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Innovation Management and New Product Development

Thesis · November 2019

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BM050-3-3-IMNPD TP046566

Name: Tan Yik Ern

Student ID: TP046566
Intake Code: UC3F1906IT(ISS)
Module Name: Innovation Management and New Product Development
Module Code: BM050-3-3-IMNPD
Hand Out Date: 28th Nov 2019
Hand In Date: 14th Feb 2020
Lecturer: Mr. Jonathan Jeevan Strinivas A/L Kovipilai

1
Executive Summary

Samsung is one of the electric products companies. Samsung Electronics Co., Ltd. is a
South Korean multinational electronics company. Meanwhile, Samsung has taken a leading
role in developing new technologies for the television industry, especially to enhance the
watching experience for consumers throughout the world. By the way, there are others TV
manufactures that are competing with Samsung. For examples, Sony, Hisense, LG electronics
and more. To defeat others brand TV product in future, the manufacture must build a smarter
TV in market. The researcher has proposed a new solution for Samsung with advanced
technologies to develop a brand-new Samsung TV. The titles that will be discussed is the
justification of new product, product development, competitive strategy and growth strategy.

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Contents
1.0 Introduction ................................................................................................................... 5

2.0 Newness of the New Product ......................................................................................... 7

2.1 Displays ...................................................................................................................... 7

2.2 Processor .................................................................................................................... 8

2.3 AI upscaling ............................................................................................................... 9

2.4 Quantum HDR ......................................................................................................... 10

2.5 Smart service............................................................................................................ 11

2.6 Sound system............................................................................................................ 11

3.0 Justify Innovation of New Product ............................................................................. 13

3.1 Problem Addressed .................................................................................................. 13

3.2 Opportunity, Benefit and Impact ............................................................................ 13

3.3 Commercial Viability............................................................................................... 16

4.0 Application of Levitt’s Idea in Product Development ................................................ 19

4.1 Core Level ................................................................................................................ 19

4.2 Actual Level ............................................................................................................. 20

4.3 Augmented Level ..................................................................................................... 20

5.0 Competitive Strategy of New Product ........................................................................ 22

5.1 Differentiation .......................................................................................................... 22

5.2 Positioning ................................................................................................................ 22

6.0 New Product Growth Strategy Using Ansoff’s Growth Matrix ................................ 23

6.1 Market Penetration.................................................................................................. 23

6.2 Product Development .............................................................................................. 23

6.3 Market Development ............................................................................................... 23

6.4 Diversification .......................................................................................................... 24

7.0 Conclusion ................................................................................................................... 25

8.0 References .................................................................................................................... 26

3
9.0 Appendices ................................................................................................................... 29

Appendix A: Turnitin Report ........................................................................................... 29

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1.0 Introduction

Television is an entertainment device for consumer to enjoy their leisure time. A smart
TV is a visual entertainment since the development of TV until now. Consumers buy TV for
watching drama, TV show, movie and news. Nowadays, consumers buy TV not only watching
TV channel, they use it as monitor for computer, play video games surfing the internet, stream
online programs and working equipment too. Smart TV provide multi-use and multi-
experience for user (Pino, 2019).

Figure 1: Samsung Logo (my, 2019)

Samsung is South Korean company that is one of the world’s biggest producers of
electronic devices. Samsung specializes in the production of electronic products. Samsung was
founded by Lee Byung-Chull in 1938. Samsung first entered the electronics industry in 1969.
The first product is black-and-white television (Bondarenko, 2018). In 1977, Samsung began
to manufacture the colour television. Even black and white technology was out-of-date in
Europe and North America however there was still an enormous demand for TVs of any kind
in several developing components of South America and Asia (Techwalla, 2015). Samsung’s
succeed due to increase its specialise in analysis and new development. So, Samsung made a
leap became an industry leader in 1990s. Furthermore, Samsung cooperate with Sony during
the period to create Liquid Crystal Display (LCD) screen (Techwalla, 2015). In 1998, Samsung
started manufacture flat screen and digital TV. Throughout the early 21st century, Samsung
keep on lead the television industry, with inventions like the world’s thinnest TV in 2002 and
Samsung has double-slide LCD screen in 2006 (Techwalla, 2015).

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 Figure 2: Samsung’s old TV (Techwalla, 2015)

Figure 3: Samsung’s flat screen TV (Techwalla, 2015)

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2.0 Newness of the New Product
2.1 Displays

Figure 4: Samsung QLED Q900R TV (my, 2019)

A Real 8K resolution has implemented in Samsung QLED TV. It’s up to 8000 horizontal
pixels at 7680 by 4320 resolution (7680 x 4320) (What Hi-Fi, 2020). There are some
companies also launched an 8K TVs in recent years. For instance, Sony launched 8K OLED
TV (Sony.com.my, 2019).

QLED stands for Quantum dot Light Emitting Diode. Quantum dot will be a unreal
nanocrystal with semiconductor properties that allow to boost brightness and colour
performance displayed in still and video and pictures on an LCD display screen (lifewire,
2019).

2.1.1 OLED Display

Figure 5: Quantum dot display (https://www.facebook.com/lifewire, 2019)

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 The figure above shows the blue light-emitting diode (LED) sends light through the
Quantum Dots that are excited in order that they emit red and green light. Next, the various
coloured light passes through the liquid crystal display (LCD) chips, colour filters and on to
the screen for image show. The added Quantum dot emissive layer enables the liquid crystal
(LCD) display TV to display a additional saturated and wider color gamut than liquid crystal
display (LCD) TVs no need to add Quantum dot layer (lifewire, 2019).

2.2 Processor

Figure 6: Quantum processor 8K (my, 2019)

Samsung’s TV has implemented Quantum process 8K. Experience QLED’s Quantum

Processor 8K. It uses its own distinctive upscaling algorithm rule to send beautiful images,
whereas changing the screen brightness and sound to match room and the scene on the
screen. QLED’s greatest strongest processor sends enhanced resolution and an incredible TV
screen display.

Samsung TV processor is an important factor to develop a TV with good quality of

displays. Processor in the TV is often referring as the core and main of a TV as it handles
how fast an image flash up on the display screen and process all the videos. Besides that, the
processors are also helping to reduce the blurriness in fast-paced content like football match
as these high-performance events requires high frames per second to get a smooth and clear
display (LG Magazine, 2019).

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2.3 AI upscaling

Figure 7: 8K AI upscaling (Hicks, 2019)

Samsung QLED TV uses machine learning to decrease restore lost detail, image noise
and additional sharpen edges around text and object. The content in display screen is vivid
near to 8K resolution (my, 2019).

Samsung’s AI upscaling will real time fill and fix the missing or damaged pixels (Hicks,
2019). The AI will be learning the object true colour in real life then repair the colour to the
picture. The processor will auto fill up the missing colour from low-resolution images so that
they mirror the high-resolution images. Also known as 8K AI upscaling able to auto paint
up the object colour (Hicks, 2019).

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2.4 Quantum HDR

Figure 8: QLED’s Quantum HDR (my, 2019)

QLED’s Quantum HDR (High-dynamic-range imaging) improved the display screen

more realistic. It has 32 times offers a dynamic HDR expression that adapts to every scene
and unveils the director’s intention (my, 2019). HDR can enhance the display screen
brightness. The contrast is the difference between the brightest whites and darkest blacks a
TV can display (rwaniata, 2019). Besides that, more colour in display screen. Meanwhile
HDR’s colour also match to human eyes’ colour (rwaniata, 2019).

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2.5 Smart service

Figure 9: Voice Control (Abdelrazik, 2019)

Samsung QLED TV has voice control system is an accessibility features that allow user
to control their devices with their voice and it can be done through interacting with the virtual
devices that are installed in the device (Chan, 2019). People can via speaking to search or
open TV channel, watch movie or launch application in TV. The voice can instead of remote
control to control the TV. The advantage of this feature user can fast search anything as they
want. For example, children, they can speak to the remote-control then voice remote to open
cartoon to watch.

2.6 Sound system

Figure 10: Dolby Atmos sound system (Dolby.com, 2019)

Samsung QLED TV has installed Dolby Atmos sound system. The sound feels like
move around the room just like in cinema. The Samsung QLED TV’s sound system can
produce advance sound quality (Dolby.com, 2019). Especially Dolby Atmos allow to change

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different sound mode and customize the sound mode. Enhance the video sound quality to
has a full impact of entertainment (Dolby.com, 2019).

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3.0 Justify Innovation of New Product
3.1 Problem Addressed
People want their lovely home that can decorate as beautiful as the palace. People buy
the product with beautiful and suitable to decorate their home. Choosing a great design smart
TV also important. The Samsung Q900 8K Smart OLED TV (my, 2019) is a recommended
choice for people.

Next, sometimes people will hard to search a TV channel or a specific online video. As
the Samsung’s controller has limited, it does not have the keyboard in controller. The on-screen
keyboard also hard for people to search through the controller.

Furthermore, people always not satisfy the size of TV screen. Everyone loves to watch
movie in cinema, as there is a huge screen with 3D sound. People hard to decide a best choice
smart TV that like cinema.

3.2 Opportunity, Benefit and Impact

Samsung QLED smart TV with a Q design style which meant to outlook of the TV
(Samsung latin_en, 2017). The Design more beautiful than previous design. Consumer can
hang the TV on the Wall or stand the TV with a TV stand. The TV’s back with clean and tidy
design that will reduce the tangled wires. Tangled wires are dangerous because wire can human
will trip and fall down (Cemtrex, 2019). Samsung has concern about the human factor, so the
latest design will decrease the dangerous issues happened.

Figure 11: Samsung QLED TV’s design (Samsung latin_en, 2017)

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 Figure 12: Samsung QLED TV’s stand (Samsung latin_en, 2017)

In addition, Samsung’s AI upscaling also better that previous 4K smart TV (Samsung

latin_en, 2017). The AI upscaling is a machine learning, it can fill and fix the graphic that
display in screen. Fill up the real, 3D and shadow image like realistic feel to the picture. It can
improve the low-resolution display to high-resolution. Consumer can watch a UHD (Ultra-
High-Definition) TV at home.

Also, the voice control system in Samsung QLED smart TV also a great invention
(Samsung latin_en, 2017). Consumer ignores press the button on remote control, with uses the
voice control to search and look for TV channel or surfing the internet. Hand-free to remote
your home TV.

The chipset processor that implemented in Samsung QLED smart TV which is quantum
processor 8K (Samsung latin_en, 2017). The processor able to increase the TV’s performances
like blur-free in fast pace video, greater colour contrast and more accurate in brightness control.
Using the quantum processor 8K smart TV for watching movie, just like a home-cinema

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 Next, the sound system in Samsung QLED smart TV can be surround your room, just
like in theatre (Samsung latin_en, 2017). Samsung has implemented Dolby Atmos in QLED
smart TV for better sound experience to consumer. Impact of consumer can hear the best sound
quality.

Lastly, Bixby is Samsung’s AI technology, the advantages of Bixby can work in voice
and vision (Jansen, 2019). The voice recognition system and camera function that help
consumer easy in life when use it. QLED smart TV with Bixby help people to same time in
searching TV program and beautify camera when taking photo.

Figure 13: Samsung’s Bixby (Apps, 2020)

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3.3 Commercial Viability
Market Demand

Market demand is referring the total amount of goods and services that all consumers are
willing, and the specific price is affordable in marketplace (My Accounting Course, 2019). If
the market has competition, the value of the product or service can rise and if the demand
within the market decreases, the value can decrease. Thus, market demand is that the total
quantity or share of what everybody in an industry need (BigCommerce, 2019).

Based on the research on title smart TV, there are lot of brand, features, technologies and
services are competitive in marketplace. Consumer will purchase the most suitable and
affordable smart TV. Here a vertical chart shows about the smart TV market’s growth, trends
and forecast from 2020 to 2025.

Figure 14: Market Summary of CAGR (Mordorintelligence.com, 2020)

The market summary shows CARG of 16.52% between the forecast period of (2020 -
2025). The smart TV build like smart phone, some function like download, share, update,
browse and chat. Meanwhile, the smart TV that take part in market summary which are
Panasonic, VIZIO, Sony, Samsung and LG. From the vertical chart, we can see smart TV will
increase the sales in forecast year (Mordorintelligence.com, 2020).

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 In short, smart TV have amendment the TV industry trade, by giving a board spectrum of
innovative options through internet-connected services. All this TVs have Wi-Fi capability or
an LAN that permit the buyer to remain connected to the net (Mordorintelligence.com, 2020).

There are 3 key market trends of the smart TV’s market demand: (Mordorintelligence.com,
2020)

1. The growth will be related to innovative options, like high resolution and high image
quality, with sound of Dolby system, that give cinema experiences on big screen sizes.
2. The UHD become a standard resolution for TVs with 40 inches and above.
3. Using the technology like Quantum dot LEDs (QLED) in smart TV. The TVs with
QLED have high penetration rates in comparison to the previous technologies.

Figure 15: Smart TV market’s growth rate (Mordorintelligence.com, 2020)

In addition, In Asia Pacific region is that the dominating marketplace for Smart TVs
and is anticipated to stay on its dominance over the forecast amount, because of increasing
demand for smart TVs by end-users, and the emerging economies of China, India, and South
Korea. The rising net disposable income of buyers has been a big factor for continued demand
within the region (Mordorintelligence.com, 2020).

The growth of Smart TV also included some application for consumer, such as Amazon
Prima Video, Netflix, HOOQ and others. Create the smart TV meet the user requirement too,

17
the smart TVs support the HD videos, HD set-top boxes and gaming. The design of smart TV
acted as a catalyst in demand generation (Mordorintelligence.com, 2020).

Finally, according to the report of Asia Pacific had the largest market demand. The
presence of the Chinese buyers has been important within the competitive valuation of products
in these markets, several products have registered partnerships with e-commerce platforms to
supply their products. Third-party service suppliers have helped in reassuring that buyers prefer
these these products, serving to market indirectly (Mordorintelligence.com, 2020).

In a conclusion, the transformation of television industry form CRT screen to LED

screen. Also know that to propose a new TV product, the new generation of TV is “smart”. TV
no only watching TV channel, but smart TV has connected to internet, smart TV has used IOT
technology and AI features. The market demand of consumer will target the smart TV that able
to function like smart phone, surfing the internet, gaming, high graphic display, stunning sound
system and so on.

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4.0 Application of Levitt’s Idea in Product Development

Figure 16: Levitt's Idea (Claessens, 2015)

4.1 Core Level

Definition Core Level is the fundamental need that the customer satisfies when they
buy the product (Denis, 2018).
Core Benefits 1. Easy to function
2. Smart TV support 5G internet connection.
3. The storage in smart TV up to 1TB.
4. The flat smart TV design.
5. The curve smart TV design.
Justification 1. Consumer prefers the no hard function smart TV, fast learning
when use first time use smart TV.
2. Consumer need a fast internet connection with no delay when
browsing internet.
3. Biggest storage that allow consumer install more useful
application or saving movie in smart TV.
4. Some consumers like flat screen that provide a wide view,
whereas some consumers like curve screen that provide 3D view.
Table 1: Core Level

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4.2 Actual Level
Definition The actual level is that the product options and style. Product usually have
loads of options however less actual advantages to the buyers (Denis,
2018).
Actual Benefits 1. Watch any TV channel with 8K resolution.
2. Next-generation TV processor.
3. QLED quality display.
4. Voice Control.
5. Sound System.
Justification 1. To satisfy consumer’s vision with an Ultra-high-definition
resolution when they watch any TV channel or streaming online
video.
2. The Samsung’s Quantum processor 8K will enhance the speed
processing the internal system.
3. The QLED display has provide a brighter display, which is an
advantage in bright rooms and with HDR content.
4. Voice control to replace the physical remote control. If forget the
remote control where to keep, consumer can use the voice control
to search TV channel.
5. Samsung must implement the good sound card in smart TV.
Consumer can hear the best quality and 3D sound in room, like a
home theatre. For example, Dolby Atmos sound system.
Table 2: Actual Level

4.3 Augmented Level

Definition The augmented level is any non-physical components of the
merchandise. Basically, the augmented product includes such things as
warranty and client service. The augmented product is a big way to tailor
the merchandise to fulfill the requirements of specific customers (Denis,
2018).
Augmented 1. 3 years warranty.
Benefits 2. Free installation fees.
3. Free delivery.
4. Service centre.

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 5. Online customer services.
Justification 1. Samsung TV’s product has 3 years warranty (my, 2019).
Customer can repair the smart TV if has any problem in after
purchase within 3 years.
2. There is no charge of installation to smart TV. The technician will
help the customer with a free installation.
3. As the QLED smart TV is big and fragile. Samsung has will
provide free delivery to customer’s home
4. The customer also can visit the nearby Samsung service centre for
asking any unsolvable trouble.
5. The online customer in Samsung official website that is 24 hours
help chat. Besides that, customer also can call Samsung’s hotline
to enquire any product’s issues.
Table 3: Augmented Level

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5.0 Competitive Strategy of New Product
5.1 Differentiation
Product differentiation is a marketing strategy that strives to differentiate a company's
product or services from the competition. It focuses on the consumers’ attraction on one or
more key advantages of a brand that make it better than other choices. So, the marketing
strategy must demonstrate that a product can do more thing the competing choices can but
has additional advantages no one else offers (Investopedia, 2019).

Thus, Samsung can apply this strategy to propose a new product in display screen and
sound system. With this strategy, the product will differentiate with other companies’
product. Consumer can clearly differentiate the benefits of Samsung’s product and gain
more loyalty customers.
Table 4: Differentiation

5.2 Positioning
Positioning strategy may be a selling that helps place a product perceptually within
the minds of shoppers. It is generally needs making variations between your products or
services and competitor’s offerings. However, can extend to company own product if they
are marketed below different brands. A winning product positioning way to help gain market
share and improve sales and profits for company (Bizfluent, 2009).

Samsung has a good positioning strategy with electronic product. Samsung also
industry-leading in smart phone and smart TV ‘s product. However, cost of Samsung’s
products is high compared with other competitors, but the it has good quality and good
customer services. Therefore, Samsung should focus on increasing the quality of the product
and provides a good customer service. Provide a better after sale services to Samsung’
customer.
Table 5: Positioning

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6.0 New Product Growth Strategy Using Ansoff’s Growth Matrix

Figure 17: Ansoff's Matrix (Mind Tools, 2018)

6.1 Market Penetration

Market penetration concentrates on increasing sales of existing merchandise to associate
existing market (Corporate Finance Institute, 2000). Although smart TV is an existing
product in the marketplace. Samsung should create advertisement to promote their product.
Therefore, Samsung will get customer’s attention to buy their product. Meanwhile, Samsung
will increase the market shares too.
Table 6: Market Penetration

6.2 Product Development

Product development focuses on introducing new products to an existing market (Corporate
Finance Institute, 2000). Samsung can manufacture a new smart TV with new features.
Samsung can do survey to client as try to fulfil the requirement of client. Besides that,
Samsun also can improve their existing smart TV, for instances the performances and vivid
display graphic. Finally, Samsung product will be outstanding than others brand smart TV.
Table 7: Product Development

6.3 Market Development

Market development focuses on entering a new market using existing products (Corporate
Finance Institute, 2000). Samsung can open new market to other country that does not sale
any Samsung product. Therefore, Samsung must do research on other countries about the

23
cultural, geographical and economies. Understand the people need and then sale most
suitable smart TV form them.
Table 8: Market Development

6.4 Diversification
Diversification focuses on entering a new market with the introduction of new products
(Corporate Finance Institute, 2000). Once Samsung entering a new marketplace with an
existing smart TV, this strategy might hard and take time. As the other brand smart TV has
been gain loyalty customer, if Samsung have a good introduction to its new product then will
gain customer to purchase it. Meanwhile, Samsung can use this strategy in right marketplace
after the marketing analysis.
Table 9: Diversification

24
7.0 Conclusion

In conclusion, the proposed TV product for Samsung will certainly stands out from the
competitors within the market with the innovative technologies and options. The novelty of the
proposed product has been justified. Besides that, the innovation of the proposed product has
been even similarly, like problem addressed, opportunities, and business viability. Next, the 3
level of Levitt’s idea, Core Level, Actual Level, and augmented Level of the proposed product
has been explained. Furthermore, the competitive strategy of the proposed product has been
mentioned similarly. Lastly, all four of the growth strategies by using Ansoff’s Matrix has been
explained. Once the market demand is known and by applying correct competitive strategy,
Samsung can eventually improve the sales of the proposed product and increase market share
similarly.

25
8.0 References

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my, S. (2019). Mobile | TV | Home Appliances. [online] Samsung my. Available at:
https://www.samsung.com/my/.

Bondarenko, P. (2018). Samsung | History & Facts. In: Encyclopædia Britannica. [online]
Available at: https://www.britannica.com/topic/Samsung-Electronics.

Techwalla. (2015). The History of the Samsung TV | Techwalla.com. [online] Available at:
https://www.techwalla.com/articles/the-history-of-the-samsung-tv [Accessed 6 Jan. 2020].

my, S. (2019). Samsung 98" 8K Smart QLED TV (Q900) Price in Malaysia & Specs. [online]
Samsung my. Available at: https://www.samsung.com/my/tvs/qled-
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What Hi-Fi (2020). The best 8K TVs 2020: the ultimate 8K resolution televisions. [online]
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Sony.com.my. (2019). Televisions | OLED TVs | Sony MY. [online] Available at:
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https://www.facebook.com/lifewire (2019). Are You Ready for the Quantum Dot

Effect? [online] Lifewire. Available at: https://www.lifewire.com/quantum-dots-enhance-lcd-
tv-performance-1847342 [Accessed 6 Jan. 2020].

Hicks, M. (2019). Here’s the secret behind 8K AI upscaling technology. [online] TechRadar.
Available at: https://www.techradar.com/sg/news/heres-the-secret-behind-8k-ai-upscaling-
technology.

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https://www.facebook.com/rwaniata (2019). Need more contrast in your life? Here’s what you
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Dolby.com. (2019). Dolby Atmos. [online] Available at:

https://www.dolby.com/us/en/brands/dolby-atmos.html.

Samsung latin_en (2017). Overview | Samsung QLED TVs: The Next Innovation in TV.
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My Accounting Course. (2019). What is Market Demand? - Definition | Meaning | Example.

[online] Available at: https://www.myaccountingcourse.com/accounting-dictionary/market-
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Mordorintelligence.com. (2020). Smart TV Market | Growth, Trends, and Forecast (2020 -

2025). [online] Available at: https://www.mordorintelligence.com/industry-reports/smart-tv-
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Marketsandmarkets.com. (2019). 8K Technology Market Size, Growth, Trend and Forecast to

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246430968.html [Accessed 8 Jan. 2020].

Denis (2018). Three Product Levels (Kotler). [online] Expert Program Management. Available
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Claessens, M. (2015). Three Levels of Product - Core Value to Augmented Product. [online]
Marketing-Insider. Available at: https://marketing-insider.eu/three-levels-of-product/.

my, S. (2019). Samsung Product Warranty Information | Samsung Support Malaysia. [online]
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Investopedia. (2019). Product Differentiation. [online] Available at:
https://www.investopedia.com/terms/p/product_differentiation.asp.

Bizfluent. (2009). Product Positioning Strategies. [online] Available at:

https://bizfluent.com/way-5218154-product-positioning-strategies.html.

Corporate Finance Institute. (2000). Ansoff Matrix - Overview, Strategies and Practical
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 9.0 Appendices
Appendix A: Turnitin Report

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