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Samsung Marketing Plan
Samsung Marketing Plan
Although Samsung is dominating the 3D market, we still have very detailed strategies
and tactics that we believe will give us an increased competitive advantage over our
competition. The company’s main emphasis the past couple years has been on integration,
union, and encouraging innovation. Samsung is always preparing for the next big item to hit the
market, which is why their technology is so far ahead of all leading competitors. In the future,
we plan to enter the 3D video gaming market with a partnership with Microsoft. This will give us
access to all of Microsoft’s gaming technology, in which we will combine with our quality of
sound and viewing stations to create the ultimate gaming experience. Of course, throughout
our journey 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 9000 series.
By having an effective ad campaign, we will be able to catch the eye of many different target
groups. Our major target groups are men around the ages of mid twenties to late thirties,
Caucasian males, with a new and growing family. Studies show that this category is more likely
to buy the TV, along with a gaming system, than other aged males. We are also targeting “Cube
Tubers”. This is a group that consists of young people who grasp onto new technology quickly.
This group is a large part of the 3D TV market right now.
If the discussed strategies and tactics are successfully carried out, Samsung and the
9000 series 3D TV, 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 next big wave of televisions,
3D TV without glasses.
This current strategy has been effective, considering that, as of October 2010,
the aggressive early launch plan has assisted Samsung in acquiring an 88% share of
the 3D television market in the U.S. Samsung’s current strategy also includes the
expectation that their dominance and innovation in the High-Definition Television
(HDTV) market will carry over as the 3D content availability increases. This current
strategy can also be seen in Samsung’s advertising efforts, as they launched a 12.25
million dollar marketing campaign in February in the UK. Currently, the strategy is
established as progressive, meaning that Samsung is withholding the latest innovations
fro the 3D-TV market. Samsung has entered into a transitional phase, as they introduce
the newest segment in the television market, and await the arrival of appealing 3D
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 next generation of 3D-TV
market. Samsung’s dedication to innovation in the flat-panel TV market has resulted in
their ability to deliver the breakthrough products and superior values that will keep them
at the forefront of the global TV market.
Samsung began their dominance of the digital television market in 2005 and
retained their top position until 2009 when, greenhorn to the market, Vizio took the top
spot. In 2005, Samsung achieved their first No. 1 Market Share ranking in the High
Definition television (HDTV) market. Although they lost the No. 1 market share of Liquid
Crystal Display (LCD) televisions, 2005 proved Samsung to be a step ahead of the
competition. They performed well enough that year to earn the 27th spot on the “World’s
Most Admired Company” list by Fortune Magazine. 2007 brought Samsung the sixth
consecutive year with the No. 1 market share for LCD screens. Samsung pioneered
advanced 3D technology, launching a 3D DLP TV in 2007, and a 3D Plasma-TV for
2008. In 2008, Samsung led the global TV market for the third consecutive year as they
continued to intrigue customers with outstanding picture quality, elegant liquid-crystal
bezel styling, and advanced interactive and connectivity options that allow customers to
enjoy pictures, movies, and music from the Internet, their own home network, or USB
devices. In 2009, Samsung introduced the newest line of HDTV that was certain to be a
global hit, the Light Emitting Diode Television (LED-TV). The LED-TV lineup Samsung
offered was the next advancement in LCD technology, replacing the conventional cold-
cathode fluorescent lamp backlighting with eco-friendly LED backlighting. The result of
this new market segment Samsung created was a full-featured TV with superior picture
quality, stylish ultra slim enclosures, and dramatically lower power consumption. 2009
also brought success for Samsung’s brand-recognition campaign as the Samsung
brand entered Fortune’s Top Ten list of the World’s Top Global Brands. Samsung
forged a new market by launching their elegant and revolutionary, Light Emitting Diode
(LED) television. Worldwide, Samsung sold 30 million flat-screen television sets,
maintaining the No. 1 market share of Flat Panel TVs (FPTV) the fourth year running.
Such achievements firmly establish Samsung’s leadership both in popular demand and
in producing top-quality products. In March 2010, Samsung was the first company in
the world to market a full HD-3D LED-TV, reinforcing the organization’s leadership
within the industry.
Although Samsung is a world leader in the television market, the product mix has
more depth than simply home entertainment accessories and cell phones. The TV
business and the Mobile Phone business, are key components in the Samsung
Business Portfolio. The TV business holds the top position in the current market. LED
TVs, which has shown explosive growth in the latest market, is a flagship product within
the TV business. LCD TVs and Monitors have also maintained top positions in their
respective categories. Samsung seeks to sustain leadership through constant
innovation and development in new technology, such as 3D. Samsung also inhibits a
world leading Semiconductor business unit, from which they transferred 300 engineers
to the TV business unit. This transfer relocated the top performing engineering team in
the company, providing the employees with healthy performance bonuses every year,
and keeping the TV business unit highly productive and competitive. This in house
access to human capital has allowed Samsung to maintain the top position in the
marketplace.
2010 has undoubtedly been the breakthrough year for the revolutionary 3D TV
technology, assuring a very busy year for Samsung. With the release of Series 7000,
Series 8000, and Series 9000 (LED-TV) televisions, Samsung has garnered high media
and consumer praise for perfectly reproducing the range of full HD 3D images and
delivering “true-to-life” and “easy-on-the-eyes” picture quality. Samsung has been
charting the future of television through their 3D TV releases, of which include LED-TV,
LCD-TV and Plasma-TV as well as 3D Blu-ray players, 3D home-theater systems and
total 3D solutions that combine 3D active glass with 3D content. Samsung’s current
strategy is to enrich the television experience and the power of the products by
maintaining the superior picture quality. SE has also began to enrich a deepened value
to customers by continued communications and by differentiated products, such as
expanded Internet-TV features and the launch of the Samsung application marketplace,
“Samsung Apps.” These strategic efforts strengthen the premium brand image
Samsung looks to uphold and assists them in seizing and maintaining the No. 1 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 3D TV market segment being introduced, several
companies have identified it as the next big trend in the home entertainment market and
aim to capitalize on the potential growth by entering the market. Some of the top
competitors are Sony, LG Electronics (LG), Mitsubishi Electronics, Vizio, and
Panasonic. Currently, none of Samsung’s competitors can offer a product to rival the
picture quality of the Samsung. Companies like Vizio, however, look to undercut the
quality aspect of Samsung’s product by offering a cheaper, lower quality, alternative
product more accessible to mass market. Samsung will eventually see significant
competition in the 3D TV market. Their greatest competition may come from their most
recent prominent competitor, Vizio. While Samsung maintains quality as a major selling
point, Vizio’s focus is to appeal to the mass market by lowering their quality standards
so they can sell the product for less. Vizio 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 quality due provided by Samsung, which in turn will negatively impact
Vizio.
At Samsung, creativity, collaboration and excellence are the hallmarks of
leadership. Samsung has attracted the world’s most talented managers as they work
development of 3D 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 3D product consumers is their likely
geographic location. The target audience for 3D TVs will mostly be found in or near
bigger cities. These locations must be considered the prime market areas due to the
likelihood of the availability of 3D content in urban areas rather than away from cities in
the more technologically constrained rural areas. Most consumers of 3D TV products
will buy them via e-commerce with fewer buys being made in retail stores. Most e-
commerce suppliers offer free, or cheap installation and deliveries. Supplying more
convenience to the consumer than the average retail store. With the majority of the
sales in the 3D TV market e-commerce, Samsung will still be selling a significant share
in high-end electronics stores such as Best Buy (US) and HH Gregg (US). When
defining the psychographic segmentation of the consumers of this market, Sue Shim,
Chief Managing Officer, Samsung, defined the target consumer as someone “immersed
in the TV experience, an early adopter, and an individual who is a thought or opinion
leader amongst peers.” The individuals Samsung looks to target, value the home
entertainment experience as prior generations would have valued an evening at the
theater.
Samsung’s 3D TV product usage will increase as the content becomes more
available, and Samsung has taken steps to accelerate the rate at which this 3D content
arrives. In March 2010, Samsung announced partnerships with Technicolor and
DreamWorks Pictures, two industry leading 3D content providers. With these
partnerships, Samsung developed packages of products for the market incorporating
3D content from DreamWorks Pictures and Samsung’s 3D TV products, offering the
consumers the full package for the ultimate at home entertainment experience. This
combination of content and product demonstrated the innovative practices at work
within Samsung, and helped them achieve their goal of the No. 1 market share in the
3D TV market as it was pioneered.
The only deterrents from the traditional patterns of purchase in the TV market are
the decline in the current global economy and proximity of the latest transition in the
television market to HDTV. The transition from standard definition to HDTV is still
growing and many questioned Samsung for the release of 3D TV while new market
segments are still growing in the HDTV market. The importance of customer service to
encourage the growth of 3D TV industry is infinite. Samsung has established a plan to
interact more with the target consumers and expose them to the products available.
Market forecasts project sporting events in 3D will attract consumers, and with the
release of content such as ESPN’s new 3D channel, the potential growth for the market
is opened to a new segment of 3D entertainment, the sports fan. Acknowledging that,
Samsung took the initiative to begin demoing their available 3D TV products on site at
sporting events at kiosks, offering fans the opportunity for exposure. The seasonality of
sales for Samsung is crucial, however they have identified the period between
Thanksgiving and New Years, the fourth quarter, as their most prolific quarter of the
year.
model was released in 2010 at a Consumer Electronics Show and won the award for
“Most Brilliant Innovation” for the industry that year. The 9000 series boasts an ultra slim
.31” design (the size of a pencil), it comes with a premium accessory package, cinema-
quality 3D and groundbreaking picture quality for 2D content, and it is also a Smart TV
with web-connected Samsung Apps. This products slim design is accompanied by one
of the most consumer conscious accessories introduced in the television market, the
remote control. The 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. The quality and design of
this product goes unmatched, as does it price, $5, 999.
television as is necessary for plasma. However, the LED backlight Samsung offers is
far superior to the picture quality of a plasma television. The pricing strategy of
Panasonic is in question as well, considering the plasma technology is much cheaper to
produce yet the price is similar to that of LED backlight set.
3.4 LG Electronics Inc.
LG Electronics is a Korean company. LG Electronics Inc., ranking as the world's
second-largest maker of flat-screen TVs, said it aims to strengthen its presence in the
burgeoning 3D TV market, seeking to grab a share larger than its target for the liquid-
crystal display (LCD) TV market. LG is eyeing 25 percent of the global 3D TV market
this year, which amounts to 950,000 sales based on an annual market forecast of 3.8
million units. That compares with LG's 15 percent market share target for LCD TVs, or
25 million units. "Considering the downward trend of (our) market share in the general
TV market, it is our goal to lift our market share in 3D TV, which will lead the next TV
market," Kwon Hee-won, executive vice president and head of LG's LCD TV business
unit, told a press conference, declining to provide a specific sales target.
LG had focused on the mass market. Initially LG’s objective was to create a
footprint among the sizable middle class, and other than its aggressive pricing, there
was little to distinguish it from other consumer durable companies. LG’s premium
product in the 3D lineup is the 55” inch class Infinia model, LED projection full 3D
HDTV, priced at $3,970. One major drawback with this product is the label of being a
3D-Ready TV, in comparison to a 3D-Enabled TV like that of Samsung’s 3D TV product
line. This factor and the passive approach LG has in the television market will limit the
shares they will get in this early phase of the 3D TV product life cycle.
3.5 Vizio Inc.
Vizio is a market share leader in the industry, but its claim to success is in its
ability to follow technology and market trends. Vizio’s vision is to be the industry leader
in consumer electronics by consistently delivering the latest technologies at the most
affordable price. This mission allowed Vizio to take the No. 1 market share in LCD
televisions in 2009, the first time in six years anyone but Samsung held the coveted
ranking. Vizio also found itself in the 3D TV market soon after other brands such as
Samsung pioneered the way. Using the best of innovations other companies have had,
Vizio has developed cost efficient production methods that allow them to undermine the
quality of the products slightly and the price for what they sell at significantly. Vizio’s
product for comparison is the 55” inch class Full Array TruLED LCD 3D HDTV, this
product sells for $2,499.
4.1 Strength
A. High Quality Innovative Products - Brand Prestige
← Samsung’s 3D TV market products lead the industry as they have
pioneered the launch of the new market segment in early 2010. Samsung’s LED TV
product line has earned the prestige of the best picture quality available in the market by
Consumer Electronics Reports. Those very products are also leading the way in
innovation in the way of style and appeal to consumers, as Samsung released the 9000
Series, which is the thinnest 3D TV available at .31 inches. Samsung is also working to
lead the market by offering a range of top quality award winning products developed
specifically for the 3D market. Samsung is a strong corporate brand known for its
quality products and advanced technology use. The brand prestige that Samsung looks
to carry over from the LED, LCD and Plasma markets, hoping consumers will easily
identify the brand and associate it with it high quality products from an organization
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. Hoping to captivate the interests of more target consumers, SE
demonstrates its aggressive approach to accelerating the diffusion rate of the 3D
market by offering over a third of their LED products as 3D enabled devices. The robust
market position coupled with strong brand equity imparts significant competitive edge to
the company regarding scale and recognition, which in turn augers well for the
company’s expansion plans.
←
B. Availability of Resources
4.2 Weaknesses
A. Lack of Association with 3D Gaming Content
Unlike SE’s competitor Sony, Samsung does not have a direct association with
content provider for 3D gaming. Acknowledging that the 3D gaming segment will
account for a substantial market share, one could infer Sony’s association with gaming
consoles like PlayStation as a competitive advantage over Samsung. As we define our
market, the target consumer is someone who more than likely played or still plays video
games. Sony’s PlayStation is the first to launch 3D gaming content, however with this
being the only aspect of the 3D 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
Understanding SE prides itself on having very high quality products, one can
infer that SE can justifiably charge the highest price for those renowned products. To
maintain a dominant market share as the market for 3D TVs expands, SE’s establish
target consumer will have to expand. 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 expand to incorporate all members of the middle class.
The timeframe for this target to be expanded would be 2014 as the next trend in 3D TVs
is introduced, being the TVs that do not require the use of shutter glasses. The impact
on customers this weakness represents is minimal, considering the quality of the
product is unmatched. To the consumer who is concerned more with quality than price
the impact is none, but to the average financially conscious TV buyer our product may
lose appeal when compared to the cheaper alternatives in the market.
4.3 Opportunities
A. Strategic alliances that enhance the company’s product offerings
Samsung Electronics has entered into strategic agreements with some of the
well-known companies of the world in the recent past. For instance, during June 2009,
the company signed a patent cross license agreement with Toshiba for semiconductor
technologies. Toshiba is the leading player in the NAND flash memory market with
thousands of patens under its name. Toshiba is also in the forefront of innovations in
this product category with several new technologies under its credit. By signing the
cross licensing patent agreement with Toshiba, Samsung Electronics continues to have
access to important NAND flash process technology as well as multi level cell flash
memory design IP relevant for future NAND flash generations. Earlier in 2008, the
company entered into partnership agreement with Netflix, the world's largest online
movie rental service. As for the agreement, the companies would offer consumers the
ability to instantly stream movies and TV episodes from the Netflix Web site directly to
their living rooms through Samsung's BD-P2500 and BD-P2550 Blu-ray disc players.
The agreement enabled the Samsung Electronics to introduce advanced features in its
products, resulting in improved customer offerings. The company has been able to form
strategic alliances with some globally renowned players who are strong in there
respective domains. Alliances 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. Partnership to access 3D gaming content
Establishing a partnership with a company in the video game industry would be
ideal to increase the amount of 3D gaming content. Although this segment of the
market is currently minimal, the surplus of content could influence consumers so that
the segment could increase. A partnership with a company like Microsoft could have an
impact on the market greatly. The 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 expand. This would increase brand
recognition of Samsung by associating it with products such as Microsoft’s XBOX 360
and their other products to come. This partnership would also increase customer
satisfaction by acquiring the only segment of the 3D market Samsung is not associated
with.
4.4 Threats
A. 3D Gaming Market - Sony
The fact that Sony offers the PlayStation gaming console, they have a foot in the
door with the consumers who have interest in 3D gaming, which could potentially
represent a significant share of the market. Sony’s PlayStation is the first gaming
console to launch 3D gaming content. This relationship between the two products
allows Sony to sell both products together at a discount offering not only a product to
view 3D content, but also a gaming console with abilities that allow consumers to play
3D games. However, with our target defined as “cube tubers,” the majority of
consumers Samsung looks to target will not fall under this gaming segment. The
severity of this threat could begin being analyzed as 3D gaming content arrives in the
market, which will be begin during the Christmas buying season of 2010. With only a
very few titles becoming available over the course of its first few months in the market, it
will be July 2011 at the earliest before the significance of the 3D gaming market
segment can be determined.
B. Slow diffusion rate for 3D TV
Also representing a threat is a slow diffusion rate for 3D technology. The TV
market has been rapidly, the evolution of HD TV and flat screen TVs is the most recent
change the market has endured, with the next being 3D. Most consumers of lower
economic classes or slow adapters have just recently made the transition to HD TVs,
discouraging them from immediately making another buy such as that of a 3D TV.
Samsung will be doing everything they can to accelerate the diffusion rate for 3D TVs.
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. This threat could effect Samsung
exponentially as Samsung has invested billions of dollars in R&D for 3D products, a
slow rate of diffusion would slow down the rate at which Samsung reaches its goals for
profitability.
4.5 Conclusions:
Due to Samsung’s superiority in the general TV market, the threats as you can tell are
minimal. However, 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.
Developing a partnership with Microsoft will be a vital component to developing the 3D
gaming content availability, which is the only relevant competitive advantage other than
pricing. As Samsung introduces new 3D products to the market, the price of there
current products will drop, making them more readily available to lower class consumers
and expanding the target market for their 3D products.
4.6.1 Product
Samsung offers the most diverse product mix in the 3D market, offering LED,
LCD and Plasma 3D TVs. Samsung’s cash cow product in the 3D market however, is
the LED 9000 series.
Features
-55” or 46” class LED backlight display
-.31” thin, the thinnest TV available
-The 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 LCD screen on the face of
the remote
Advantages
-The distinct advantage to buying a Samsung 3D TV for the
consumer is the knowledge that they have bought the most cutting-
edge, technologically advanced TV, in the 3D market.
-The remote is the only one of its kind, offering consumers a distinct
feature they cannot get from any of SE’s competitors.
-Samsung’s 9000 series is the thinnest TV ever produced.
Benefits
-Among the benefits of this product, the increase in customer
satisfaction, due to the quality of the product, will be unmatched by
competitors.
Because Samsung produces such a diverse product mix, they can meet all the
needs of the 3D TV consumers with the products they offer, at a very competitive level.
4.6.2 Price
The price of the 9000 series is $5,999. However, Samsung’s diverse product mix
of 3D TVs ranges from $1,200-$7,000.
4.6.3 Promotion
Samsung has launched various advertising campaigns, spending billions of
dollars across three continents, North America, Europe and Asia. Eight billion dollars
has been spent in Europe alone, and three billion in Asia. Neither of which compare to
the twelve billion dollar campaign launched in the North America, predominantly the US,
from where 66% of the 3D TV market exists.
They also have and will continue to use celebrities such as singing group, The
Black Eyed Peas, to promote their products. They 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 experience Samsung
3D.
4.6.4 Place
These products will be sold mostly online, where customers can find deals for
free shipping and set up. This also offers consumers the opportunity to analyze 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-Mart or Target, but the consumer will have the opportunity to purchase them in
specialty electronics retail stores like Best Buy and HH Gregg.
← 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;
← Consumer #1 - “Found it easy to mount on the wall. TV is so thin and picture is
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.”
← Consumer #4 - “The picture quality is amazing. I compared it to the c8000 at the
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
the 3D is beyond our expectations. We paired it with a Samsung HTIB and love the
combination. Good going Samsung! Nice job on this one.”
← 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 TV’s 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.”
←
← Consumer #2 - “Unfortunately it is IMPOSSIBLE to utilize these profiles for other
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
back if you want to hang it. Lot of connection problem with the WI Fi or Ethernet, have
to reconnect all the time, both for the TV and the remote I have the latest router
available which works fine with all other devices. The remote is disappointing and the
touch screen a pain to use. The selection of the source is a pain; I have not found a way
to remove the unused sources. Image quality is certainly the best available but identical
to the 8000”
← Consumer #4 “Big complaint would be setup and reliability of internet features. It
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.
Don’t 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 don’t 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
said,” with the 6,000 dollars I spent on the TV I could feed my family for a long time, or
even make upgrades to our lifestyle without buying a new television.” Another said,”
with TV’s changing year to year from HDTV to 3D TV, it feels like it costs a fortune to
stay caught up when the smart thing to do is to wait for a new TV 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 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 don’t need what I watch to be “jumping
out” at me. “I don’t want to be watching a football game and have it seem like I’m about
to get tackled.”
← In conclusion, the focus group gave us a great idea of how productive 3D TV’s
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 TV’s 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.
←
←
←
←
←
←
←
←
← 6.0 Objectives
6.1 Enter in to the 3D video gaming market through a partnership with Microsoft.
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.
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 Microsoft’s
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 an emphasis on having the latest and greatest technology and through this
partnership, it is our belief that we can capitalize on these tendencies.
continue to be a tech driver for the next-generation Xbox video game console, the
companies said.
Considering the long-term relationship held between the two companies with the
HD format, we believe that a deal focusing on the 3D format is highly likely and would
be beneficial for both parties involved.
7.3 Maintain market dominance throughout the “Glasses” era and prepare the
market for a “glasses-free” 3D TV.
Even though we have the technology to provide a glasses free 3D TV, we would
like to let the market develop through a glasses era so that we can release the best
product possible in 2014. Because 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. During this waiting period
before the product release in 2014, we would like to gain a comfortable amount of
market share so that the launch of the new product has a quality brand image to fall
back on. The glasses-free TV will be relatively expensive and if there is a successful 3D
TV generation preceding it, the chances of it succeeding greatly increases. This
objective is crucial to Samsung’s long-term success in the 3D TV market because if
executed properly, Samsung will be established as the leading provider for 3D
technology for years and years to come.
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 SE’s 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 TV’s 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.
8.3 Maintain market dominance throughout the “Glasses” era and prepare the
market for a “glasses-free” 3D TV.
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.
An average ad during the super bowl is $1.1 million dollars for one 30-second
spot. We would like a 500 million dollar advertising budget to effectively advertise for a
six-month period.
9.3 Maintain market dominance throughout the “Glasses” era and prepare the
market for a “glasses-free” 3D TV.
This goal will be achieved with the daily operating cost and should not increase
the average spending per year.
9.4 Income statement, Balance sheet, and operating costs.
See Tables Attached.
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 HDTV’s Xbox retail kiosks worldwide. Half of this budget is
designated strictly for the United States. Microsoft 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. 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.
June 2010, when our first product was released, we controlled 90% of the 3D market.
Our advertising strategy is expected to maintain our market dominance.
11.2 Alliances.
What if Samsung lost their partnership with content providers?
Samsung currently holds two significant joint ventures with DreamWorks and
Technicolor. DreamWorks announced this year that they will produce nothing but 3D
movies from now on. If we lost partnerships with either or both of these companies, we
would look to start a new partnership with Pixar Animations or other 3D production
companies. Pixar is becoming a top notch movie production company, releasing movies
like Finding Nemo, Toy Story, and The Incredibles, among numerous others. The latest
movie released was Toy Story 3, which ended up being the second highest grossing
animation film of all time, with $415 million. We feel that with this partnership, we could
make a great profit with animated movies targeted towards small children and
developing families.
12.0 References
• http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-is-set-
for-big-growth.htm
• http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-its-
promises/
• 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-from-
japan/
• http://www.mullen.com/2010/09/3d-tv-marketers-take-note/
• http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-be-
worth-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
• http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-is-set-
for-big-growth.htm
• http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-its-
promises/
• 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-from-
japan/
• http://www.mullen.com/2010/09/3d-tv-marketers-take-note/
• http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-be-
worth-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