Samsung Marketing Report

I. Positioning Statement

Samsung embodies style and technology for the young professional, with its cutting edge design and superior connectivity features.

Samsung's positioning statement is one that asserts its differentiation vis-Ðo-vis other mobile phone providers. In the local market where myriad choices abound, Samsung's sleek exterior design, accompanied by its selection of soft and hard features, render it an optimal purchase for the young, technologically updated professional.

II. SWOT based on primary and secondary research

Strengths

 Strong global presence

 Diversified product line

 Technology

 Design Weaknesses

 Customer perception of weak product attributes like Durability

 Camera / Video quality, User friendliness

 Voice clarity, Value for money

 Incompatibility with different software platforms

Opportunities

 Increasing mobile market

 High % of Younger population

 Strong customer demand for innovative products & value-added features

 Low Landline penetration Threats

 Increasing competition

 Decreasing product margins

III. Prioritized Segments

Based on the output of our UAI and our research, we have deduced that the features which distinguish Samsung from its competitors are primarily appreciated by young urban professionals. This segment, consisting of emerging and experienced members of the working force, are versed in new technology as they are constantly updated by colleagues and possess aspirations towards advancing in their careers. They have been identified as the primary target market because of their higher levels of disposable income as opposed to students who subsist on allowance.

Samsung's secondary market falls within the age range of 15 to 25. This age group consists of mid-teens and new members of the workforce. The predisposition of the teenage segment to yearn for the latest mobile phone models is driven by peer pressure and the desire to be identified as keeping abreast with the latest trends.

A more detailed discussion on these two segments follows below:

Exhibit 1: Primary and Secondary Market Segments

IV. Profile behavior and decision making process

Visiting a Samsung concept store revealed some purchase habits of potential Samsung clientele. Potential buyers who amble into the store are well researched and informed. This is evident in their already having a selection of models in mind prior to store visit. This is also manifest in their verbal request for specific features and for units falling within predetermined price ranges.

Cross-referencing overt behavior in the shop with data obtained from the UAI reveals three primary sources of information in cellular phone selection. Television was noted as the primary communication channel from which product knowledge was gained. In terms of purchase decision, peers and colleagues advice was a primary influence.

Exhibit 2: Sources of Information and Key Influencers

Apart from the above data, interviews have allowed us to conclude that a considerable majority begins their pre-purchase activities by comparing several brands in terms of desired and available features, price, and point of purchase promotion.

V. Qualitative Value Proposition

Qualitative features aligned with Samsung's value-proposition are 1) Style/Design, 2) Technology, 3)Value for Money, 4) Durability, and 5) Usability/User-friendliness. Also gleaned from our FGD and UAI are the aforementioned qualitative determinants of perception of value. These criteria were ranked primary in terms of what would-be mobile phone buyers seek when they select an optimal unit.

VI. Qualitative & Quantitative Marketing Objectives

Samsung's marketing efforts should be oriented towards increasing its market share and sales volume of its mobile phones. 2007 data place Samsung as the third highest mobile company, garnering 13% market size of 46M. This translates into 5.98M Samsung users, which we can aspire to increase by 15%, given that the market is projected to increase at a rate of 10% per annum. Using these figures, the 50.6M anticipated market should allow Samsung a projected 7.59M size in the year 2008.

Aggressive and strategic marketing programs should be launched with the end goal of improving brand recall. The conducted survey placed Samsung as either second or third in terms of brand recall. These findings were present among 53% of the respondents. An increase in the marketing budget, the proliferation of Samsung kiosks, as well as the introduction of two sub-brands should heighten awareness, interest, and purchase intent, evidenced in subsequent surveys. Future surveys should indicate an improvement, substantiated by shifts in ranking towards first or second with brand awareness as the criteria.

VII. Product Strategy

In the Philippines, Samsung's brand equity is not particularly strong in terms of its promotion of its cellular phone series, compared with Nokia, Sony Ericsson, and Motorola. The Nokia N-series is geared at video and entertainment while Sony Ericsson's walkman-phone and Cybershot phone series build on the Halo Effect of the original Sony Walkman and Sony Cybershot cameras, respectively.

Samsung's website reads: 'groundbreaking mobiles with the slimmest profiles in the world that let you live life to the fullest'. In this respect, the slimness of the handset is not tantamount to differentiation, as it shares the market as the Motorola Razor series, which is more widely recognized for its sleekness. On a model-to-model basis however, majority of