SAMSUNG GALAXY THE MEDIA PLAN
CONTENTS 01 SITUATION ANALYSIS Brand Overview Product Overview SWOT Analysis Target Market Competitor Analysis
02 MARKETING STRATEGY Marketing Objectives Media Objectives Geography Seasonality Overall Target Coverage
03 MEDIA MIX Media Strategies Media Vehicle Selection
04 FINANCIAL Media Budget Advertising Flowchart
01
SITUATION ANALYSIS
BRAND OVERVIEW//
Samsung is a multinational corporation specializing telecommunication and digital convergence technologies. Founded by the family of the current CEO in a small city of Korea named Taegu, Samsung operates as an export company with 206 offices and facilities in 68 countries. Samsung has been a worldwide Olympic partner since 1997 and has been named one of World’s 50 Most Admired Companies by Fortune magazine. The corporation has also been ranked 19th in BusinessWeek/
Interbrand’s 100 Best Global Brands in 2013. Following their management philosophy “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society,” Samsung Electronics has become the field’s most leading company that has kept its dominant position in the TV, DRAM, LCD monitor, and NAND Flash segments.
loss and vice-versa. According to Arbitron, the average household income of iPhone owners is $105K, while the average for Android is $89K. This is likely a result of Android’s more affordable prices, however Samsung worries that lower numbers have been creating a misconception among their markets that they affect the quality of the product. Samsung needs to make more of a marketing effort to create better awareness of the innovative design and sustainability that Android devices provide and to whom they can advertise to in order to effectively deliver this message.
PRODUCT OVERVIEW//
Android, the Google Inc. smartphone operating system produced by Samsung Electronics, has been a hot topic lately, with some arguing that it may become an unilateral smartphone superpower and others arguing that it has already peaked in the US market. The Samsung Galaxy S, the most popular product among Android devices, has released 46 different models since June 2009, with TechRadar naming its most recent model, Galaxy S3, the No. 1 Best Smartphone in the world in 2012. A lot of this conversation seems to assume that Android’s (and by extension, Google’s) gain is Apple’s (Samsung’s top competitor)
STRENGTHS - Wide range of products in portfolio, including phones, tablets, TV/audio/video/ camera, home appliances, PC’s and laptop accessories . - Well diversified and differentiated product line to meet the customer’s changing needs.
WEAKNESSES - Samsung does not charge high prices for its products, therefore people often affiliate low price with low quality.
OPPORTUNITIES - Creating own softwares for their hardware devices to reduce outsourcing.
THREATS - Similar leading smartphone manufacturers, such as Apple, who generally linked product lines, which means if one product line fails due to its own reasons other product lines will also suffer.
- Making an effort to launch creative and innovative products first, rather than after its competitors. - Many products are not user friendly, therefore consumers - Offering additional services - Product diversification takes a often hesitate to switch to lot of effort and attention. to retain existing customers Samsung products even and attract new ones. if the price and quality is - Samsung has set up production exceptional. - Brand value through plants in low cost areas, which - Opening more stores multiple sponsorships. are subject to ample political to serve and attract more - Does not focus on a and economic instability. These customers. specific niche; it offers its - Holds significant global instabilities can have an impact market share that continues products to the mass market overall company it the crisis gets - Launching sub brands to only. to grow. the company, with new and unmanageable. improved strategies. - Does not create its own - Untraditional Human - Facing threats from many other Resource practices based on software, therefore it often low cost companies. - Creating more user-friendly relies on other sources to meritocracy, not seniority. Various companies have software. complete the products. realized the importance of - Financially strong; advertising, therefore Samsung - Identifying, monitoring and - Faces immense attractive pay, bonuses and will be subject to a lot more engaging with tech influencers competition from new incentives. competition. via social media to promote companies and online the innovation of the brand companies. - Samsung’s brand value - Many government legislations that is lost in the midst of its increased by 80% in three are now active against the - Lacking revenue in apps. competitors. years. innovative technology due to - 73% of Galaxy users are lowhealth and mental concerns. to-middle income males
TA RGE T MARKET PRIMARY Young professionals Business travelers Software Developers Tech-gadget enthusiasts
SECONDARY Health & Fitness Gurus Online Shoppers Moms on-the-go
Owners of Samsung devices are likely to posses many personas, including some of those most sought-after by advertisers (e.g., Business Travelers and Moms). Since persona memberships are based on over-indexing for time spent in particular types of apps, this suggests that Samsung device owners are generally more enthusiastic app users than owners of other brands of Android smartphones and tablets. According to Nielson ratings, 73% of Android users are also male with a low-middle income status. Furthermore, Samsung’s primary target markets for this media plan will be young business professionals and travelers ages 24-35, application developers and tech gadget enthusiasts, and low-income students who have the heaviest internet usage ratings. Samsung’s secondary target market are health and fitness gurus, online shoppers, social media influencers, journalists, tech bloggers, and smartphone users 35+.
02
MARKETING STRATEGY
MARKETING
OBJECTIVES The overall objective for this media plan is to convince consumers that the Samsung Galaxy is not only the most trendy and affordable smartphone amongst all its competitors, but despite its low price it provides the high quality that their target market would normally pay top price for. The marketing strategies within this media plan also intend to establish a clear message to each of Samsun’s individual target markets, such as developing a stronger social media presence for the younger primary target markets that will ultimately achieve more brand awareness and thus, create more of a valuable experience for current users as well as attracting new customers. The most important objective throughout this media plan is to maintain Samsung’s already established and increasing market shares by frequently exposing their target markets to advertisements and interactive campaigns throughout various mediums.
MEDIA O B J E C T I V E S
In order to increase Samsung’s market share, increase sales, brand awareness and brand loyalty, we will utilize the principles of marketing: product, price, place and promotion. To successfully achieve these media objectives, we will focus advertising afforts on television, magazines and the internet. Samsung will allocate money from the TV advertisements and on media evaluation and research. We will advertise at optimal times and places to better reach our target audiences with the help of various market research data. Our target audience of young professionals and men ages 18-35 and second target audience for fitness junkies and women ages 30-55 respond the best to television, magazines and internet advertisements, as each persona is constantly on the go but still needs consistent connection at all times. Samsung’s media and creative strategies will really help target these specific audiences and influence them not only to consider Samsung the leading and innovative brand it is,but become advocates for Samsung which will then help increase the brand awareness and interactivity with the business and the consumer.
GEOGRAPHY We will advertise nationally with a heavy up plan in the major metropolatin areas of New York, Chicago, Los Angeles, Dallas, Houston, San Antonio and San Francisco. These are trendy areas with heavy internet usage. According to Simmons, a large portion of our target lives in these areas. We need to be right in with out compeitiors, giving out target all the information they need so they can choose Samsung.
SEASONALITY Our campaigns will launch just before Samsung releases its three newest products. We will push heavily throughout July and the campaign will then continue lightly up until the holiday push around November 2014, ending in January 2015. Cell phone shopping does not have a designated strong purchase period, however sales definitely face higher competition around the holidays.
HEAVY LIGHT HEAVY MAY
JULY
NOV
JAN
OVERALL TA R G E T COVERAGE
The goal is to reach at least 60% of Samsung’s primary target audience of young, male professionals from the ages 25-34 throughout the country throughout the course of two years. Samsung is still in the maturity stage of the product lifestyle, so it is best to set an advertising goal to reach within its current and prospective brand users in order to measure effectively and make adjustments if needed. Frequency is the most important thing, however. During the first four weeks of the initial year, we want Samsung’s audiences to be exposed to at least 12 of our advertisememts for syndication, prime time and network televison. For our magazine advertisements, we want Samsung’s target audience to be exposed to at least two advertisements within the first two weeks. Lastly, we want online users to be exposed to at least three or four online ads. Through the proposed reach and frequency goals, Samsung will have a better avenue to increase its brand interactivity to foster new relationships and remain loyal to those previously.
MEDIA MIX
SOCIAL MEDIA One of Samsung’s major flaws in their online presence is their lack of ability to keep their social media accounts updated and interactive with new ideas. Configuring social media costs in this media plan is crucial in order for Samsung to boost their brand recognition wherever people arewhether that means interactive marketing campaigns, posting photos and videos, creating polls or giveaways. Consistent, positive affiliation with the brand to its target market will also help Samsung collect valuable research information through audience reactions, particiption, etc. at little to no cost. A portion of the internet budget will also go toward video advertisements on YouTube. Samsung will use this video advertising space on YouTube to create short, 15-30 second tutorials on various features of your phone that will help the brand stand out amongst its competitors. Ads will take place during the Q1 to create buzz and start targeting than young demographic before the new release.
TYPE
AMOUNT
% OF VEHICLE BUDGET
TOTAL
YOUTUBE
Video Ad
$1,159,445
27.73%
$1,159,445
Banner
$579,723
13.87%
$579,723
= $1,739,168.00
MAGAZINES Since magazine indexes were so high, and after seeing the direct relationship between specialty magazines and Samsung’s primary and secondary target markets, we wanted to use print magazines as one of our mediums. According to MRI+, men are also morelikely to read sports magazines such as ESPN than to talk about the college or national league games. Magazines allow you the leisure to target very specific markets, which is ultimately what Samsung needs to do in order to establish themselves further in the competitive smartphone market. Also, with travel magazines in airports, airplanes, etc., the ads are more likely to get a lot more exposure to different people around the world. Magazine ads will generally take place during Q2 after the new release of products.
INDEX
TOTAL CIRCULATION
FREQUENCY
3PG COLOR RATE
GQ
152
938,359
MONTHLY
$515,427
x 3 = 1,546,281
FORBES
149
931,558
18x PERYEAR
$443,600
x 2 = 887,200
RUNNER’S WORLD
149
673,001
MONTHLY
$318,855
x 3 = 956,565
= $3,390,046.00
TOTAL
TELEVISION The majority of Samsung’s target markets, when they have the time, enjoy watching either sports or the news. ESPN challens and other sports netwoeks have a high index for Samsung users, which gives Samsung the advantage to advertise during football and basletball season to create an impact where most social gatherings are occuring. Television advertising will only take place throughout Q3 and Q4 during the football and holiday season due to budget limitations and seasonality. These three day parts will be covered to reach all of Samsung’s interests during the winter season. Daytime frequency is increased for advertsing to appear during national and college sports.
GRP
CPP
FREQUENCY
TOTAL
DAYTIME
25
$7,000
12 weeks
$2,100,000
PRIMETIME
25
$25,300
4 weeks
$2,530,000
= $4,630,000.00
BUDGET RECAP TOTAL SOCIAL MEDIA (Q1) $1,739,168 MAGAZINE (Q2)
$3,390,046
TELEVISION (Q3 & Q4)
$4,630,000
TOTAL BUDGET: $9,759,214
SOURCES MRI Plus Data Reports SRDS Media Publications Nielson’s Television Ratings http://www.flurry.com/bid/100089/Samsung-The-True-Ruler-of-theAndroid-Kingdom#.U2ovWq1dV94