Samsung Halo

THE ULTIMATE MOBILE ENTERTAINMENT EXPERIENCE THATS AFFORDABLE

Presented by
ANEESH

Agenda
Market Overview
Product and Value Proposition
The Concept
Marketing Strategy
Tactics and Launch Plan
Summary

Tablet category attractiveness

The iPad was announced on January 27, 2010
In Steve Jobs words - a magical device
Apple released the iPad in April 2010
Sold 3 million of the devices in 80 days
In Q2 10, Apple sold 4.19 million iPads around

the world
Adoption Rate Fastest Ever, Passing DVD Player
Foundation for an entirely new Industry &

Eco-System

Industry Growth & Situation

22%

3%

75%

iPad
Android
Others

Tablet Market Share Jan 2015

Porters 5 forces
Industry Rivalry

White Goods multinationals like LG, Nokia, and Motorola

not to mention Apple are engaged in fierce competitive
rivalry.
margins are tight and the competition is intense
Barriers to entry & exit
setting up the distribution network and the supply
chain.
This is the reason why white goods multinationals like
Samsung often do their due diligence before entering
emerging markets.

Power of buyers
The power of buyers for white goods makers
like Samsung is somewhat of a mixed bag
Though the buyers have a multitude of
options to choose from
Power of suppliers
In many markets in which Samsung operates,
there are many suppliers who are willing to
offer their services at a discount since the
ancillary sectors are very deep. Since they
have an upper hand the power of suppliers is
low.

Threat of substitutes
Many substitutes are available in the market.
Because of that the company always focuses

on differential pricing, which helps to sustain

in the market.
The halo tablet s priced at $450 so as to be
the market & and because of the price, its
expected to make the profit down the line

Environmental factors

Political Situation

Taxation is something that governments put and we should

study this as country by country case to anticipate profitability,
and pricing strategy.
Stable & open
Information privacy

Economic Situation

Economic growth worldwide is in a big recession, which needs

careful manipulation.
Potentiality of the tablet market is increasing

Socio-Cultural Situation
Dense population
People depend more on mobile communication everywhere.
Higher educational level in the world.
Cultures perception of the technological devices is positive
worldwide.
Literacy & illiteracy level is not affecting using cell phones /
tablets but affecting high technological cell phones, this
fact needs to be considered.

Technological Situation

Technology a major productive force

Rapid change and technological competition
Provides new market & new opportunities

Tablet Competitive Landscape

Customers Analysis

Customer analysis
Sort of buying behavior
High involvement purchasing
Significant difference between brands which leads to a
complex purchasing behavior.
Cultural factors
A concept that everyone should have at least one
electronic product has been built.
Social factors
most of the people use the traditional PC & instead they
use tablets for reading, social networking, playing
games, listening to music, watching video and for
email.

Personal Factors
Personal age
Occupation
Life style

Conclusion
A tablet pc mostly can attract the people who
At the age from teens to 50
With a life style looking for entertainment
Need for work or study
The market is developing
The need for brand and advertisement are

important

Direct analysis
Competitor
competitors
This market share of the competitors

including Samsung

It includes
Indirect
competitorsPCs,

cellphone and other electronic devices

Then we have to access the competitors strategy,
objectives, strength , weakness & reaction patterns
E.g. - Apples SWOT analysis
Strength
Innovation first mover advantage
Strong brand loyalty and name
Market share leadership
High quality and awesome design
Opportunities
Unfulfilled markets and new customers
The expand of tablet PC market
The broader coverage of Wi-Fi
Development of mass media and technology

Weakness
High price image.
Image- the Apple brand is not targeted
towards business people and does not have a
reputation as being compatible with the
corporate world
Not compactable with other system
Lack of customization
Threats
Fierce competition
Economic slow down & job less
Growing use of android platform

Company
analysis
SWOT analysis
STRENGTH
Advantage in design and multimedia features
Multitask management facility
WEAKNESS
Fewer suppliers than apple
Less marketing share in low end products
Boring advertisement
THREATS
New IPAD & MINIPAD
Individual demand
Price war
OTHERS
Digital age
High quality of life
Brand effect

Objective
To launch or come up with a new product,

much cheaper than apple, with high

performance and to give customer satisfaction
much higher than industry average and to
increase the pc market share.

HALO

Large
10.1 HD
widescre
en
Display
Android
3.0
Designed
for
Tablets

DualCore
1GHz
CPU

2MP
WebCam
8MP
Camera
1080p
Video
Capture &
Playback

Concept

Questionnair
e

Strategies & Target Universe

Segmentation and targeting

Demographical
Occupation, students, businessman
Age-teens to fifty
House hold with income < 50k
Behavioral
Benefit sought
Profitability
Quality & speed
The need for study, working & entertainment

Value Proposition - I

Cinemati
c Hi-def
Experienc
e with
HDMI

Value Proposition - II

Front and
Rear
Facing
2MP/8MP
Camera

Value Proposition - III

Universal
Web
Browsing
with
Adobe
Flash
Player

Value Proposition - IV
Higher
Productivit
y with
Seamless
Integration
to the
Cloud

Value Proposition - V

Bridging
the gap
with
traditional
PCs

Purchase Intent from Concept

Priced @ $450
10%

4%

20%
Definitely would buy

24%

Probably would buy

Might/might not buy
42%

Probably would not buy

Definitely would not buy

Measure consumer interest,

motivation and preference.

Priced @ $550
15%

9%
17%

Help validate that the defined

need can be met through the
proposed concept.

30%
29%

CONCEPT
TESTING

Adjustments
PRODUCT 1

PRODUCT 2

Sample size
Price
Purchase intent

PI %

Weighted PI
(%)

PI %

Weighted PI
( %)

Definitely would
buy

20

5.7

17

4.6

Probably would
buy

42

7.1

29

4.7

Might /might not

buy

24

1.8

30

2.1

Probably would
not buy

10

.6

15

.8

Definitely would
not buy

.2

.4

Overview
Total weighted PI

Product

Concept

15.4

Strategy

Launch
Plan 12.7

Marketing Strategy
Brand
Awareness
with unique
messaging
Promotion

Superior
distribution
channels
Place

Value
Price

Innovative
Product

Custom
er

Marketing mix strategies- product, place, price,

promotion
Product
Create Samsung own OS & applications.it has to be innovative,

differentiated & attractive

Simplify the steps using Samsung app and it has to be more customer
friendly
Promotion
Cooperate with universities
Festivals, sales promotions, New Year & Valentines Day
Place
Add more Samsung experience store, more advertising & attractiveness.
Promote brand image
Price
Net value= perceived value-perceived cost
We need to increase the net value
Remain the consistent price( $450)
Increase the consumer perceived value

Distribution

Total Channel Dist(%)

90%
80%

Distribution vs ACV
Internet; 8%

70%
Frys; 15%
60%
Best Buy; 10%
50%

Walmart; 15%
Target; 7%

Costco; 20%

Electronics; 25%

40%
30%
20%
10%

% (ACV) Low Spend ($10k)

% (ACV) High Spend ($50k)

O
th
er

Fr
ys

Co
st
co

W
al
m

ar
t

0%

% (ACV) Medium Spend ($30k)

Channel spend allocation

(High, Med, Low)
Overall Channel
Distribution across
retailers

Advertising Low, Med, High

Advertising Spend Distribution LOW SPEND

Total Ad Spend Budget

Media Channel
TV Advertising
Print/Other advertising
Internet Ad
Radio Ad
Consumer Promotion
Trade Promotion
Total

$50,000
Category Avg.
36%
18%
14%
9%
11%
11%
100%

% Dist.
46%
20%
20%
2%
0%
12%
100%

Advertising Spend Distribution MEDIUM SPEND

Total Ad Spend Budgetc

Media Channel
TV Advertising
Print/Other advertising
Internet Ad
Radio Ad
Consumer Promotion
Trade Promotion
Total

$70,000
Category Avg.
36%
18%
14%
9%
11%
11%
100%

Advertising Spend Distribution HIGH SPEND

Total Ad Spend Budget

Media Channel
TV Advertising
Print/Other advertising
Internet Ad
Radio Ad
Consumer Promotion
Trade Promotion
Total

Spend ('000)
$23,000
$10,000
$10,000
$1,000
$0
$6,000
$50,000

% Dist.
46%
20%
20%
2%
0%
12%
100%

$100,000
Category Avg.
36%
18%
14%
9%
11%
11%
100%

Spend ('000)
$32,200
$14,000
$14,000
$1,400
$0
$8,400
$70,000

% Dist.
46%
20%
20%
2%
0%
12%
100%

Spend ('000)
$46,000
$20,000
$20,000
$2,000
$0
$12,000
$100,000

Media Buy
Ad Spend Across Media Channels
50,000.00
45,000.00
40,000.00
35,000.00
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00

Low
Medium
High

Price: $450 or $550

Product 1 - Price: $450
Spend Type

Trial Rate

# Units

Revenue

Ad Spend

Distr Spend

EBITDA=(reven
ue-expenses)

Low

0.33%

166 $

74,511.40

50,000.00

10,000.00

(19,604.78)

Medium

1.32%

662 $

298,045.60

70,000.00

30,000.00

62,580.89

High

2.32%

1,159 $

521,579.80

100,000.00

50,000.00

134,766.55

Product 2 - Price: $550

Spend Type

Trial Rate

# Units

Revenue

Ad Spend

Distr Spend

EBITDA

Low

0.18%

90 $

49,397.52

50,000.00

10,000.00

(29,565.21)

Medium

0.72%

359 $

197,590.09

70,000.00

30,000.00

22,739.15

High

1.26%

629 $

345,782.65

100,000.00

50,000.00

65,043.50

Metrics-brand/ product level

metrics
Brand equity measures done by conducting

surveys proved to be good

Price premium customers are willing to buy
$450

Tactics

Channel Distribution (HIGH SPEND)- $50M

Shelf space in retails and mass merchandise

Retail promotion

Advertising (HIGH SPEND)- $100M

TV Advertising.

ESPN, TEN sports, star cricket

Print/Other advertising

Gaming, Economic times, Journal, posters.

Internet Ad

Facebook , twitter, Amazon.com promotion

Radio Ad

Popular radio channels in metro areas.

Trade Promotion

Retailers

Cooperate with universities

Festivals, sales promotions, New Year & Valentines Day

Add more Samsung experience store, more advertising & attractiveness

Launch Plan

Summary
Launch Date: June 25, 2015
Price point: $450
Units Manufactured: 1.15M
Color(s): 60% Silver (690K) 40% Black (460K)
Pilot: Nationwide Launch
Media Channel: Spread
Tagline: Premium Product, Value Pricing

Cheap Aint Never Been This Good!