Breakdown of the Direct Competitors
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Apple iPad:
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Market Shares, Sales, & Growth:
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Market Share has not been determined for the iPad as of yet, however, it has been reported that Apple’s market share is 10.6% in personal computers. According to the IDC report, Apple now ranks as the third largest vendor of personal computers in the U.S. market. Research firm IDC also stated that “Apple’s iPad not only ate into PC netbook sales, it also helped Apple sell more Macs, which combined to push Apple into the highest ranking we’ve covered since 1998”.
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Sales & Growth: According to J.P. Morgan, Apple’s fourth quarter revenue estimate determines strong sales momentum for the iPad and iPhone, J.P. Morgan raised its revenue estimates for Apple's fourth fiscal quarter of 2010 from $18.13B to $18.71B. For the iPad, J.P. Morgan estimated $3,223 Million in sales for the fourth quarter selling 4,742 units in comparison to the 4,415 expected. For the fiscal year 2010, J.P. Morgan estimated that Apple would sell $5,389M in iPad’s and 8,012 units.
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On June 22nd. 2010, Apple reported selling three million iPads in 80 days after its introduction in the U.S.
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Target Market
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E-Readers
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Netbook Users
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Frequent Travelers
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For Business
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Researchers
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Mobile Users
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Cocooning – ‘home theatre consumers’
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Marketing Objectives and Strategies (Current & Non-Current):
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Change portable computing
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Fill the gab between Mac PC and iPhone/iTouch product lines
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Revolutionize the e-reader market by offering features like the iBook Store as well as current features that exist on the iPhone and iTouch
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Positioning:
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A first in its kind in evolving the mobile PC market, Apple’s iPad has successfully incorporated mutli-media and multi-touch functionality, e-books, web, e-mail, photos, video, games, and music into a sleek and lightweight design. “I don’t have to change myself to fit the product, the product fits me” Vice President of Design for Apple John Ive. The iPad brings technology into your hand, you are literally holding applications in your hand as if it were a book or a magazine, ultimately changing the experience of surfing the web, checking e-mail, watching movies, etc.
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Current Advertising, Sales Promotion, PR, and Direct Marketing Programs:
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iPad in Business – A new way to work. “iPad features incredible applications like Mail, Calendar, Notes and Safari in a beautiful, thin and light design, so you stay productive anywhere. With easy, secure integration into business environments and a robust platform for app development, iPad is ready to start working when you are.” iPad is the best way to collaborate with colleagues, deliver and display presentations, and access, create and share business information. The Multi-Touch screen on iPad is incredibly precise and responsive, which allows your users to work using just their fingers, with little need for training or support. And with up to ten hours of battery life, iPad is always ready to work whenever your users are. iPad integrates with Microsoft Exchange, Lotus Domino and standards-based messaging environments, to provide your users push email, calendar and contacts, right out of the box. And iPad supports the most common corporate VPN and Wi-Fi protocols for secure access to your company’s networks. With iPad, your users can choose from thousands of business apps at the App Store to help them stay on top of your work. Track key business metrics, read and edit contracts remotely, review and manage sales proposals, organize travel plans and more — all with the tap of a finger. And you can build custom applications designed for specific company needs, such as document management workflows, accounting and approval processes, and financial data tracking. Join the Apple iOS Developer Enterprise Program to get your development teams all the tools they need to develop, design, and deploy proprietary, in-house apps for iPad.
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“Discovering Ancient Pompeii with iPad” – Field researchers recently used iPad and apps to capture invaluable historical data faster, more easily, and with far better accuracy.
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iHelp for Autism – For autistic children, the new iPad is an effective, portable device for teaching communication and social skills.
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Advertising has consisted from television commercials, billboards, magazine displays, etc.
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Media Strategies (including message strategies):
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Steve Jobs has utilized the associated press as free advertising to promote the iPad.
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Apple has mastered the use of secrecy and mystery before revealing any of their products; this results in consumer curiosity as well as frenzy once the product is released.
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The iPad is one of its kind and has been successful in the PC & netbooks market, mobile devices market, and e-readers market.
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In comparison to other tablets of its kind, the iPad is at a reasonable price starting at $499 for a 16GB model.
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Overall Assessment (Strengths and Weaknesses):
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Strengths: Although other competitors are now creating tablets of their own none has compared with the iPad. Like Apple has stated, the iPad has revolutionized technology and various markets at the same time. It is truly one of its kind and will be difficult for competitors to take it off the market especially since it is affordable for the amount of technology and applications it consists of.
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Weaknesses: There is no camera! This is probably the biggest weakness of the iPad since users cannot take pictures or videoconference, so much for the ultimate picture experience. The operating system is not based on Mac Operating System. Memory storage is too small. Difficult to remove the battery. Multitasking capability is limited.
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HP Slate (Windows 7): (Not In Market Yet)
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Target Markets:
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Netbook Users
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E-Readers
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Frequent Travelers
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For Business
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Researchers
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Consumers of the iPad
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Mobile Users
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Cocooning – ‘Homebodies’
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Marketing Objectives and Strategies (Current & Non-Current):
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Rival Apple as far as consumer-focused slate PCs are concerned, according to top marketing executives of HP.
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With the acquiring of the smart-phone manufacturer Palm, HP aims to build on its well-earned reputation for functionality and reliability to create a genuinely desirable brand that gives consumers the overall experience they are willing to pay for.
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Making HP desirable – Richard Gerstein, senior vice president of the company’s personal system group, said, “I want people desiring an HP because the reality is that technology has become a fashion statement”.
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Positioning:
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HP Slate PC hasn’t been on the market as of yet but it plans to be viewed as part of a consumer technology “ecosystem”, in the way that Apple has been able to position its offering. Ultimately, HP will be looking to deliver what consumers are after when it comes to balancing business needs and general functionality, with style, enjoyment and desirability.
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Current Advertising, Sales Promotion, PR, and Direct Marketing Programs:
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So far the only real advertising that has been done for the HP Slate by HP has been YouTube videos stating a “Full Mobile Experience”, Special Reports with Chief Technology Officer in the Innovation Lab, and other videos stating “Web, Flash & Air”.
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In order to attain more information on HP Slate, one must register on the HP website to find out more. As a result, HP is creating a consumer list as to whom to target to.
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Media Strategies (including message strategies):
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HP has established that Apple created a new technology first in its kind, however HP will perfect that technology. As a result a lot of speculation has been going on behind the HP Slate, especially since so many prototypes have been made. However, HP’s current advertisements promise an even better experience then that of the iPad. The HP slate possesses every feature the iPad does but more since it is also a mobile device that allows videoconferencing through Skype as well as a built in camera.
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HP is utilizing their partners, like Adobe, to create various online-aired advertisements to explain how the HP Slate can be utilized for different things. Alan Tam of Adobe Flash Product Marketing walks the consumer through the innovative technology of flash and how consumers can use it.
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Its starting price is at $599 at 36GB.
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Overall Assessment (Strengths and Weaknesses):
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Strengths: The HP Slate is everything the iPad is but more with its built in camera, allowing users to take pictures and videoconference. The HP Slate consists of Windows7 processing system as well as Palm Technology. The Slate also comes with a USB 2.0 port as well as an SD card reader and a SIM Card tray. Overall the slate will be much faster than the iPad. Screen resolution is 1024p by 600p along with a full HD 1080p Video capability is much higher than the iPad’s 720p.
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Weaknesses: There is clearly a reason as to why HP has delayed its release of the slate, and even with that being said, the HP faces some downsides. Dimension-wise, the HP Slate is slightly thinner and shorter the Apple iPad. The screen size is also smaller at 8.9 inches. The resolution of the Slate is going to be lower compared to that of the iPad’s and even the battery life is fifty percent less, only lasting 5 hours.
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Sony Dash:
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Target Markets:
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Entertainment
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Cocooning – “homebodies”
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Simplified Technology Users (users who aren’t as hands-on with technology)
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Marketing Objectives and Strategies (Current & Non-Current):
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Create a simplified version of the iPad with similar features for those users who aren’t as hands-on with technology
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The Sony Dash is meant to be used for entertainment, instead of relying on a netbook, users can be comfortable with a small compact device that holds all of their entertainment applications, like social networking, pictures, music, and the web.
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Positioning:
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It seems as though Sony created this device for a home atmosphere, whether it’s in the kitchen, the bedroom, or a family room. It serves more as an entertainment center instead of a mobile PC.
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Current Advertising, Sales Promotion, PR, and Direct Marketing Programs:
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Television Commercials
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Website page that allows users to select the environment they would most likely be in their home and where their dash could be utilized the most.
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Media Strategies (including message strategies):
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The Sony Dash is relatively new to the market and therefore hasn’t made a tremendous splash, however it is presented very nicely on Sony’s Website. The Website allows users to select which environment they would like their dash to be in. Sony’s Dash isn’t on the same level as the iPad or the Galaxy, but it does have similar features to be aware of.
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The Sony Dash is meant for the home environment, its meant to give you all the necessary things you need to make either your morning experience or your personal home experience easier and much more comfortable.
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Overall Assessment (Strengths and Weaknesses):
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It doesn’t seem as though the Dash will be much of a threat however it does share similar qualities to that of the Galaxy and the other competitors. The Dash might be good for those who struggle with technology, since its design and attributes are simplified. Besides that the Dash doesn’t consist of a camera, videoconferencing, and its not really a mobile pc tablet. Yet the Dash is pretty powerful in the sense that it can playback video from Netflix and access social media applications without any buffering. The Dash also has accelerometer, a headphone jack, a USB ports, and its core is a Linux based OS.
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RIM-Blackberry PlayBook: (Not In Market Yet)
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Target Markets:
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Netbook Users
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E-Readers
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Frequent Travelers
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For Business
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Researchers
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Consumers of the iPad
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Mobile Users
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Cocooning – ‘Homebodies’
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Marketing Objectives and Strategies (Current & Non-Current):
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Rival Apple’s iPad and Samsung’s Galaxy Tab by perfecting their design and characteristics but just improving it.
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Positioning:
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The PlayBook hasn’t been on the market as of yet but it plans to be viewed as part of a consumer technology “ecosystem”, in the way that Apple has been able to position its offering. Ultimately, the PlayBook will be looking to deliver what consumers are after when it comes to balancing business needs and general functionality, with style, enjoyment and desirability.
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Current Advertising, Sales Promotion, PR, and Direct Marketing Programs:
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RIM-Blackberry Website has released a breakdown and elaborate presentation of the PlayBook and its features. Its sleek design and multiple characteristics make any consumer order one immediately. Blackberry paints the picture with its current display that the PlayBook is nicer and much more efficient than the Galaxy and the iPad.
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Media Strategies (including message strategies):
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The PlayBook hasn’t been released yet, however it is being advertised and making a real splash. Bloggers have stated that the PlayBook is bound to give Apple and the Galaxy Pad a run for their money.
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RIM-Blackberry utilized the associated press to promote their PlayBook in order to start a buzz amongst consumers and the technology world.
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Overall Assessment (Strengths and Weaknesses):
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Strengths: The leading design concepts for tablet PC’s are divided into two – in the first the computer will be based on a heavy and demanding OS (Windows 7) along with a relatively strong processor to support it. In the second the computer will be based on an easier OS (Android, iOS) and therefore will not need a powerful processor. It seems RIM wants to get the best of all worlds: dual core ARM processor, that displays better performance that its rivals in the category and an easy OS. The PlayBook has a 7-inch screen, strong dual core processor, support of multiple formats (including Opne PL that allows development of games and heavy graphic interfaces), database management, synchronization with office software and more. The strong processor is intended to support functions such as multiple video call participants, presentations and more. The PlayBook also possesses every application and feature of the iPad yet it has a built in camera. RIM's new device also boasts 1GB RAM and Adobe Flash support, while the iPad has only a quarter of the RAM and no flash support, and the Tab half the RAM and also offering Flash support. The support for Flash implies a much wider variety of functions that the iPad doesn't have, a weakness that both the PlayBook and Tab exploit.
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Weaknesses: Consumers are still unaware of price and battery life, this may be or may not be an issue for RIM.
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Toshiba Folio 100: (Not In US Market Yet; Next Year)
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Target Markets:
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Netbook Users
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E-Readers
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Frequent Travelers
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For Business
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Researchers
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Consumers of the iPad
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Mobile Users
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Cocooning – ‘Homebodies’
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Marketing Objectives and Strategies (Current & Non-Current):
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Rival Apple’s iPad and Samsung’s Galaxy Tab by perfecting their design and characteristics but just improving it.
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Positioning:
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As of right now, the Folio 100 hasn’t been released in the US yet, however it is guaranteed to make a huge splash. The Folio 100 has speed and graphic capabilities that could make it the iPad’s most potent competitor. The Folio 100 plans to become a part of a consumer technology “ecosystem”, in the way that Apple has been able to position its offering. Ultimately, the Folio 100 will be looking to deliver what consumers are after when it comes to balancing business needs and general functionality, with style, enjoyment and desirability.
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Current Advertising, Sales Promotion, PR, and Direct Marketing Programs:
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Since the Folio 100 hasn’t made it to the states as of yet, much advertising hasn’t been done.
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Overall Assessment (Strengths and Weaknesses):
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The tablet comes with a 10.1-inch screen, slightly larger than iPad's 9.7-inch screen, and runs on Google's Android 2.2 OS. The devices are about equally portable: The Folio weighs 1.67 pounds, while the iPad weighs 1.5 pounds.The Folio has Nvidia's Tegra 2 chip that could give it faster processing capabilities than the iPad. The chip includes a dual-core Arm processor running at 1GHz and offers 1080p video capabilities thanks to a GeForce core in the chip. By comparison, the iPad is powered by a chip package that includes a single-core Arm processor running at 1GHz. But the powerful processor and 1080p HD video could drain the Folio's battery quickly. Toshiba has said the device's battery life is about seven hours when browsing. That pales in comparison to the iPad, which can last around 10 hours when running video.The Folio tablet will be available during the fourth quarter in Europe, the Middle East and Africa, with the price starting at around $508 for a Wi-Fi version, the company said.
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Android Tablets:
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From the technology makers of the Galaxy Tab, a series of Android Tablets are emerging besides the Galaxy Tab. Android Technology also teamed up with Toshiba to create the Toshiba Folio 100, the Archos Tablet, the Dell Tablet, Elocity A7, amongst others. The following 6 tablets mentioned above however serve the most threat towards the Galaxy Tab, yet it is important to note that there are other tablets emerging with the same technology as that of the Galaxy Tab, all possessing Android technology.
Segmentation, Targeting, and Positioning – Samsung’s Galaxy Tab
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Segmentation Analysis
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Primary Target Market
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Individuals ranging from the ages of 23 to 44
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Young professionals, already established professionals and family formers with children
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Technology Adoption Segmentation System
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Journeymen
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“Technology is an important part of my life”
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These group of individuals are fiscally fit
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Caution with spending, but optimistic
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Wizards
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“Technology is life”
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This group consists of confident spenders
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Spend more, take risks, optimism (Segments of Technology Consumers)
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The geographic location of our main target audience will consist of those residing in more urban settings (NYC, Chicago, LA, etc)
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Secondary Target Market
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Boys and girls aging 13 to 17
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Generation Y
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Targeting
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Emphasis on the following to our market:
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7 inch touch screen (2 inches smaller than iPad)
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Google’s Android 2.2 mobile Operating System
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Adobe’s Flash 10.1 software for interactive websites and video
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3G equipped, 802.11N Wi-Fi
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Bluetooth 3.0
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Global roaming
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Rear 3-megapixel camera with autofocus and flash (iPad doesn’t have a camera, and if they do get a camera, Apple products do not usually come out with a flash right away)
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Easy to carry (good for students who don’t want to carry much with their books)
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Positioning
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Emphasize important features of the product:
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The camera
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Ability to have videoconferences
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Send and receive photos via email
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Use of Skype
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Create videos on your own
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Flash for camera
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If the iPad releases a newever version with a camera, very likely that it will lack a flash
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MicroSDHC card slot
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Memory card that can be used with the product
Communications Objectives & Budget Request – Samsung’s Galaxy Tab
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Brand Awareness
To make people aware of our new product, the Galaxy Tab, we have to do a range of things. We will have to make commercials to put on television. We will have to record radio commercials to be aired. We will need to get half a page at the least to put ads in magazines and newspapers. We would like to put ads on websites of our new product. Posters at cell phone providing stores as well as billboards on busy roadways are great ideas to raise brand awareness. People are already aware of the Samsung brand but now we have to raise the awareness of the Galaxy Tab from 0-20%.
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Knowledge
We must make it a priority to increase consumer knowledge of the Galaxy Tab. With sufficient knowledge consumers will feel educated enough to purchase and use our product. We have decided to create pamphlets to hand out at cell phone provider stores and also at major electronic stores such as Best Buy. At these same electronic stores we will set up stations that offer hands on experience with the Galaxy Tab. We also will set up an extensive website offering known and unknown information on the Galaxy Tab.
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Interest
We have already started on an extensive journey to get consumers interested in the Galaxy Tab. As we raise their interest, we hope to see it in sales when the product is released into the market. For two weeks in London starting October 18, Samsung handed out Galaxy Tabs to Londoners so they could try it out for a loan time of 2 days. This kind of promotion gets the consumers to learn to use our product and then know enough about it to buy it. People are very interested in the price of the Galaxy Tab because it could potentially be less than the iPad, which will attract consumers. Unlike the iPad, the Galaxy Tab has a pocketable feature as well as video chat capabilities.
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Favorable Attitudes and Image
Samsung is the world’s largest conglomerate by revenue at this time, which makes them a very respectable company. Samsung is also the second largest mobile phone maker, which gives consumers relief when buying their products. Android Smartphone’s have had much success in competing with the iPhone so there is a strong possibility that the Galaxy Tab will do well. Also, Samsung is currently producing some of the best mobile hardware on the planet. With all of these things going for Samsung already, we can count on customer loyalty towards our new products.
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Purchase Intentions
We have to take into account consumer purchase intentions to help them make the right decision. These intentions can either positively or negatively affect them when deciding to buy the Galaxy Tab. Some things we have taken into consideration are the price, the size, and the memory space. We have to also take into consideration why the consumer is buying a tablet; for school, home, or work purposes.
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Budget
We want to create a budget that will most effectively reach the target market. The budget is going to be based on other major competitors. Our only real competition is the iPad so we will base our budgetary needs on close figures. Samsung Electronics delivered $121.3 trillion in sales in 2009. We also had $5.5 trillion in net profit. Of these funds we are going to use a mere $245 million for our advertising needs. This number is compared to Apple’s entire advertising expense of $501 million.
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Budget Method
We are going to use the “Meet-the-Competition Method”. This method is used in highly competitive markets. This is not a highly competitive market but the competition between us and Apple is fierce. One big goal is to prevent the loss of market share. Apple spent a total of $501 million for advertising all of their products, which range from the iPhone, iTouch, iPod, iMac, and the iPad.
Creative Strategy Statement – Samsung’s Galaxy Tab
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Target Market
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Males and Females 23 to 34: Young professionals in their appraised career fields that strive to attain the latest in technology to assist them in being the best and most efficient. This target has shown to have the most disposable income and therefore it is the most sought after target in any market. (27% of this target purchased an iPad)
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Males and Females 35 to 44: Already established professionals that seek to be up to date with the latest in technology so that they too can compete with the younger generations. Already established family formers that have children ranging between the ages of 8 and 18. (15% of this target purchased an iPad)
*Note that the majority of our creative strategy will focus on males because when it came to purchasing the leading competitor of the Samsung Galaxy Tab, 65% of males purchased an iPad.
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Secondary - Ages 13 to 17
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The reason as to why we have chosen to target those between the ages of 13 to 17 is because although they do not have any purchasing power, these targets are able to motivate their parents into purchasing the tablet. Being that the following target is considered to be “Generation Y”, a generation highly influenced by technology, the Galaxy Tab serves as the perfect piece of technology in the palm of their hands.
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Objectives
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To create a state of the art and well-equipped tablet that offers innovative technology with a sleek design and will have an everlasting effect on portable computing.
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To offer a product that will redefine the tablet/portable computing market and will result in making Samsung a leading brand with a loyal customer base.
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To sell at least one million tablets before the end of 2010 (Galaxy Tab was released on November 10th, 2010).
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Key Benefits
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Convenience: The Galaxy Tab’s sleek design and small size (7 inch) allows for easy portability; it practically fits in ones pocket. Carried by 4 major U.S mobile carriers.
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Technology in the Palm of One’s Hand: The Galaxy Tab is always connected, redefining what an electronic device is capable of. With Adobe Flash 10.1 software, a front and rear facing 3 megapixel flash camera, a microSDHC card slot, and a Media Hub that includes an Android Marketplace as well as a Google Mobile Services; consumers are able to take full advantage of the latest advancements in technology.
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High-Speed Productivity On The Go
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Support
The data suggests that the primary target market identified (ages 18 to 55) is not only interested in technology, but they want the latest technological innovation. We can only assume that this is the correct target to go after since it was this specific target that made up the largest percentages when purchasing the leading competitor (iPad). 1 As a result, we are sure that the Galaxy Tab will be an item of interest to this primary target, especially since the Galaxy Tab offers a sleeker and smaller design as well as more features (those listed in key benefits) than that of its leading competitor (iPad).
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Claims and Promises
Our communications message will offer the following claims and promises:
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The Galaxy Tab is a small (7 inches), sleek, and portable device that offers technological advances that have not been seen in other products of its kind, [like fast internet, a card slot, large Media Hub that includes an Android Marketplace as well as Google Apps, and a 3 megapixel flash camera].
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The Galaxy Tab is a user-friendly technological device meant for everyone to use
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The Galaxy Tab may have not been the first, but it definitely perfected tablet technology. It’s truly out of this galaxy.
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Reassurance
Reassurance for these claims and promises will be offered via:
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Images displaying the compact size, sleek design, and convenient portability of the Galaxy Tab
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Demonstrations provided by actors that resemble the primary target in which they showcase the easy-to-use and one of a kind applications. [These demonstrations will be broadcasted through television ads as well as through the Galaxy Tab website, Media Hub, and Social Networks]
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A witty catchphrase establishing that although we weren’t the first in making tablets, we perfected the idea of a tablet, and this is justified by the various and additional characteristics and features that the Galaxy Tab has unlike the leading competitor.
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Tone
We want to establish that although we weren’t the first to present a tablet that would bring technology at the hands of consumers, we were able to present a product that would revolutionize tablet technology and in other words be “out of this galaxy”. Unlike our competitors, we perfected the concept of bringing technology to the palm’s of our consumers with not only adding the same features as that of our competitors but including additional and perfected features, like our high-speed internet conveniently carried by four of the top U.S. carriers, our front and rear facing 3 megapixel flash camera, and more.
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Source of Communication
Our message will be communicated via:
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TV: We chose TV because it is one of the best ways to reach the majority of our target audience. Our competitors advertise on TV, therefore we need to promote our product and show our possible customers the benefits of our product.
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Newspapers: Although newspapers may not be read as much as it were in the past, they are still a successful form of communication between advertisers and consumers. While reading a newspaper, one can easily catch a glimpse of an appealing advertisement on the side of the paper and slowly transition their way into researching more and gaining interest in the product. Newspapers are also fairly inexpensive forms of communication.
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Magazines: On a daily basis, people purchase magazines, and even for those who subscribe to yearly plans with magazine publishers, this is a very effective way of advertising both new and existing products. Since our main target is directed a bit more towards men, we will focus more on men’s magazines such as GQ, Details, Men’s Fitness, FHM, while at the same time not forgetting our target that includes females, who we will reach through Life&Style, Marie Claire magazine, etc.
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Radio: We chose the radio to reach out to those consumers in our market that are more likely to drive, and listen to the radio whether it be while getting ready for work, or while at work during down time. This is a quick and easy way to reach a wide range of people at once, and through the excitement and confidence in the vocal presentation of the product, we can gain support from consumers and grasp their interest.
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Out-of-Home (subway stations, billboards, train station terminals, bus wraps): From first hand experience, its known that there are a great amount of people that have interest in spending time outside of their homes. While exposing our product, yet avoiding clutter, we chose subway stations, billboards, train station terminals and bus wraps as sources of communication because these are the everyday areas that consumers spend time in, and they will be forced to come face-to-face with our advertisements. Our competitors utilize the billboards, especially around the more populated areas, so we will try to target areas that seem to have more metropolitan descriptions and busier lifestyles.
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The Internet: With use of the Internet, we can reach our market in the most rapid way possible. Since more generations are being exposed to the Internet on a daily basis, it is easy to promote the product, promote contests and promotions, while also gaining the attention of new potential customers. With popular sites like Google, Facebook, Twitter, etc., we can advertise our product to the fullest extent.
IMC Mix –Samsung Galaxy Tab
Objectives and Emphasis (Percentage Budget Allocation) of each IMC element:
Advertising:
Through our advertising, we intend to demonstrate the latest and most innovative technology that is available to the market. We want to create a threshold effect through our advertisements so that the Samsung brand will always be recognized as state of the art. The Galaxy Tab will be recognized as a device that fills the gap between the latest portable computer and the latest mobile device. It defines high-speed technology and up-to date electronics, simply by laying in the palm of your hands. We want to standardize the product to show our target market consumers that the product can be beneficial for them and easy to adapt to.
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Television: To include 30-second spots aired in early morning, evening and late night shows. Networks will include ABC Partners (ESPN & ABC News) Viacom networks such as MTV & VH1, and eventually carry over to filmed entertainment networks such as Paramount pictures, MTV films, and home entertainment. This targets the wide range of our market that is mostly exposed to television and pays close attention to commercials between airings of their shows and acts based on their feedback as a direct result of these commercial airings.
Percentage Budget Allocation: 19% ($46,550,000)
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Out-of-Home (Subway stations, billboards, train station terminals, bus wraps): Bill boards to be placed in the most frequently visited metropolitan areas; since our target market consists of younger generations as well, subway stations and train stations that are most frequently used should have advertisements of the tablet that are exposed to everyday commuters. (i.e. In NYC, Grand Central Station, Penn Station, Times Square)
Percentage Budget Allocation: 3% ($7,350,000)
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Magazines: To include a subtle, yet meaningful advertisement that meshes with the readers’ everyday interests and readings; we will take advantage of the most commonly read magazines by our target market, such as GQ, Details, Men’s Fitness, FHM, Cosmopolitan, Life&Style, and Marie Claire; readers should be attracted to the product since it will mesh with their interests and everyday reading; this can lead to an increase in level of motivation in terms of external search efforts. This targets those consumers that are interesting in current and public affairs and rely on publications like magazines to search for information on newly innovated products.
Percentage Budget Allocation: 6% ($14,700,000)
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Newspapers: To include a small ad that makes the SAMSUNG brand stand out to customers, and be used as an affect referral, further leading consumers to create emotional bonds with the tablet even before the purchase. This targets those consumers that are more reliant on printed works and papers, as opposed to listening to the radio or perhaps even watching television.
Percentage Budget Allocation: 6% ($14,700,000)
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Radio: To use broadcasts in frequently used stations, with a clear explanation of our promotions and offers for customers; to include quick reminders as to why the Galaxy Tab is the best gift and purchase (i.e. holiday season, birthday gift). This targets those consumers that are frequent drivers and spent time listening to the radio, as opposed to reading papers or watching television.
Percentage Budget Allocation: 7% ($17,150,000)
Sales Promotion:
The overall objective of sales promotions portion of the IMC Mix is to lead consumers in our target market to reach that conative stage in the purchasing process. We want our consumers to make the actual purchase without doubts, and having passed the awareness, knowledge, liking, perception, and conviction stage, there should be no doubt that this is the right product for them. With sales promotions, we will make it clear that by purchasing our brand and product, there are more benefits that they can obtain by being consumers to us.
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Rebates: We will offer a rebate of $50 to the store of the provider of the Galaxy Tab that the consumer invests in. The consumer must simply fill out a survey that includes questions about their satisfactory level of the product, mail it in within 30 days, and receive the rebate.
Percentage Budget Allocation: 5% ($12, 250,000)
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Contests/Sweepstakes: Each one of the first 1,000 customers to purchase a tablet at its release will receive a raffle ticket that includes a $5,000 shopping spree consisting of any SAMSUNG products.
Percentage Budget Allocation: 4% ($9,800,000)
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Discounts/Offers: To include one free application on the Media Hub offered with the Samsung Galaxy network; 15% discount on next 5 application purchases on the cloud network.
Percentage Budget Allocation: 9% ($22,050,000)
Public Relations:
The overall objective of the Public Relations portion of the IMC Mix is to generate increased awareness and knowledge of the Galaxy Tab product. The target market will be exposed to the product in environments that they already find suitable to their lifestyle, and will see the product as an easy transition into their lifestyles.
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Event Sponsorship: Sponsorship of events related to interests of our market, such as sporting events, business-related events.
Percentage Budget Allocation: 6% ($14,700,000)
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Press Releases/Premieres: Press releases will help to enhance knowledge about the product. Premieres will bring consumers together at once, allowing them to increase awareness and knowledge, and provide feedback for one another, in an environment where they share interests; movie premieres, electronic device premieres, red carpet promotional events.
Percentage Budget Allocation: 3% ($7,350,000)
Internet/Interactive:
The overall function of the Internet potion of the IMC Mix is to expose the product to consumers in a manner that can be most comfortable for them. Since the Internet’s target is increasing day by day, it is the best environment and source of communication to market a message across the globe with a standardized meaning. Even beneficial for cocooners, the Internet is an extremely powerful source of communication that can distribute information and ideas globally and rapidly, which are two essential attributes of a successful marketing plan.
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Website: Increase the level of interaction between consumer and virtual product, therefore, creating a relationship between the consumer makes the actual purchase; position the product in the consumer’s mind so that they are aware of all its attributes and contain positive feedback to pass on to the next consumer; use Facebook, Twitter, MySpace to fully integrate social media networking perception and the effectiveness of the Galaxy Tab; increase awareness of the Media Hub, which has the feel of a cloud network, exclusive only to those owning the Galaxy Tab
Percentage Budget Allocation: 12% ($29,400,000)
Direct Marketing:
The overall objective of the Direct Marketing portion of the IMC Mix is to provide a more personal communication technique with consumers, which allows them to become firm believers that our product and brand is most beneficial for them. The benefits, promotions and incentives must be made clear on a more personal level, so they feel a closer connection to the product.
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Electronic Mail: Create an online database of customers before the release of the product, or obtain databases from Samsung in which loyal customers made previous purchases, and e-mail information and offers for the new product. This will allow the consumer to be exposed to more information about the product.
Percentage Budget Allocation: 9% ($22,050,000)
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Catalog: Provide information in catalogs that contain electronic devices that are normally distributed throughout homes consisting of technology savvy consumers.
Percentage Budget Allocation: 4% ($9,800,000)
Personal Selling:
Through personal selling, consumers can have a one-on-one purchasing experience with a very knowledgeable sales associate that has the ability to sell and convince consumers that this is the right product for them. All the positive attributes will be explained to the consumer and any unanswered questions will be resolved on the spot, resulting in pleasant customer service and satisfactory feedback from the consumer.
Percentage Budget Allocation: 7% ($17,150,000)
Rationale For Mix
The mix that is suggested above consists of an emphasis on personal and direct communication with consumers more than anything. With the popularity of the Internet plummeting now, it is more beneficial for new product carriers to expose their products globally through this incredible source. Allowing standardization for their product, several consumers can feel some sort of relation to the product, no matter where they are located in the global world. With so much information provided for these consumers, there is less motivation for them to search for other replacement products, and the brand equity is acknowledgeable in a positive manner. Through different channeling powers, integration of information, and positive consumer perspectives, the product is certain to portray the message that it wants to its target market. Once the target market is reached in whatever way they find convenient, it is in the hands of the product provider to prove that this product is in fact right for them.
All figures represented were based on our budget of $245 million.
http://www.electronista.com/articles/10/09/28/kindle.owners.actually.wealthier.better.educated/
Specific Media Objectives/Mix – Samsung’s Galaxy Tab
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Reach/Frequency
We have chosen many different media components to get our campaign out on the Galaxy Tab. Our main audience would have to be 23-44 age range (mainly peaking in 23-34). Our audience is aimed more to males with a 65 to 35 ratio to women. 50% of our target market will be reached during the prime time mainstream and regular channel commercials. We plan to have these commercials run all throughout the year with a frequency of 8 up until a year after its release. There after we will decrease its frequency to 4. Our radio ads will be run at a frequency of 6 during morning and afternoon rush hour when working people are driving to and from work. At other times a frequency of 1 will suffice because we don’t expect out target market to be listening in the day. We will reach about 35% of our target market with radio ads alone. Our newspaper and magazine ads will run at a frequency of 1.75 because bypassing ads are easier than listening or watching them. We will be able to reach about 9% of our target market with newspaper and magazine ads. The website frequency will be at 1.5 because internet users do not usually pay great attention to ads. We will only reach about 4% of our target market on websites as ads.
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Message Weights
The message we put out there about the Galaxy Tab can either make or break our campaign. All media outlets are weighed but not as heavily as television and then radio. Television ads will appeal to our exact target market, mostly men ages 35-44. The radio ads are weighed heavily as well but not as much as television. When people watch television, they are usually focused on what they are looking at. With radio, you focus on what you need to hear, like weather reports, more than what is not as important. With both television and radio ads it is very hard to get away from them because they come smack dab in the middle of your favorite programming or your traffic and weather reports. With newspapers, magazines, and websites it is much easier to just skip the page and move on.
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Geographical Allocation of Media Budget
We would like to use our budget throughout the United States to raise the awareness of our product. However we would like to focus more so on big cities with bigger economies, hence bigger paychecks. Tablet buyers are likely to be affluent consumers with solid wealth and strong incomes. Galaxy Tab is a luxury item so we would need to go to places which have workers that make the most money. Granted every state people make money, but there are states with higher wages and higher standards of living such as New York (New York), Morristown (New Jersey), Fremont (California), Chicago (Illinois), etc.
http://wealth.mongabay.com/tables/100_income_zip_codes-20000.html
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Which Media Will Be Used? Why?
We will be using, in order of importance; television, radio, newspapers, magazines, and websites. We feel that television and radio will reach a broad audience. Not only will it reach our target market but also everyone that owns a television or radio/car. 99% of United Stated households own a television, about the same own a radio, and 95% owns a car to listen to the radio which comes standard. Our print media, newspapers and magazines, are more specialized to a specific niche. Not everyone reads the papers and magazines, if they do they usually subscribe to a specific title. In this way we are reaching out to the same people day after day, hoping they notice our ad. Websites are also geared to people that normally surf the web gearing to specific sites. We hope to attract the internet savvy with our internet savvy gadget. With all of the media we plan to use, we hope to get into the minds of consumers and for them to remember us and hopefully have enough information to buy our product.
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Scheduling Pattern
It would be the best idea for us to run ads of the Galaxy Tab all year round. The Galaxy Tab hadn’t been released as yet so we want our ads to be rampant at this time until the time it is released. We will continue to run our ads as often as possible up until a year or so after the release into the market. After a year we should be able to tell how well or how bad it has done and from there we can decide how much less to run the ads. We should not run it any more than we originally did before the unveiling. It would eventually lessen according to the sales and market analysis. We will also have our Galaxy Tab in major electronics stores such as Best Buy and PC Richard & Son set up to be used as a trial, to show consumers exactly what their getting before it is released into the market.
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Media Rationale Statement
We have decided to run our campaign all year round to get the consumers interested and educated in our product, the Galaxy Tab. We will be airing our commercials during prime time television which includes: news, finance, sports, informative, talk, and real life reality shows. Our radio ads will be played during morning and afternoon rush hour while people are driving to and from their place of work. Many people tune into the radio at those times. We will air on news radio, talk radio, and sports radio stations. Newspapers and magazines we plan to infiltrate are ones that have a subscription base and are known as carrying unbiased information such as Time, Newsweek, New York Times, The Wall Street Journal, and USA Today. We are aiming are campaign towards the 23-34 age range which accounts for 45,148,527 people in the United States alone.
Evaluation Program – Samsung’s Galaxy Tab
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Overall Effectiveness of Campaign Objectives
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We feel that the best way to ensure the effectiveness of our campaign is through qualitative consumer surveys. Since this is a new product our main goal is to attract new customers, create a loyal customer base, and motivate switchers to want and purchase our Galaxy Tab instead of other competitors. We will distribute three different surveys in three different mediums; each identifying the success behind our advertisement message, the recall and recognition of our advertisements, and the attitude towards our overall product, whether they purchased the Galaxy Tab or not.
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What will be tested?
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Random samples of the target market will be surveyed. Those who are surveyed will respond to questions that will help marketers draw an inference as to which target they belong to. Questions that will pinpoint specific demographics (age, sex, race, income) as well as geographic (rural, suburban, metropolitan, urbanized).
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Surveys will test the effectiveness of advertisement message, recall and recognition of advertisements, and attitude towards overall product, whether the Galaxy Tab was purchased or not.
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Responses from the surveys will test whether the campaign was successful in presenting the Galaxy Tab, attracting customers, creating a loyal customer base, motivating switchers, and establishing Samsung as a leading brand due to the satisfaction with the Galaxy Tab.
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When will the tests occur?
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From initial moment of purchase, a survey will be placed inside the packaging.
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Surveys will be conducted throughout the first year of the campaign. So that anytime a consumer has shared interest in the Galaxy Tab, whether its by visiting the actual Galaxy Tab website or one of the Social Networks of the Galaxy Tab, a survey will pop up after 5 minutes of being on the online site.
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The last and final survey that will test all three main components (message, recall and recognition, and attitude) will be done 8 months already into the campaign, and will continue to be conducted 3 months after the year campaign is over.
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Campaign will start November 2010 and end November 2011; surveys will still be conducted till the end of February 2012. The data responses will be collected and entered throughout the campaign and after. By the end of March 2012 we are hoping to have an overall tally that will notify us of the overall effectiveness of the campaign and the number of sales that resulted from the campaign.
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Where will the tests occur? How will the testing take place? What specific methods and techniques will be used?
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From initial moment of purchase, a survey will be placed inside the packaging promising that if the survey is filled out and sent back within the 30 days of purchase, the customer will receive a rebate card from the particular wireless carrier they purchased from.
(*Note that the rebate card will be a specific card that can only be used within that wireless retail carrier. Example: The customer purchases a Galaxy Tab from Verizon. Immediately after opening the package where the Galaxy Tab is found, the customer will notice a survey stating in bold and large font “if the survey is completed and mailed back to with the prepaid envelope offered in the packaging within 30 days of initial purchase a $50.00 rebate card will be provided”. The person fills out the survey, mails it to the carrier, and in a couple of weeks the person receives his/her rebate card. Once receiving the rebate card, the customer can only use his/her $50.00 rebate card in a Verizon Store, to purchase any accessories within the Verizon Store, or pay their Verizon bill. ** Technically although we are offering a rebate, the money never leaves the carrier)
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Anytime a consumer has shared interest in the Galaxy Tab, whether its by visiting the actual Galaxy Tab website, Media Hub, or one of the Social Networks of the Galaxy Tab. If the consumer has spent more than 5 minutes on one of the online mediums, the consumer will be greeted by a pop-up survey that will ask the consumer to fill out the quick 3 min. survey before continuing browsing through the website. This will test the effectiveness of recall and recognition of our advertisements, as well as attitude towards the overall product.
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The last and final survey will be conducted in-store and through the online mediums. This final survey will test the overall effectiveness of our campaign 8 months already into the 1-year campaign and 6 months after the 1-year campaign has ended.
The following survey has been designed to test your total satisfaction with our Galaxy Tab product. Please check all that apply. We appreciate your honesty.
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Samsung’s Galaxy Tab – Customer Satisfaction Survey
The following is a list of product and service items. How satisfied are you with each item?
Samsung’s Galaxy Tab
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Very Unsatisfied
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Unsatisfied
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Neutral
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Satisfied
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Very Satisfied
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Not Applicable
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Overall Quality
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Value
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Purchase Experience
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Installation/ first use experience
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Usage Experience
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After purchase service (warranty, repair, customer service)
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How long have you used the Samsung Galaxy Tab?
__ Less than 1 month
__ 1 to 6 months
__ 6 months to 1 year
__ 1 to 2 years
__ 2 years or more
__ Never used
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How often do you use the Samsung Galaxy Tab?
__ Once a day or more often
__ 2 to 3 times a week
__ 2 to 3 times a month
__ Every 2 to 3 months
__ 2 to 3 times a year
__ Once a year or less often
__ Do not use
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Overall, how satisfied are you with the Samsung Galaxy Tab?
__ Very Unsatisfied
__ Unsatisfied
__ Somewhat Satisfied
__ Very Satisfied
__ Extremely Satisfied
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Compared to other tablets that are available, would you say that the Samsung Galaxy Tab is:
__ Much better
__ Somewhat better
__ About the same
__ Somewhat worse
__ Much worse
__ Don’t know or never used
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How likely are you to recommend the Samsung Galaxy Tab to others?
__ Definitely will recommend
__ Probably will recommend
__ Not sure
__ Probably will not recommend
__ Definitely will not recommend
__ Never used
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Based on your experience with the Samsung Galaxy Tab, how likely are you to buying the Samsung Galaxy Tab again?
__ Very Unlikely
__ Unlikely
__ Somewhat Unlikely
__Very Likely
__ Extremely Likely
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If you have contacted Samsung’s customer service, were all problems resolved to your complete satisfaction?
__ Yes, by Samsung or its representatives
__ Yes, by me or someone outside the company
__ No the problem was not resolved
__ No problems/No contact with customer service
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What would you like to tell Samsung about your satisfaction with the Samsung Galaxy Tab that was not already asked in this survey?
Samsung’s Galaxy Tab – Advertisement Campaign Survey
The following survey is based on the attached Samsung Galaxy Tab advertisement. Please base your answers on what you observe now and have observed in the past. We appreciate your honesty, thank you.
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How well do you remember this advertisement?
__ Don’t remember at all
__ Remember company but not product or ad
__ Remember company and product but not ad
__ Remember ad
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Other than trying to get you to buy the Galaxy Tab, what is the main message of this ad?
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What did you like most about this ad? Please be specific.
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What did you like lease about this ad? Please be specific.
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If you were describing this ad to a friend, would you say this ad is, (please check all that apply):
__ Active
__ Attention-getting
__ Boring
__ Cheerful
__ Creative
__Emotional
__Energetic
__ Genuine/sincere
__ Honest
__ Humorous
__ Informative
__ Memorable
__ Offensive
__ Pleasant
__ Satisfying
__ Strong
__ Unique
__ Warm-Hearted
Based on the features advertised, this ad . . .
Samsung’s Galaxy Tab
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Just like me
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A lot like me
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Somewhat like me
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Not much like me
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Not at all like me
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The ad message is understandable
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The advertisement is believable
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The ad’s message is relevant to me
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The benefits described in the ad are believable to me
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After viewing this ad, I would consider purchasing the product
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This ad is much better than other ads for products similar to this one
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Please check the one box that best indicates how descriptive the statement is of you.
Samsung’s Galaxy Tab
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Just like me
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A lot like me
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Somewhat like me
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Not much like me
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Not at all like me
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It is important to me to be treated well
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I like the “royal treatment” in stores
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I like my technology to be up to the latest in the market
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I often buy things on an impulse
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I expect to have more money next year
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I tend to purchase my electronics in-store instead of online
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Please check the one box that best indicates how descriptive the statement is of you.
Samsung’s Galaxy Tab
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Just like me
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A lot like me
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Somewhat like me
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Not much like me
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Not at all like me
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I think I am a smart shopper
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When I watch an advertisement, I see myself possessing that item
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I like to have the most high-tech and advanced items in my home
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I prefer stores where prices are always low
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I regularly watch television
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I rely on innovative technological devices (handhelds, netbooks, mobile devices etc.)
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References – Samsung’s Galaxy Tab
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"About Samsung." SAMSUNG. Samsung, 2010. Web. 28 Nov. 2010.
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