HiTMarketing Strategy Proposition

for #1
2005. 8.
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Contents
1. Part I. Background
1. Part I. Background
2. Part II. Analysis of market and product
2. Part II. Analysis of market and product
3. Part III. Marketing strategy proposition
3. Part III. Marketing strategy proposition
4. Part IV. Globalization
4. Part IV. Globalization
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Note: The content in this document is a hypothetical marketing strategy built around a real product. It contains real manufacturer and brand name, but
they did not sponsor nor approve any contents proposed in this document. This document intends to show our ability of and approach to analyzing market
situation and formulating strategy, and should be evaluated onlyfor that purpose.
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Part I. Background
I. Background
Digital camera market has grown and will
continue to grow fast in the near future, both
globally and domestically.
Globally SONY is the market leader, taking
around 20% market share.
Global DC production
40.9
52.6
60
20
30
40
50
60
70
2003 2004 2005
year
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Market share - Korean market (2004)
SONY, 14
Techwin, 30
Canon, 10
Olympus, 24
Others, 12
Korean market size has been estimated as
around 600,000 units in 2004.
According to Samsung Techwin, market
shares of major brands in Korea are as
following chart:
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* Source: Samsung Techwin, ETNews.
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Part I. Background
I. Background
Samsung Techwin has been operating
in digital camera market since 1997,
with Kenox brand.
In June 2005, Samsung Techwin
launched a new digital camera #1,
with the concept of slim, stylish and
smart.
This strategy proposition will provide
t he mar k et i ng and c ommuni c at i on st r at egi es t o hi t #1.
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II-1. Market segmentation of compact DC
Customers want from compact digital camera:
Good picture quality
Easy to use
Allowing manual adjustments
High performance
We can identify three segments like following chart.
Out put qual i t y
Good picture quality
Good color
Stability at shot
Not too many functions
Easy shot
Good design
Easy manipulation
Automatic optimization
Multi-functions
Enj oyi ng shot
Manual optimization
Special effects
High performance
Manual adjustment
Automatic
optimization
Compact design &
various functions
Photo-centered design
#1
Part II. Analysis of market and product
* Based on interviews with retailers and comments on web-sites.
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Part II. Analysis of market and product
II-2. Characteristics of #1
#1 fulfills most needs of compact digital camera customers.
Small size
Stylish design
High performance
Smart intelligence (e.g. easy manipulation and correction functions)
But satisfying all needs itself may pose difficulty for marketing strategies.
Price could be higher than competitors for minimum function seekers.
Good picture quality seekers may be afraid of quality sacrifice.
Some prefer larger sizes for stable grip.
A new approach is required.
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Part II. Analysis of market and product
II-2. Characteristics of #1
Characteristics of #1 can be summarized into four appeals.
Por t abi l i t y
Slim, compact design
Durability
Colorful
Ver sat i l i t y
Still photos
Moving pictures
Voice recording
Character recognition
Easy connection
Hi gh per f or manc e
Fast start-up
Fast AF speed
Short image saving time
High definition lens
Smar t i nt el l i genc e
Safety Flash
Various shooting modes
Special effects
Large LCD panel
Large memory size
Shaking correction
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III-1. Target market
Primary target group is Easy shot
group.
Favoring smart functionality
Seeking good picture with minimum
manual operation
Preferring compact size and durability
Young females, from high school students
to twenties
Secondary target group is Enjoying
shot group.
Enjoying manual adjustments to get their
own effects
High performances would appeal to them.
Attracted to easy network to PC and
internet, and character reading facilities
Males, in early 20s
Output quality group : not target.
Output quality
Easy shot
Enjoying shot
Manual
adjustment
Automatic
optimization
Compact design
& various
functions
Photo-centered
design
* Portability
* Versatility
* Smart
* High performance
Part III. Marketing strategy proposition
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Part III. Marketing strategy proposition
III-2. New positioning proposition
Di gi t al Camer a
Di gi t al Di ar y
(A new lifestyle proposition)
Positioning approach : Define new product category, and become the first.
Position #1 as Digital Diary, not one of digital cameras.
Not just still cuts. Sound, voice, motion picture, and text reading as well.
Must be carried always, like mobile phones.
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Marketing objective
Propose new life-style of keeping digital diary.
Build the perception that #1 is the digital diary, carried
always.
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Part III. Marketing strategy proposition
III-3. Product Mix
Keep quality at average level as it is for everybody and everyday use.
Tangible benefits
Compact size
Multi-mode records
Many functions
High performances
Intangible benefits
Multi-media diary
Much more vivid memories
Enriched life
Cor e benef i t pr oposi t i on
Versatile tool
for keeping diary of your life
with stylish design
Quality level
Expected, norm, average
* Picture quality should be improved
continuously, even though it is not
emphasized.
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Part III. Marketing strategy proposition
III-3. Product mix - brand strategy
Digital Camera
D series
V series
U-CA series
Cyber series
Film Camera
#1
Creative
Optical
World
Diary of Your
Life in Digital
Format
#1 does not show brand name Kenox on the product itself. (There is a small print on
package box.)
#1 is positioned as digital diary both in video and audio, but still visual records are
the core.
It is recommended to use Kenox as umbrella brand, so that other products get the
halo effects.
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Part III. Marketing strategy proposition
III-4. Place mix
To position as digital diary, build chain of Kenox shops which provide
following extended services as well as fulfilling basic consumer needs.
Retail channels
Camera shops
Electrics channels
Internet
( Mobile phone retailer )
Basic
consumer
service needs
Easy access
Explanation on features and operations
Good knowledge on compatibility, connection with PC, etc.
Some knowledge on photography
Accessories are sold as well
Quick diagnosis for light problems
Explanation on customer service policies and contacts
Extended
services
Providing printing services
Digital analog converting services
From memory to CD (at travel, etc.)
Digital voice record cassette tape
Motion picture video tape
Kenox Shop
Provide extended services, as well
as sell cameras
Like film shops in the past
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Part III. Marketing strategy proposition
III-5. Price mix
Marketing objective : build the perception that #1 is the digital diary carried always.
Objective of pricing strategy: highest penetration rate. Have as many consumers as
possible buy it. But not at good value level.
Pricing strategy : market penetration
Price it at slightly higher level than competitive products.
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The difference should not be significant to consumers.
Set price of #1 at norm or average price range.
Not premium nor economic nor good value product.
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Part III. Marketing strategy proposition
III-6. Promotion mix
Communication objectives
To instill desire for digital diary
To persuade people to carry #1 like mobile phones and have habit of making
records, visual or audio
Message
#1 helps to keep record
of every moment of your
life.
Save current experience
forever.
Users are stylish & smart.
Emotional appeals
Media
Heavy use of ambient
media - e.g. subways, bus
stop, etc., as #1 is
everyday product.
Careful control of word-
of-mouth, as purchase is
heavily influenced by
opinion leaders.
Others
Package: display photos
of social events. Colorful,
lively, joyful photos.
Expert / trade
promotion : for good word-
of-mouth influences.
Publicity : Promote new
life-style of keeping diary
in multi-media.
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Part IV. Globalization
IV. Globalization
Going global
Globalization have to achieve too objectives:
Penetrate into new market
Build brand equity
To achieve the objectives, following approach is proposed.
Basically,
standardized
marketing mix
Product would be identical over the world.
Build identical Kenox Shops.
Apply same price rule.
Positioning will be tested for each market, and adjusted.
Distribution channel would follow local practices.
Target group and promotional mix will be adjusted.
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Thank you.
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