Global Marketing Strategy

Transcription

1 Global Marketing Strategy Gregory Lee Chief Marketing Officer

2 Contents Marketing Performance Marketing Vision Marketing Strategies

3 Marketing Performance

4 Rapid Growth in Brand Value 2005 Interbrand Ranking Rapid Growth in Brand Value Rank 1. Company Coca-Cola Value US $ billion [US$ bil.] Microsoft IBM Nokia Sony Motorola Samsung NOKIA 14.9 SAMSUNG SONY MOTOROLA PANASONIC 78. Panasonic 3.7 '01 '02 '03 '04 '05

5 Strength of Samsung Brand Interbrand s Brand Value Net present value of the brand s future earnings Assessment of business and brand strengths Customer Brand Value Brand Attitude Survey Dealer Attitude Survey Consumer attitudes from awareness to purchase intent to brand loyalty Retail recommendations on marketing activities, product power, and brand preference

6 Brand Value According to Consumers [Unit: %] Unaided Awareness Positive Opinion

7 Brand Value According to Dealers Dealer Recommendation Rate Color TV Mobile Phones

8 #1 Global Market Share Product [Unit: 2004 Market Share] DRAM SRAM MCP NAND Flash 31.0% 34.0% 29.0% 61.0% LDI LCD Color Monitor CDMA 19.0% 22.1% 14.9% 20.6%

9 Market Shaping Premium Products Mobile Phones 7 Megapixel Camera Phone Satellite DMB Phone MP3 + Camera Phone Flat TVs Plasma TV LCD TV DLP Projection TV

10 Premium Product Portfolio Average Price Index Color TV Mobile Phone Monitor Refrigerator

11 Marketing Vision

12 Where We Are Headed Marketing Vision SAMSUNG VISION World Leading Company for Digital Convergence Revolution REVENUE $150B - MARKETING VISION = Icon Brand CORE AREAS Product Leadership Create Platform- Based Hit Products Brand Leadership Premium Brand Experience Customer Leadership Win-Win Partnership Marketing Expertise & Organization Maximize Marketing Efficiency (Investment/System/Process)

13 Where We Are Headed Marketing Goals Category Unit Competitors 2004 Brand Unaided Awareness % Sony: 62 Nokia: 43 Leadership Icon Index* % Sony : 39 Nokia : 31 Product No. 1 M/S Products EA N/A Leadership s-api Index N/A Customer Leadership Dealer Recommendation Rate CTV HHP % % Sony : 25.1 Nokia : 28.8 *Purchase Intent

14 Changing Landscape of Market Environment Increasing Smart customers who pursue intuitive simplicity Technology is a given especially for young generation Reduced importance of traditional mass media Intense cross-industry and price competition (CE/IT/Entertainment) Expansion of B2C & B2B channels across regions

15 Marketing Strategies

16 Evolution of Marketing Strategies PAST (Fast Follower) NOW & BEYOND (Industry Shaper) Brand Leadership Good/reliable brand Disparate identity Technology-centric Premium brand Consistent identity Strong emotional bonding Product Leadership Similar benefits with competitors Discrepancy in price status Products meeting latent consumer needs Value-added, first-to-market launch Customer Leadership Optional relationship without continuity Long-term customer centric partnership

17 Marketing Strategies Build Most Preferred and Loved Brand Introduce First-to-Market Products Reflecting Consumers Unmet Needs Strengthen Partnerships by In-Depth Understanding of Customers & Channels Advance Marketing Expertise and Investment Effectiveness

18 Single Master Brand

19 Brand Strategy Past & Present 1999~ ~ Objective Awareness Preference Brand Target Sensible Brand Buyers High Life Seekers Brand Essence Wow, Simple, Inclusive Designing Sensational Technology Brand Positioning Easier, richer & more enjoyable life through technology Unlimited Living

20 Brand Target: High Life Seekers Demographics Tech Attitude 25 to 45 Male and female (male skewed) Mid to high income Educated Style conscious Psychographics Passionate, creative Appreciate excellence Crave things that give them a fuller, more engaged life Primary Target: 17% (Spending on CE 28%) Extended Target: 34% (Spending on CE 50%) Highest interest in CE Spend most money on CE Early adopter Tech in everyday lives Lifestyle Time-out Seek knowledge Seek community Work hard, play hard

21 New Brand Essence Sensory Premium Technology Leadership Design Focus

22 2005 Global Brand Campaigns Manifesto LCD/PDP-TV MP3 Player Mobile Phone

23 Multi-Sensory Brand Experience from Visual Identity to Sensory Identity See Visual Hear Auditory Advertising Imagery, Color Scheme, Sound logo/jingle Product Design, Packaging, Sound Interface Touch Tactile Smell Olfactory Environments Multi-sensory Elements

24 Values of Sponsorship Marketing Build premium brandship by leveraging first-class properties (global & local specific) From building brand awareness to increasing brand preference Deliver specific business goals Strengthen and leverage channel relationships Contribute to sales by connecting sponsorship events with sales programs (promotions, etc.) Sports Arts Entertain- ment Cause Marketing Events & Shows

25 Components of Sponsorship Activities Sponsorship since 1996 Nagano to 2008 Beijing Games 2004 Athens Games - Torch relay in 27 countries, 34 major cities, reached more than 50 million - Brand Awareness: 7% in Awareness, 15% in Purchase Intention Awareness of Samsung s sponsorship in 2005 is one of the highest among European teams Media value to date estimated at US$ 32 Million Cause marketing program for North America since 2001 Fund raising with key channel partners (Best Buy, Circuit City, etc.) and key celebrity foundations (Magic Johnson Foundation)

26 World s First-to-Market Products Mobile Phones Dual Screen Phone 5 Mega Camera Phone Satellite DMB Phone 7 Mega Camera Phone

27 First-to-Market in Core Components NAND Flash Memory Two fold increase every year in density 16Gb 50nm 64Gb 3xnm 1Gb 120nm 4Gb 70nm

28 Core Components in Premium Products ipod Nano Sony PlayStation Portable Microsoft Xbox 360 Nintendo Revolution* Gizmondo * Not yet in the market

29 Leading the Field of Convergence in Products Camcorder + TV Portable Media Player + TV Portable DVD Player + TV

30 Introduce Samsung s Signature Devices Product Development Process Development Market Research/ Analysis Ideation Idea Screening Conceptualization Product Planning Launching Plan Areas of Improvement

31 Ways to Gather Customer Insight Trend-Setter Hives Creative User Group Mania Group Dynamics Tech. Sports Fashion Enter. Music Main Under ground Stream6 Alumni MUSIC Development Distribution Mania Interactive Dynamics Samsung Team Internal Workshop Expert Group Seminar New Market Opportunity Consumer Needs Lifestyle Technology

32 Capturing IT B2B Business Market Opportunity Monitor Laser Beam Printer Total Market Size = $30B Total Market Size = $60B Consumer Market Consumer Market 33% 20% 67% 80% Commercial Market Commercial Market * Includes toner cartridges

33 IT B2B Business Strategies Products Differentiate line-up by channels Increase commercial market-oriented product development Channel Development Obtain sizeable & loyal reseller customer base Improve management of commercial channels (e.g. PRM system) IT Brand Improve brand awareness and perception in IT market Strengthen marketing for IT products (e.g. systematic reseller prgm.) Organization Increase synergy in IT-cluster by creating channel driven organization Increase expertise for IT market

34 Steering Market Driven Change in the Organization Marketing Capability MARKETING CAPABILITY Increase marketing expertise Establish skills management tools Market- Driven Process Market- Driven Culture MARKET DRIVEN PROCESS Strengthen marketing-npd ties Improve coherence throughout the processes MARKET DRIVEN CULTURE Strengthen HQ & local collaboration Ensure integration of Market Driven Culture in the organization

35 Strengthening Market Intelligence Capability CIS HQ (GBM/GMO) North America Europe China MEA SWAsia SEAsia Latin America 91 MI personnel with specialties ( 05): Extend up to 150 MI personnel by 2007 Market Research Spending: 110% increase from 2004 to 2005

36 Marketing Spending 2002 ~ 2005 [US$ mil.] 2,046 1,466 1,103 SEC Mktg. Investment as % of sales* 2,358 15% 40% 33% 57% 56% 6.7% 6.9% 6.8% % 54% 6.3% 2002 Short-term Sales Promotion * Based on Samsung branded set product sales Strategic Brand Building

37 Increasing Marketing Investment Effectiveness Tools & Metrics Develop impactful and scalable ME methodology, tools & templates Process Refine & apply optimal investment processes (planning, budgeting, execution and measurement) Capabilities Develop required ME capabilities (skills, resources) Continuous improvement of investment IT systems Expand data quality & coverage

38 Marketing Experts & Org. s Efficiency Brand Management Product Innovation B2B Mktg./Sales Expertise Market Intelligence

39 Most Preferred & Loved Brand