SAMSUNG GALAXY “YOUR GALAXY IS IN YOUR HAND”

Jessica Walsh COM 364 4/13/2012

COMPANY PROFILE HISTORY Byung-Chull Lee founded the Samsung group on March 1, 1938 inTaegu, Korea. In 1968, they created their Samsung-Sanyo electronics subsidiary. Samsung-Sanyo merged with Samsung Electronics in March 1977. Throughout the 1970s, Samsung became a market leader through its 4,000,000 black and white televisions produced and started mass-producing microwave ovens. In the 1980s Samsung started producing color televisions, air conditioners, and personal computers. One innovation came when they produced the smallest and lightest videotape recorder. Their first mobile handset was created in 1991 followed by their mobile phone system in 1992. In 1999, Samsung created the first wireless internet phone, known today as a smart phone followed by a PDA phone in 2000. Samsung launched its Galaxy line of smartphones in April 2009, and in the US variants between June and November 2010. The Galaxy S line was succeeded by the Galaxy SII line in September-November 2011. VALUES Samsung operates with a code of conduct based off their core values. These values are: People

Quite simply, a company is its people. At Samsung, we’re dedicated to giving our people

a wealth of opportunities to reach their full potential.

Excellence

Everything we do at Samsung is driven by an unyielding passion for excellence—and an unfaltering commitment to develop the best products and services on the market.

Change

In today’s fast-paced global economy, change is constant and innovation is critical to a

company’s survival. As we have done for 70 years, we set our sights on the future,

anticipating market needs and demands so we can steer our company toward long-term success.

Integrity

Operating in an ethical way is the foundation of our business. Everything we do is

guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency.

Co-prosperity

A business cannot be successful unless it creates prosperity and opportunity for others.

Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where we operate around the globe.

SITUATION ANALYSIS STRENGTHS The Samsung Galaxy S line are the flagship smartphones for Samsung. Samsung offers the Samsung Galaxy line for the top four carriers in the United States. Verizon, AT&T, T-mobile, and Sprint, all have these phones, giving consumers an option to stay with their current carrier or change carriers instead of picking a carrier solely because of the phone. Because each carrier has different networks and requirements, each phone is slightly different and are offered at different price points. For example, AT&T offers three Galaxy S II phones: The Samsung Galaxy S II with HSPA+ speeds is currently offered for $99.00, the Samsung Galaxy S II with 4g LTE speeds is offered for $199.99, while their tablet/phone crossover Samsung Galaxy Note is offered for $299.99 on contract. The Samsung Galaxy S II phones are often praised for their powerful specifications. Their 4”-4.5” Super AMOLED Plus on most of their phones offers vivid, sharp colors on a large screen. Their newest model, The Samsung Galaxy Note offers Super AMOLED Plus HD a 5.3” screen for even better screen performance. While many smartphones are criticized for having poor battery life, Samsung Galaxy S phones have a 1850 mAh phone which will last the user through the day with moderate to heavy use. This battery may also be removed in order for the user to add in a more powerful batter if desired. While these phones come with 16gb of internal storage, there is also a microSD slot for expandable storage up to a 32gbs. This allows users to store up to 48gb worth of pictures, music, videos, applications, or other data. These phones have 1.3-1.5 ghz processor speeds which translates to no lagging between switching from application to application and for applications to load quickly. Consumers also have fast browser speeds with phones on the 4g network (HSPA+ or WiMax) on Sprint, T-Mobile, and AT&T or even faster speeds with the growing 4g LTE markets on AT&T and Verizon. Samsung Galaxy phones are built with a light but durable plastic shell which makes even the larger phones feel lighter and protect the phone more than a glass casing would. The Samsung Galaxy line operates with Google’s Android operating system (OS). The Android OS is widely accepted one of the top operating systems on smartphones and has a growing market. The Android interface allows the user to multi-task and keep applications open and switch easily between these applications. Unlike some of the other top operating systems, Android has the ability to run Adobe Flash. Flash support allows many multimedia internet applications and websites to run on its browser, giving a more complete experience of the web browsing. Android allows for a customizable user experience. Android allows for sideloading applications meaning users can download applications from the internet as a whole as opposed to being limited to Android’s Google Play (formerly known as Android Market). Users are able to get applications that may not yet be available in Google Play, or ones that offer more features. Google Play offers more than 450,000 applications, many of which are free or offer paid ad-free versions of these applications. There is a $25 registration fee for

application developers to distribute on the Android Market These developers receive 70% of the application price. There is an open source code, which gives the developers more creative freedom in producing applications. Samsung as a company creates many forms of technology. Their technology ranges from televisions, blu-ray & DVD players, home theater systems, laptops, media players, cameras, camcorders, monitors, printers, memory & storage products, and LED lighting. This allows Samsung to be at the forefront of innovation within these products which they apply to their Samsung Galaxy line. Samsung applies a user interface to run with the Android Operating system called Touch Wiz. Touch Wiz allows users to customize the size of many widgets, gives seven home screens, and has a very clean and simple design allowing for a simple user experience. WEAKNESSES Samsung offers many smartphones, including their Galaxy S line. While some of these phones may be cheaper, they often have worse specifications. Even on Samsung’s line, the phones vary by carrier to carrier. This can leave the consumer unsure about what features they will be receiving with their phone. These phones have also been criticized for being “evolutionary” as opposed to “revolutionary” and contain many features that are used by many other companies. There is little distinguishing Samsung’s products from their competition. The Samsung Galaxy line has 16gb of built-in storage (1.90gb on US Cellular model, and 32gb on Verizon’s Samsung Galaxy Nexus) and requires an SD card, purchased separately, in order to expand storage. The plastic material used gives the phone a “cheap” feel to it and would not protect the phone as much as a solid metal body would. These phones may also be too large for comfortable, one-handed use. The Samsung Galaxy Note measures in at 5.78" x 3.27" x 0.38" and is virtually impossible to use one-handed. All of the phones on Samsung’s line are between $200-$300 on the time of their release which is out of many consumer’s price range. Google Play’s marketplace is considered to have a less-fluid ecosystem than other operating systems such as Apple’s iOS. This refers to the ability for applications within the phone such as the iCloud, music player, ability to navigate, etc. work together as one. Many different cell phone manufacturers utilize the Android operating system which creates clutter and confusion as to which phone to choose. These phones range from cheaper low-end phones to more expensive high-end phones. Because there are many different phones, it is more difficult to come out with a universal operating system. Each cell phone manufacturer must work with the carrier to develop the Android operating system to their phone. This takes much longer for the consumer to receive the latest Android update. Application developers must also take into consideration all the different phones running the Android OS and their specifications. This can take longer for applications to get to the Android Marketplace. The different manufacturer’s user interface often overpowers some of the features available in Android and can make moving from one Android device to another a completely different experience. This also

adds to a more difficult user experience of the Android OS as opposed to others such as iOS, Windows 7, or the Blackberry OS. Samsung’s Galaxy S line has a limited share in the growing smartphone market. Their phones have almost no unique identity because they are targeted to the mass-market as opposed to any niche markets. Similarly, Samsung’s user interface, Touch Wiz, is considered to be bland and a knock-off of iOS experience. OPPORTUNITIES Samsung Galaxy’s wide range of phones can attract different markets. It is considered by many critics to be the top Android manufacturer due to the Galaxy’s consistent quality performance and features. All of the carriers use these features to advertise for the phone and push sales. Samsung is a leader in many different forms of technology which they can utilize in the innovation of new phones, such as using high definition technology from their televisions and incorporating that into the screens. One of Samsung’s innovations was the Galaxy Note was the first of its kind as a phone/tablet or “phablet” hybrid. It is currently the only hybrid on the market now and is rated well even just on its phone capabilities. THREATS Samsung faces competition from low-cost manufacturers dealing with price. Many other phone manufacturers have more superior build quality. Motorola currently dominates the US market while Nokia dominates the European market. Together these companies control half of the world’s market. Other competitors such as Apple are eating into market share. COMPETITORS Samsung faces both Android-based and non-Android-based competitors. Android is led by Motorola, known for its own flagship line Droid/DroidX/Droid Razr lineup which is available exclusively by Verizon Wireless. Motorola also has phones such as the Atrix/Atrix II and Backflip on AT&T and the Photon on Sprint. Similar to Samsung in terms of price and features is HTC. While HTC does not have a line of phones on each carrier, it does feature many high-end phones on the various networks including the EVO/EVO Shift/EVO 3D on Sprint, HTC Thunderbolt, Droid Incredible/Droid Incredible 2, Rezound on Verizon, and Aria, Inspire, and Vivid on AT&T's line. LG has had some success with their Optimus/Thrill 3D on AT&T, and the Lucid on Verizon. Other Android phone manufacturers include Acer, Sony, Sony Ericsson, and Pantech. Samsung also faces competition from other operating system phones such as Apple's iPhone (iPhone, 3G, 3Gs, 4, 4s), who now offers phones on Verizon and Sprint in addition to their original affiliation with AT&T. Research in Motion created the Blackberry which has most models available to all the carriers. These models include the Pearl, Curve, and Bold.

RIM also had touchscreen phones such as Verison's Storm/Storm II, and AT&T's Torch. Nokia leads Windows Phone with their Lumia. Samsung, HTC, and LG have created Windows phones in addition to their Android phones. CREATIVE SALES Samsung has had much success with some of its Television commercial advertisements. One of these advertisements claims that “The next big thing is already here” referring to the Samsung Galaxy. These advertisements poke fun at the “Apple fanboy” aspect. It shows that it is ridiculous to wait so long in line for a phone based solely on its brand. The Apple iPhone 4s was hyped about so much by their fans but was almost a disappointment when it was nearly the same as its predecessor, the iPhone 4. An international advertisement that they released was the “tutting” video. Tutting is described as dance moves done with the hands and arms to making geometric shapes to the music. The message for the tutting video was “Unleash your fingers.” Another advertisement just released by Samsung was the elephant commercial where it appears that the elephant is playing with the Galaxy Note and the woman is surprised. The Galaxy has featured print advertisements. One example was a phone and “Hello” with the L's being the service bars. This was criticized for being too similar to AT&T's advertising campaign. AT&T featured different objects such as buildings to look like the service bars saying “More bars in more places.” Samsung also paired up with designer Giorgio Armani for their Samsung Galaxy S Captivate. This ad shows a woman holding the phone with a picture of mouth right up to her mouth saying “It speaks for you.” COMPETITIVE MEDIA In addition to TV and magazines, Samsung has used other forms of Competitive media. They used the internet through their website which features all of their Galaxy phones. They have a couple of Facebook pages. Their Twitter page is just a general Samsung mobile page. Samsung's advertisements are also played heavily through video sites such as YouTube. MARKETING PLAN MARKETING GOALS & OBJECTIVES The ultimate goal is to make the Samsung Galaxy a lifestyle. This means that Samsung galaxy products become integrated into the life of its users. They will use their phone for many parts of their life such as work, school, with their friends, etc. The hope

is that these users will become brand-loyal to the Samsung Galaxy line and will want to upgrade as each phone comes along. These users will anticipate the arrival of each new phone. The Galaxy logo will appear on various locations such at t-shirts and it would become a status symbol. The objectives to achieve these goals would be to make Samsung the market leader. In order to do this, Samsung would have to gain at least 1% in their market share. This can be done by increasing sales of Samsung, and Apple's sales decreasing. Samsung's goal will be to increase sales and profits by 10%. The third objective will be to encourage repeat purchases so that consumers are upgrading their old Galaxy phone into a new Galaxy phone. This creates a brand-loyal fan base of the Galaxy line. The final objective is to make the Galaxy brand a culture symbol. STRATEGIES Samsung will reach their goals and objectives by showing how the Galaxy line can be incorporated into the user's life. This can be done with cognitive and affective appeals. The cognitive side will show features and the value. The affective side will show how those features can connect the user with their values by showing how the phone already fits in with their life and their core values. MARKETING MESSAGE The message will be designed to keep current users who appreciate their phone and its powerful specifications. The advertisements will keep them from regretting their purchases and encouraging to purchase that phone when they are due for their next upgrade. Samsung will modify its message to obtain new users by focusing on how it fits into their specific lifestyle. Samsung will accomplish this by using the multi-attribute approach which features the attributes about the Galaxy line that are most important in the consumer's life. BRANDING The Galaxy line is a brand extension off Samsung mobile's brand. Samsung wants to build brand equity by differentiating their Galaxy line from other manufacturer's brand. When consumers think of Samsung, they want consumers to think of quality and their specifications and build the brand up to the lifestyle and features. Samsung can add a graphic element of a galaxy to their visual brand logo so that it is more easily remembered by consumers. TAGLINE & LEVERAGE POINT The tagline that Samsung will be using is “Your Galaxy in your hands.” This is a play off the phrase “whole world in your hands.” It implies that the phone gives you

access to not just the world, but the galaxy. The phone also is personalized so that the user can make it applicable to their life and use it to benefit their own lifestyle. Users can use this phone to stay connected to those that are most important to them and receive instantaneous updates about those people. This connects the product to the user's core values because it can fit in with their life. Samsung's advertisements will focus primarily on slice-of-life advertising. This will take a snapshot of the user's life and show how the phone is incorporated into that life. While using that method, the message will also show demonstrations of the product and how the product is being used. Simultaneously, the commercial will be informing the potential consumer about the product through those demonstrations. AUDIENCE & LIFESTYLE Samsung will target a few different audiences. The first audience is composed of young and social users. This audience is between the ages of 18-30 and work hard so that they have the budget for a smartphone. These users like to stay connected with their friends and family and look at phones as a medium to do so. They like to text, use social media such as Facebook, Twitter, LinkedIn, and Pinterest. They also like to stay connected with friends by playing games with them such as Words with Friends or Draw Something. Social addicts differ from the young, social user by the extent that they are on their phone. Social addicts need to be connected with other people almost all the time. If they have any idle time, they fill that time with texting and the internet. These users will say anything to keep the conversation going and will start up new conversations frequently. They will try to befriend anyone that will respond back frequently. They feel it is socially acceptable to text a person back or have a phone conversation even when they are physically with others. The Cocooning/Health Emphasis users can be a little older than the young/social users. They are typically 21-40 and their main goal is getting fit or maintaining their healthy lifestyle. They use their phone at the gym to be a music player or to watch videos to distract them from their intense workout. They also use their phone to find healthy recipes, work out tips, or even “virtual personal trainers.” The Value-based consumer wants the best phone for the price. They do not like to spend their money frivolously. They believe that purchasing a phone is an investment and take a lot of time deciding this high-involvement purchase. While they do not want to spend a lot, they do want to have a nice phone with the features that they enjoy. POSITIONING Samsung will position their phone primarily by using product attributes technique and focusing on the Galaxy's many features and how they can be integrated into the

user's life. Samsung will also position the product by price. Although the phone is expensive, the goal is to show how this product is worth the cost and has good value. What makes it a good value is that some of their Galaxy phones have the 4g LTE speeds in a market that is growing. If a user does not have a 4g LTE capable phone when LTE comes to their market, the user would be left with regret. While Samsung is not focused on the competitors, it does need to differentiate itself from the vast smartphone market. It can do this by not comparing itself to another brand specifically, but by showing how the phone is different from other brands in general. GEOGRAHIC EMPHASIS Samsung will reach their target audiences by segmenting them geographically. Since the 4g LTE is new technology that is still growing, all of the networks are still growing. Samsung's phones can or will utilize this network, so they have an advantage in advertising in those areas. While Verizon already has over 203 cities/markets covering 2,000,000 people, but they still plan on adding 400 markets reaching an additional 2,600,000 people. AT&T is in the process of expanding their 4g LTE network as well. They are currently located in 28 cities/markets and they hope to be complete with their 4g LTE coverage by the end of 2013. Spring will have 7 cities/markets by mid-2012. T-Mobile will launch their 4g network by 2013. BUDGET Samsung would dedicate 5-6% of all their budget to the Samsung Galaxy line. The method of advertising that they would do is payout planning. This is the ratio of advertising dollars over their market share. Since Samsung has a large market share, they can dedicate more money towards advertising and can hopefully increase their market share. They will spend more money as their product is launched and less once it is fully established. Samsung will use a pulsating schedule as well and advertise during peak seasons such as the holiday season in December while maintaining fewer, but more consistent advertising during off-seasons. MEDIA PLANNING: TRADITIONAL TYPES OF MEDIA Samsung will focus on many different types of media using their marketing message. Their overall message will be consistent throughout the different outlets of media. By using different types of media, they will be able to increase the reach (how many people see their advertisements) and frequency (how many times people see their advertisements). They will also be able to better segment their audience and reach their target audience specifically. Samsung will use traditional media such as television, radio, and print advertisements but also incorporating them in new ways.

TELEVISION Television, while not as powerful as before, is still used heavily in the marketing mix. Advertisements are given 30 seconds to show the product being used. The invention of DVRs have given consumers the ability to fast forward through commercials. Samsung will use more entertaining commercials at times when their target audience would most likely be watching. Since younger people generally get home from school or work in the mid-afternoon, watch prime-time TV at night, and often stay up late, those would be the main times when Samsung advertisers. It would stay away from early morning, rush hour, and daytime television because younger users are generally not awake or home at those times. Samsung would also advertise during popular TV shows that their target audience is likely to watch. These shows consist of prime-time television shows, reality, sports games, and late-night comedy. In order for Samsung to reach their audience, they will have a few advertisements during the Super Bowl, which is watched by many specifically for the commercials. While expensive, Samsung can guarantee that their commercials would be watched by many. One of the newer innovations that is used to combat fast-forwarding through commercials are On-Demand channels. When cable networks give users the opportunity to watch some of their favorite shows at any point, the fast-forward feature is often disabled as a trade-off for choosing what to watch and when. Samsung can use that medium as well to ensure their commercials are viewed. Samsung can also pay for their products to be used within television shows and movies by using product integration. While the effects of product integration do not translate to immediate sales, it does create a more favorable attitude towards the product if used by characters that viewers identify with. Samsung would go about this by having their product being used seamlessly throughout different TV shows. When a character pulls out their phone or they receive a phone call or a text, the Samsung phone can be used. RADIO Radio can be used to focus its message to consumers locally. Samsung can use the radio to reach users on their way to work or any other time that users are in their car. Samsung can reach their young audience by playing their commercials on radio stations that younger people will likely listen to. Many young users listen to Top 40s stations for their newest music, but there are also niches that are into other types of music such as Country, Classic Rock and Alternative Rock. Some users may also prefer to listen to talk radio. Internet radio sites such as Pandora are often used when consumers are on their computers or other activities such as cooking, homework, or working out. Samsung can advertise through Pandora and other sites to ensure their advertisements will be heard by those with free accounts.

PRINT MEDIA Magazines can be used to further segment Samsung's target audience. Magazines tend to be divided by gender. Women are more likely to read fashion, make-up, women's health, women's lifestyle and gossip magazines. Men are more likely to read magazines focused on sports, men's health, men's lifestyle, men's fashion, and those that show provocative pictures of women. Some people keep magazines and share them with their friends, increasing reach. Newspapers can be used to reach a national or a local audience. National Newspapers are USA Today, the Wall Street Journal, New York Times, Los Angeles Times, and Washington Post. Samsung can also put local ads out in more local newspapers such as the Plain Dealer. OTHER INTEGRATED MARKETING COMMUNICATION TOOLS INTERNET Samsung can utilize the internet in various ways. By having a website, users can go directly to that website to find news and information about the product. Samsung can also advertise on other websites such as news websites and search engines. They can also play their advertisements in videos that play on YouTube and Hulu, that users can no longer skip. By using social media, it shows that Samsung is connected to what their audience wants. Users can go to Samsung's Facebook page and “like” different products. Facebook can also be used to provide a community through message boards or feedback with comments and messages. Twitter users can follow the Samsung Twitter pages for updates about their phone or to provide feedback. Samsung can also sponsor a trending topic or a “hashtag.” Twitter users will then see this and discuss how they use or feel about Samsung which in turn lets their followers see. WEBSITE Samsung's website will be a place where consumers can go to find out more information about Samsung's products. Samsung's website should provide the information that consumers are looking for and provide a good navigational flow from page to page. The website should also provide an easy way for Samsung to purchase their product. Their website would include a homepage, the Galaxy line, individual pages for each phone model, store locator, an online community, help & support, and a reward zone. HOME PAGE

The home page should be visually apealing and help the consumer obtain the information they are looking for. They can play a video advertisement for a featured phone. The home page should also have links to all their other pages. GALAXY LINE The Galaxy Line page would feature all the phones that are on the Galaxy Line. This would eliminate any type of confusion that could be caused if a consumer was unsure if a Samsung phone had the Galaxy quality or not. Samsung can organize this page by providing filters to organize the products. These filters can be based on carrier, how new the phone is, what types of features the phone has, and based on price. INDIVIDUAL PHONE MODEL PAGES Since there are differences between all of the phones on the galaxy line, there should be individual pages for each phone. Each page would provide specifications and features of the phone. A virtual tour would show the phone at all angles and give a more visual representation of the phones features. News about the specific phone including phone and software updates. Forums would provide an online community for the specific phone and answer any questions from consumers that they may have. There would also be an official online support page that would show frequently asked questions and give a link for a consumer to ask customer service questions. Reviews of the phone would give consumers an idea of how other consumers think of that phone. The price should give all the different options including the no contract price, renewing contract (main line and family lines), and new contract prices (main line and added line). There can also be a link for accessories for that specific phone. STORE LOCATOR The store locator would show different types of stores that also sell the Galaxy line. These stores would include the carrier stores and stores that have all brands such as Best Buy and Radio Shack. It would also include the prices that these stores are offering the different phone models. The store locator could also be used for phone repair stores. REWARD ZONE/FREQUENCY PROGRAM Samsung can have a reward zone that would encourage brand loyalty and purchase different products. It also rewards those customers that have been loyal. They can use this to build a database of consumers by finding their name, contact information, products purchased, and further segment their audience for future advertising. Some prizes that Samsung could give way could be Accessories to their phones or credits that they could use to save up to buy other products.

ONLINE RESOURCES One of the ways Samsung can continue promoting their website is by using other online resources. A blog about the Samsung can help to respond to any questions or issues that consumers might have. They can also use this format to post updates about their phones or software. Because it is company controlled however, they could make sure that there are very few negative comments about phone and can prevent against spam. Samsung could utilize banners and have them follow the theme of their commercials and print advertisements. They can put them on popular websites or ones that will target their audience. BUZZ MARKETING One of the ways that Samsung could start a buzz marketing campaign would be to release details about their phones during trade shows. These shows feature many different phones but also create excitement for phones that rise above the competition. Videos of first-looks of these items are often put on YouTube. Many see these videos and tell their friends. Another way would be to use the sponsored #hashtags. These hashtags display easily different topics. Many people on Twitter see these hash tags and post their own reaction to the story. For instance, if Samsung were to post #myGalaxy, it would hopefully encourage Twitter users to read that and respond with what their galaxy (life) consists of. VIRAL MARKETING Viral Marketing is when a video becomes very successful and played many times. If a Samsung advertisement goes viral, then it will lead to a more favorable brand image. Samsung has had success with viral videos in the past. These videos would need to be entertaining, and humor is a good route to take. These videos also cannot have overt persuasion featured in them. Instead Samsung could create a short video and then feature the logo quickly at the end. These videos would be put up and shared primarily through YouTube. GUERRILLA MARKETING Guerrilla Marketing is essential in making the Samsung name into a lifestyle. It will increase recognition of the logo. It will be targeted in the cities where 4G will be released. Samsung will give away apparel with the Samsung Galaxy Logo on it. These items include a shirts, hats, stickers, and water bottles. We will have Street Teams that will be in charge of distributing these items throughout the city and at special events.

They will wear the apparel and also create reverse graffiti. Reverse graffiti can be done with materials such as sidewalk chalk because it can be erased. SPONSORED CONSUMERS Sponsored Consumers will be helpful to the campaign because Samsung has reached these consumers who have become fans of the product and genuinely enjoy using the phones and can hopefully convince others to do the same. Using the database and finding a few people based on age (in target audience) and purchase history. These sponsored consumers will be asked to share their story through a variety of media. These include television commercials, trade shows, radio, and social networking. These sponsored consumers can be rewarded with more point sin the reward program and be given free guerilla marketing apparel as well. TRADE SHOWS Trade shows can create excitement for many new phones. Many phone reviewers come to trade shows to see what the trends are in mobile devices and see what phones will be coming out in the near future. These trade shows would be a good venue to reach consumers who are specifically in the market for the phone. Even if they are not looking to purchase a phone at that time, they may be looking just to get educated about which phone they want. Unfortunately Samsung would be one of many brands which creates brand parity. If Samsung can rise above the competition and create a unique, high quality phone, then it may be more noticed. The phone may also reach consumers who already purchased a Samsung but are looking just to confirm that they made the right decision and are still happy. Even for those who did not attend the show, many phone reviewers post these videos on YouTube so that consumers at home can get a glimpse of future phones. Some of these trade shows are CTIA: The Wireless Association, Mobile World Congress, Consumer Electronics Show. DATABASE The database will be used to further customize who the phone is marketed to. We can get information when people sign up for new phones through the lengthy process. Since they are signing a two-year contract, they must provide much information. People can also join one of the online communities and provide the information that way, or they can also sign p specifically for updates. The information that Samsung would connect would be names, contact information such as phone number, email address, and address. If they sign up online, Samsung can track how many times the logged on or checked in on the site. This database would also keep track of the purchases with a transaction history. This will help market to one-time consumers and dedicated consumers. The information about which carrier the

consumer is using is important because the phones marketed to them would just be of the carrier they have. Using this information, Samsung can further customize their marketing plan to further segmented groups. They can send information about accessories to new customers to encourage them to keep purchasing Samsung products. As consumers get close to the end of their two-year contract, Samsung can market more heavily to them. These advertisements would focus on the value of the phone and that while expensive, will be worth it if the consumer is happy with it throughout their two-year agreement. For those that sign up online, the website can be customized to them. If they purchased the Samsung Captivate, when they reach the website, information about the Captivate will mostly be visible. Their zip code will also be stored for the store locator. There can be an upgrade countdown so consumers know exactly when they can next upgrade. Samsung will also invest in permission marketing. This will respect the consumer's right to privacy and fits in with Samsung's values. They will do either email or send direct mail to these consumers that wish to be advertised to. REBATES Samsung will offer rebates once the phone ages. This will encourage people to still purchase the phone, even if it no longer is the latest and greatest phone on the market. After three months, the rebate will be for $50.00 off, 6 months will be $75.00 off, and after a year will be $100.00. These rebates will be mailed in and post-purchase so that it is up to the consumer to remember to mail in their rebate within a certain time-frame. IN-STORE PROMOTION The in-store advertising would have posters and video advertisements of the product. This would help reach an audience that they may not have reached through any of their other advertisements. The most important part of the in-store promotion would be a demo product. This would allow the consumer to see and use the product. This can further solidify the consumer's mind so that they know that they will not have a problem using this phone or convince consumers that they would enjoy this phone. It shows consumers first hand how the product can be used and the powerful specifications. PRODUCT PACKAGING Product packaging is not important in selling this product because by the time the consumer sees the packaging, they already purchased the phone. What the packaging can do is let the consumer know that they have made the right decision. If the package is well designed and continues to carry out the message, the consumer will feel better

about purchasing that product. The package would focus less on the carriers and more on Samsung's line. This would help the consumer know that they are buying a quality Galaxy phone as opposed to just another Verizon/AT&T/Sprint/T-Mobile phone. It would have the Galaxy logo and list what is included with the phone. EVALUATION Samsung will test the effectiveness of their commercials before they actually launch. They can do this with internet testing, sending the video to a few randomly selected audience members and asking them to rate it. In post-production evaluation, if there is an increase in sales, Samsung must determine if it was caused by the advertising or by other factors. Samsung can evaluate quickly over the internet with page views. For banner advertisements they can use dwell-rate and dwell-time that specify how many times and how long they were on the website. It can also test how many consumers clicked onto the website from a banner. Samsung can test the effectiveness of their campaign by also seeing how they close they were to their objectives. They can do research to see if they gained that 1% of market share and run logo tests to see how recognizable their logo is.

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