SAMPLE MARKETING PLAN FOR SAMSUNG 3D TV “Inspire the world, create the future. ” 1. 0 Executive Summary Samsung Electronics has proven to the business world that they are one of the most prestigious technology companies in the industry. With more technology advancements than our market can handle at this point and time, Samsung has paved the way for the future in electronics. One of the most popular new “toys” in the market today, is the unbelievable 3D TV. The first 3D TV was launched in March of 2010, and has already had a major impact on the market.
Samsung dominated the market, controlling nearly90% of the total share. Samsung’s product, the 9000 series TV, is incomparable to competition with its ultra-thin screen, measuring only 0. 3 inches in width. The 9000 series also comes with a full color spectrum that makes for an incredible viewing experience. 2. 0 Situation Analysis Samsung’s current strategy in the 3D television market is to seize a dominant market share while the market is being pioneered and to maintain the majority market share throughout the stages of the 3D television life cycle.
With the recent release of 3DTVs into the market in early 2010, the product is still considered to be in the introduction stage of the product life cycle. While Samsung introduced its new slogan, “Inspire the world, Create the Future,” the company’s strongest emphasis in the last two years has been on convergence and integration. Samsung has re-organized their corporation to encourage cross-pollination and innovation. This is demonstrated by the progressive approach to the market that Samsung has taken, acknowledging the lack of immediate growth in the market, and innovating to prepare for the potential growth in the market.
Targeted Segment With the development of 3D TV technology, Samsung’s target market is easily identified as the Early Adapter. An early adapter is a consumer who has a very quick rate of diffusion, the rate at which the market accepts a new product or product idea. One Strategy Analytics Survey identified “Cube Tubers” as the most likely consumers of products available in the 3D TV market. “Cube Tubers,” are twice as likely to express interest in receiving 3D TV programming at home. These consumers represent a rather small eight-ten percent of the overall population.
They are most likely young, mid-twenties to late thirties Caucasian males, educated and married. They seem to be the most likely candidates to show interest in buying the newest generation of the television market. Along with the “Cube Tubers,” the broader target market tends to be families with young children. The target audience for 3D TVs will mostly be found in or near bigger cities. These locations must be considered the prime market areas due to the likelihood of the availability of 3D content in urban areas rather than away from cities in the more technologically constrained rural areas. Competitive Analysis . Sony cooperation 2. Mitsubishi Inc. 3 . Panasonic Inc. 4 . LG Electronics Inc. 5 Vizio Inc. 1 Sony Corporation Sony is a Japanese company that uses web advertising as a dominant feature. They offer different videos and PDF documents on their websites to help customers understand their business. When typing into Google, Sony does not come up first, however, Best Buy was one of the leaders, who sell Sony TV’s. Sony finds itself in the top five of the market share of the previous trends of the television market, usually in the top three until recently being bumped down to fifth recently in the FPTV market. Mitsubishi Inc. Mitsubishi Inc. is also a Japanese company with a Very broad product mix, and a marketing theory that anything is possible. They Aim to release their 3D TVs mainly through private company sales rather than in nationally acclaimed retail stores like most brands. Mitsubishi has continued to use and perfect DLP technology, created by Texas Instruments, while Samsung has moved on from DLP and has released some beautiful Plasma, LCD and LED 3D TVs.
Mitsubishi’s difference is in its picture quality, although DLP offers great picture quality the technology has many drawbacks such as bulb replacement and interior cleaning to maintain picture quality that hinder consumers from buying their product. Mitsubishi is the most recent follower of trends by recently adopting the Smart TV idea and integrating Internet connectivity into the unit. .3 Panasonic Inc. Panasonic, another Japanese company, is another competitor finding its way to the top three market shares in the TV market.
Panasonic aims to be the No. 1 Green Innovation Company in the Electronics Industry by 2018, the 100th anniversary of their founding. After Samsung initiated an unexpected price war with Panasonic at the opening of the 3D market, they announced an expectancy to miss sales targets for the first year. Demonstrating Samsung’s sound knowledge of good pricing strategies keeping competitors on edge. Panasonic’s premier 3D product differs in the backlight composition, opting to use plasma for the opening of the 3D market. LG Electronics Inc.
LG Electronics is a Korean company. LG Electronics Inc. , ranking as the world’s second-largest maker of flat-screen TVs, said it aims to strengthen its presence in the burgeoning 3D TV market, seeking to grab a share larger than its target for the liquid-crystal display (LCD) TV market. LG is eyeing 25 percent of the global 3D TV market this year, which amounts to 950,000 sales based on an annual market forecast of 3. 8million units. That compares with LG’s 15 percent market share target for LCD TVs, or 25 million units. LG had focused on the mass market.
Initially LG’s objective was to create footprint among the sizable middle class, and other than its aggressive pricing, little to distinguish it from other consumer durable companies. 5 Vizio Inc. Vizio is a market share leader in the industry, but its claim to success is in its ability to follow technology and market trends. Vizio’s vision is to be the industry leader in consumer electronics by consistently delivering the latest technologies at the most affordable price. Vizio has developed cost efficient production methods that allow them to undermine the quality of the products slightly and the price for what they sell at significantly.
SWOT Analysis Strength A. High Quality Innovative Products – Brand Prestige Samsung’s 3D TV market products lead the industry as they have pioneered the launch of the new market segment in early 2010. Samsung’s LED TV product line has earned the prestige of the best picture quality available in the market by Consumer Electronics Reports. Those very products are also leading the way in innovation in the way of style and appeal to consumers, as Samsung released the 9000Series, which is the thinnest 3D TV available at . 31 inches.
Samsung is a strong corporate brand known for its quality products and advanced technology use. The brand prestige that Samsung looks to carry over from the LED, LCD and Plasma markets, hoping consumers will easily identify the brand and associate it with it high quality products from an organization dedicated to providing market leading products. B. Availability of Resources Samsung recently transferred 300 engineers from their very prominent semiconductor business unit within the organization, and established a new television business unit.
The relocation of these engineers has allowed SE to develop market products far beyond the technology and innovative capacity of competitors. C. Constant Focus on R;D Samsung Electronic has been regularly strengthening its research and developments (R;D) function. The company devotes significant resources and attention to develop consumer-preferred products with innovative and distinctive features. It is evident from the fact that, the company invested approximately 5. 0% of its revenue in R;D activities over 2008 and 2009. 2 Weaknesses
A. Lack of Association with 3D Gaming Content Unlike SE’s competitor Sony, Samsung does not have a direct association with content provider for 3D gaming. Acknowledging that the 3D gaming segment will account for a substantial market share, one could infer Sony’s association with gaming consoles like PlayStation as a competitive advantage over Samsung. B. High Quality, High Price Understanding SE prides itself on having very high quality products, one can infer that SE can justifiably charge the highest price for those renowned products.
To maintain a dominant market share as the market for 3D TVs expands, SE’s establish target consumer will have to expand. With the target consumer established economically as the upper level of the middle class and all levels of the upper class currently, the target will have to expand to incorporate all members of the middle class. 3 Opportunities A. Strategic alliances that enhance the company’s product offerings Samsung Electronics has entered into strategic agreements with some of the well-known companies of the world in the recent past.
For instance, during June 2009,the company signed a patent cross license agreement with Toshiba for semiconductor technologies. Toshiba is the leading player in the NAND flash memory market with thousands of patens under its name. Toshiba is also in the forefront of innovations in this product category with several new technologies under its credit. By signing the cross licensing patent agreement with Toshiba, Samsung Electronics continues to have access to important NAND flash process technology as well as multi level cell flash memory design IP relevant for future NAND flash generations.
B. Partnership to access 3D gaming content Establishing a partnership with a company in the video game industry would be ideal to increase the amount of 3D gaming content. Although this segment of the market is currently minimal, the surplus of content could influence consumers so that the segment could increase. A partnership with a company like Microsoft could have an impact on the market greatly. The timing of this opportunity would be immediately, the sooner the partnership begins, and the sooner the content could be produced, presenting an opportunity for the market to expand. . Threats A. 3D Gaming Market – Sony The fact that Sony offers the PlayStation gaming console, they have a foot in the door with the consumers who have interest in 3D gaming, which could potentially represent a significant share of the market. Sony’s PlayStation is the first gaming console to launch 3D gaming content. This relationship between the two products allows Sony to sell both products together at a discount offering not only a product to view 3D content, but also a gaming console with abilities that allow consumers to play3D games.