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SAMSUNG GALAXY

YOUR GALAXY IS IN YOUR HANDJessica Walsh

COM 364

4/13/2012


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COMPANY PROFILE

HISTORY

Byung-Chull Lee founded the Samsung group on March 1, 1938 inTaegu, Korea. In1968, they created their Samsung-Sanyo electronics subsidiary. Samsung-Sanyomerged with Samsung Electronics in March 1977. Throughout the 1970s, Samsungbecame a market leader through its 4,000,000 black and white televisions produced andstarted mass-producing microwave ovens. In the 1980s Samsung started producingcolor televisions, air conditioners, and personal computers. One innovation came whenthey produced the smallest and lightest videotape recorder. Their first mobile handsetwas created in 1991 followed by their mobile phone system in 1992. In 1999, Samsungcreated the first wireless internet phone, known today as a smart phone followed by aPDA phone in 2000. Samsung launched its Galaxy line of smartphones in April 2009,and in the US variants between June and November 2010. The Galaxy S line wassucceeded by the Galaxy SII line in September-November 2011.

VALUES

Samsung operates with a code of conduct based off their core values. These valuesare:

People

Quite simply, a company is its people. At Samsung, were dedicated to giving our people

a wealth of opportunities to reach their full potential.

Excellence

Everything we do at Samsung is driven by an unyielding passion for excellenceand an

unfaltering commitment to develop the best products and services on the market.

Change

In todays fast-paced global economy, change is constant and innovation is critical to a

companys survival. As we have done for 70 years, we set our sights on the future,


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anticipating market needs and demands so we can steer our company toward long-term

success.

Integrity

Operating in an ethical way is the foundation of our business. Everything we do is

guided by a moral compass that ensures fairness, respect for all stakeholders and

complete transparency.

Co-prosperity

A business cannot be successful unless it creates prosperity and opportunity for others.

Samsung is dedicated to being a socially and environmentally responsible corporate

citizen in every community where we operate around the globe.


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SITUATION ANALYSIS

STRENGTHS

The Samsung Galaxy S line are the flagship smartphones for Samsung.Samsung offers the Samsung Galaxy line for the top four carriers in the United States.Verizon, AT&T, T-mobile, and Sprint, all have these phones, giving consumers an optionto stay with their current carrier or change carriers instead of picking a carrier solelybecause of the phone. Because each carrier has different networks and requirements,each phone is slightly different and are offered at different price points. For example,AT&T offers three Galaxy S II phones: The Samsung Galaxy S II with HSPA+ speeds iscurrently offered for $99.00, the Samsung Galaxy S II with 4g LTE speeds is offered for$199.99, while their tablet/phone crossover Samsung Galaxy Note is offered for $299.99on contract. The Samsung Galaxy S II phones are often praised for their powerfulspecifications. Their 4-4.5 Super AMOLED Plus on most of their phones offers vivid,

sharp colors on a large screen. Their newest model, The Samsung Galaxy Note offersSuper AMOLED Plus HD a 5.3 screen for even better screen performance. While manysmartphones are criticized for having poor battery life, Samsung Galaxy S phones havea 1850 mAh phone which will last the user through the day with moderate to heavy use.This battery may also be removed in order for the user to add in a more powerful batterif desired. While these phones come with 16gb of internal storage, there is also amicroSD slot for expandable storage up to a 32gbs. This allows users to store up to48gb worth of pictures, music, videos, applications, or other data. These phones have1.3-1.5 ghz processor speeds which translates to no lagging between switching fromapplication to application and for applications to load quickly. Consumers also have fastbrowser speeds with phones on the 4g network (HSPA+ or WiMax) on Sprint, T-Mobile,

and AT&T or even faster speeds with the growing 4g LTE markets on AT&T and Verizon.Samsung Galaxy phones are built with a light but durable plastic shell which makeseven the larger phones feel lighter and protect the phone more than a glass casingwould.

The Samsung Galaxy line operates with Googles Android operating system(OS). The Android OS is widely accepted one of the top operating systems onsmartphones and has a growing market. The Android interface allows the user to multi-task and keep applications open and switch easily between these applications. Unlikesome of the other top operating systems, Android has the ability to run Adobe Flash.

Flash support allows many multimedia internet applications and websites to run on itsbrowser, giving a more complete experience of the web browsing. Android allows for acustomizable user experience. Android allows for sideloading applications meaningusers can download applications from the internet as a whole as opposed to beinglimited to Androids Google Play (formerly known as Android Market). Users are able toget applications that may not yet be available in Google Play, or ones that offer morefeatures. Google Play offers more than 450,000 applications, many of which are free oroffer paid ad-free versions of these applications. There is a $25 registration fee for


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application developers to distribute on the Android Market These developers receive 70% ofthe application price. There is an open source code, which gives the developers morecreative freedom in producing applications.

Samsung as a company creates many forms of technology. Their technology ranges

from televisions, blu-ray & DVD players, home theater systems, laptops, media players,cameras, camcorders, monitors, printers, memory & storage products, and LED lighting.This allows Samsung to be at the forefront of innovation within these products which theyapply to their Samsung Galaxy line. Samsung applies a user interface to run with theAndroid Operating system called Touch Wiz. Touch Wiz allows users to customize the sizeof many widgets, gives seven home screens, and has a very clean and simple designallowing for a simple user experience.

WEAKNESSES

Samsung offers many smartphones, including their Galaxy S line. While some of

these phones may be cheaper, they often have worse specifications. Even onSamsungs line, the phones vary by carrier to carrier. This can leave the consumerunsure about what features they will be receiving with their phone. These phones havealso been criticized for being evolutionary as opposed to revolutionary and containmany features that are used by many other companies. There is little distinguishingSamsungs products from their competition. The Samsung Galaxy line has 16gb of built-in storage (1.90gb on US Cellular model, and 32gb on Verizons Samsung GalaxyNexus) and requires an SD card, purchased separately, in order to expand storage. Theplastic material used gives the phone a cheap feel to it and would not protect thephone as much as a solid metal body would. These phones may also be too large forcomfortable, one-handed use. The Samsung Galaxy Note measures in at 5.78" x 3.27"

x 0.38" and is virtually impossible to use one-handed. All of the phones on Samsungsline are between $200-$300 on the time of their release which is out of manyconsumers price range.

Google Plays marketplace is considered to have a less-fluid ecosystem thanother operating systems such as Apples iOS. This refers to the ability for applicationswithin the phone such as the iCloud, music player, ability to navigate, etc. work togetheras one. Many different cell phone manufacturers utilize the Android operating systemwhich creates clutter and confusion as to which phone to choose. These phones rangefrom cheaper low-end phones to more expensive high-end phones. Because there are

many different phones, it is more difficult to come out with a universal operating system.Each cell phone manufacturer must work with the carrier to develop the Androidoperating system to their phone. This takes much longer for the consumer to receive thelatest Android update. Application developers must also take into consideration all thedifferent phones running the Android OS and their specifications. This can take longerfor applications to get to the Android Marketplace. The different manufacturers userinterface often overpowers some of the features available in Android and can makemoving from one Android device to another a completely different experience. This also


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adds to a more difficult user experience of the Android OS as opposed to others such asiOS, Windows 7, or the Blackberry OS.

Samsungs Galaxy S line has a limited share in the growing smartphone market.Their phones have almost no unique identity because they are targeted to the mass-

market as opposed to any niche markets. Similarly, Samsungs user interface, TouchWiz, is considered to be bland and a knock-off of iOS experience.

OPPORTUNITIES

Samsung Galaxys wide range of phones can attract different markets. It isconsidered by many critics to be the top Android manufacturer due to the Galaxysconsistent quality performance and features. All of the carriers use these features toadvertise for the phone and push sales. Samsung is a leader in many different forms oftechnology which they can utilize in the innovation of new phones, such as using highdefinition technology from their televisions and incorporating that into the screens. Oneof Samsungs innovations was the Galaxy Note was the first of its kind as a phone/tabletor phablet hybrid. It is currently the only hybrid on the market now and is rated welleven just on its phone capabilities.

THREATS

Samsung faces competition from low-cost manufacturers dealing with price.Many other phone manufacturers have more superior build quality. Motorola currentlydominates the US market while Nokia dominates the European market. Together thesecompanies control half of the worlds market. Other competitors such as Apple are

eating into market share.

COMPETITORS

Samsung faces both Android-based and non-Android-based competitors. Androidis led by Motorola, known for its own flagship line Droid/DroidX/Droid Razr lineup whichis available exclusively by Verizon Wireless. Motorola also has phones such as theAtrix/Atrix II and Backflip on AT&T and the Photon on Sprint. Similar to Samsung interms of price and features is HTC. While HTC does not have a line of phones on eachcarrier, it does feature many high-end phones on the various networks including theEVO/EVO Shift/EVO 3D on Sprint, HTC Thunderbolt, Droid Incredible/Droid Incredible

2, Rezound on Verizon, and Aria, Inspire, and Vivid on AT&T's line. LG has had somesuccess with their Optimus/Thrill 3D on AT&T, and the Lucid on Verizon. Other Androidphone manufacturers include Acer, Sony, Sony Ericsson, and Pantech. Samsung alsofaces competition from other operating system phones such as Apple's iPhone (iPhone,3G, 3Gs, 4, 4s), who now offers phones on Verizon and Sprint in addition to theiroriginal affiliation with AT&T. Research in Motion created the Blackberry which has mostmodels available to all the carriers. These models include the Pearl, Curve, and Bold.


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RIM also had touchscreen phones such as Verison's Storm/Storm II, and AT&T's Torch.Nokia leads Windows Phone with their Lumia. Samsung, HTC, and LG have createdWindows phones in addition to their Android phones.

CREATIVE SALES

Samsung has had much success with some of its Television commercialadvertisements. One of these advertisements claims that The next big thing is alreadyhere referring to the Samsung Galaxy. These advertisements poke fun at the Applefanboy aspect. It shows that it is ridiculous to wait so long in line for a phone basedsolely on its brand. The Apple iPhone 4s was hyped about so much by their fans butwas almost a disappointment when it was nearly the same as its predecessor, theiPhone 4. An international advertisement that they released was the tutting video.Tutting is described as dance moves done with the hands and arms to makinggeometric shapes to the music. The message for the tutting video was Unleash yourfingers. Another advertisement just released by Samsung was the elephant commercialwhere it appears that the elephant is playing with the Galaxy Note and the woman issurprised.

The Galaxy has featured print advertisements. One example was a phone andHello with the L's being the service bars. This was criticized for being too similar toAT&T's advertising campaign. AT&T featured different objects such as buildings to looklike the service bars saying More bars in more places. Samsung also paired up withdesigner Giorgio Armani for their Samsung Galaxy S Captivate. This ad shows a womanholding the phone with a picture of mouth right up to her mouth saying It speaks for

you.

COMPETITIVE MEDIA

In addition to TV and magazines, Samsung has used other forms of Competitive media.They used the internet through their website which features all of their Galaxy phones.They have a couple of Facebook pages. Their Twitter page is just a general Samsungmobile page. Samsung's advertisements are also played heavily through video sitessuch as YouTube.

MARKETING PLAN

MARKETING GOALS & OBJECTIVES

The ultimate goal is to make the Samsung Galaxy a lifestyle. This means thatSamsung galaxy products become integrated into the life of its users. They will use theirphone for many parts of their life such as work, school, with their friends, etc. The hope


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is that these users will become brand-loyal to the Samsung Galaxy line and will want toupgrade as each phone comes along. These users will anticipate the arrival of eachnew phone. The Galaxy logo will appear on various locations such at t-shirts and itwould become a status symbol.

The objectives to achieve these goals would be to make Samsung the marketleader. In order to do this, Samsung would have to gain at least 1% in their marketshare. This can be done by increasing sales of Samsung, and Apple's sales decreasing.Samsung's goal will be to increase sales and profits by 10%. The third objective will beto encourage repeat purchases so that consumers are upgrading their old Galaxy phoneinto a new Galaxy phone. This creates a brand-loyal fan base of the Galaxy line. Thefinal objective is to make the Galaxy brand a culture symbol.

STRATEGIES

Samsung will reach their goals and objectives by showing how the Galaxy linecan be incorporated into the user's life. This can be done with cognitive and affectiveappeals. The cognitive side will show features and the value. The affective side willshow how those features can connect the user with their values by showing how thephone already fits in with their life and their core values.

MARKETING MESSAGE

The message will be designed to keep current users who appreciate their phoneand its powerful specifications. The advertisements will keep them from regretting theirpurchases and encouraging to purchase that phone when they are due for their next

upgrade. Samsung will modify its message to obtain new users by focusing on how itfits into their specific lifestyle. Samsung will accomplish this by using the multi-attributeapproach which features the attributes about the Galaxy line that are most important inthe consumer's life.

BRANDING

The Galaxy line is a brand extension off Samsung mobile's brand. Samsungwants to build brand equity by differentiating their Galaxy line from other manufacturer'sbrand. When consumers think of Samsung, they want consumers to think of quality andtheir specifications and build the brand up to the lifestyle and features. Samsung can

add a graphic element of a galaxy to their visual brand logo so that it is more easilyremembered by consumers.

TAGLINE & LEVERAGE POINT

The tagline that Samsung will be using is Your Galaxy in your hands. This is aplay off the phrase whole world in your hands. It implies that the phone gives you


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access to not just the world, but the galaxy. The phone also is personalized so that theuser can make it applicable to their life and use it to benefit their own lifestyle. Users canuse this phone to stay connected to those that are most important to them and receiveinstantaneous updates about those people. This connects the product to the user's corevalues because it can fit in with their life.

Samsung's advertisements will focus primarily on slice-of-life advertising. This willtake a snapshot of the user's life and show how the phone is incorporated into that life.While using that method, the message will also show demonstrations of the product andhow the product is being used. Simultaneously, the commercial will be informing thepotential consumer about the product through those demonstrations.AUDIENCE & LIFESTYLE

Samsung will target a few different audiences. The first audience is composed ofyoung and social users. This audience is between the ages of 18-30 and work hard sothat they have the budget for a smartphone. These users like to stay connected withtheir friends and family and look at phones as a medium to do so. They like to text, usesocial media such as Facebook, Twitter, LinkedIn, and Pinterest. They also like to stayconnected with friends by playing games with them such as Words with Friends or DrawSomething.

Social addicts differ from the young, social user by the extent that they are ontheir phone. Social addicts need to be connected with other people almost all the time. Ifthey have any idle time, they fill that time with texting and the internet. These users willsay anything to keep the conversation going and will start up new conversationsfrequently. They will try to befriend anyone that will respond back frequently. They feel it

is socially acceptable to text a person back or have a phone conversation even whenthey are physically with others.

The Cocooning/Health Emphasis users can be a little older than the young/socialusers. They are typically 21-40 and their main goal is getting fit or maintaining theirhealthy lifestyle. They use their phone at the gym to be a music player or to watchvideos to distract them from their intense workout. They also use their phone to findhealthy recipes, work out tips, or even virtual personal trainers.

The Value-based consumer wants the best phone for the price. They do not liketo spend their money frivolously. They believe that purchasing a phone is an investment

and take a lot of time deciding this high-involvement purchase. While they do not wantto spend a lot, they do want to have a nice phone with the features that they enjoy.

POSITIONING

Samsung will position their phone primarily by using product attributes techniqueand focusing on the Galaxy's many features and how they can be integrated into the


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user's life. Samsung will also position the product by price. Although the phone isexpensive, the goal is to show how this product is worth the cost and has good value.What makes it a good value is that some of their Galaxy phones have the 4g LTEspeeds in a market that is growing. If a user does not have a 4g LTE capable phonewhen LTE comes to their market, the user would be left with regret. While Samsung is

not focused on the competitors, it does need to differentiate itself from the vastsmartphone market. It can do this by not comparing itself to another brand specifically,but by showing how the phone is different from other brands in general.

GEOGRAHIC EMPHASIS

Samsung will reach their target audiences by segmenting them geographically.Since the 4g LTE is new technology that is still growing, all of the networks are stillgrowing. Samsung's phones can or will utilize this network, so they have an advantagein advertising in those areas. While Verizon already has over 203 cities/marketscovering 2,000,000 people, but they still plan on adding 400 markets reaching anadditional 2,600,000 people. AT&T is in the process of expanding their 4g LTE networkas well. They are currently located in 28 cities/markets and they hope to be completewith their 4g LTE coverage by the end of 2013. Spring will have 7 cities/markets by mid-2012. T-Mobile will launch their 4g network by 2013.

BUDGET

Samsung would dedicate 5-6% of all their budget to the Samsung Galaxy line. Themethod of advertising that they would do is payout planning. This is the ratio ofadvertising dollars over their market share. Since Samsung has a large market share,

they can dedicate more money towards advertising and can hopefully increase theirmarket share. They will spend more money as their product is launched and less once itis fully established. Samsung will use a pulsating schedule as well and advertise duringpeak seasons such as the holiday season in December while maintaining fewer, butmore consistent advertising during off-seasons.

MEDIA PLANNING: TRADITIONAL

TYPES OF MEDIA

Samsung will focus on many different types of media using their marketingmessage. Their overall message will be consistent throughout the different outlets ofmedia. By using different types of media, they will be able to increase the reach (howmany people see their advertisements) and frequency (how many times people seetheir advertisements). They will also be able to better segment their audience and reachtheir target audience specifically. Samsung will use traditional media such as television,radio, and print advertisements but also incorporating them in new ways.


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TELEVISION

Television, while not as powerful as before, is still used heavily in the marketingmix. Advertisements are given 30 seconds to show the product being used. The

invention of DVRs have given consumers the ability to fast forward throughcommercials. Samsung will use more entertaining commercials at times when theirtarget audience would most likely be watching. Since younger people generally gethome from school or work in the mid-afternoon, watch prime-time TV at night, and oftenstay up late, those would be the main times when Samsung advertisers. It would stayaway from early morning, rush hour, and daytime television because younger users aregenerally not awake or home at those times. Samsung would also advertise duringpopular TV shows that their target audience is likely to watch. These shows consist ofprime-time television shows, reality, sports games, and late-night comedy. In order forSamsung to reach their audience, they will have a few advertisements during the SuperBowl, which is watched by many specifically for the commercials. While expensive,Samsung can guarantee that their commercials would be watched by many. One of thenewer innovations that is used to combat fast-forwarding through commercials are On-Demand channels. When cable networks give users the opportunity to watch some oftheir favorite shows at any point, the fast-forward feature is often disabled as a trade-offfor choosing what to watch and when. Samsung can use that medium as well to ensuretheir commercials are viewed.

Samsung can also pay for their products to be used within television shows andmovies by using product integration. While the effects of product integration do nottranslate to immediate sales, it does create a more favorable attitude towards the

product if used by characters that viewers identify with. Samsung would go about this byhaving their product being used seamlessly throughout different TV shows. When acharacter pulls out their phone or they receive a phone call or a text, the Samsungphone can be used.

RADIO

Radio can be used to focus its message to consumers locally. Samsung can usethe radio to reach users on their way to work or any other time that users are in theircar. Samsung can reach their young audience by playing their commercials on radiostations that younger people will likely listen to. Many young users listen to Top 40s

stations for their newest music, but there are also niches that are into other types ofmusic such as Country, Classic Rock and Alternative Rock. Some users may also preferto listen to talk radio. Internet radio sites such as Pandora are often used whenconsumers are on their computers or other activities such as cooking, homework, orworking out. Samsung can advertise through Pandora and other sites to ensure theiradvertisements will be heard by those with free accounts.


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PRINT MEDIA

Magazines can be used to further segment Samsung's target audience.Magazines tend to be divided by gender. Women are more likely to read fashion, make-up, women's health, women's lifestyle and gossip magazines. Men are more likely to

read magazines focused on sports, men's health, men's lifestyle, men's fashion, andthose that show provocative pictures of women. Some people keep magazines andshare them with their friends, increasing reach.

Newspapers can be used to reach a national or a local audience. NationalNewspapers are USA Today, the Wall Street Journal, New York Times, Los AngelesTimes, and Washington Post. Samsung can also put local ads out in more localnewspapers such as the Plain Dealer.

OTHER INTEGRATED MARKETING COMMUNICATION TOOLS

INTERNET

Samsung can utilize the internet in various ways. By having a website, users cango directly to that website to find news and information about the product. Samsung canalso advertise on other websites such as news websites and search engines. They canalso play their advertisements in videos that play on YouTube and Hulu, that users canno longer skip. By using social media, it shows that Samsung is connected to what theiraudience wants. Users can go to Samsung's Facebook page and like differentproducts. Facebook can also be used to provide a community through message boardsor feedback with comments and messages. Twitter users can follow the Samsung

Twitter pages for updates about their phone or to provide feedback. Samsung can alsosponsor a trending topic or a hashtag. Twitter users will then see this and discuss howthey use or feel about Samsung which in turn lets their followers see.

WEBSITE

Samsung's website will be a place where consumers can go to find out moreinformation about Samsung's products. Samsung's website should provide theinformation that consumers are looking for and provide a good navigational flow frompage to page. The website should also provide an easy way for Samsung to purchasetheir product. Their website would include a homepage, the Galaxy line, individual

pages for each phone model, store locator, an online community, help & support, and areward zone.

HOME PAGE


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The home page should be visually apealing and help the consumer obtain theinformation they are looking for. They can play a video advertisement for a featuredphone. The home page should also have links to all their other pages.

GALAXY LINE

The Galaxy Line page would feature all the phones that are on the Galaxy Line.This would eliminate any type of confusion that could be caused if a consumer wasunsure if a Samsung phone had the Galaxy quality or not. Samsung can organize thispage by providing filters to organize the products. These filters can be based on carrier,how new the phone is, what types of features the phone has, and based on price.

INDIVIDUAL PHONE MODEL PAGES

Since there are differences between all of the phones on the galaxy line, thereshould be individual pages for each phone. Each page would provide specifications andfeatures of the phone. A virtual tour would show the phone at all angles and give a morevisual representation of the phones features. News about the specific phone includingphone and software updates. Forums would provide an online community for thespecific phone and answer any questions from consumers that they may have. Therewould also be an official online support page that would show frequently askedquestions and give a link for a consumer to ask customer service questions. Reviews ofthe phone would give consumers an idea of how other consumers think of that phone.The price should give all the different options including the no contract price, renewingcontract (main line and family lines), and new contract prices (main line and added line).There can also be a link for accessories for that specific phone.

STORE LOCATOR

The store locator would show different types of stores that also sell the Galaxyline. These stores would include the carrier stores and stores that have all brands suchas Best Buy and Radio Shack. It would also include the prices that these stores areoffering the different phone models. The store locator could also be used for phonerepair stores.

REWARD ZONE/FREQUENCY PROGRAM

Samsung can have a reward zone that would encourage brand loyalty andpurchase different products. It also rewards those customers that have been loyal. Theycan use this to build a database of consumers by finding their name, contactinformation, products purchased, and further segment their audience for futureadvertising. Some prizes that Samsung could give way could be Accessories to theirphones or credits that they could use to save up to buy other products.


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ONLINE RESOURCES

One of the ways Samsung can continue promoting their website is by using otheronline resources. A blog about the Samsung can help to respond to any questions orissues that consumers might have. They can also use this format to post updates about

their phones or software. Because it is company controlled however, they could makesure that there are very few negative comments about phone and can prevent againstspam.

Samsung could utilize banners and have them follow the theme of theircommercials and print advertisements. They can put them on popular websites or onesthat will target their audience.

BUZZ MARKETING

One of the ways that Samsung could start a buzz marketing campaign would beto release details about their phones during trade shows. These shows feature manydifferent phones but also create excitement for phones that rise above the competition.Videos of first-looks of these items are often put on YouTube. Many see these videosand tell their friends.

Another way would be to use the sponsored #hashtags. These hashtags displayeasily different topics. Many people on Twitter see these hash tags and post their ownreaction to the story. For instance, if Samsung were to post #myGalaxy, it wouldhopefully encourage Twitter users to read that and respond with what their galaxy (life)consists of.

VIRAL MARKETING

Viral Marketing is when a video becomes very successful and played manytimes. If a Samsung advertisement goes viral, then it will lead to a more favorable brandimage. Samsung has had success with viral videos in the past. These videos wouldneed to be entertaining, and humor is a good route to take. These videos also cannothave overt persuasion featured in them. Instead Samsung could create a short videoand then feature the logo quickly at the end. These videos would be put up and sharedprimarily through YouTube.

GUERRILLA MARKETING

Guerrilla Marketing is essential in making the Samsung name into a lifestyle. Itwill increase recognition of the logo. It will be targeted in the cities where 4G will bereleased. Samsung will give away apparel with the Samsung Galaxy Logo on it. Theseitems include a shirts, hats, stickers, and water bottles. We will have Street Teams thatwill be in charge of distributing these items throughout the city and at special events.


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They will wear the apparel and also create reverse graffiti. Reverse graffiti can be donewith materials such as sidewalk chalk because it can be erased.

SPONSORED CONSUMERS

Sponsored Consumers will be helpful to the campaign because Samsung hasreached these consumers who have become fans of the product and genuinely enjoyusing the phones and can hopefully convince others to do the same. Using thedatabase and finding a few people based on age (in target audience) and purchasehistory. These sponsored consumers will be asked to share their story through a varietyof media. These include television commercials, trade shows, radio, and socialnetworking. These sponsored consumers can be rewarded with more point sin thereward program and be given free guerilla marketing apparel as well.

TRADE SHOWS

Trade shows can create excitement for many new phones. Many phonereviewers come to trade shows to see what the trends are in mobile devices and seewhat phones will be coming out in the near future. These trade shows would be a goodvenue to reach consumers who are specifically in the market for the phone. Even if theyare not looking to purchase a phone at that time, they may be looking just to geteducated about which phone they want. Unfortunately Samsung would be one of manybrands which creates brand parity. If Samsung can rise above the competition andcreate a unique, high quality phone, then it may be more noticed. The phone may alsoreach consumers who already purchased a Samsung but are looking just to confirm thatthey made the right decision and are still happy. Even for those who did not attend the

show, many phone reviewers post these videos on YouTube so that consumers at homecan get a glimpse of future phones. Some of these trade shows are CTIA: The WirelessAssociation, Mobile World Congress, Consumer Electronics Show.

DATABASE

The database will be used to further customize who the phone is marketed to.We can get information when people sign up for new phones through the lengthyprocess. Since they are signing a two-year contract, they must provide muchinformation. People can also join one of the online communities and provide the

information that way, or they can also sign p specifically for updates. The informationthat Samsung would connect would be names, contact information such as phonenumber, email address, and address. If they sign up online, Samsung can track howmany times the logged on or checked in on the site. This database would also keeptrack of the purchases with a transaction history. This will help market to one-timeconsumers and dedicated consumers. The information about which carrier the


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consumer is using is important because the phones marketed to them would just be ofthe carrier they have.

Using this information, Samsung can further customize their marketing plan tofurther segmented groups. They can send information about accessories to new

customers to encourage them to keep purchasing Samsung products. As consumersget close to the end of their two-year contract, Samsung can market more heavily tothem. These advertisements would focus on the value of the phone and that whileexpensive, will be worth it if the consumer is happy with it throughout their two-yearagreement. For those that sign up online, the website can be customized to them. Ifthey purchased the Samsung Captivate, when they reach the website, information aboutthe Captivate will mostly be visible. Their zip code will also be stored for the storelocator. There can be an upgrade countdown so consumers know exactly when theycan next upgrade. Samsung will also invest in permission marketing. This will respectthe consumer's right to privacy and fits in with Samsung's values. They will do eitheremail or send direct mail to these consumers that wish to be advertised to.

REBATES

Samsung will offer rebates once the phone ages. This will encourage people tostill purchase the phone, even if it no longer is the latest and greatest phone on themarket. After three months, the rebate will be for $50.00 off, 6 months will be $75.00 off,and after a year will be $100.00. These rebates will be mailed in and post-purchase sothat it is up to the consumer to remember to mail in their rebate within a certain time-frame.

IN-STORE PROMOTION

The in-store advertising would have posters and video advertisements of theproduct. This would help reach an audience that they may not have reached throughany of their other advertisements. The most important part of the in-store promotionwould be a demo product. This would allow the consumer to see and use the product.This can further solidify the consumer's mind so that they know that they will not have aproblem using this phone or convince consumers that they would enjoy this phone. Itshows consumers first hand how the product can be used and the powerfulspecifications.

PRODUCT PACKAGING

Product packaging is not important in selling this product because by the time theconsumer sees the packaging, they already purchased the phone. What the packagingcan do is let the consumer know that they have made the right decision. If the packageis well designed and continues to carry out the message, the consumer will feel better


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about purchasing that product. The package would focus less on the carriers and moreon Samsung's line. This would help the consumer know that they are buying a qualityGalaxy phone as opposed to just another Verizon/AT&T/Sprint/T-Mobile phone. It wouldhave the Galaxy logo and list what is included with the phone.

EVALUATION

Samsung will test the effectiveness of their commercials before they actuallylaunch. They can do this with internet testing, sending the video to a few randomlyselected audience members and asking them to rate it. In post-production evaluation, ifthere is an increase in sales, Samsung must determine if it was caused by theadvertising or by other factors. Samsung can evaluate quickly over the internet withpage views. For banner advertisements they can use dwell-rate and dwell-time thatspecify how many times and how long they were on the website. It can also test howmany consumers clicked onto the website from a banner. Samsung can test theeffectiveness of their campaign by also seeing how they close they were to theirobjectives. They can do research to see if they gained that 1% of market share and runlogo tests to see how recognizable their logo is.

WORKS CITED

AllYouCanRead.com - The World's Largest Online Newsstand - 28,000 Newspapersand Magazines from 200 Countries. (n.d.). AllYouCanRead.com - The World's LargestOnline Newsstand - 28,000 Newspapers and Magazines from 200 Countries. RetrievedMay 2, 2012, from http://Allyoucanread.com

Brownlow, M., & 2010), A. 2. (n.d.). Smartphone sales and statistics. Email MarketingReports. Retrieved April 10, 2012, from http://www.email-marketing-reports.com/wireless-mobile/smartphone-statistics.htm

Smartphone Market Hits All-Time Quarterly High Due To Seasonal Strength and WiderVariety of Offerings, According to IDC - prUS23299912. (n.d.). IDC Home: The premier

global market intelligence firm.. Retrieved May 2, 2012, fromhttp://www.idc.com/getdoc.jsp?containerId=prUS23299912

Viral Video Chart: Another Hit for Samsung | Viral Video Charts: Week's Top Brand-Driven Viral Ads - Advertising Age. (n.d.). Advertising Agency & Marketing IndustryNews - Advertising Age. Retrieved May 2, 2012, from http://adage.com/article/the-viral-video-chart/viral-video-chart-hit-samsung/233939


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