) Executive Series: Wrapped in a black box with a see-through top. We propose to establish strategic partnerships that will help Samsung reach the primary target market as well as the secondary target market more effectively. Additional accessories include head phones. Samsung customer care service centers promise a one-day maximum period within which to respond to queries. This not only reinforces the existing brand awareness of Samsung but also tells customers about what advantages Samsung mobile phones are capable of bringing to them. 2) Entertainment Series: Wrapped in a clear.g. e. The phone will be bundled with a standard charger and cradle. and a music tune CD containing games. and membership perks in other establishments will be provided upon purchase of the said appliances. This will help create a stronger brand recall for Samsung mobile phones in each category. The Elite Card tiering will be contingent on the points accumulated. service representatives handling repairs may extend the option of loaning temporary units at a nominal charge until the user's phone has been completely repaired. The warranty excludes cosmetic damage whereas replacement casing may be purchased and then applied free of charge in Samsung Repair Centers. As for the executive series. premium products (e. Service Plus Samsung should heighten its already excellent customer service to further differentiate it from competitor brands. on which the mobile phone can be planted while charging at the office. an elite club of Samsung mobile users and users of Samsung home appliances with crossproduct discounts. In order to align itself with the various needs of its clientele. For the holders of Samsung Elite.Life). the label will read. business accessories. or a partnership with iTunes music store so that music can be bought. and prominent airlines frequented by business people. Rolex. For instance. d. a customer will be entitled to a certain number of credits which may be used in purchasing a Samsung mobile phone when he purchases a television. The unit comes with a standard charger and a colorful strap and/or holder to accentuate and flaunt this accessory. "Samsung E!" in its sexy and colorful elegance. strategic alliance with Napster will be forged so that music can be rented on the mobile for a monthly fee. . Samsung will also provide assistance to clients who need to retrieve data or contact numbers from damaged units. Warranty Samsung units come with a standard 2-year warranty for parts and functionality. It will also be equipped with a built-in speaker to play mp3s as well as a portable "QWERTY" keyboard. Mont Blanc pens).silver / gold / platinum. Samsung could form strategic alliance with manufacturers of designer business wear. In addition. Taking advantage of the client contact which this entails. external speakers. Packaging 1. see-though plastic shaped like a ball or any similarly popular object. the words 'Samsung Executive series phone' will be visible on the svelte black exterior.

Likewise available will be a better performance camera and entertainment accessory extension (e. the entertainment series (Samsung E!) will offer students and yuppies a hip look as well as a sense of esprit de corps as they don the latest trends and fashions. It will likewise provide them the option of privacy by turning off the automatic broadband connection. Akin to the concept of a Swiss Army Knife containing a multiplicity of basic survival tools. This is primarily because the product will boast a wide range of accessories such as different casings/covers. They will feel more productive in terms of work output as the Samsung "productivity suite" will enable them to book schedules for themselves as well as invite colleagues to meetings. routine recharging displaces the inconvenience of replacing expired batteries. a laser pointer. which will further foster the virtual Samsung community. wireless headphones). On the other hand. Experience For the executive series. Moreover. Samsung may differentiate itself from existing mobile phone providers by offering a selection of devices which have professionals. IPX will provide an "always on. Extremely mobile professionals who need to drive from one place to another in order to attend meetings and other functions always have their phones on hand in order to communicate with key contacts while they are in transit. Moreover. gadgets and extensions. wherever they may be. different speaker models. VIII. rather than outdoorsmen in mind. sans a personal computer. always connected" experience to the user.g. the car key holders are made less bulky by the remote control feature. Laser pointers that do not require battery change spare professionals the need for constantly purchasing new batteries and from selecting incompatible models. it will promote Samsung community through variety of games in the nature of "Multiplayer Online Role Playing Games" or MORPG.f. the accoutrements built in to this phone are not bundled with connectivity products. g. This will benefit them as information will be sent and received real-time from the Internet. since other people can send invites for meetings as well as view the user's schedules. That on-the-go professionals value the convenience of carrying fewer items suggests a market for our blue ocean take on Samsung mobile phones. To illustrate the viability of these features for targeted professionals. In line with Samsung's conveyed value of superior communication technology. Blue Ocean To cater to our market of experienced and established professionals. Unlike presently offered features which are easily associated with mobile phone technology. Being built into the mobile phone ascertains that there is less likelihood of this otherwise small unit being misplaced or forgotten. Since these lasers are built into the mobile units. building strong a connection with the primary target market. Pricing Strategy . we would like to introduce the concept of a cellular phone having the features of an automobile remote. and a flash drive. That these individuals have both cars and cellular phones suggests that linking features of both to create convenience will be appreciated. the convenience of an integrated flash drive will allow professionals to store data on their mobile phones for use during presentations or discussions. users such as executives would have an easier time managing their schedules as their personal secretaries can book schedules for them at the same time and avoid possible schedule conflict.

each convenience and benefit offered outweighs the relative price difference. it is contingent on the market demand for cell phones. The objective of the "premium pricing" is to communicate the distinct features and advantages of the IPX model to Samsung clientele. which banks on the perception of technological leadership and durability. Pricing Methodology Executive Series (IPX) . In addition. using "penetration pricing" strategy for this segment is more appropriate. First. advanced technology and features would give Samsung product differentiation thereby allowing the company the opportunity to price IPX at a premium level. Samsung's objective should be to penetrate this market and gain sizeable share to improve its profitability. Executive Series (IPX) "Premium pricing" strategy will be used for this particular product category since professionals and executives with sufficient disposable income are less sensitive to price shifts.a. This pricing strategy promotes and sustains the Samsung brand image. Since mobile phones are coveted products that are high on functional as well as aesthetic features. Having several established mobile phone manufacturers focusing on providing products geared towards satisfying the younger segment. strong brand awareness and image play a key role in influencing the buying behaviors. On the other hand. we recommend the following pricing strategies for the two categories of mobile phones targeted at primary market segment and secondary market segment. Variables / Influencers of pricing The pricing of Samsung mobile phone is determined by several factors. This will require Samsung to allocate additional funds in marketing and price promotion in order to gain an edge over the competition. Motorola. However. it faces stiff competition against Nokia's executive series and Motorola. Objectives In line with the overall marketing objective of increasing market share and sales volume of Samsung mobile phones. students and yuppies tend to be more sensitive to price. The mobile phone market size in the Philippines has been growing at a rate of 10% per annum. Samsung currently ranks third in the Philippine market and is rapidly progressing towards becoming the second mobile phone brand in the country. Sony Ericsson. appear to have better brand recognition as evidenced by the UAI. they would opt to buy products with comparable features if the price is lower. in the entertainment series. In addition. The unique features of the executive series (IPX) will give customers the incentive to buy the product while the price will provide the perception of added exclusivity. c. Entertainment Series (Samsung E!) Since the competition in this market is more intense. The second influencer of pricing is the competition itself. The competition amongst the players to gain larger share of this growing market puts additional pressure on the pricing strategy. Hence. Nokia. b.

Channel Members: Proposed Distribution System In order to increase sales volume and market share. These distributors have the option of either a) reselling units to a network of retailers or b) vending . it also needs to consider the features it offers will be perceived to be as value to the target segment. b. XI. 11 Concept Stores which are Samsung franchises and display ONLY Samsung phones. however. the following alternate distribution model is proposed: Traditional Distribution Channels Manufacturer Distributor Retailer / Manufacturer Distributor . Distribution Strategy a. it should take into consideration the time it needs before a return on investment can be achieved. d. Existing Distribution System Samsung's current distribution system consists of one national supplier who acts as exclusive distributor agent to the Philippines. 2. hence focusing on its unique capabilities as a popular price points. Over 3. A lower price will be given to the distributors that will allow them to add margins upon passing it to the retailers. we propose to price this product competitively to ensure that the product gain market acceptance attaining a sizeable market share.000 Authorized dealers which are multi-brand stores The problem of Grey market' is limited due to a centralized manufacturing system in which dispatches originate solely from Korea. This supplier distributes to: 1. Since Samsung would have to invest a significant amount in research and development to come up with the innovative product. Given that those mobile phones with features comparable to Samsung E! already exist in the market.Pricing this particular product will be a compromise between "target return pricing" and "psychological pricing". That there is only one national supplier also addresses this otherwise present problem. Strict monitoring will be implemented to ensure that retailers would not dilute the brand by selling it at a lower price. Entertainment Series (Samsung E!) "Value-based pricing" will be used to achieve the target price objective for this product category.Consumer We will retain the conventional distribution process whereby it utilizes a selection of distributors. Pricing Policies A manufacturer's retail price will be issued to the distributors for strict implementation.

Since Samsung exercises control over shop design and layout. The latter scenario applies to distributors who own shops in selected shopping centers. Samsung can issue display racks to high-volume retailers. Here. Samsung should explore the possibility of establishing company-owned outlets. Exclusive dealers will likewise be required to utilize company-sponsored racks and follow Samsung's prescribed store layout. profit from a mutually beneficial arrangement by which mobile services are bundled with cellular phones. gratis. however. The availability of warranties for both parts and service differentiates these outlets from independent vendors. In order to optimize product exposure in the retail channels. Samsung Outlet Stores Spurring from the utilization of this channel. it is imperative that product pricing be comparable to the cellular phone model's suggested retail price. and restricted to areas mostly outside their retailers' scope of operations. whose warranties are confined to repairs. whose product line consists exclusively of Samsung mobile phones and paraphernalia. Samsung's choice of location will be limited to upper scale malls and boulevards. Value-Added Resellers: Mobile Phone line Carrier Another channel which Samsung can explore in terms of distribution is via value-added resellers or phone line carriers. they could structure outlets in a manner that communicates the company's distinct image. provided the customer is willing to shoulder incidental costs. will not be limited to units within their prescriptive warranty.to consumers. Smart. Repair provisions. Globe. It will be mandatory for distributors who own retail stores to maintain at least one of these promotional racks in a visible area. Non-Traditional Distribution Channels Samsung Online . and Sun Cellular for instance.

Profits generated by online transactions will be for the account of the retailers since Samsung profits from its distributors instead. Samsung will capitalize on this perception by forging partnerships with midrange to premium car dealers (e.Given its target market of young professionals and executives. Samsung's distribution strategy necessitates being selective in identifying avenues. Camry. Accord. it is the system that triggers the notification of retailers regarding pick ups or deliveries. Clicking this icon prompts a "store locator". By coursing sales through retailers instead of directly to the consumers. Vehicles classified as medium and large will be equipped with phone docks. which further enhance its image. and Mercedes-Benz). Potential buyers who surf the website are offered a selection of Samsung models. In line with its value proposition which is anchored on technological innovation.g. The set-up also requires that retailers have an information system in place in order for Samsung to monitor and update inventory levels so as to offer customers only merchants with available stock. In order for Samsung to plot site-related sales. it is requisite for Samsung to make use of e-commerce in its company website. and Samsung mobile phones which will be sold . Upon deciding to purchase. BMW. Note that exact figures on inventory levels will be visible only to Samsung administrators so as to prevent competition from formulating strategies based on this information. replete with product features and specifications. and speakerphones. hands-free kits. extending value to consumers in the form of convenience while broadening Samsung's customer service at little or no incremental cost. Information to be made available on site appears on the chart below: Exhibit 4: Content of Samsung Website This Samsung online distribution channel functions primarily as a point of access which enables consumers to purchase an array of products from retailers who have garnered S amsung's endorsement. Vehicle Manufacturer Tie-ups Because of the impression of its mobile phones as costlier than other brands. This arrangement mitigates otherwise possible conflicts arising between distributors and retailers. a selection of outlets from which the consumer could opt to pick up his purchased unit. it is likely that some may offer delivery services. giving credence to the authenticity of their ware. channel conflict is likewise minimized. the consumer scrolls over an "add to cart feature" bearing the suggested retail price. Because this arrangement promotes an exclusive network of independent retailers.

and store location) when browsing in retail centers. Dealers should likewise be assessed in terms of store location.g. accessories. camera plug-in features. on the other hand. That distributors are willing to undergo training for repair of Samsung products is imperative. Samsung outlet stores target the brand loyal segment. Customization of phone specifications will be relative to each manufacturer tie-up.g. Hands-free kits. model availability. These phones will consist of mid to upscale models and have provisions specific to the topnotch automobiles that they will be associated with. Retailers. Factors Affecting Channel Decision Each distribution channel addresses the needs and preferences of various Samsung client profiles. c. and customer target segment. warranty service. Samsung online caters to the market segment which holds in esteem information provided in the internet. Their geographic preference as well as their numbers entitled Samsung to wider market reach. Other would-be purchasers consist of Samsung subscribers who will opt to pay more for the assurance that warranties for parts and labor will be attended to by none other than Samsung professionals. lower delivery costs. These standards are critical in the selection process as contracts with dealers mismatched target markets risk rendering the partnership superfluous due to meager revenues. reputation. utilizing authentic Samsung components. It must be noted that in selecting its network of distributors. software specifications. it is recommended that Samsung evaluate reputation given by years in trade as well as sales force capabilities in order to maximize market reach while keeping the number of distributors to a minimum. This allows Samsung to ascertain that the quality of service to be rendered satisfies Samsung's standards. cater to conventional buyers. Keeping the distributor network lean will foster loyalty. and deter price wars which could dilute the Samsung brand.together with the automobile. These habitual shoppers and high involvement shoppers are more inclined to survey malls and other areas of high foot traffic for possible promotions. They are consumers who value details not easily discernible (e. These are tech-savvy clientele who prefer that their mobile phone accessories (e. . car chargers) bear authentic Samsung labels. coverage.

3G capable networks. Sony Ericsson at their first brand-recall. dealers and retailers are not unloading Samsung products at steep discounts. Promotion Strategy a. it has not successfully implanted its image in customers' minds as the first mobile phone of their choices. Executive Series (IPX) The "professional edge" should be rooted in the heart of advertising campaign. WAP. and other connectivity-related technologies. The message to be delivered through advertising and promotion strategies is "Be yourself! Be a Pro!". This is further proven in the survey taken in which people think of Nokia. The story line for the advertisement should be as follows: .Value-added resellers offer convenience to customers who can avail of bundled services such as mobile phone connection. Advertising The aim of advertising strategy is to increase the brand-awareness and brand-recall. sure of themselves and know what they want to look for in life. X. The underground market is discouraged as it has the potential of diluting the Samsung brand. Samsung may opt to forge contracts with these dealers and extend greater price markdowns (similar or less than those given to distributors). While Samsung has been able to establish its name in the mobile phone market. Their "centre of gravity" lies in how they feel and how they look. The high priority of advertising strategy is to be able to communicate Samsung's stance on giving its customers the ultimate mobile phones equipped with functionality suitable for the professionals and state of the art technology. Conflict and Control System Occasional oculars inspections and surveys will be utilized in order to ascertain that distributors. They are confident. They accept themselves and are keenly interested in the "Pro world" but not transform into someone else rather than themselves. d. This is to take into account that Samsung's primary target segment are young professionals in the age group of 25 to 40 years who have been able to prove themselves in their fields of work. They know who they are and they are pleased with what they have achieved in their life so far. Distributors found unloading the products at steep discounts will be issued warnings and penalized on first offense and severed from the Samsung distribution system if the problem persists. These measures will be enacted in order to deter distributors from unloading products to unauthorized channels. They may also utilize this channel for disposal of older models since network providers cater to a diversity of market segments.

Television still remains one of the choices of the media. Our target is more mature. never. As Samsung strives to be the second leader in the mobile phones market in the Philippines. They yearn to belong to a certain group and are greatly influenced by their friends/peers. billboard. confidence. It could be said that this group's behavior is entirely different from that of the primary target segment." This advertisement should be featured on television between news or informative programs as these are most watched by this target segment. extensive advertising is considered to reinforce the image of Samsung. they are looking for entertainment features in mobile phones such as music. internet and radio advertising are also chosen for the main reason that this target segment spends much time for these channels. personality. Business Week. to some. These could prove to be highly effective advertising means. Camry and the like are strongly encouraged so as to build a co-brand awareness and existence for both Samsung and car manufacturers. as well as Newsweek which are of high interest to the target segment. there arises the need for a different advertising strategy. and games out of Samsung mobile phones. Samsung should set aside a range of 8% to 10% of its sales revenue for advertising and promotion campaign. However. The two new series of Samsung should be launched through fashion show. When s/he is guided by what feels right to her. The effectiveness of these strategies could be measured in terms of sales growth and customer awareness at the first brand recall. Entertainment Series (Samsung E!) Samsung's secondary target segment is the urban population in the age group from 15 to 25. they can derive great music. Internet advertisement is also highly recommended for this segment. more pleased with himself/herself. . Strategic advertising partnership with other car manufacturers such as Mercedes. Besides the emotional aspect. As such. not by what feels right to others. This is suitable for both two segments as fashion is one of the main concerns and is consistent with the image that Samsung is projecting "the style". In addition. cinema. People at this age group are seeking to find themselves and their places in the society. games. The understanding comes to some at 25. The tagline should be "Be entertained! Be a part of Samsung circle of friends". to others at 40. his/her achievements. that is called PRO World."There is a point in one's life when a working person discovers s/he belongs to the world of professional and successful men/women. In addition. S/he stops the frantic search and accepts himself/ herself. Advertisements should focus on featuring Samsung mobile phones as a way to connect friends and as a status symbol of being recognized as a member of a circle of friends/peers. it should be printed on magazines such as Time Magazine. It just means s/he is more PRO-centered. The majority of this target segment are existing car owners as well as professionals that will be seeking to own mid to high-end cars once their incomes increase. That's not to say that s/he's perfect. Their sense of belonging is of significant importance. This is made possible after the successful co-operation of Samsung with these manufacturers in the distribution channel as well as co-advertising.

Upon accumulating a certain number of points. It is aimed at strengthening corporate identity. MTV will indirectly promote Samsung brand awareness by mentioning the Samsung as prize-givers. Sales Promotion The objective of sales promotion is to induce purchase as well as to retain existing customers by providing special incentives for Samsung customers. Samsung Elite Club membership will provide customers many benefits. There is no better advertising strategy than "word of mouth" advertising. 2) Silver. The Samsung Elite Club will be an ambassador for Corporate Social Responsibility. Executive series. Samsung Elite Club: Samsung Elite Club forges a community of Samsung customers. In turn. For music stores: customers purchasing CDs. redemption of loyalty points will be in the form of discounts among an extensive range of Samsung products. 3) Gold & 4) Platinum. customers may avail of offers for extended warranties and product service. This promotion move will prove to be highly effective as the primary target segment is the young working professionals. The club will create sustainable strong brand loyalty. Members will be made aware of Samsung's initiatives of proper disposal of hazardous parts via notices which accompany promotional letters. Replacements can then be purchased at a discount. Promo mechanics will operate along the lines of purchases entitling customers membership in Samsung Elite. This is an ideal strategic tie-up as it will certainly generate sales volume as well as brand awareness. a medium for communicating Samsung's social responsiveness to the public. promoting customer advocacy and stronger repeat purchase due to perks and conveniences. In this system. music stores. and text messages. The Samsung Elite Club will be beneficial not only to customers. VCDs. emails. there will be strategic tie-ups with MTV. Depending on level of membership. . audience tuning to MTV programs answering questions correctly given after the end of the program can get Samsung mobile phones as prizes. First. allowing them increasing privileges. It is specially encouraged that Samsung should tie-up with corporations to allow discounts for employees. but to the company as well. Based on the amount of purchase. This will bring us closer to our primary target segment. Members may also earn points on the surrender or exchange of Samsung products which they intend to replace.Advertising budget breakdown decision was based on the UAI: Exhibit 5: Ad Budget Breakdown b. Special promotions and exclusive discounts will be exclusive to members of the Samsung Elite Club. customers may earn loyalty points commensurate to the amount of their purchase. This club is not only exclusively for Samsung mobile phone users but also for users of other Samsung products. In addition. DVDs from music stores will get their points added in their Samsung Elite Cards. For example. Kiosks located in the business district will be geared at promoting the new line. using loyalty points as credit. there will be 4 tiers of membership: 1) Regular. their membership will be upgraded to Silver or Gold status.

The ultimate aim of this action program is to project Samsung as a "green" corporation and that people in the Samsung community care greatly about the environment. Samsung practices Corporate Social Responsibility by asking its customers to return its batteries and to reproduce/or discard them so as not to damage the environment. however. designs will be outdated. c. when the battery is no longer usable. customers will just throw away and therefore cause damage to the environment. In addition. Before would-be competitors are able to emulate designs used. Samsung will be projecting itself as "environmentally friendly" corporation. In return. push the idea further by embarking on a partnership with Designer Labels to manufacture high-end bags that complement the Samsung phones. This co-branding caters to that segment of the market which values limited edition products which cannot be easily replicated because of the seasonality of the design. customers will be able to add in Samsung points for their Samsung Elite Cards. Various press conferences will be launched explaining the importance of reproducing/discarding batteries in a proper manner.While Samsung has an existing tie-up with Giorgio Armani. and vice -versa. Public Relations Samsung embarks on the program "Batteries Return". their co-branded phone appears not to have gained the targeted attention that this strategic partnership was projected to garner. this action plan will no doubt be receiving coverage from media such as television/newspapers. Samsung can. Most of the time. . Imagine a woman with a tiger skin motif Prada bag and she reaches inside her phone to take out her Samsung Prada phone which has the same tiger-skin motif on the exterior.

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