Standard Marketing Program for SUR40 (Surface 2)

April 2011

Pre-sales Team

Agenda

1. Introduction

2. Nature of Business

3. Recommended Subsidiary MKTG Program

4. Surface Partner Management

5. Surface Partner Recruitment

6. Product Exposure

7. Event and Sales Training

8. Marketing Collaterals

9. PR strategy

Introduction

3/29

Confiden-tial

Goal & Background

4/29

Goal:• Quick Sales Ramp-up• Establish Subsidiary sales Readiness • Gain sustainable/run-rate sales volume

Marketing Program Target:• Reseller (SI & SW developer)• End customer

Background:Reseller specialized in vertical develops & installs SW for end user and deploys it. Thus Reseller and End customer are final decision makers.

※ This standard marketing program is recommended by headquarters. However, subsidiary can adjust and perform its own way by fitting this into its particular business environment

Confiden-tial

Nature of Business

5/29

Confiden-tial

Things You must Know

6/29

This product can benefit end customer only when application s/w which meets the cus-

tomer’s needs is installed and deployed

Thus just selling the h/w itself in Disty or reseller can’t occur sell-out1

2

3 Display screen has to be refreshed (w/ moving picture or flashing) once within

an hour to prevent image sticking problem. And this fact has to be noticed to

s/w developer so that they can develop application appropriately

Generally the appropriate/effective channel for this product will be the s/w de-

veloper in Surface partner eco-system who buys h/w from SEC Disty and sells it

to end customer with customized s/w application

Microsoft salesmen or developer evangelist can assist/contribute to establish effec-

tive channel and reseller eco-system

Therefore purchase order is not valid for actual production if needs/quantity/re-

quested delivery date are not identified from the end customer

4 Standard target lead time from receiving PO to production - 8 weeks

Margin Structure Comparison Info- At Surface v.1, s/w developer had 0% margin in selling H/W and only effective margin from s/w- However Surface v.2 provide s/w developer and reseller with 10% margin from h/w- In this case s/w developer and reseller who worked together can share 10% margin

- However contribution level of reseller who doesn’t develop s/w application may be small

Surface v.1 Surface v.2 (SUR40)

Distributor

Software Developer

End Cus-tomers

FreightFinancing

Warehousing

~5% margin

Hardware

0~% margin

Software

Revenue

Distributor

Software Devel-oper / Reseller

End Cus-tomers

FreightFinancing

Warehousing

~5% margin

Hardware

~10% margin

Software

Revenue

Standard Margin Structure of SUR40

- Same margin structure applies to other regions, too.

- Reseller makes margins mainly on S/W, AND can make ~10% Margin for H/W

Estimated Street Price w/o legs $7,900

$1,343

ExSub $6,557Sales Deduction (mgt plan)

Net Dealer Price

Overhead (mgt plan)

Dist’y + Reseller Margin

Room for Mktg 2%

Profit 2%

–

–

–

–

–

Ex-Hub

SD & OH : Mgt plan for LFD 2.0% room for market-ing 2.0% profit

++

Subsidiary

~ 5% Dist’y’s margin

~10% S/W developer’s mar-gin ~ 2% Room for subsidiary

+

+

Channel Margin

(No special added value) 17%of MSRP

- US Case -Estimated Street Price varies

according to Tax & Duty

Note: ~2% Room for Subsidiary from Margin Structure

- If customer exposes Samsung Brand on the product, ~2% incentive to be offered- If not, ~2% incentive is not offered

MSRP w/o legs [$7,900 + X margin]

Confiden-tial

Recommended Standard Marketing Program

9/29

Confiden-tial

2-Month-Bounty Bonus program

10/29

End Customer Subsidiary

Dassault AviationRed Bull

Fuji

EDO/SEFEDO/SEAGEDO/SEG

US ArmySheraton

Home DepotSEA

RBC SECA

Basically all sample units are supposed to be purchased at normal price

→ If PO for main volume is received by Samsung within 2 months of purchase of a first trial unit (demo unit), 5% of Estimated Street Price  for the first unit is paid back to s/w developer as 2-Month-Bounty Bonus

※ PV sample unit to be provided to below strategic customers who commit volume

Demo Unit Discount & Bounty Bonus 

Partner Management

Confiden-tial

12/29

1. Software Developer list to be shared by SEC HQ regular basis

Surface Partner Management

3. Strategic Partner who commits large volume, has big pipeline or top-level reseller

→ Identify the partner’s specialty and expertise in vertical

→ Assign subsidiary Salesman

→ Visiting and managing End-customer with the partner

→ Proposing solution to end customer together

→ Recommend the partner if potential customer looks for

4. Small SI partner who subsidiary managing indirectly

→ Managing via Inside sales and Web

2. Partner management by Subsidiary

Confiden-tial

For customer where s/w partner doesn’t exist

13/29

• # of partner in each country is below• If customer not in below countries looking for buying the product and doesn’t have in-house capability to develop s/w, subsidiary is recommended to contact SEC HQ/Microsoft HQ to get Microsoft engage in obtaining appropriate new s/w partner in the country

Austra

lia

AUSTRIA

Belgi

um

Canad

a

DENMARK

Fran

ce

Germ

any

Indi

a

Irela

ndIta

ly

Nethe

rland

s

NORWAY

Qatar

Scot

land

Spai

n

Swed

en

Switz

erla

nd

The

Nethe

rland

sUAE

UK

Unite

d Kin

gdom USA

Korea

0

20

40

60

80

100

120

140

160

2 3 5 102

17

37

1 2

1527

4 1 18 9 8

2 1

20

4

146

1

number of Surface 1 partner

14/29

Partner Recruitment

15 / 29

Samsung Local Subsidiary Training– Value Proposition and Sales positioning– Partner Materials that need to be delivered by Samsung

• How to become a Samsung reseller• Identify and communicate distributors• How they can benefit from the value chain ( Margin and additional benefits)

– Reseller Margin : 10%• Samsung Partner support and what partners can expect from Samsung• How to forecast and lead-time education• Pipeline management and Deal Registration process education • Post Sales process education (service, RMA process, and so on)

– Provide Sales Tools (MSFT will provide vertical content)• Will include pitch decks• Sales Collateral• Case Studies• Available videos

Subsidiary Readiness for Partner Management

16 / 29

Goals– Build excitement– Raise awareness of GA and Samsung business model– Recruit Partners via Surface SDK and Developer Center on MSDN– Make connections between Samsung locally and

• MS Field sales/Developer evangelism• Partners• Potential Customers

– Operationalize Samsung Subsidiary to support SUR40– Microsoft will fund it– SEC HQ will support demo units

New Market Road Show for Partner Recruitment

17 / 29

Time Session Audience

10:00 Introducing Surface “2”: Business Model, demonstration & partnering opportunities

Partners : MSFT and Samsung Partners

12:00 Lunch Included

Surface “2”:SW and HW story for FY12

MS Field : EPG, DPE, MCS, Samsung Local Subs.

2:00 Press Event Local Press

2:00-5:00 1:1 Customer meetings setup by field Customer briefings

Seoul, Korea (Wed, May 25) Singapore (Fri, May 27) / New Delhi, India (Tue, May 31)

Agenda for New Market Road Show

18 / 29

• Live meetings

– since we already have a ecosystem

• Local Subsidiary Readiness

• Very Important to operationalize Samsung and Microsoft field teams

Partner Recruitment for America & EMEA

Confiden-tial

19/29

Leveraging local Microsoft retail store

- Leveraging this as showcase

- 8 stores exist in the US (will be 12 ~ 15 in September)

- Product Price to Microsoft is 25% discount from the Estimated Street Price

- As a reseller Microsoft Retail team will Commit to sell product to

Business Partners and its store SEA needs to do f/u

Product Exposure

Exposure at Subsidiary

- Recommend at least 1 Demo unit at Show room or resting area at entrance

- If subsidiary makes investment on the demo unit for permanent exhibit,

HQ offers 50% discount from the Ex-hub price. In this case, subsidiary

has to inform HQ of information of Demo unit location and usage

- Sharing show room location with local Microsoft sales resource and

leveraging them when we have a meeting with client

Confiden-tial

20/29

1. Samsung- Infocomm- IFA

2. Microsoft- MIX April 2010- International Advertising Festival Cannes France- Paris Air Show ( With Dassult)

- Worldwide Partner Conference in July 10th through the 14th in LA (15,000 Partners)

Local Event & Salesmen Training

Putting unit on local trade show is strongly encouraged

This local exhibit to be determined by subsidiary

Subsidiary can invite and leverage local Microsoft team

Salesmen training to be performed at local forum, local sales meeting, PM meeting, regional pre-sales team meeting and so on

Trade show to be held by SEC HQ and Microsoft HQ

Confiden-tial

21/29

Video, Case Study, Surface SW data sheet, Pitch Deck, Pinpoint to be provided

Key collaterals to be uploaded at Samsunglfd.com

Also uploading at Local Web site is required

Marketing Collaterals

Key collaterals to be co-developed by SEC & MS to keep balanced perspective

Confiden-tial

22/29

Standard PR kit to be provided for subsidiaries

Local PR required to be performed by each subsidiary

PR Strategy

 - Joint PR with SI is possible when big/significant deal is won

- In this case, subsidiary can show that the SI is strategic partner collaborating Samsung

and Microsoft

Whenever subsidiary succeeds in selling the product to any customer, make a success case and share with headquarters so that it can share with other subsidiaries and perform active Press Release

Confiden-tial

23/29

Subsidiary Action Item for 30/60/90 days

The next 30 days

For PARTNERS• Finalize partner reseller model• Lock local distributors and communicate to partners• Understand the Surface partner ecosystem• Communicate the value prop and opportunity broadly to partners. They

need specifics

INTERNAL• Lock product price. • Establish MSFT ordering process• Set Identify key contacts in Subsidiaries - train and communicate re-

sources and tools

The next 60-90 days

Microsoft Confidential

For PARTNERS• Establish relationships with the 24 strategic partners to understand their

competencies, focus, etc. • Support MSFT on APAC recruiting events (Korea, SEIN,

SEA(Singapore))

WITH MICROSOFT• Identify and communicate process to connect Samsung and MSFT in

each subsidiaries• Live meetings with MSFT to local subs to give them a overview on tools

and resources to support SUR40• Continue meeting local partners• Continue planning of GA launch events

RESOURCES• Build out the SUR40 web presence/resources• Continue to build collateral

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Appendix

Microsoft® Surface®

MICROSOFT SURFACEGrowing New Business

A typical engagement

Microsoft® Sur-face®

Partner engaged

• Qualify opp• Meeting/demo• Additional

mtgs/demo• Proposal• Negotiation• SW dev• Deployment

MS engaged

• MS approached by customer or industry vertical lead

• Qualify opp• Meeting/demo• Introduce cus-

tomer to partner ecosystem

SEC engaged

• SEC approach by customer

• If strategic, qual-ify opp, hold meeting/demo, pair with a part-ner

• If not strategic, introduce cus-tomer to partner ecosystem

Opportunity Process Flow

Microsoft® Sur-face®

Customer

MS

Samsung

Surface Partner

Samsung Disti

The role of partners

Microsoft® Sur-face®

• It’s not a solution, without a partner

• They are your frontline and extension of your sales force

• Understand the product inside and out

• Have been pitching the product for years. They know the value prop, the differentiation between competing products

• They will be the ones to develop the app, so you need them

• Need to maintain a level playing field as much as possible. Partners compete and they will look for opportunities to get preferential treatment…need to be careful and fair.

What partners need

Microsoft® Sur-face®

• A standard deck that contains the value prop and next steps• Sales tools and collateral

• Consistent information and support

• Understanding of the ordering process - Forecasting

• Lead time. Selling the solution and developing an app takes time

• A volume scaled pricing model (pricing for 0-10, 10-50, 50-100 etc)

• Mechanism for tracking the opportunity and providing forecast-ing to Samsung (e.g. CRM)

• How and when to engage Samsung in the opportunity. Sam-sung should document when/if they would like to be engaged. For example strategic customer, large customer, large oppor-tunity

How to position the product

Microsoft® Sur-face®

• Focus on the ROI such as brand impact and customer experience• Technology is important but don’t lead with it

• Brings people together. Collaboration. Multi-touch. Multi-user. Rec-ognizes physical and tagged objects (create unique experiences, unlike a traditional touch screen today)

• Promote ease of development and flexibility of the platform. Famil-iar tools. Extensibility to other Windows 7 machines.

• Keep in mind that the true cost will come in the development and app work

• Highlight the rich MS Surface partner ecosystem. 350+ partners.

• Play up the ROI that Harrah’s, Barclays, RBC have seen through their deployments.

Microsoft® Surface® version 2.0

Microsoft Surface brings people together to connect, learn, and decide using touch and everyday objects

Messaging Pillars & Support Points

EXPERIENCES THAT ENHANCE COLLABORATION AND PERSONAL

CONNECTIONS

TECHNOLOGY THAT SEES AND RESPONDS TO PEOPLE AND

OBJECTS

MICROSOFT DELIVERS PROVEN PLATFORMS AND INNOVATION

OPPORTUNITY

Benefit Support Points:

• Multiple people can interact with the system at the same time

• Supports more than 50 simultaneous inputs

• 360° user interface for shared computing around tables and counters

• Large format screens

• The natural and intuitive interface makes it easy and inviting for people of all generations and technology skill levels to use

• Navigate with touch and natural gestures• Using physical objects reduces time and

steps to get to the information you want

• Applications for exploring, learning, planning, deciding, creating and playing together

• Bing for Microsoft Surface from Microsoft pre-installed on the Samsung SUR40 product

• Applications from a network of worldwide solution providers trained and experienced in Surface development

• Find applications and partners in your industry or region at www.surface.com.

Benefit Support points:

• The PixelSense™ technology in Microsoft Surface 2.0 sees and responds to touch and objects

• High accuracy touch interaction for multiple people at the same time

• Optical tags on a variety of objects

• Take information with you from the device to your mobile phone using Microsoft Tag. Get the free download for your phone at http://gettag.mobi

• The large format, high durability Samsung SUR40 for Microsoft Surface can be used in tables, walls, and custom fixtures and stands up to high volume public use

The Samsung SUR40 device delivers:• Large 40” screen• Thin and usable in a variety of

spaces• Higher durability than screens for

PCs or TVs for public use• High-definition 1080p resolution • See Samsung’s website [Link to

Samsung SUR40 page]

Benefit Support points:

• Microsoft Surface builds upon Windows® 7 Professional which delivers the familiarity, reliability, and manageability your IT organization needs

• Windows 7 delivers improved perfor-mance, compatibility, and device man-agement

• New Administrator tools in Surface 2.0 gives IT and in-venue staff control over the Surface experience and applica-tions

• Microsoft Surface delivers cutting-edge technology and user experience that can set you apart from your com-petition, and more deeply connect with your customers.

• Customer use case studies in target verticals (1.0 and new)

• Microsoft offers a vast worldwide part-ner network to meet your needs

• There are already several hundred Sur-face development partners worldwide

• The Surface SDK version 2.0 helps de-velopers create great touch applica-tions on Windows 7 devices and further optimize for the unique Surface com-puting experience.

Use the available resources

Microsoft® Sur-face®

Samsung should develop sales tools and materials to help their field and partners

MICROSOFT RESOURCES that are available today:

(available on thumbdrive)• Videos (v1 & v2)

• Partner apps• Surface experience

• Case studies• Pitch decks• Surface software datasheet• SUR40 product datasheet • Website (surface.com)• Pinpoint. Partner showcase area to highlight apps

Thank you