samsung marketing plan

2010 Marketing Plan

“Inspire the world, Create the future.”

1.0 Executive Summery

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. With the release earlier this year, Samsung dominated the market, controlling nearly

90% 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.

Although Samsung is dominating the 3D market, we still have very detailed strategies

and tactics that we believe will give us an increased competitive advantage over our

competition. The company’s main emphasis the past couple years has been on integration,

union, and encouraging innovation. Samsung is always preparing for the next big item to hit the

market, which is why their technology is so far ahead of all leading competitors. In the future,

we plan to enter the 3D video gaming market with a partnership with Microsoft. This will give us

access to all of Microsoft’s gaming technology, in which we will combine with our quality of

sound and viewing stations to create the ultimate gaming experience. Of course, throughout

our journey through this market, we will continue to provide the best ad campaigns for the public

so that they will never forget our product. We will put as much prominence as possible in the

sleek design and the one of a kind ultra-thin panel, only available in the Samsung 9000 series.

By having an effective ad campaign, we will be able to catch the eye of many different target

groups. Our major target groups are men around the ages of mid twenties to late thirties,

Caucasian males, with a new and growing family. Studies show that this category is more likely

to buy the TV, along with a gaming system, than other aged males. We are also targeting “Cube

Tubers”. This is a group that consists of young people who grasp onto new technology quickly.

This group is a large part of the 3D TV market right now.

If the discussed strategies and tactics are successfully carried out, Samsung and the

9000 series 3D TV, will hold the top spot in the television market for years to come. When this

market starts to decline, Samsung has the technology ready for the next big wave of televisions,

3D TV without glasses.

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2.0 Situation Analysis

2.1 Samsung Electronics’ Vision Statement:


These six words coined the vision statement for Samsung Electronics (SE) in

early 2010 in correspondence with the release of its first 3D television. This vision

statement is a part of SE’s “Vision 2020” plan, and is considered the motto of the

decade for the industry leading organization. This new vision captures Samsung’s

dedication to inspiring its communities by leveraging Samsung’s three crucial strengths:

“New Technology,” “Innovative Products,” and “Creative Solutions.” It also promotes

new value for Samsung Electronics’ core networks: Industry, Partners, and Employees.

Samsung’s commitment, set forth through their vision statement, is to contribute to a

better world and a richer experience for all.

2.2 Current Strategy:

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 3D

TVs 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.

The current strategy being implemented is merely preparation for the growth potential in

the 3D television market. Samsung realizes that the growth of the 3D television market

is dependent on the volume of 3D content available. Due to the market’s dependability

on other industries to produce 3D content, Samsung has incorporated an effective plan

to accelerate the availability of the content. This segment of the current strategy was

addressed by Samsung’s recent partnerships with, 3D content industry leading,

partners Technicolor and DreamWorks Pictures.

22010 Marketing Plan

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2010 Marketing Plan


This current strategy has been effective, considering that, as of October 2010,

the aggressive early launch plan has assisted Samsung in acquiring an 88% share of

the 3D television market in the U.S. Samsung’s current strategy also includes the

expectation that their dominance and innovation in the High-Definition Television

(HDTV) market will carry over as the 3D content availability increases. This current

strategy can also be seen in Samsung’s advertising efforts, as they launched a 12.25

million dollar marketing campaign in February in the UK. Currently, the strategy is

established as progressive, meaning that Samsung is withholding the latest innovations

fro the 3D-TV market. Samsung has entered into a transitional phase, as they introduce

the newest segment in the television market, and await the arrival of appealing 3D

content to compliment their technology. Samsung’s previous strategies have thrived in

the constantly evolving television market, innovating and pioneering new markets while

developing break through products at competitive prices. Samsung has positioned

themselves throughout the past five years to dominate the next generation of 3D-TV

market. Samsung’s dedication to innovation in the flat-panel TV market has resulted in

their ability to deliver the breakthrough products and superior values that will keep them

at the forefront of the global TV market.

Samsung began their dominance of the digital television market in 2005 and

retained their top position until 2009 when, greenhorn to the market, Vizio took the top

spot. In 2005, Samsung achieved their first No. 1 Market Share ranking in the High

Definition television (HDTV) market. Although they lost the No. 1 market share of Liquid

Crystal Display (LCD) televisions, 2005 proved Samsung to be a step ahead of the

competition. They performed well enough that year to earn the 27th spot on the “World’s

Most Admired Company” list by Fortune Magazine. 2007 brought Samsung the sixth

consecutive year with the No. 1 market share for LCD screens. Samsung pioneered

advanced 3D technology, launching a 3D DLP TV in 2007, and a 3D Plasma-TV for

2008. In 2008, Samsung led the global TV market for the third consecutive year as they

continued to intrigue customers with outstanding picture quality, elegant liquid-crystal

bezel styling, and advanced interactive and connectivity options that allow customers to

enjoy pictures, movies, and music from the Internet, their own home network, or USB

devices. In 2009, Samsung introduced the newest line of HDTV that was certain to be a

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global hit, the Light Emitting Diode Television (LED-TV). The LED-TV lineup Samsung

offered was the next advancement in LCD technology, replacing the conventional cold-

cathode fluorescent lamp backlighting with eco-friendly LED backlighting. The result of

this new market segment Samsung created was a full-featured TV with superior picture

quality, stylish ultra slim enclosures, and dramatically lower power consumption. 2009

also brought success for Samsung’s brand-recognition campaign as the Samsung

brand entered Fortune’s Top Ten list of the World’s Top Global Brands. Samsung

forged a new market by launching their elegant and revolutionary, Light Emitting Diode

(LED) television. Worldwide, Samsung sold 30 million flat-screen television sets,

maintaining the No. 1 market share of Flat Panel TVs (FPTV) the fourth year running.

Such achievements firmly establish Samsung’s leadership both in popular demand and

in producing top-quality products. In March 2010, Samsung was the first company in

the world to market a full HD-3D LED-TV, reinforcing the organization’s leadership

within the industry.

Although Samsung is a world leader in the television market, the product mix has

more depth than simply home entertainment accessories and cell phones. The TV

business and the Mobile Phone business, are key components in the Samsung

Business Portfolio. The TV business holds the top position in the current market. LED

TVs, which has shown explosive growth in the latest market, is a flagship product within

the TV business. LCD TVs and Monitors have also maintained top positions in their

respective categories. Samsung seeks to sustain leadership through constant

innovation and development in new technology, such as 3D. Samsung also inhibits a

world leading Semiconductor business unit, from which they transferred 300 engineers

to the TV business unit. This transfer relocated the top performing engineering team in

the company, providing the employees with healthy performance bonuses every year,

and keeping the TV business unit highly productive and competitive. This in house

access to human capital has allowed Samsung to maintain the top position in the

marketplace.

2010 has undoubtedly been the breakthrough year for the revolutionary 3D TV

technology, assuring a very busy year for Samsung. With the release of Series 7000,

Series 8000, and Series 9000 (LED-TV) televisions, Samsung has garnered high media


2010 Marketing Plan


and consumer praise for perfectly reproducing the range of full HD 3D images and

delivering “true-to-life” and “easy-on-the-eyes” picture quality. Samsung has been

charting the future of television through their 3D TV releases, of which include LED-TV,

LCD-TV and Plasma-TV as well as 3D Blu-ray players, 3D home-theater systems and

total 3D solutions that combine 3D active glass with 3D content. Samsung’s current

strategy is to enrich the television experience and the power of the products by

maintaining the superior picture quality. SE has also began to enrich a deepened value

to customers by continued communications and by differentiated products, such as

expanded Internet-TV features and the launch of the Samsung application marketplace,

“Samsung Apps.” These strategic efforts strengthen the premium brand image

Samsung looks to uphold and assists them in seizing and maintaining the No. 1 market

share ranking.

With competitors simply following the trend of Samsung’s breakthrough

innovations in the market, saying that Samsung is a step above the competitors would

be an understatement. With the 3D TV market segment being introduced, several

companies have identified it as the next big trend in the home entertainment market and

aim to capitalize on the potential growth by entering the market. Some of the top

competitors are Sony, LG Electronics (LG), Mitsubishi Electronics, Vizio, and

Panasonic. Currently, none of Samsung’s competitors can offer a product to rival the

picture quality of the Samsung. Companies like Vizio, however, look to undercut the

quality aspect of Samsung’s product by offering a cheaper, lower quality, alternative

product more accessible to mass market. Samsung will eventually see significant

competition in the 3D TV market. Their greatest competition may come from their most

recent prominent competitor, Vizio. While Samsung maintains quality as a major selling

point, Vizio’s focus is to appeal to the mass market by lowering their quality standards

so they can sell the product for less. Vizio is a market share leader but an innovative

follower, in a market where consumers will be forced to pay for the new technology and

will appreciate the quality due provided by Samsung, which in turn will negatively impact

Vizio.

At Samsung, creativity, collaboration and excellence are the hallmarks of

leadership. Samsung has attracted the world’s most talented managers as they work

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continuously evolving the company’s culture to better support their employees.

Samsung fosters innovative ideas that advance technology, creates new products, and

improves the everyday life of their customers. The organizations leadership consists of

veterans of the Samsung brand. Most individuals in top positions have spent well over

thirty years with the organization. This employee retention indicates stability and

accelerates growth within the organization. Samsung is a very customer oriented

organization, offering product support online, by phone, or in stores.

Samsung’s current strategy, taking a transitional approach to the 3D TV market,

while launching several new advertising campaigns to increase awareness of the new

technology, can be seen as very effective due to the role they play in the market.

Understanding the potential growth the market will see, Samsung has taken innovation

to the next level by developing several different 3D products, which could eventually

lead to them attaining complete 3D TV market dominance. The environment of the

Samsung organization breeds innovation and creativity, allowing Samsung to develop

products and that will move them a step closer to there goal of maintaining dominance

of the 3D market.

2.3 Consumer Profile:

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. These early adopters to new technology, are

usually affluent young men who have redefined cool from having fast muscle cars, to

being good at computer games. “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. Understanding that children are more likely to show interest in the


2010 Marketing Plan


development of 3D technology, Samsung and other companies will try to appeal to the

children with the intention of captivating the market of families with children between

ages two and fourteen. One common factor of all 3D product consumers is their likely

geographic location. 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. Most consumers of 3D TV products

will buy them via e-commerce with fewer buys being made in retail stores. Most e-

commerce suppliers offer free, or cheap installation and deliveries. Supplying more

convenience to the consumer than the average retail store. With the majority of the

sales in the 3D TV market e-commerce, Samsung will still be selling a significant share

in high-end electronics stores such as Best Buy (US) and HH Gregg (US). When

defining the psychographic segmentation of the consumers of this market, Sue Shim,

Chief Managing Officer, Samsung, defined the target consumer as someone “immersed

in the TV experience, an early adopter, and an individual who is a thought or opinion

leader amongst peers.” The individuals Samsung looks to target, value the home

entertainment experience as prior generations would have valued an evening at the

theater.

Samsung’s 3D TV product usage will increase as the content becomes more

available, and Samsung has taken steps to accelerate the rate at which this 3D content

arrives. In March 2010, Samsung announced partnerships with Technicolor and

DreamWorks Pictures, two industry leading 3D content providers. With these

partnerships, Samsung developed packages of products for the market incorporating

3D content from DreamWorks Pictures and Samsung’s 3D TV products, offering the

consumers the full package for the ultimate at home entertainment experience. This

combination of content and product demonstrated the innovative practices at work

within Samsung, and helped them achieve their goal of the No. 1 market share in the

3D TV market as it was pioneered.

The only deterrents from the traditional patterns of purchase in the TV market are

the decline in the current global economy and proximity of the latest transition in the

television market to HDTV. The transition from standard definition to HDTV is still

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growing and many questioned Samsung for the release of 3D TV while new market

segments are still growing in the HDTV market. The importance of customer service to

encourage the growth of 3D TV industry is infinite. Samsung has established a plan to

interact more with the target consumers and expose them to the products available.

Market forecasts project sporting events in 3D will attract consumers, and with the

release of content such as ESPN’s new 3D channel, the potential growth for the market

is opened to a new segment of 3D entertainment, the sports fan. Acknowledging that,

Samsung took the initiative to begin demoing their available 3D TV products on site at

sporting events at kiosks, offering fans the opportunity for exposure. The seasonality of

sales for Samsung is crucial, however they have identified the period between

Thanksgiving and New Years, the fourth quarter, as their most prolific quarter of the

year.

3.0 Competitive Analysis

Before comparing the products available from Samsung and its competitors, one

must understand that many market forecasts have been done, predicting the potential

room for growth in the 3D TV market share available. These forecasts also predict the

total share of the market that the 3D industry will capture out of the entire television

market. Samsung has studied these numbers and implemented release plans and

pricing strategies based on these market forecasts. The results of these forecasts are

as follows: 6.2 million 3D TVs will be sold in 2010 (the launch of the market)

representing three percent of the entire TV market. By 2014, forecasts project over 83

million 3D TV sets being in homes representing 31% of the entire TV market. Samsung

has established 2014 as the next big year of releasing the next generation of 3D

products such as 3D sets that do not require the use of shutter glasses, eliminating

another inconvenience factor the current market bears.

For comparative product analysis, we will use the most popular selling class of

3D television sets with the most beneficial and unique features. The 55” inch class is

considered the most popular model of 3D TVs. For most competitors the model chosen

is similar to that of Samsung, however the differences can be seen in the quality and the

price. For Samsung the model was the 9000 Series LED 55” inch class 3D HDTV. This


2010 Marketing Plan


model was released in 2010 at a Consumer Electronics Show and won the award for

“Most Brilliant Innovation” for the industry that year. The 9000 series boasts an ultra slim

.31” design (the size of a pencil), it comes with a premium accessory package, cinema-

quality 3D and groundbreaking picture quality for 2D content, and it is also a Smart TV

with web-connected Samsung Apps. This products slim design is accompanied by one

of the most consumer conscious accessories introduced in the television market, the

remote control. The remote control for this set is a touch screen handheld panel that

allows the consumer to stream live television to the remote even if you leave the room

so you never miss a moment of your favorite entertainment. The quality and design of

this product goes unmatched, as does it price, $5, 999.

3.1 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. Their videos offer different features about different products

such as their TV’s. When typing into Google, Sony does not come up first, however,

Best Buy was one of the leaders, who sell Sony TV’s. However their customer service

falls short of SE according to consumer reports. The Sony product for the 3D TV

market falls under its Bravia class, and sells for $2,999. Bravia boasts similar features,

as most competitors have had no choice but to follow the trends of Samsung. 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. Sony seemingly finds itself in the television market as it finds itself in

every other aspect of the entertainment market segments ranging from film production

to MP3 players and gaming consoles. It is a large organization focused on improving

current products and using other organization’s innovations to take a share of the

market.

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3.2 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. This late

adaptation and constant need for upkeep to maintain picture quality and absence of

variations in the products available in the 3D market limit Mitsubishi to a small market

share. Concluding that Mitsubishi’s broad range of products, and lack of resources

available to consumers, equates to poor customer service practices.

3.3 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. "No one can keep up" with price cuts by Samsung in the

world’s biggest TV market, Yoshiiku Miyata, a managing executive officer at Osaka-

based Panasonic's, TV business, said in an August 30 interview with Bloomberg. "It’s

become unclear whether we can reach our target" of selling one million 3-D sets in the

year to March 31,” he said. Panasonic’s product for the comparative analysis is the 55”

inch class Viera, priced at $3,350. Panasonic’s premier 3D product differs in the

backlight composition, opting to use plasma for the opening of the 3D market. With

plasma however, comes the looming fear of having to replace the backlight in the


2010 Marketing Plan


television as is necessary for plasma. However, the LED backlight Samsung offers is

far superior to the picture quality of a plasma television. The pricing strategy of

Panasonic is in question as well, considering the plasma technology is much cheaper to

produce yet the price is similar to that of LED backlight set.

3.4 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 3.8

million units. That compares with LG's 15 percent market share target for LCD TVs, or

25 million units. "Considering the downward trend of (our) market share in the general

TV market, it is our goal to lift our market share in 3D TV, which will lead the next TV

market," Kwon Hee-won, executive vice president and head of LG's LCD TV business

unit, told a press conference, declining to provide a specific sales target.

LG had focused on the mass market. Initially LG’s objective was to create a

footprint among the sizable middle class, and other than its aggressive pricing, there

was little to distinguish it from other consumer durable companies. LG’s premium

product in the 3D lineup is the 55” inch class Infinia model, LED projection full 3D

HDTV, priced at $3,970. One major drawback with this product is the label of being a

3D-Ready TV, in comparison to a 3D-Enabled TV like that of Samsung’s 3D TV product

line. This factor and the passive approach LG has in the television market will limit the

shares they will get in this early phase of the 3D TV product life cycle.

3.5 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. This mission allowed Vizio to take the No. 1 market share in LCD

televisions in 2009, the first time in six years anyone but Samsung held the coveted

ranking. Vizio also found itself in the 3D TV market soon after other brands such as

Samsung pioneered the way. Using the best of innovations other companies have had,

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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. Vizio’s

product for comparison is the 55” inch class Full Array TruLED LCD 3D HDTV, this

product sells for $2,499.

4.0 SWOT Analysis

4.1 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 9000 Series, which is the thinnest 3D TV available at .31 inches.

Samsung is also working to lead the market by offering a range of top quality

award winning products developed specifically for the 3D market. 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. Samsung focuses more towards the

innovations and tries to keep improving products to attract more consumers and

capture more market share. Hoping to captivate the interests of more target

consumers, SE demonstrates its aggressive approach to accelerating the

diffusion rate of the 3D market by offering over a third of their LED products as

3D enabled devices. The robust market position coupled with strong brand

equity imparts significant competitive edge to the company regarding scale and

recognition, which in turn augers well for the company’s expansion plans.

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2010 Marketing Plan


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. SE’s semiconductor business unit from which they transferred

those engineers, is successful enough for competitors in the television market to

buy the technology from SE to use it in their own products. Companies like Sony

and LG, SE’s biggest competitors in the 3D market currently buy their

semiconductors used for production of there 3D TVs from Samsung, giving SE

the ability to dictate the technology used by its competitors. With control over

competitors technology SE can assure there dominance of the 3D TV market

share, by staying a step ahead of the competition selling them technology SE

has been using for some time.

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. The

company plans to enhance the spending to nearly KRW9,300 billion ($7 billion) in

2010, up from KRW7,600 billion ($6 billion) in 2009. The company has deployed

nearly 42,000 people in the research activities across its 42 research facilities

around the world. These efforts in R&D have allowed for SE to develop

technologies for products such as a 3D TV that doesn’t require glasses, which

has been developed but Samsung is waiting to develop the market and for

competitors to catch up. Further, the company owns several research centers

across the world. Its R&D network spans six centers in Korea and 18 more in

nine other countries, including the US, the UK, Russia, Israel, India, Japan and

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China. These R&D activities helped the company to launch various new products

in the recent past.

4.2 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. As we define our

market, the target consumer is someone who more than likely played or still plays video

games. Sony’s PlayStation is the first to launch 3D gaming content, however with this

being the only aspect of the 3D market that Samsung does not currently play a role in, it

is identified as a weakness as it could allow a competitor to gain ground in SE’s market

share.

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.

The timeframe for this target to be expanded would be 2014 as the next trend in 3D TVs

is introduced, being the TVs that do not require the use of shutter glasses. The impact

on customers this weakness represents is minimal, considering the quality of the

product is unmatched. To the consumer who is concerned more with quality than price

the impact is none, but to the average financially conscious TV buyer our product may

lose appeal when compared to the cheaper alternatives in the market.

4.3 Opportunities

A. Strategic alliances that enhance the company’s product offerings


2010 Marketing Plan


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. Earlier in 2008, the

company entered into partnership agreement with Netflix, the world's largest online

movie rental service. As for the agreement, the companies would offer consumers the

ability to instantly stream movies and TV episodes from the Netflix Web site directly to

their living rooms through Samsung's BD-P2500 and BD-P2550 Blu-ray disc players.

The agreement enabled the Samsung Electronics to introduce advanced features in its

products, resulting in improved customer offerings. The company has been able to form

strategic alliances with some globally renowned players who are strong in there

respective domains. Alliances such as these will not only help the company tap newer

avenues of business but also help the company develop newer landscapes for revenue

growth.

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. This would increase brand

recognition of Samsung by associating it with products such as Microsoft’s XBOX 360

and their other products to come. This partnership would also increase customer

satisfaction by acquiring the only segment of the 3D market Samsung is not associated

with.

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4.4 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 play

3D games. However, with our target defined as “cube tubers,” the majority of

consumers Samsung looks to target will not fall under this gaming segment. The

severity of this threat could begin being analyzed as 3D gaming content arrives in the

market, which will be begin during the Christmas buying season of 2010. With only a

very few titles becoming available over the course of its first few months in the market, it

will be July 2011 at the earliest before the significance of the 3D gaming market

segment can be determined.

B. Slow diffusion rate for 3D TV

Also representing a threat is a slow diffusion rate for 3D technology. The TV

market has been rapidly, the evolution of HD TV and flat screen TVs is the most recent

change the market has endured, with the next being 3D. Most consumers of lower

economic classes or slow adapters have just recently made the transition to HD TVs,

discouraging them from immediately making another buy such as that of a 3D TV.

Samsung will be doing everything they can to accelerate the diffusion rate for 3D TVs.

With most market forecasts predicting the change will occur within the first five years,

Samsung should be able to measure the success of their efforts within the first two

years after the product was launched as an indicator. This threat could effect Samsung

exponentially as Samsung has invested billions of dollars in R&D for 3D products, a


2010 Marketing Plan


slow rate of diffusion would slow down the rate at which Samsung reaches its goals for

profitability.

4.5 Conclusions:

Due to Samsung’s superiority in the general TV market, the threats as you can tell are

minimal. However, in the strategies and opportunities sections you will find what we are

doing to reduce the risk of these threats having an affect on Samsung’s market share.

Developing a partnership with Microsoft will be a vital component to developing the 3D

gaming content availability, which is the only relevant competitive advantage other than

pricing. As Samsung introduces new 3D products to the market, the price of there

current products will drop, making them more readily available to lower class consumers

and expanding the target market for their 3D products.

4.6 Marketing Mix

4.6.1 Product

Samsung offers the most diverse product mix in the 3D market, offering LED,

LCD and Plasma 3D TVs. Samsung’s cash cow product in the 3D market however, is

the LED 9000 series.

Features

-55” or 46” class LED backlight display

-.31” thin, the thinnest TV available

-The most technologically advanced television remote, with which,

you can stream live television to if you leave the room of the main

display and view content directly on the LCD screen on the face of

the remote

Advantages

17


-The distinct advantage to buying a Samsung 3D TV for the

consumer is the knowledge that they have bought the most cutting-

edge, technologically advanced TV, in the 3D market.

-The remote is the only one of its kind, offering consumers a distinct

feature they cannot get from any of SE’s competitors.

-Samsung’s 9000 series is the thinnest TV ever produced.

-Samsung offers the best 3D packages, consisting of 3D starter

kits, 3D home theater surround sound, 3D capable blue ray

players, and the highest quality 3D TVs.

Benefits

-Among the benefits of this product, the increase in customer

satisfaction, due to the quality of the product, will be unmatched by

competitors.

Because Samsung produces such a diverse product mix, they can meet all the

needs of the 3D TV consumers with the products they offer, at a very competitive level.

4.6.2 Price

The price of the 9000 series is $5,999. However, Samsung’s diverse product mix

of 3D TVs ranges from $1,200-$7,000.

4.6.3 Promotion

Samsung has launched various advertising campaigns, spending billions of

dollars across three continents, North America, Europe and Asia. Eight billion dollars

has been spent in Europe alone, and three billion in Asia. Neither of which compare to

the twelve billion dollar campaign launched in the North America, predominantly the US,

from where 66% of the 3D TV market exists.

They also have and will continue to use celebrities such as singing group, The

Black Eyed Peas, to promote their products. They use these celebrities in

advertisements seen by the public, but also at some of there biggest events in which


2010 Marketing Plan


they display the product and allow the consumers at the events to experience Samsung

3D.

4.6.4 Place

These products will be sold mostly online, where customers can find deals for

free shipping and set up. This also offers consumers the opportunity to analyze reviews

and physically see features of our products rather than hear them from a retail store

associate.

Samsung’s products will not be offered in wholesale stores or super centers like

Wal-Mart or Target, but the consumer will have the opportunity to purchase them in

specialty electronics retail stores like Best Buy and HH Gregg.

← 5.0 Market Research Findings

←5.1 Video Game Market

← Because we intend on entering into a partnership in the future with Microsoft to

develop a 3D gaming system, researching the gaming market was essential. According

to DMW Media, global video game sales totaled 41.9 billion dollars in 2009 and are

expected to grow 10.3% to 68.3 billion in 2012. Game console sales are expected to

reach 34.7 billion dollars in sales by 2012 with a 6.9% annual growth rate.

←

←5.2 What leads us to believe we can sell 3D TV’s in this market?

← According to FutureSource, 3D TV sales have been healthy and are beginning to

surpass HDTV sales at the same point in HDTV’s life. FutureSource also says that by

the end of 2010, 6.2 million 3D TV’s will have been sold worldwide, with 1.2 million of

those being sold in Europe. 10 million are expected to be sold in 2011, and 50 million by

the year 2015.

←

←5.3 Focus Group

19


← To gain a better idea understanding of the consumer market, we organized a

focus group. The focus of the study was on what the current consumer felt about the 3D

products available, and what improvements could be made in the eyes of the consumer.

The group consisted of 10 average consumers, 5 men and 5 women. 5 of the people in

the group had used our Samsung 9000 Series 3D 1080p LED HDTV, while the other 5

had never used a 3D TV and were simply asked what they thought about the idea of

purchasing one and the overall concept of 3D TV’s.

← First we had an open discussion with the five participants that had used the 9000

series. The feedback about the 9000 series was extremely positive. This is what the

users had to say about the products advantages;

← Consumer #1 - “Found it easy to mount on the wall. TV is so thin and picture is

so clear it leaves people in awe. 3D feature is awesome, although very limited library at

present time. Works well with my 3D receiver as well.”

← Consumer #2 - “For the price of the TV my expectations were high and for the

most part they have been met, brilliant color and crisp picture. Action scenes are

awesome. Sound is really not too bad if you have a small or medium sized-room.

Technical support offered via 1800 number helps tremendously for parts of set-up that

are a little difficult for the average person.”

← Consumer #3 - “Before buying I was one of those people that ridiculed the idea of

wearing bulky green glasses to watch 3D - but the other day found the whole family

bunched up to watch "cloudy with a chance of meatballs" it was great! I now cringe

every time I am forced to watch something that is not High Definition. Regarding the

much-heralded Internet and TV and LAN functions I had my expectations up high. I

connected to Samsung services and setup DivX reasonably easy to gain access. The

TV updated a couple of times to upgrade Firmware but it was painless - first upgrade

through wireless and following wired. I find my Windows Home Server files easily and

watch them flawlessly. I send the sound to my amplifier from the optical connection with

no problems.”

← Consumer #4 - “The picture quality is amazing. I compared it to the c8000 at the

store because I was skeptical about the contrast ratio being lower in the c9000 but the

9000 looks better. The Picture is smoother and clearer, no blur at all. The difference in


2010 Marketing Plan


price is definitely not just how thin it is which is incredible to look at. This TV is an

amazing display of technology.”

← Consumer# 5 - “We've been looking for a HDTV for some time and think that

we've found the perfect one. The picture (even without the 3D) is AMAZING and with

the 3D is beyond our expectations. We paired it with a Samsung HTIB and love the

combination. Good going Samsung! Nice job on this one.”

← The pros of the 9000 series are clear. The group had a basic agreement that the

picture, the 3D and the overall design of the TV were of high quality and one of a kind.

However, we also asked them what the cons of the TV were, so that we could get a feel

for what future TV’s should have based off of our assessment of what the group says.

These are the cons they came up with.

← Consumer #1 - “Set-up if you aren't technology savvy may take assistance. For

the on-line Apps, if you have more than one Samsung product you have to set up

separate accounts and passwords for each product. Remote control sometimes does

not pick up signal so you can't watch the show on it when you leave the room, and there

is a very short battery life on remote control.”

←

← Consumer #2 - “Unfortunately it is IMPOSSIBLE to utilize these profiles for other

than indifferent options such as weather settings and other bloatware. Contacting

Samsung support only confirmed and I was told that it is all over the board - 1 TV - one

Netflix login no matter which producer. Am I allowed to not care about all the others and

expect more from a top of the line TV? - Samsung should be cutting edge as they are

with design and functionality and they should be able to code the software to make

sensible use of these profiles - why else would you have them apart from wanting to

personalize your TV experience? The workaround is to reset the account every time

someone new wants to use it and then re-register with new Netflix information - this

could be coded in to the software if Netflix or is it DRM essentially is stopping this ability.

Another word of caution for this beautiful piece of furniture; After having hung it on the

wall and worked with the wires a few times - the motion of tilting the TV out to gain

access causes the Aluminum to get very slight indents - this can only be viewed by a

very critical eye along the edge against light. Lastly I can possibly hold my breath longer

21


than the remote holds a charge - so I added it on to a multifunction remote from a

competitor and avoided that problem.”

← Consumer #3 - ”Bought this TV for its design and the remote. All the electronic

and connection are in the stand and you have to remove a black part and stick it to the

back if you want to hang it. Lot of connection problem with the WI Fi or Ethernet, have

to reconnect all the time, both for the TV and the remote I have the latest router

available which works fine with all other devices. The remote is disappointing and the

touch screen a pain to use. The selection of the source is a pain; I have not found a way

to remove the unused sources. Image quality is certainly the best available but identical

to the 8000”

← Consumer #4 “Big complaint would be setup and reliability of internet features. It

was a little tricky to setup the TV. The remote connects over the internet to the TV as

well. Sometimes this works and sometimes it does not. Same with watching content

over the internet. The TV gets a lot of errors, then it will work great and then it gets

errors again. Spent hours trying to fix it, but still not reliable...Remote works terrible in

infrared mode. It takes a lot of pointing and changing positions to get the TV to respond.

However, if the Wi-Fi mode is working, the TV responds perfect.”

← Consumer #5 - “Unfortunately the hefty price will only get you the cool factor.

Don’t get me wrong, but this TV is obviously targeted to a consumer that cares more

about the looks of the set itself than its performance. The picture is about as good as

the C7000 but not nearly as good as the C8000 which is admittedly Samsung's flagship

for the masses”

← The next five participants that we asked to be a part of the group have never

used a 3D TV. Overall they know very little about them and what they do know, is only

has been seen on television advertisements. Some of the questions that we asked

were, would you buy a 3D TV? What do you think would have to change in the 3D TV

market to persuade you to buy one? Finally what do you think about the concept of 3D?

Do you like it? What don’t you like about it? The answers we received were simple:


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← All five participants said that at this time, they would not buy a 3D TV due to the

cost. With the current state of the economy, they agreed that spending that much

money on a TV was unnecessary and irresponsible unless you can honestly afford it.

← When asked what would have to change in the market for them to feel

comfortable buying one they agreed again that the price would have to come down.

Another suggestion was that all programming would have to be in 3D. One participant

said,” with the 6,000 dollars I spent on the TV I could feed my family for a long time, or

even make upgrades to our lifestyle without buying a new television.” Another said,”

with TV’s changing year to year from HDTV to 3D TV, it feels like it costs a fortune to

stay caught up when the smart thing to do is to wait for a new TV to be introduced, and

when the prices fall for the older ones go get one of those, they are all the same to me

anyway.”

← When asked about their opinions about 3D in general, 2 really had no opinion

because they were just now becoming accustom to HDTV, and 3 others said that they

enjoy it, but hated having to wear glasses to watch TV and that the total cost was not

worth the experience. One participant said,” I don’t need what I watch to be “jumping

out” at me. “I don’t want to be watching a football game and have it seem like I’m about

to get tackled.”

← In conclusion, the focus group gave us a great idea of how productive 3D TV’s

will be. The participants that have used one had more positive things to say than

negative. The things that were mostly complained about such as the remote control and

the cost will vary no matter what. If the remote control is a main problem with the TV

instead of the picture quality, or the sound quality, then Samsung has done a good job

with the product. As far as getting new customers to change their mind about not

wanting one, that will come as more 3D TV’s are released and information about the

advantages of them become available. If the quality is there and the cost is right, then

the 3D TV market will prosper as the HDTV market did when it encountered the same

problems, and according to the numbers the 3D TV market will double in the next year,

and triple by 2012.

←

←

23


←

←

←

←

←

←

← 6.0 Objectives

6.1 Enter in to the 3D video gaming market through a partnership with Microsoft.

In order to capitalize on the growing video gaming market, we intend on entering

into a partnership with Microsoft to develop a virtual gaming product. Short term, we

would like to couple 3D TV technology with a dominant video gaming console like the

XBOX 360. By the year 2020 we intend on launching a virtual gaming product.

6.2 Launch a comprehensive ad campaign that focuses on SE’s competitive

advantage in 3D technology.

An ad campaign focusing on our competitive advantage in technology would be

highly effective in selling more 3D TV’s to developing market. We want to make it known

that Samsung was the first to pioneer this technology, therefore, they are getting the

most advanced product in the market. Our goal is to increase TV sales by 5% in a 6-

month period following the launch of the campaign.

6.3 Maintain market dominance throughout the “Glasses” era and prepare the

market for a “glassless” 3D TV.

Having already established a firm hold on the 3D market, we would like to

maintain our position as market leaders in 3D technology with the use of 3D glasses. As

the market evolves closer to glasses free technology we would like to prepare the

market for our product release in 2014. Our objective is to see our market share remain

at 88% until the release of our glasses-free product in 2014.


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7.0 Strategies


By entering the gaming market we believe that we can capitalize on the untapped

3D gaming market for significant profit opportunities. Entertainment software is one of

the fastest growing industries in the U.S. economy. The industry is creating jobs

and producing revenue for communities across the nation. In addition, the

industry continues to grow as an entertainment medium. We believe that a

partnership with Microsoft will allow us to use the XBOX 360 gaming console,

coupled with our advanced 3D technology to bring a new 3D experience to

gaming. It is our short term goal to create a gaming package available to

consumers that will include a Samsung 3D TV, glasses, a Microsoft XBOX 360,

and 3D compatible games to offer an in home experience that consumers cannot

find elsewhere.

According to data compiled by the NPD Group, a global market research

company, computer and video game companies posted strong sales in 2009. The

industry sold 273.5 million units, leading to $10.5 billion in revenue. Of these sales:

1) Game console software sales totaled $8 billion with 176.7 million units sold;

2) Computer game sales were $538.4 million with 23.5 million units sold; and,

3) There were $1.9 billion in portable software sales with 73.2 million units sold.

The most popular game genres in 2009 were "Action" and "Sport Games," each of

which accounted for more than 18 percent of all games sold. In addition, of the games

sold in 2009, 60 percent were rated "Everyone (E)" or "Everyone 10+ (E10+)." The

NPD Group's data also indicates that only 17 percent of games sold last year were

25


rated "Mature (M)." 41% of gaming consoles sold in the U.S. were produced by

Microsoft, making them the most beneficial candidate for partnership. These particular

genres are the genres most compatible with 3D technology. We believe that in the long

term, we can couple our competitive advantage in 3D technology with Microsoft’s

competitive advantage in video gaming to create an enhanced 3D experience

comparable to virtual reality. The target market of these particular products tend to

place an emphasis on having the latest and greatest technology and through this

partnership, it is our belief that we can capitalize on these tendencies.

Microsoft has selected Samsung as the exclusive HDTV worldwide marketing

partner for the next-generation Xbox high-definition (HD) gaming platform. The

announcement was made during media day at the Home Entertainment Expo at the

New York Hilton, which was held from April 29-May 1. As part of this marketing deal,

both companies will install over 25,000 Samsung HDTV’s in Microsoft Xbox retail kiosks

worldwide, with half that total budgeted for the United States. The new 23-inch

Samsung LCD TV will be paired at retail with the new Xbox console, which offers a

super-fast 12-milIi-second pixel switching speed and enable "intense action while

overcoming any motion artifacts," the companies said. The global marketing and

promotional alliance between Microsoft and Samsung Electronics will include cinema,

POS, television, print, online and various other media efforts, with further details

becoming available in coming months.

Microsoft's first high-definition game will incorporate Samsung branded products

as well as instances of Samsung's logo as part of the overall HD gaming experience.

This will mark the first time Microsoft incorporates a consumer electronics technology

partner with the Xbox console and games, the companies noted.

In commenting on the deal, Peter Weedfald, senior VP, consumer electronics and

North America corporate marketing for Samsung Electronics America, said, "Gaming

has become a primary force for innovation in the entertainment and technology

industries" and called Micro- soft's HD Xbox "the best next-generation game console

and a key driver in the global HDTV revolution."

Details on the next-generation Xbox were scant from Edward Bland, global

marketing general manager of Microsoft's home and entertainment division for Xbox,


2010 Marketing Plan


explaining that its major introduction will be held at the E3 show in Los Angeles the

week of May 16. But he did note that "no decision has been made as yet for a blue-laser

format" for Xbox. Bland noted that "either Blu-ray or HD DVD would be acceptable" and

that the next-generation Xbox would be "extendable" in that area. Weedfald added chat

Samsung has also. Not selected a blue-laser format as of yet. Negotiations between

Samsung and Microsoft on this alliance took around a year, Weedfald said. Both

companies enjoy a long-standing relationship as strategic and tactical business

partners. Microsoft Xbox currently incorporates Samsung technology, and Samsung will

continue to be a tech driver for the next-generation Xbox video game console, the

companies said.

Considering the long-term relationship held between the two companies with the

HD format, we believe that a deal focusing on the 3D format is highly likely and would

be beneficial for both parties involved.



Samsung holds a major competitive advantage when it comes to 3D technology.

It is our goal to launch an ad campaign that makes the consumer associate 3D

technology with Samsung. We want to stress the fact that Samsung was the first to

pioneer the 3D TV and that our TV’s are the most technologically advanced in the

market. Our goal is for the consumer market to associate Samsung TV’s with the best in

the market when it comes to quality and technological advancement. We believe that if

we launch an ad campaign that sends the message of quality and luxury we will see a

rise in our company sales. Consumers are not aware of our quality products compared

to the rest of the market and through the campaign; we aim to make them very aware.

Our main message trough this ad campaign is going to preach the need for

quality and convince consumers that if you are going to have a 3D TV, you should have

the best. We want to convince the customers that if they are going to spend a larger

amount of money on an expensive product like a 3D TV, they deserve the best,

Samsung.

27



market for a “glasses-free” 3D TV.

Even though we have the technology to provide a glasses free 3D TV, we would

like to let the market develop through a glasses era so that we can release the best

product possible in 2014. Because we posses such a large share of the current market,

we would like to grow and maintain what share we do have to gain as much profit as

possible during this stage of the technological life cycle. During this waiting period

before the product release in 2014, we would like to gain a comfortable amount of

market share so that the launch of the new product has a quality brand image to fall

back on. The glasses-free TV will be relatively expensive and if there is a successful 3D

TV generation preceding it, the chances of it succeeding greatly increases. This

objective is crucial to Samsung’s long-term success in the 3D TV market because if

executed properly, Samsung will be established as the leading provider for 3D

technology for years and years to come.

8.0 Tactics


We believe that with a proper business proposal, Microsoft will be highly

interested in a partnership as market research suggests that 3D gaming is going to be a

very profitable industry in the near future. After the partnership is achieved we intend on

turning the focus of our R&D spending (7Billion annually) towards producing a virtual

reality gaming experience alongside Microsoft. This will allow us to bring a technological

innovation to the market that would be far beyond anything anyone else can provide. To

associate with gaming products even more, we are seeking an agreement to make

Gamestop, and EB Games official dealers of our 3D televisions. This will give us an

instant upper hand on the market.



With the upcoming super bowl season, we would like to advertise our 3D TV

during the most highly watched event in America. There is no better stage to advertise a

3D TV on than during the super bowl. A majority of our target market for our TV’s will be


2010 Marketing Plan


watching and it would be a fantastic opportunity to advertise directly to our market. This

would also serve beneficial to our gaming market because a majority of video games

played are sports games. Print ads will also be placed in Game Informer magazine and

in ESPN magazine to more effectively reach our target market.



By advertising and effectively selling our glasses required televisions, we will

continue to increase our market share until the release of our glasses-free television.

After we increase sales of our 3D TV’s we hope to gain a reputation for providing the

most technologically advanced product in the 3D market. To do so we intend on

providing the highest quality products and customer service to maintain the products we

have already sold. This goal will be met with the proper execution of goals one and two.

9.0 Financial Impact of the Marketing Plan

10.1 Five year sales forecasts:


29


To enter in to the gaming market with Microsoft, we plan on focusing our R&D

budget (7 billion in 2010) solely on producing a virtual reality gaming platform. This

budget includes the research necessary to develop the product. We would like another

20 billion to fund production, distribution, customer service, and market research.



An average ad during the super bowl is $1.1 million dollars for one 30-second

spot. We would like a 500 million dollar advertising budget to effectively advertise for a

six-month period.



This goal will be achieved with the daily operating cost and should not increase

the average spending per year.

9.4 Income statement, Balance sheet, and operating costs.

See Tables Attached.

10.0 Metrics


Samsung joined forces with Microsoft XBox in April of 2005 to become exclusive

HDTV worldwide marketing partners. As a part of the deal, both companies agreed to

install over 25,000 HDTV’s Xbox retail kiosks worldwide. Half of this budget is

designated strictly for the United States. Microsoft agreed to incorporate Samsung’s

branded products, as well as instances of Samsung’s logo throughout the first high

definition game that would be released. Now that 3D technology is out on the market,

another Microsoft deal with 3D gaming would be ideal for Samsung. Since we have

already held a partnership with Microsoft Xbox, this should give us a very large

advantage in striking another deal to produce a 3D game that would add to the gamers’

experience.


2010 Marketing Plan




Samsung started to release TV commercials before the release of the first 3D

TV. We used main sporting events, award shows, and primetime TV series as our main

targeted time slots. The word of 3D TV’s spread very quickly and ultimately helped the

release of our product go straight to the top. Our advertisements will focus on illustrating

the picture quality and effects of the new product. A major emphasis will also go on

displaying the sleek, ultra thin design that is a main key in our advertising strategy. As of

June 2010, when our first product was released, we controlled 90% of the 3D market.

Our advertising strategy is expected to maintain our market dominance.

11.0 Contingency Plan

11.1 Dominance in the 3D Market.

What if Samsung falls out of the top spot? Currently, Samsung holds a dominant

market share. However, due to the resources implemented in R&D at Samsung, they

have developed “glasses free” TVs, a technology superior to that of its competitors.

Withholding that technology until the 3D market has been established allows them to

use this technology as a contingency plan if they do not meet their goals of sustaining

that dominant market share. This technology represents the next trend in the TV

market, specifically the 3D TV segment.

11.2 Alliances.

What if Samsung lost their partnership with content providers?

Samsung currently holds two significant joint ventures with DreamWorks and

Technicolor. DreamWorks announced this year that they will produce nothing but 3D

movies from now on. If we lost partnerships with either or both of these companies, we

would look to start a new partnership with Pixar Animations or other 3D production

companies. Pixar is becoming a top notch movie production company, releasing movies

31


like Finding Nemo, Toy Story, and The Incredibles, among numerous others. The latest

movie released was Toy Story 3, which ended up being the second highest grossing

animation film of all time, with $415 million. We feel that with this partnership, we could

make a great profit with animated movies targeted towards small children and

developing families.

12.0 References

http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-is-set-

for-big-growth.htm

http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-its-

promises/

http://www.samsung.com/us/video/tvs/UN65C8000XFXZA

http://www.businessweek.com/magazine/content/10_03/b4163052960824.htm

http://www.businessweek.com/technology/content/dec2009/

tc20091230_436389.htm

http://www.koreatimes.co.kr/www/news/tech/2010/09/129_69283.html

http://www.crunchgear.com/2010/08/13/how-is-3d-tv-doing-some-data-from-

japan/

http://www.mullen.com/2010/09/3d-tv-marketers-take-note/

http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-be-

worth-17-billion-2014

http://ces.cnet.com/8301-31045_1-10433274-269.html

http://findarticles.com/p/articles/mi_m0EIN/is_20100326/ai_n52924274/?

tag=content;col1

http://ezproxy.lmunet.edu/login?url=http://web.ebscohost.com/ehost/pdfviewer/

pdfviewer?vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-6091890821ff

%40sessionmgr113


http://ezproxy.lmunet.edu/login?url=http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=8&hid=13&sid=d66428e2-8896-47b2-a4f7-6091890821ff@sessionmgr113



http://findarticles.com/p/articles/mi_m0EIN/is_20100326/ai_n52924274/?tag=content;col1



http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-be-worth-17-billion-2014



http://www.crunchgear.com/2010/08/13/how-is-3d-tv-doing-some-data-from-japan/



http://www.businessweek.com/technology/content/dec2009/tc20091230_436389.htm




http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-its-promises/


http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-is-set-for-big-growth.htm


2010 Marketing Plan




%40sessionmgr113

http://www.electronicsweekly.com/Articles/2010/01/29/47903/3d-tv-market-is-set-

for-big-growth.htm

http://www.revenews.com/mikekoehler/will-the-3dtv-market-live-up-to-its-

promises/



http://www.businessweek.com/technology/content/dec2009/

tc20091230_436389.htm


http://www.crunchgear.com/2010/08/13/how-is-3d-tv-doing-some-data-from-

japan/


http://www.dmwmedia.com/news/2010/04/14/report-global-3d-tv-market-be-

worth-17-billion-2014


http://findarticles.com/p/articles/mi_m0EIN/is_20100326/ai_n52924274/?

tag=content;col1



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