PL02-02524

1. PL02-02524

2. Samsung smartphone Communication Strategy :Becoming a top tier in the U.S. market INNOVATION CASE STUDY Kyuho Jung Song YunYoojin Song

3. (Resource: mobile is good.com, 2008) (Resource: Gartner Report, 2009) BUT….. ??

4. Overview Analysis & Targeting Problem & Solution IMC

5. Analysis & Targeting

6. 1. Analysis & TargetingMarket Competitor Consumer Targeting 2. Problem & Solution3. IMCCampaigns (Resource: Gartner Report, 2009) mobile phone -6.1% smart phone 27% Smartphone market is gaining significance

7. So, where shall we focus on? • 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 & TargetingMarket Competitor Consumer • Targeting 2. Problem & Solution3. IMCCampaigns (Resource: Admob’s, 2008 ‘mobile metrics data’)

8. 1. Analysis & TargetingMarket Competitor Consumer • Targeting 2. Problem & Solution3. IMCCampaigns The answer is U.S.

9. Let’s take a closer look at U.S. market 1. Analysis & TargetingMarket Competitor Consumer Targeting2. Problem & Solution3. IMCCampaigns (Resource: IDC’s mobile phone tracker, 1/4 2009) Dynamic & Highly Competitive Market

10. Who are our competitors? 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns (Resource: CFI Report, 2009)

11. 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns (Resource: CFI Report, 2009) Omnia’s technological performance: not so bad But……

12. (Resource: RBC Report, 2008) 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns ….Consumers aren’t really interested in Samsung smartphone

13. 1. Analysis & Targeting MarketCompetitorConsumer Targeting2. Problem & Solution3. IMCCampaigns • 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

14. 1. Analysis & Targeting MarketCompetitorConsumer Targeting2. Problem & Solution3. IMCCampaigns • 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

15. our target : 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns Non-users

16. 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns Non users… Non-users show different characteristics from users

17. IDI Results What do you think about a smartphone? 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.” 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!” 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns 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” 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.”

18. expensive uncomfortable non-users think that a smartphone is… complicated 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns cutting edge technology hip unnecessary don’t really know what it is professional

19. Overall, non-users… don’t dislike smartphones however, they don’t want to be bothered by using too complicated devices 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 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns

20. Problem & Solution

21. Samsung smartphone’scurrent brand strategy 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem& Solution3. IMCCampaigns Technological omnipotence AMOLED screen Samsung smartphone= Everything

22. Problem 1 target consumers do not buy smartphones -complicatedness -unnecessity -price Commercial emphasizing advanced technology and various functions 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem& Solution3. IMCCampaigns sophisticated and complicated(negative) image do not motivate non-users to purchase a smartphone Unconvincing Communication Strategy

23. Problem 2 Apple Creativity Hip Google searching 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem& Solution 3. IMCCampaigns RIM Business Professionalism Samsung = Everything?? HTC High end No differentiating point

24. How could we solve the problem? 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem& Solution3. IMCCampaigns Attracting consumers by user centered strategyand providing distinctive image

25. 3 years ago, Apple reinvented the phone …… 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem& Solution3. IMCCampaigns andnow Samsung ReDEFINESthe smartphone

26. 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem& Solution3. IMCCampaigns Minimalism

27. Samsung smartphone with “Minimalism” concept After! Simple, essential, sleek, user-friendly Before… Samsung smartphone = complicated = omnipotent device 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem& Solution3. IMCCampaigns Non-users’ perception on Samsung smartphone will be switched from complicated to simple and sleek image while including various functions

28. IMC

29. #1 TV commercial Farewell mail from a spaceship: emotional approach on intelligence, simplified function, cutting edge smartphone technology 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns

30. 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns

31. #2 Promotional UCC Youtubeunboxing with single page manual : Emphasizing simple usage by saying “How to use: just enjoy it!” 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns

32. #3 Interactive outdoor promotion Omnia framed LED touch screen at bus stops : Interact with consumers by providing traffic and destination information 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns

33. #4 Event promotion • Samsung mobile phone user invitation party:Attracting existing Samsung mobile users by experiencing new Samsung smartphone 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns

34. #5 Collaboration Collaboration with minimalist designers : ‘Mobile accessories’ or ‘screen theme’ designed by minimalist designers or artists (e.g. Jill Sander or Vera Wang) 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns

35. #6 Magazine Advertisement 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 1. Analysis & Targeting MarketCompetitor Consumer Targeting2. Problem & Solution3. IMCCampaigns