Samsung Young Marketer Contest 2007 (Final Round)

Mobile Phone Ultra II Edition U700

Presented by

Me to Shine, Mine to Share

Thirada WaivitlikitSiriorn SutheerawongPawaleePiyavidyakarnLalinda Chaisavetkanon

AGENDA

• What’s happening?• Who’s our competitors?• What about our brand?• How do we see U700?• Who would like to buy

U700?

AGENDA

• How would we like them to see U700?

• What should we do?• How can we do?• Is it possible?• What about in the long

run?

What’s happening?

Market Analysis

• Intense competition

– Various products and target groups

– Continuous product improvements

• Multimedia Technologies

• Market leader exists

• Total sales in Unit of mobile phone industry

Year Sales (millions)

2006 7

2005 6

2004 5.8

2003 6.1

Market Analysis

Market Trend

• Price cuts

• Basic multimedia functions – camera, music

• Knowledge seeking before purchase

• More mobile phones launched

Who’s our competitors?

Market Share 2006

65%8%

7%4% 2% 6%

8%

Nokia Motorola Samsung

i-Mobile Sony Ericsson LG

Others

Nokia

• Market Leader – 65% market share– Easy to use– Variety of products for different

target groups– Reasonable prices– Localized marketing strategies

Nokia

Brand of mind

Motorola20%

Others1%Nokia

55%

Samsung22%

Sony Ericsson

2%

Nokia

Best in Technology

Samsung16%

Sony Ericsson

25%

Nokia59%

Nokia

• Worthiness of money

Nokia48%

Samsung18%

i-Mobile34%

Nokia

• 2007 Strategic plan

– Target young generation and music lovers

– Suburban area

– Convergence technology

• Comparable model: Nokia 6500

Motorola

• 8% market share• Brand image - Artist/Sweet Scientist • 2007 Strategic plan

– Fashion phone – “Own Design”– Motobus

• Comparable model: Motorola RAZR2 V8

i-Mobile

• Thai company from Smart Corporation

• High growth rate (43% domestic, 800% worldwide)

• Unique and various multimedia functions

• 7% market share

• Service center nationwide

Sony Ericsson

• 4% market share

• Use its sub-brand reputation – Sony Walkman, Sony Cybershot

• Hard to use


– Prices cut

• Comparable model: Sony Ericsson W880i

LG

• 2% market share


– Road shows

– point-of-sale- purchase promotion

– launch 30 models - emphasize on the multimedia functions

• Comparable model: LG KE 970 Shine

What about our brand?

Samsung Status

• Second place in mobile phone industry

• Best in design

LG5%

Nokia27%

Samsung68%

Samsung Status

• 2006 Strategy– Premium target

• 2007 Strategy– Middle and lower segments

high potential growth

– Launch 50 models – 40% target middle and lower segments

Samsung Positioning

Channel Analysis

• Exclusive distributor Sam Corporation

• Sam Corporation retailers and modern trade

• Samsung chain stores and operators

Channel Analysis

• Most popular channels chain stores and retailers

Brand Shop7%

Others3%

Chain Store58%

Retailer32%

How do

we see

our product?

SWOT Analysis

• Strengths

– World-class brand

– Brand in mind for best design

– Recognition for its good imaging and sound

SWOT Analysis

• Weaknesses

– Fingerprints are left

– No radio function

– Few Samsung shop

SWOT Analysis

• Opportunities

– More stable political stability spending confidence

– Mobile phone as the fifth living element

– Samsung as the best brand in design

– More fashionable lifestyle

SWOT Analysis

• Threats

– High Competition

– Lots of mobile phones launched prices cut many features at lower prices

– Conflict with Sam Corporation negative image

– Existence of market leader

Who would like to buy

U700?

Targeting

• Age: 18-27 years old

• Middle to upper classes

• Trendy & multimedia lifestyles

• Hobbies: movies, shopping, reading magazines

• Information seeking before purchase

• Factors determined purchase Design and functions

How would

we like

them to

see U700?

Positioning

What should

we do?

Objective

Create Product

Awareness

Creative Strategy

“ Imagine Perfect Integration of Lifestyles ”

• Fashionista-Lifestyle

– Mirror cover

– Net stocking shape speaker


Creative Strategy

• Music Lover-Lifestyle– The scroll navigator – ICEpower®

Technology by Bang&Olufsen


Creative Strategy

• Artistic-Lifestyle– Auto-focus of

build-in camera – Front camera

• Business-Lifestyle

- HSDPA 3.6

-full internet browsing

How can

we do it?

Marketing Strategy

Integrated Marketing Communication

• Samsung U700 Atelier

• Cinema Advertising

• Samsung U700 Mirror Advertising

• Samsung U700 Information Vendor

• Advertisement in Magazines

• Free Bookmark in Magazines

Samsung U700 Atelier• Provides customer services• Location – Siam Paragon (in front of

Samsung shop)

Samsung U700 Atelier

PLAY

Cinema Advertising

• Most popular free time activity

Exercise2%

Shopping24%

Internet12%

Magazine19%

Others2% Movies

41%

Cinema Advertising

• 14 Paragon Cineplex’s theaters

Paragon Cineplex

71%

Major21%

SF Cinema

8%

Cinema Advertising

Mirror Advertising

• Usage of cinema restrooms

Use98%

Do not use2%

Mirror Advertising

Mirror Advertising

U700 Information Vendor

• Information seeking before purchase

• Uncomfortable with sales representatives


• 10 vendors

• Locations – Siam Paragon, Central World, Emporium

Siam Paragon

54%Siam

Square18%

Central World21%

Emporium7%


PLAY

Advertisement in Magazine

• Reading magazines is the 3rd popular hobby

Music9%

Exercise2%

Internet11%

Magazine17%

Others2%

Shopping22%

Movies37%


• Women magazine Cleo

Preaw19%

Ther-Kub-Chun12%

Others3%

Cleo43%

Cosmopolitan

23%


• Men magazine FHM

Maxim12%

FHM36%Car

19%

Others33%

Bookmark in Magazine

• Attach together with Cleo and FHM magazine

• Can be use elsewhere

• Self-advertised

• Sample bookmark

Bookmark in Magazine

Front

Back

Gantt Chart (Timeline)

IMC Nov ‘07

Dec ’07

Jan ‘08

Samsung U700 Atelier

Cinema Advertising

U700 Mirror Advertisement


Advertisement in Magazines

Free Bookmark in Magazines

Is it possible?

Budgeting

1. Samsung U700 Atelier

2. Cinema Advertising

Studio’s Construction 1,000,000

Space Rental Fee (3 months) 6,500,000

Total 7,500,000

Production of Advertisement 1,000,000

Show Period (3 months) 1,500,000

Total 2,500,000

Budgeting

3. Samsung U700 Mirror Advertisement

4. Samsung U700 Information Vendor

Printing Costs (x20) 10,000

Rental Fee (3 months) 180,000

Total 190,000

Vending Machine (x10) 1,500,000

Space Rental Fees (3 months) 30,000

Total 1,530,000

Budgeting

5. Samsung U700 Advertisement in magazines

6. Samsung U700 Bookmark in magazines

Publishing Fees (3 months) 220,000

Total 220,000

Printing Cost 25,000

Publishing Fees (1 Period) 20,000

Total 45,000

Budgeting

TOTAL BUDGET

11,985,000 BAHT

What about

in the

long run?

Additional Suggestions

• To create strong brand image

• To increase customers’ confidence

• Influenced by conflict with Sam Corporation


1. Education Center by Samsung• For children• Educational and entertainment area –

music, movie, computer, future zone• Resting area for parents• Build relationships • Familiar with Samsung Grow up

Use Samsung’s products


2. Samsung Top Agent Awards• Annual top sales ranking• Two levels:

• 3 Chain stores and modern trade• 10 Small retailers

• Free trip to foreign country• Improve image and relationships with

distributors• Stimulate sales

Q & A

THANK YOU