PL02-02524 INNOVATION Samsung smartphoneCASE STUDY Communication Strategy :Becoming a top tier in the U.S. market Kyuho Jung Song Yun Yoojin Song Global Handset M/S (Resource: mobile is good.com, 2008) Sony Ericsson 8% LG 9% Motorola 10% Others 16% Nokia 41% Samsung 16% Global Smartphone M/S (Resource: Gartner Report, 2009) BUT….. Others 21% HTC 4% RIM 20% Samsung 4% Apple 11% Nokia 40% Overview Analysis & Targeting Global Market Size 2008 Q2 1. Analysis & Targeting Market Competitor Consumer Targeting 2009 Q2 (Resource: Gartner Report, 2009) 304.6 286.1 2. Problem & Solution 3. IMC Campaigns 31.5 mobilephone mobile phone -6.1% 40 smartphone smart phone 27% Smartphone market is gaining significance So, where shall we focus on? 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns (Resource: Admob’s, 2008 ‘mobile metrics data’) no leading company in U.S. third largest number of mobile phone users (Resource: CIA World Fact Book, 2008) stable wireless internet infrastructure required (Resource: Akamai internet Report, 2009) 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns The answer is U.S. Let’s take a closer look at U.S. market 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC U.S. Smartphone M/S HTC 4% Samsung 5% (Resource: IDC’s mobile phone tracker, 1/4 2009) Others 16% Apple 20% RIM 55% Campaigns striking increase maintaining its leading position slight increase Dynamic & Highly Competitive Market Who are our competitors? 1. Analysis & Targeting Blackberry Apple HTC Market Competitor Consumer Targeting Android (Nexus one) 2. Problem & Solution 3. IMC Campaigns Appeal point E-mail Web browsing, Application High end Web browsing Main image Useful, Versatile Versatile, Fun, Cool Cutting edge Cutting edge, Cool (Resource: CFI Report, 2009) 1. Analysis & Targeting (Resource: CFI Report, 2009) Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns Omnia’s technological performance: not so bad But…… 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns Smartphone purchase interest over next 90 days Samsung 4% HTC 4% Palm 5% (Resource: RBC Report, 2008) Motorola 3% Others 8% Blackberry 22% iphone 54% ….Consumers aren’t really interested in Samsung smartphone Smartphone users VS non-users user 17% 1. Analysis & Targeting Market Competitor Consumer Targeting non-user 83% 2. Problem & Solution 3. IMC Campaigns Current smartphone users are…. early adaptors highly interested in cutting edge technology have strong brand loyalty on Apple and Blackberry Difficult to “convert” them simply by communication strategy Smartphone users VS non-users 1. Analysis & Targeting user 17% Market Competitor Consumer Targeting non-user 83% 2. Problem & Solution 3. IMC Campaigns Non-users have… high brand awareness on Samsung mobile phone non-users show lower brand loyalty on other smartphone brands compared to current smartphone users More efficient to convince non-users 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution our target : 3. IMC Campaigns Non-users 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns Tend to spend less on cutting edge products than early adaptors Use their phone more for personal(vs. business) reasons Non users… Did not have or replace a PDA with a smartphone Tend to use their phones for email less often Non-users show different characteristics from users IDI Results 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns What do you think about a smartphone? Anthony Hill (student, 22) “I used to work at AT&T and most of the customers didn’t want a smartphone. Most people were satisfied with a basic phone to make calls and that’s it!” Dereck Scott (student, 30) “Most people don’t really know and aren’t really interested in what a smartphone is. I don’t think that I’m gonna use it because I already have my desktop and laptop.” Mira Kim (accountant, 25) “I’ve always wanted to buy a blackberry since I’ve worked at an accounting firm. If you think yourself as a business person you grab a blackberry. It’s all about image.” Liz Turner (teacher, 40) “As I see a lot of discount prepaid plans that only offer voice and text I think that smartphones are mainly just for making a fashion statement and nothing really necessary” expensive 1. Analysis & Targeting uncomfortable Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC complicated Campaigns hip non-users think that a smartphone is… cutting edge technology unnecessary don’t really know what it is professional Overall, non-users… 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution don’t dislike smartphones however, they don’t want to be bothered by using too complicated devices 3. IMC Campaigns don’t think smartphones are worth spending too much don’t know exactly what a smartphone is tend to evaluate a smartphone more by its image rather than its function Problem & Solution Samsung smartphone’s current brand strategy 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns Technological omnipotence AMOLED screen Samsung smartphone = Everything Problem 1 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution Commercial emphasizing advanced technology and various functions target consumers do not buy smartphones -complicatedness -unnecessity -price 3. IMC Campaigns sophisticated and complicated(negative) image do not motivate non-users to purchase a smartphone Unconvincing Communication Strategy Problem 2 1. Analysis & Targeting Apple Creativity Hip Market Competitor Consumer Targeting Google searching 2. Problem & Solution 3. IMC Campaigns HTC High end Samsung = Everything?? RIM Business Professionalism No differentiating point How could we solve the problem? 1. Analysis & Targeting Market Competitor Consumer Targeting 1 2. Problem & Solution 3. IMC 2 Problem Unconvincing communication strategy No differentiating point Solution Appealing communication strategy Differentiated image Campaigns Attracting consumers by user centered strategy and providing distinctive image 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns 3 years ago, Apple reinvented the phone …… and now Samsung ReDEFINES the smartphone 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns Minimalism Samsung smartphone with “Minimalism” concept 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution Before… Samsung smartphone = complicated = omnipotent device After! Simple, essential, sleek, user-friendly 3. IMC Campaigns Non-users’ perception on Samsung smartphone will be switched from complicated to simple and sleek image while including various functions IMC #1 TV commercial Farewell mail from a spaceship 1. Analysis & Targeting Market Competitor Consumer Targeting : emotional approach on intelligence, simplified function, cutting edge smartphone technology 1. Spaceship 4. Close-up a spaceman in the spaceship 2. Indoor fire 5. Looking at his wife’s picture on his Samsung smartphone 3. People in panic 6.He sends an email typing “I Love y…” 2. Problem & Solution 3. IMC Campaigns 7. Spaceship blows up 11. ‘I love y…’ typed on the Samsung smartphone 8. The men dies and drops his Samsung smartphone 12. ‘you’ gets automatically added 9. The spaceship blows up completely 13. The email gets automatically sent 10. His Samsung smartphone is floating in the space 14. The wife receives his automatically sent email while she was working on her laptop. She starts sobbing 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns #2 Promotional UCC Youtube unboxing with single page manual 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns : Emphasizing simple usage by saying “How to use: just enjoy it!” #3 Interactive outdoor promotion Omnia framed LED touch screen at bus stops 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns : Interact with consumers by providing traffic and destination information #4 Event promotion Samsung mobile phone user invitation party 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns :Attracting existing Samsung mobile users by experiencing new Samsung smartphone #5 Collaboration 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns Collaboration with minimalist designers : ‘Mobile accessories’ or ‘screen theme’ designed by minimalist designers or artists (e.g. Jill Sander or Vera Wang) #6 Magazine Advertisement 1. Analysis & Targeting Market Competitor Consumer Targeting 2. Problem & Solution 3. IMC Campaigns BADA, create your new world : Teaser advertisement for the upcoming OS ‘BADA’ Giving the image of meeting the new world with a single finger BADA, create your new world