Global Marketing Strategy
Gregory Lee
Chief Marketing Officer
Contents
Marketing Performance
Marketing Vision
Marketing Strategies
Marketing
Performance
Rapid Growth in Brand Value
Rapid Growth in Brand Value
2005 Interbrand Ranking
Rank
1.
Company
Coca-Cola
Value
US $ billion
[US$ bil.]
45.0
67.5
35.0
2.
Microsoft
59.9
3.
IBM
53.3
6.
Nokia
26.4
35.0
30.0
26.4
24.0
Samsung
14.9
15.0
28.
Sony
NOKIA
25.0
15.0
20.
29.4
6.4
10.7
13.9
8.3
13.2
14.9
SAMSUNG
12.812.6
10.8
SONY
10.7
MOTOROLA
PANASONIC
5.0
73.
Motorola
3.8
78.
Panasonic
3.7
'01
'02
'03
'04
'05
Strength of Samsung Brand
Interbrand’s Brand Value
Net present value of the brand’s future earnings
Assessment of business and brand strengths
Customer Brand Value
Brand Attitude Survey
Dealer Attitude Survey
Consumer attitudes
from awareness
to purchase intent
to brand loyalty
Retail recommendations
on marketing activities,
product power,
and brand preference
Brand Value According to Consumers
[Unit: %]
Unaided Awareness
Positive Opinion
84
75
46
31
2002
2005
2002
2005
Brand Value According to Dealers
Dealer Recommendation Rate
Color TV
Mobile Phones
23.4
17.2
14.2
7.7
2002
2005
2002
2005
#1 Global Market Share Product
[Unit: 2004 Market Share]
DRAM
SRAM
MCP
NAND Flash
31.0%
34.0%
29.0%
61.0%
LDI
LCD
Color Monitor
CDMA
19.0%
22.1%
14.9%
20.6%
Market Shaping Premium Products
Mobile Phones
7 Megapixel Camera Phone
Satellite DMB Phone
MP3 + Camera Phone
Flat TVs
Plasma TV
LCD TV
DLP Projection TV
Premium Product Portfolio
Average Price Index
155
150
129
116
100
Color
TV
Mobile
Phone
Monitor
Refrigerator
Marketing
Vision
Where We Are Headed – Marketing Vision
SAMSUNG
VISION
World Leading Company for
Digital Convergence Revolution
- 2010 REVENUE $150B -
= Icon Brand
MARKETING
VISION
CORE AREAS
Product
Leadership
Brand
Leadership
Customer
Leadership
Create
PlatformBased
Hit Products
Premium
Brand
Experience
Win-Win
Partnership
Marketing Expertise & Organization
Maximize Marketing Efficiency
(Investment/System/Process)
Where We Are Headed – Marketing Goals
Unit
2005
2008
2010
Competitors
2004
Unaided Awareness
%
44
53
60
Sony: 62
Nokia: 43
Icon Index*
%
23
28
32
Sony : 39
Nokia : 31
No. 1 M/S Products
EA
8
19
23
N/A
s-API
Index
104
110
120
N/A
%
13.5
22
26
Sony : 25.1
%
25.7
28
30
Nokia : 28.8
Category
Brand
Leadership
Product
Leadership
CTV
Dealer
Customer
Recommendation
Leadership
Rate
HHP
*Purchase Intent
Changing Landscape of Market Environment
Increasing “Smart” customers who pursue intuitive simplicity
Technology is a given especially for young generation
Reduced importance of traditional mass media
Intense cross-industry and price competition (CE/IT/Entertainment)
Expansion of B2C & B2B channels across regions
Marketing
Strategies
Evolution of Marketing Strategies
PAST
NOW & BEYOND
(Fast Follower)
(Industry Shaper)
Good/reliable brand
Brand
Leadership
Premium brand
Disparate identity
Consistent identity
Technology-centric
Strong emotional bonding
Product
Leadership
Similar benefits with
competitors
Discrepancy in price
status
Products meeting latent
consumer needs
Value-added,
first-to-market launch
Customer
Leadership
Optional relationship
without continuity
Long-term customer
centric partnership
Marketing Strategies
Build Most Preferred and Loved Brand
Introduce “First-to-Market” Products Reflecting Consumers’ Unmet Needs
Strengthen Partnerships by In-Depth Understanding of Customers & Channels
Advance Marketing Expertise and Investment Effectiveness
Single Master Brand
Brand Strategy – Past & Present
1999~2004
2005 ~
Objective
Awareness
Preference
Brand
Target
Sensible
Brand Buyers
High Life Seekers
Brand
Essence
Wow, Simple, Inclusive
Designing Sensational
Technology
Brand
Positioning
Easier, richer & more
enjoyable life through
technology
Unlimited Living
Brand Target: High Life Seekers
Demographics
25 to 45
Male and female
(male skewed)
Mid to high income
Educated
Style conscious
Psychographics
Passionate, creative
Appreciate excellence
Crave things that
give them a fuller,
more engaged life
Tech Attitude
Primary Target: 17%
(Spending on CE 28%)
Extended Target: 34%
(Spending on CE 50%)
Highest interest in CE
Spend most money on CE
Early adopter
Tech in everyday lives
Lifestyle
Time-out
Seek knowledge
Seek community
Work hard, play hard
New Brand Essence
Sensory
Premium
Technology
Leadership
Design
Focus
2005 Global Brand Campaigns
Manifesto
LCD/PDP-TV
MP3 Player
Mobile Phone
Multi-Sensory Brand Experience
from Visual Identity to Sensory Identity
See
Visual
Hear
Advertising
Imagery, Color Scheme,
Sound logo/Jingle
Auditory
Product
Design, Packaging,
Sound Interface
Touch
Tactile
Smell
Olfactory
Environments
Multi-sensory
Elements
Values of Sponsorship Marketing
Build premium brandship by leveraging first-class properties
(global & local specific)
From building brand awareness to increasing brand preference
Deliver specific business goals
Strengthen and leverage channel relationships
Contribute to sales by connecting sponsorship events with
sales programs (promotions, etc.)
Sports
Arts
Entertainment
Cause
Marketing
Events &
Shows
Components of Sponsorship Activities
Sponsorship since 1996 Nagano to 2008 Beijing Games
2004 Athens Games
- Torch relay in 27 countries, 34 major cities, reached more than 50 million
- Brand Awareness: 7% ↑ in Awareness, 15% ↑ in Purchase Intention
Awareness of Samsung’s sponsorship in 2005 is one of the highest
among European teams
Media value to date estimated at US$ 32 Million
Cause marketing program for North America since 2001
Fund raising with key channel partners (Best Buy, Circuit City, etc.)
and key celebrity foundations (Magic Johnson Foundation)
World’s First-to-Market Products
Mobile Phones
2000
2004
2005
Dual Screen Phone
5 Mega Camera Phone
Satellite DMB Phone
7 Mega Camera Phone
First-to-Market in Core Components
NAND Flash Memory
Two fold increase every year in density
16Gb
50nm
1Gb
120nm
‘01
64Gb
3xnm
4Gb
70nm
‘03
‘05
‘07
Core Components in Premium Products
iPod Nano
Sony
PlayStation
Portable
Nintendo
Revolution*
* Not yet in the market
Microsoft
Xbox 360
Gizmondo
Leading the Field of Convergence in Products
Camcorder + TV
Portable Media Player + TV
Portable DVD Player + TV
Introduce Samsung’s “Signature” Devices
Product Development Process
Development
Market
Research/
Analysis
Ideation
Idea
Screening
Conceptualization
Product
Planning
Launching
Plan
Areas of Improvement
Ways to Gather Customer Insight
Trend-Setter
Hives
Creative User
Group
Mania
ntM
meStreain
am
lop
ve
6
De
mn
A lu
Under
ground
tive
Interac ics
m
Dyna
MUSIC
Internal
Workshop
Dis
i trib
ut
ion
Tech. S ports
Fashion Enter . Music
Mania Group
Dynamics
Samsung
Team
Expert Group
Seminar
New Market
Opportunity
Consumer
Needs
Lifestyle
Technology
Capturing IT B2B Business Market Opportunity
Monitor
Laser Beam Printer
Total Market Size = $30B
Total Market Size = $60B
Consumer
Market
Consumer
Market
20%
33%
80%
67%
Commercial
Market
Commercial
Market
* Includes toner cartridges
IT B2B Business Strategies
Products
Differentiate line-up by channels
Increase commercial market-oriented product development
Channel Development
Obtain sizeable & loyal reseller customer base
Improve management of commercial channels (e.g. PRM system)
IT Brand
Improve brand awareness and perception in IT market
Strengthen marketing for IT products (e.g. systematic reseller prgm.)
Organization
Increase synergy in IT-cluster by creating channel driven organization
Increase expertise for IT market
Steering Market Driven Change in the Organization
MARKETING CAPABILITY
Increase marketing expertise
Marketing
Capability
Establish skills management tools
MARKET DRIVEN PROCESS
Strengthen marketing-NPD ties
Improve coherence throughout the
processes
MarketDriven
Process
MarketDriven
Culture
MARKET DRIVEN CULTURE
Strengthen HQ & local collaboration
Ensure integration of Market Driven
Culture in the organization
Strengthening Market Intelligence Capability
CIS
HQ
(GBM/GMO)
North
America
Europe
China
MEA
SWAsia
SEAsia
Latin
America
91 MI personnel with specialties (’05): Extend up to 150 MI personnel by 2007
Market Research Spending: 110% increase from 2004 to 2005
Marketing Spending 2002 ~ 2005
[US$ mil.]
2,046
1,466
1,103
SEC Mktg.
Investment
as % of sales*
2,358
15%
40%
33%
57%
56%
6.7%
6.9%
6.8%
2003
2004
2005
56%
54%
6.3%
2002
Short-term Sales Promotion
* Based on Samsung branded set product sales
Strategic Brand Building
Increasing Marketing Investment Effectiveness
Tools & Metrics
Develop impactful and scalable ME methodology, tools & templates
Process
Refine & apply optimal investment processes
(planning, budgeting, execution and measurement)
Capabilities
Develop required ME capabilities (skills, resources)
Continuous improvement of investment IT systems
Expand data quality & coverage
Marketing Experts & Org.’s Efficiency
Brand Management
Product Innovation
B2B Mktg./Sales
Expertise
Market Intelligence
“Most Preferred & Loved Brand”