Samsung Galaxy Tab

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Samsung Galaxy Tab

Campaign Time Period November 1, 2010-November 30, 2011

Tab into the Galaxy Team

Marketing 3305 – Advertising

St John’s University Tobin School of Business

Professor Jaeseok Jeong

December 3, 2010

Table of Contents – Samsung’s Galaxy Tab

  1. Agency Philosophy – page 2

  2. Executive Summary – pages 3 – 4

  3. Review of Marketing Plan

    • Industry/Company Review – pages 5 – 8

    • Product Review/Buyer Analysis – pages 9 – 10

    • Competitive Review – pages 11 – 18

    • Segmentation, Targeting, and Positioning – pages 19 – 20

    • Communications Objectives & Budget Requests – pages 21 – 22

    • Creative Strategy Statement – pages 23 - 25

    • IMC Mix – pages 26 - 29

    • Specific Media Objectives/Mix – pages 30 – 31

    • Evaluation Program – pages 32 – 30

  4. Campaign Flowchart – page 33

  5. Sample Media

    • Commercial Storyboard & Advertisement 1 – page 34

  6. Appendices – pages 35 – 36

    • Questionnaires/Surveys – pages 37 – 40

    • Charts – pages

  7. References

Agency Philosophy Statement – Tab into the Galaxy Team

The most important aspect of our agency’s work is our commitment and communication with our consumers. We focus on a specific demographics, and based on their personalities, lifestyles, interests, etc. we narrow down our marketing techniques to attack those ideas and approaches that we feel would be most influential in their decision making process. We concentrate heavily on the level of integrity and loyalty towards our consumers and each other, and refrain from releasing information that can be misleading. We want our consumers to be able to trust us, and through building that trust, we gain personal relationships with them as well.

Working together to achieve our main goal of increasing the number of consumers for the galaxy tab, we strongly urge our consumers to give us feedback. Learning is a two way street at this agency, and as long as our consumers are learning from our marketing techniques, we are constantly learning from their feedback. We analyze and record behavioral tactics of newly rising generations, and use that research to benefit our methods of marketing and communication. We know about new trends in technology and personal interests of younger generations, and use that idea to strategize our next move. Without communication, success is a limited possibility for us.

Executive Summary – Samsung’s Galaxy Tab

  1. IMC Plan

    • The following IMC Plan for the Samsung Galaxy Tab has been prepared with the mindset of presenting an effective advertising campaign for this brand new product. Throughout the deliberation of this campaign, the advertising agency worked diligently in making this tablet stand out from its leading competitor, the iPad. After studying various targets, the advertising agency realized that the most sufficient and attractive target demographic for this product is the one presented below. Our main objective was to present this product as its own entity and not a replica of its competitor. As a result, our main point is that the Galaxy Tab may have not been the first, but it definitely perfected tablet technology. Overall, we came up with a series of promotional strategies and delivery of message mediums that would work best for this product. This IMC Plan is expected to be successful in that the information presented throughout this brief suggests an effective campaign.

  1. Major Target Audiences

    • Primary Target – Males and Females Ages 23 to 44

      1. Young Professionals

      2. Already Established Professionals

      3. Family Formers with Children

    • Secondary Target – Boys and Girls Ages 13 to 17

      1. Generation Y” – A generation highly influenced by technology, that is able to motivate parents into purchasing

  1. Campaign Objectives

  • Create a state of the art and well-equipped tablet that has a sleek and portable design

  • Offer a product to the market that will redefine the tablet/portable computing market, making Samsung a leading brand with a loyal customer base

  • Sell at least one million tablets before the end of 2010

  • Raise brand awareness of the Galaxy Tab from 0 to 20%

  1. Campaign Theme/Slogan

    • Main Slogan - Tab Into the Galaxy

    • Theme/Tone - The Galaxy Tab may have not been the first, but it definitely perfected tablet technology. It’s truly out of this galaxy.

  1. Overall Budget Total

    • We are going to use a mere $245 million dollars for our advertising needs

  2. Budget Breakdown

    • Meet the Competition Method:

      1. This tactic is used in highly competitive markets

      2. This would be an essential method since our main competition is between Apple; whom has dominated the tablet market by being the first

    • Advertising:

      1. Television – Percentage Budget Allocation: 19% ($46,550,000)

      2. Out-of-Home – Percentage Budget Allocation: 3% ($7,350,000)

      3. Magazines – Percentage Budget Allocation: 6% ($14,700,000)

      4. Newspapers – Percentage Budget Allocation: 6% ($14,700,000)

      5. Radio – Percentage Budget Allocation: 7% ($17,150,000)

    • Sales Promotion:

      1. Rebates – Percentage Budget Allocation: 5% ($12, 250,000)

      2. Contests/Sweepstakes – Percentage Budget Allocation: 4% ($9,800,000)

      3. Discounts/Offers – Percentage Budget Allocation: 9% ($22,050,000)

    • Public Relations:

      1. Event Sponsorship – Percentage Budget Allocation: 6% ($14,700,000)

      2. Press/Releases Premieres – Percentage Budget Allocation: 3% ($7,350,000)

    • Internet/Interactive:

      1. Website – Percentage Budget Allocation: 12% ($29,400,000)

    • Direct Marketing:

      1. Electronic Mail – Percentage Budget Allocation: 9% ($22,050,000)

      2. Catalog – Percentage Budget Allocation: 4% ($9,800,000)

    • Personal Selling:

      1. Percentage Budget Allocation: 7% ($17,150,000)

  1. Summary of Media Used

    • TV: specific networks that have partnerships have been selected to run ads during a syndicated time; television networks consist of ABC, ESPN, Viacom Networks. Time slots have also been selected based on target’s expected time to watch television and popular shows that attract that target demographic.

    • Newspapers: the Galaxy Tab is designed for the professional person in mind and as a result, ads will run in national papers like the New York Times and the Wall Street Journal

    • Magazines: ads will be displayed in popular magazines that are utilized by our target for leisure; magazines will be selected based on their focus, our goal is to select magazines that are male driven such as GQ, Details, Men’s Fitness, and FHM. We will also target our ads in three popular female magazines, Life&Style, Cosmopolitan, Marie Claire.

    • Radio: avid drivers who listen to syndicated radio stations and national radio stations

    • Out-of-Home: would include visual displays in populated subway stations and train stations, frequently traveled highways and urbanized centers would have billboards, and bus wraps would be displayed in popular metropolitan bus routes.

    • The Internet: social networking sites like Facebook & Twitter, including Google Blogs as well as the Samsung Galaxy Tab website

  1. Evaluation Program

    • Effectiveness of campaign will be tested through qualitative consumer surveys

    • There will be three different surveys being distributed in three different mediums (packaging, online, and in-store)

    • Surveys will test the success behind advertisement message, recall and recognition of campaign, and attitude towards overall product

    • Surveys will occur from initial moment of purchase, anytime while visiting the Galaxy Tab website or one of it social networks, and 8 months already into the campaign and three months after campaign is over

Industry/Company Review – Samsung’s Galaxy Tab

A. Industry Background

  • Electronic/Mobile Industry Background

    • Distinguished for its rapid innovations and speed to market, short life cycle of products, highly automated manufacturing which supplies high quality for low costs, and production of high volumes at once.

    • 4.6 billion people actively part of the mobile industry as of February 2010

    • Samsung Related Electronic Industry Participants

      • Samsung Electro-Mechanics

      • Samsung SDS

      • Samsung Networks

      • Samsung Techwin

      • Samsung Mobile Display

      • Samsung Digital Imaging

  • Size/Growth

    • The global electronics industry is known for its constant growth in a short amount of time.

    • In the 2005, $950 billion in the U.S.

    • Estimated to grow to nearly $2100 billion by 2010

    • Market dominated by Asian countries such as China, Taiwan, Singapore, and South Korea

  • Current Trends/Developments Affecting the Promotion Program

    • Current Trend

      • Technologically driven individuals that rely heavily on hand held devices as well as portable net books to receive constant updates and allow them to constantly communicate with the rest of society.

    • Developments Affecting the Promotion Program

      • Constant growing competition within the electronic industry that aims to advance their products to suit the needs of technology savvy consumers.

      • Newly developed products with similar but perfected qualities are being offered to the market at a rapid rate.

  • Macro-environment Factors and Issues

    • Environment

      • With increasing demands for electronic gadgets, more and more products are being recycled by Americans.

      • More and more opportunities to recycle and reuse older products that we replace with newly innovated ones

    • Demographic

      • Depending on target market, it may be difficult to target one demographic with a single product that assists the needs of a wide range of ages, personality types, and learning abilities

    • Social/Cultural

      • Depending on social setting and cultural backgrounds, it may be difficult to target an audience in specific locations due to beliefs/trends

      • On the other hand, it may be highly efficient for the product to be marketed in certain locations due to high levels of interaction between consumers, and word of mouth recommendations

        • Especially now with technology playing such a major role in the lives of consumers, social networks are being utilized along with use of the Internet

    • Legal

      • Restrictions on distribution

      • International governance issues

        • How will the affiliated nations’ governments overseas treat the company while marketing their product abroad

      • Copyright infringement

        • Issues with new products in competing companies

B. Company Snapshot of Samsung

  • Brief Sketch

    • Samsung Electronics and Mobile Industry

      • Samsung is a digital growing leader in today’s global electronic industry. Constantly seeking out new innovative products, Samsung Group and Samsung Electronics approach business in a way that can efficiently support and contribute to their consumers needs and provide a better world.

      • Samsung Industry Co., Ltd. operates as a subsidiary of Pneutech-Rousseau Inc.

      • Assets valued at approximately $300 billion

      • Samsung Electronics created in 1969

      • Small export business in South Korea

      • Specialize in home appliances, telecommunications equipment and computers

  • Place in the Industry

    • Samsung is considered one of the top five industrial leaders in the world

    • Responsible for at least one fifth of South Korea’s exports

  • Mission

    • Constantly creating original, high quality products and services that are targeted and supported by millions of individuals and businesses around the globe

    • “Samsung's businesses harness the power of the digital revolution to create ground breaking products and services that take consumers and businesses beyond imagination.”- Business Area description by Samsung

  • Resources

    • Global R&D Network

      • Organization that encourages working together and cooperation among business partners all along the supply end of the distribution. Also includes a strong focus on ongoing investments.

      • Research and development network spans six Samsung centers in Korea and 18 more in nine other countries, such as the United States, the United Kingdom, Russia, Israel, India, Japan and China

      • Each year at least 9% of sales revenue is invested in the R&D activities

      • R&D is at the heart of everything that Samsung does

  • Organizational Structure

    • CEO Gee-Sung Choi

      • Helped build Samsung into world’s largest consumer electronics company

    • US Executive Team

    • Board of Directors

      • These independent board of directors govern Samsung and serve the affected stakeholders with integrity and morals in their business-related actions

    • Strategic Management Approaches

      • Creativity

      • Partnership

      • Talent

  • Product Line

    • As a leader of Mobile WiMAX, Samsung provides a complete, end-to-end total solution from chipset to devices, Access Service Network and Core Service Network products (Samsung Product Overview at

    • Thirteen of Samsung’s products, including semiconductors, TFT-LCD’s, monitors and CDMA mobile phones, are ranked number one in the global market share

    • Earlier this year, released the first 3D LED HD TV in the world

  • Sales History

    • First product introduced in 1970 and it was a small white television

    • Entered aerospace, genetic engineering and nanotechnology industries in the 1980s

  • Target Market

    • Current promotional strategy targets anyone on-the-go

      • Businessmen and women

      • Students

      • Everyone in between wanting a portable entertainment device

  • Current Marketing Mix

    • High innovative technology at low cost

    • Rapid production at high volumes

    • Distributed in several countries other than the U.S.

    • Constantly gaining recognition and creating new products for loyal consumers and keeping them satisfied

    • Official sponsor of the Summer and Winter Olympic Games from 2010 to 2016

    • Considers themselves as having three key strengths: “New Technology,” “Innovative Products,” and “Creative Solutions”

  • Market Shares

    • Samsung Electronics Co. (SSNHY, 005930.SE)

    • Samsung Electronics posted a record-high market share of 17.9 percent, in terms of sales revenue, in the overall monitor market in 2009. It has held that No. 1 position for three consecutive years, or 12 consecutive quarters, since the first quarter of 2007.

    • Samsung's 17.2 percent--and growing--share of the worldwide TV market is a big deal. No company has had a 20 percent share of televisions since TVs were first sold.

  • Positioning

    • As stated in its new motto, Samsung Electronics' positioning for the new decade is, "Inspire the World, Create the Future."

    • This vision is a direct reference to the Samsung Electronics’ dedication and loyalty to its communities by outlining its three key strengths: “New Technology, Innovative Products, and Creative Solutions” (Samsung Vision 2010)

    • Samsung wishes to provide a more fulfilled and satisfying experience for all of its consumers

Product Review/Buyer Analysis – Samsung Galaxy Tab

  1. Buyer Analysis

  • Buying Decision Process

    • Who/What Influences the Purchase Decision

      • Distributors

      • Retailers

      • Current consumers of the product

      • The people surrounding the individual that may talk them into buying the product, or talk them out of it

      • Pricing

        • Without a contract, the cheapest you could purchase the tab for is $600, or $650 when purchased through AT&T

        • With a contract, the price is $400 (Engadget Prices)

    • Who Buys the Product (Behavioral Factors/Demographics)

      • Primary target audience (males and females ages 23-44)

        • These are young adults who are very familiar with the new technologies introduced to the public, and another important aspect is their financial capabilities and means of support to purchase the product

      • Business-men will be part of the major target audience due to the frequent use of highly innovated products by individuals in this field of work

      • Young adults are the consumers who know the most about technology today, further reason to target the campaign strongly towards them

  1. Strengths and Weaknesses- Samsung Galaxy Tab – new Tablet PC

  • Strengths

    • 7” multi-touch interface running on 1024x600 resolution being backed by Google Android 2.2 and Flash pre-installed with a Qik video chat and a 1.3 MPwebcam and a 5 MP rear-facing camera

    • There is a slot for MicroSD card reader

    • 7” smaller than the iPad

    • Can place the Galaxy in your pocket

    • Only weighs 1 pound

    • Battery life of 8 hours

    • Wi-Fi 802.11 b/g/n/

    • Equipped with Bluetooth

    • HDMI out and Social Hub with exclusively pre-installed 1,000 Premium movies and TV episodes

    • Galaxy will be working with all five major U.S. wireless operators (AT&T, T-Mobile, Spring, Verizon, US Cellular) – (Engadget News)

  • Weaknesses

    • Doesn’t have as great a name recognition as Apple

    • Doesn’t have a loyal customer base like Apple

    • Some consumers won’t like the fact that it is not too large and would have preferred a larger, more computer looking object

    • Galaxy has 7 hours of video playtime, while the iPad has 10

  • Opportunities

    • Samsung can surprise the market with a very well-equipped Tab and gain more name recognition and also gain a more loyal customer base

    • Samsung can be purchased by consumers who thought the iPad was too overpriced

  • Threats

    • Samsung doesn’t produce an extremely well-equipped smart-phone and gets poor reviews

    • Samsung is striving on producing an extremely well-equipped smart-phone because it doesn’t have a name that is as reputable as Apple’s name is, and if it doesn’t produce this well-equipped phone, a major situation for Samsung will arise

    • Dell, Acer, Motorola and LG Electronics have each stated that they have plans to make Android-based tablets

  • Key Benefits

    • Consumers can enjoy high internet speed

    • Consumers can also enjoy a smaller and hopefully as adequate smart-phone as the iPad

  • What the Galaxy Has That the iPad Doesn’t

    • Galaxy has 2ce the RAM and the iPad

    • Galaxy offers an expandable microSD storage slot, Apple only offers internal storage space

    • The Galaxy Tab has 2 cameras, a 3.2-megapixel camera that faces outward and a front-facing 1.3-megapixel camera, which can be used for video chatting; the iPad doesn’t have any.

    • Galaxy will be working with all four major U.S. wireless operators, Apple only works with AT&T

  • Competitors

    • The main competitor of the Galaxy will be the iPad

    • Apple has a larger client base, which is the primary problem

Competitive Review – Samsung’s Galaxy Tab

  1. Direct Competitors

    1. Apple iPad

    2. HP Slate (Windows 7)

    3. Sony Dash

    4. RIM – Blackberry PlayBook

    5. Toshiba Folio 100

    6. Android Tablets

*Note that there are a series of direct competitors and the following were chosen because of their similar design and features to that of the Samsung’s Galaxy Tab. Also note that some of these tablets have not been released and therefore research may be limited or projected.

  1. Indirect Competitors

    1. Apple iPhone, iTouch

    2. HTC Evo

    3. RIM – Blackberry Torch 9800

    4. Motorola Droid X

    5. Dell – Dell Streak

*Note that there are a series of indirect competitors and the following were chosen based on the similar features they posses as well as the similar design of the Samsung’s Galaxy Tab. Although PC’s do serve as competitors as well as netbooks, the following mobile devices share closer and much more similar characteristics to that of the Galaxy Tab.

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