“YOUR GALAXY IS IN YOUR HAND”

Jessica Walsh & Rabia Hill

Situation Analysis

Company History SWOT

Strengths, Weaknesses, Opportunities, Threats

Current users Creative Sales Competitive Media

Company History Samsung Galaxy i7500

4/27/2009 Galaxy S

June – November 2010Sales over 22 million

Galaxy S IISeptember – NovemberSales as of 2/23/2012 over 20 million

Samsung Galaxy MarketVendors Q4 2011

Shipment Volumes

Q4 2011 Market Share

Q4 2010 Shipment Volumes

Q4 2010 Market Share

Year over Year change

Apple 37.0 23.5% 16.2 15.9% 128.4%

Samsung 36.0 22.8% 9.6 9.4% 275.0%

Nokia 19.6 12.4% 28.1 27.6% -30.6%

Research in Motion

13.0 8.2% 14.6 14.3% -11.0%

HTC 10.2 6.5% 8.7 8.5% 17.2%

Others 42.0 26.6% 24.8 24.3% 69.4%

Total 157.8 100.00% 102.0 100.0% 54.7%

Samsung Galaxy Market: Fiscal Year 2012Vender FY 2011

Shipment Volumes

FY 2011 Market Share

FY 2010 Shipment Volumes

FY 2010 Market Share

Year over Year change

Samsung 94.0 19.1% 22.9 7.5% 310.5%

Apple 93.2 19.0% 47.5 15.6% 96.2%

Nokia 77.3 15.7% 100.1 32.9% -22.8%

Research in Motion

51.1 10.4% 48.8 16.0% 4.7%

HTC 43.5 8.9% 21.7 7.1% 100.5%

Others 132.3 26.9% 63.7 20.9% 107.7%

Total 491.4 100.0% 304.7 100.0% 61.3%

Five Quarter Market Share Changes

Operating System Market Share

50.9

23.8

8.8

1.9 11.7

0.82.1

Gartner

Android iOS RIM Windows Mobile

Symbian Others Bada

47.3

29.6

16

4.71.4

Nielsen

46.3

30

14.9

4.64.1ComScore

Manufacturer Market Share

22.8

23.5

12.4

10.8

6.5

26.6

SamsungAppleNokiaHTCRIMOthers

Strengths: Physical Device Powerful

specifications Phones available at

different price points Different options of

phones Physical keyboard

on some models High battery life

Large screen 4g or 4g LTE data Fast processor

speed (1.3-1.5 ghz) Expandable storage Thin/Light Durable

Strengths: Android OS Widely Accepted Customizable Side-loading Apps Multitasking Flash Support Easier approval for

developers 400,000 applications

More free applications

Strengths: Samsung Customizable widgets Clean look Investment in technology,

product design, and human resources

Weaknesses: Physical Device Inconsistent from

mid-range phones to high-end phones

Lower internal storage

“Cheap” build quality Bulky, may be too

big for some users

Weaknesses: Android OS Less applications

than iTunes Less fluid

ecosystem More complicated

Many phones from low-end devices to high endCreates clutter and

confusionDifferent phones have

different Android versions

May be overpowered by phones’ user interfaces

Weaknesses: Samsung

Limited market share in ever growing segment

Chances of attracting developers who are working on iPhone are slim

Focuses on mass market instead of niche market

Bland looking interface and widgetsOverpowers Android OS

Opportunities

Wide range of phones can address a large market

Accepted by masses as the number one Android manufacturer

Demand for cell phones driven by service providers or carriers

Threats

Challenge by low cost mobile manufacturers on pricing front

Threat on design and build quality by higher end mobile manufacturers

Motorola dominates in the United States while Nokia dominates the European market. Dominates more than half of world market

Aggressive competitors such as Apple, HTC, LG are eating into shares

Creative Sales: TV Ads “Calling All…” “Tutting: Unleash

your Fingers” “Meet the Note” “

Elephant plays with Galaxy Note”Ad Agency: The Viral

Factory2,545,656 views as of

4/30/2012

Creative Sales: TV Ads “The Next Big Thing”

“I believe in a thing called love”○ Super Bowl ad

“Fanboys”

Creative Sales: Print Ads

Creative Sales: Print Ads

Competitive Media

TV Magazines Internet

WebsiteYouTubeTwitterFacebook

Marketing Plan

Goals & Objectives Strategies

MessageTagline & Leverage Point

AudienceDemographics & Lifestyle

Geographic Emphasis Positioning

Goal

Create lifestyle○ Users will use phone for many parts of life○ Become brand loyal and continuously upgrade

to new Galaxy phones○ Logo will be status symbol

Objectives

Become market leader Gain at least 1% in market share by end

of fiscal year 2013 Increase sales and profits by 10% by the

end of fiscal year 2013

Strategies

Show how phone can be incorporated into user’s lifeCognitive and affective appeals

CognitiveFeatures and value

AffectiveHow features connect phone to user’s life

and core values

Marketing Message

Designed to keep current users who appreciate powerful specificationsKeep from regretting purchaseEncourage to purchase newer version of

phone Modify message to also obtain new

users by focusing on how it fits into specific lifestyleMulti-attribute approach

Marketing Message

Focus on slice-of-life advertising Demonstration Informs of Samsung Galaxy

Tagline & Leverage Point “YOUR GALAXY IS

IN YOUR HANDS”Gives access to not

just the world, but the universe

Personalize to individual lifestyle

Stay connected with people most important

Connects product to user’s core values by fitting into life

Branding

Samsung = Quality and specifications Add graphic element to logo

Easier to remember and identify

Audience

18-30 year old users Male and female Different lifestyles and values

Young & SocialSocial AddictCocooning/Health EmphasisValue Based

Lifestyle

Young & SocialLike to stay connectedTextSocial Media

○ Facebook, Twitter, LinkedIn, PinterestSocial Games

○ Words with Friends, Draw Something

Lifestyle

Social addictsConstant need to be connectedUse any idle time to connect with peopleStart up conversation frequentlyOn phone even while with others

Lifestyle

Cocooning/Health Emphasis21-30 age rangeHealthy lifestyleUse phone as media playerGet health tips and “virtual personal trainers”

Lifestyle

Value based consumerWants best phone for the priceDon’t spend money frivolouslyInvestment on high-involvement purchase

Positioning

Product attributes techniqueShow features of phone

Price/ValueWorth the costFuture-proof

ContrastDifferentiate from other brands Not focusing on any brand in particular

Geographic EmphasisVerizon• 4G LTE• 203 cities covering 2 million +• Future: 400 markets covering

2.6 million

AT&T• 4G LTE and HSPA+• 28 markets• Future: Complete by the

end of 2013

Geographic EmphasisSprint• WiMax• 4G LTE will be in 7 markets

by mid 2012

T-Mobile• HSPA+• 4G LTE will launch in 2013

Traditional Media

TelevisionTraditional advertisementsProduct PlacementOn-Demand

Radio Print Media

NewspapersMagazines

Television Traditional

Still powerful mediumUse entertaining

commercialsScheduling

○ Mid-afternoon○ Prime-time○ Late-night

Product Integration Lead to more favorable

attitude Used in popular TV

shows with characters many identify with

Used seamlessly

On-Demand Offered by many cable

companies Cannot be fast

forwarded

Television shows Super Bowl

Expensive but guaranteed to be watched by many

Comedies Reality TV Sports Games

The Colbert Report Modern Family South Park 30 Rock CSI Dexter SNL ESPN Sports Center True Blood The Voice Extreme Makeover: Home Edition

House Bones How I met your Mother Grey’s Anatomy American Idol The Voice Sponsorships

Radio Local focus Reach users on way

to or from work Types

Top 40CountryClassic RockAlternative RockRapR&B

Internet RadioEnsure ad is listened

to by free accountsConsumer uses

○ Homewoork○ Cooking○ Working out

Magazines Men’s Magazines

SportsHealthMen’s lifestyleMen’s healthProvocative images of

womenEsquire, GQ, Maxim,

Men’s Fitness, Men’s Health, ESPN, Sport’s Illustrated, Golf Digest

Women’s MagazinesFashionMakeupHealthWomen’s lifestyleGossip magazinesAllure, Cooking Light,

Cosmo, Star, OK!, Vogue, Better Homes & Gardens, In Touch

Newspapers Can reach national

or local audience

USA Today, Wall Street Journal, New York Times, Los Angeles Times, Washington Post, Plain Dealer

Other IMC Tools Internet

Website, blog, social media, internet advertising, online communities

Alternative MarketingBuzz marketing, guerilla marketing,

sponsored consumers, viral marketing Trade Shows Databases In-Store Promotion & Packaging Rebates & Bonus Packs

Website

Home page Page to view all phones Individual phone pages Map of locations Online community Help & Support Reward Zone

Website: Home Page

Video advertisement with a featured phone model

Links to other pages

Website: All Galaxy Line Phones

Separates the Galaxy line from other Samsung mobile phones and other Samsung smartphones

Filters on page to organize phoneInternational/USCarriersPriceSpecific features

Website: Individual Phone Specifications and

features Virtual tour of phone News about phone Software updates Forums FAQ Reviews Accessories

PriceNo contract/unlocked

phoneRenewing 2 year

contract○ Main line○ Family line

New 2 year contract○ Main line○ Family line

Website: Store locator Show map with

different stores that carry phonesBest Buy, Radio

Shack, Carrier stores Places to repair

phones Price Current Stock

Reward Zone/Frequency Program Encourage users to

be brand loyal and keep purchasing Samsung products

Use databases to retrieve information

PrizesAccessoriesCreditsDrawingsRebates

Online resources

BlogCan respond to questions or criticismPost updatesVoice opinions

Online communitiesAllow Consumers to interact with each other Give each other tips

Internet Advertising

BannersUsed on mobile review websites

○ Target those interested in phones or those thinking of buying

Video sharing sitesYouTube, Hulu, channel sites, etc.Commercials where consumers must watch

a certain amount of secondsConsumers must watch whole advertisementUsed for same TV shows

Social Networking

FacebookTarget people based on interestsDisplay adsFan pagesLiked pages

TwitterMonitor what consumers saySponsored trending topic#Hashtags

Alternative Media: Buzz Marketing Buzz marketing

Introduce phones at trade shows○ YouTube reviews

Start by using Twitter hash tags○ Consumer stories #MyGalaxy

Alternative Media

Viral MarketingEntertainingPersuasion not as obviousYouTube

Guerilla MarketingT-shirts with logosStickersStreet teams and reverse graffiti

Alternative Marketing

Sponsored ConsumersShare their storyShare how they use phoneReward them

Trade Shows

Creates excitement for new phones Consumers at trade shows can try out

phones Allows for early reviews and speculation Mobile trade shows

CTIA The Wireless AssociationMobile World CongressConsumer Electronics Show (CES)