marketing plan for samsung smart phone 2012 2015

TRƯỜNG ĐẠI HỌC MỞ TPHCM UNIVERSITE LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBMM4 MBMM4 PHAN ANH KIET MARKETING PLAN FOR SAMSUNG SMART PHONE 2012-2015 MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Prof Dr LE NGUYEN HAU Ho Chi Minh City (2011) DECLARATION I declare that this final project contains no material that has been accepted for the award of any degree of diploma in any universities or other institution and contains no material previously published or written by another person, except where due reference is made I undertake that this is the project of my own Figures and result which are mentioned in this project are righteous Project Author PHAN ANH KIET ACKNOWLEDGEMENT I owe a debt of gratitude to many people who helped me complete this thesis I would like to acknowledge the help of all First of all I would like to express my deepest acknowledgement to my supervisor, Prof Dr Le Nguyen Hau from Ho Chi Minh City University of Technology (HCMUT), for his valuable advice and recommendations In the process of data collection for this research, many people contributed to the task and I am particularly grateful for their contributions I am greatly indebted to Mr Lee HyungAhn, Mr Thai Manh Binh, Mr Ly Thai Bao, and Mrs Dang Thi Hoai An, Mr Pham Ky Vien for providing advices and resources for me to fulfill my study Special thanks are expressed to all professors from Solvay Business School and Ho Chi Minh City Open University as well as my classmates for their supports via lectures, discussions, debates, comments and feedbacks throughout my all Master programs Finally, to my parents and my wife, I wish to extend my loving thanks for their encouragement My greatest debt of gratitude is to my wife, Mrs Truong Pham Bang Phu, who was patiently waiting me during my study in Ho Chi Minh city This course could not have been completed without her daily encouragement EXECUTIVE SUMMARY With the advanced technology, smart phone gradually becomes smart tool to help users a lot in normal life Smart phone provide convenience, connection and entertainment which enable its users to perform various activities with it every time and everywhere including Value Added Services like Internet, 3G, GPS, Vietmap, etc… This marketing plan illustrates Samsung smart phone getting customers and creating a solid revenue stream Our unique focus of creating smart phones with a differentiate products gives us an advantage compared to competitors Samsung tries to give customers a maximum satisfaction with the best product quality and services In addition, Samsung tried to please its distributors and retailers in developing long term benefit business with slogan “win to win” By analyzing SWOT of Samsung smart phone, it helps understand Samsung strengths and weaknesses to develop own marketing strategy plan In the first two years, the project focuses on building brand awareness and increasing sales volume by flexible The market penetration strategies and “deeper and wider” channel expansion are action plans in next three years The marketing plan is fixed through marketing mix strategy including Products, Price, Place, and Promotion By doing a 3600 marketing plan with efficiency and professionalism, Samsung smart phone will get the purpose to become a beloved smart phone brand and leader position in Vietnam market i TABLE OF CONTENTS Contents Pages Abbreviations And Acronyms iii Tables, Chart & Figures iv EXECUTIVE SUMMARY CHAPTER I INTRODUCTION 1.1 Background 1.2 Introduction to Samsung 1.3 Problem statement 1.4 Objective 1.5 Scope of works 1.6 Methodology 1.7 Structure of study CHAPTER II ENVIRONMENTAL ANALYSIS 2.1 External Environment Analysis 2.2 Market Analysis 2.3 Competitor Analysis 12 2.4 Internal Analysis 14 2.5 SWOT Analysis 16 ii 2.5.1 Opportunities 16 2.5.2 Threats 16 2.5.3 Strengths 17 2.5.4 Weaknesses 17 2.5.5 SWOT implications 17 CHAPTER III MARKETING PLAN 2012-2015 FOR SAMSUNG SMART PHONE AND ACTION PLAN 21 3.1 Marketing objectives 21 3.2 Marketing strategic plan 21 3.3 Marketing Mix 23 3.3.1 Product 23 3.3.2 Price 23 3.3.3 Place 24 3.3.4 Promotion 25 3.3.5 Budget Allocation 27 3.3.6 Evaluation 28 CHAPTER IV CONCLUSION 29 REFERENCE 30 iii ABBREVIATIONS AND ACRONNYMS GFK Name of a market research company, which monthly provides market share, market information among consumer electronic industry LCD Liquid Crystal Display Television GSO General Statistics Office Samsung Vina Samsung Electronics Vietnam CPI The Consumer Price Index GDP Gross Domestic Product UA (T3) Unaided Awareness MPSA Most Preferred Brand (single answer) OS Operating system ATL Above the line BTL Below the line POP Point Of Purchase POSM Point Of Sales Material BTL Below the line PS Product Specialist like Promoter, introduce and sell Samsung products at retailer/shop SE Sales Executive like merchandise, décor POP, arrange products follow guideline and can train for floor salesman at retailer iv APPENDIX, TABLES, CHARTS & FIGURES APPENDIX Items Pages Appendix 1: Vietnam’s GDP from 2002 to 2010 31 Appendix 2: Vietnam’s CPI from 2000 to 2010 31 Appendix 3: Percentage of mobile users with a smart phone 32 Appendix 4: Channel comparison between traditional shop and modern trade Appendix 5: Comparison customer using smart phone and non-smart 33 34 phone Appendix 6: Brand share of competitors 35 Appendix 7: Recommendation Rate Trend 36 Appendix 8: Brand KPI 36 Appendix 9: Samsung smart phone line up 37 Appendix 10: Key USPs of Samsung smart phone line up 37 Appendix 11: Retail Price and Profit 38 Appendix 12: Retail model investment 39 Appendix 13: Key USPs of Samsung smart phone 39 Appendix 14: Shop visiting 40 v TABLE Items Table 3.1: Estimated plan sales of smart phone on Jan 2012 Table 3.2: Estimated plan sales of smart phone on Dec 2015 Pages 21 22 Table 3.3.5: Estimated budget allocation first months of 2012 27 Table 3.3.6: The marketing budget can be spent maximum in theory 28 CHART Items Chart 3.3.3: Smart phone Distribution Channel Pages 24 FIGURES Items Pages Figure 2.1 Vietnam Population Pyramid Figure 2.2 Technology household penetration 10 Figure 2.3 Smartphone market share Jan’11 13 vi 26 Challengers” or build smart phone image as a typical example of Raise-the Bar and open room for consumers to explore through product features and social hub For example: Experts give comments on -IT magazines such as Nghe Nhin, Stuff, Mobile Review, Mobile World -Online magazines like sohoa, tinhte, vnexpress, dan tri -Traditional magazines include ThanhNien, Saigontiepthi, Entreneurship weekly, and Nhipcaudautu For point of sales materials, Samsung will decor at shop to increase visualization and attract customers comes to Samsung display corner The main objectives are to: - Create a strongly branded Samsung mobile identity - Deliver a well-organized and single product message - Create a modular and flexible system that extends to all kinds of shop format Samsung will consider have shop classification, then the shop type will divided according to space flexibility This is one example which is very popular for Vietnam smart phone market For small Samsung mobile shop (2-5 m wall based), the conditions was proposed as details: - Flagship product should be recognized at first sight - Flagship point of sales should be placed at the center of the fixtures - Flagship product point of purchase should cover over 40% of shop area - All the AMOLED products should come with AMOLED point of purchase Last but not least, Samsung has the activation to attract end user Objective is to attract more customers paying attention to shops to trial products, touch and demo Plan is to bring smart phone to life by creating ambience where consumer can really be conquered by a blink of TOUCH - TRY & TRUST 27 • Platinum performance • Social hub Scope: select 20 places nationwide as following • 10 premium shopping mail (4mx4m module) • 10 S shop (2mx2m module) Samsung customer relationship management by privilege card helps to create a community of Samsung smart phone customers This club is not only exclusively for Samsung smart phone mobile customers but also for customers of other Samsung products This program aimed at strengthening corporate identity Based on amount of purchase, there will be tiers of memberships: Regular-Silver-Gold-Platinum Promotion provides customers many benefits such as discount, free customer service when repair or extended warranty period 3.3.5 Budget allocation: All above 3600 marketing activities plan will support for Samsung to reinforce its smart phone position and increase market share, market coverage as budget allocation: Table 3.3.5: Estimated budget allocation first months of 2012 Activities Total expense TVC TVC production Print Media Print Creative/ Production Online Onine Creative/ Production Dealer convention PR Activation POSM ATL ATL ATL ATL ATL ATL BTL BTL BTL BTL Total 1,170,000 600,000 50,000 90,000 10,000 50,000 10,000 50,000 80,000 150,000 80,000 Unit: USD June July Aug 695,000 355,000 120,000 300,000 200,000 100,000 50,000 45,000 45,000 10,000 30,000 10,000 10,000 10,000 50,000 40,000 30,000 10,000 100,000 50,000 60,000 20,000 For the years, budget will be allocated as detail: 28 Table 3.3.6: The marketing budget can be spent maximum in theory Unit: USD Activities TVC TVC production Print Media Print Creative/ Production Online Onine Creative/ Production Dealer convention PR Activation POSM Total cost Sales Target (set) Average price (USD) Revenue (USD) ROI (%) 2012 2013 2014 2015 Bad Trend Good Trend Bad Trend Good Trend Bad Trend Good Trend Bad Trend Good Trend 1,000,000 1,900,000 1,000,000 1,900,000 3,600,000 6,840,000 3,600,000 6,840,000 50,000 50,000 50,000 50,000 180,000 180,000 180,000 180,000 150,000 365,000 150,000 365,000 540,000 1,314,000 540,000 1,314,000 50,000 50,000 50,000 50,000 180,000 180,000 180,000 180,000 100,000 165,000 100,000 165,000 360,000 594,000 360,000 594,000 20,000 20,000 20,000 20,000 72,000 72,000 72,000 72,000 70,000 130,000 70,000 130,000 252,000 468,000 252,000 468,000 100,000 280,000 100,000 280,000 360,000 1,008,000 360,000 1,008,000 150,000 280,000 150,000 280,000 540,000 1,008,000 540,000 1,008,000 120,000 170,000 120,000 170,000 432,000 612,000 432,000 612,000 1,810,000 3,410,000 1,810,000 3,410,000 6,516,000 12,276,000 6,516,000 12,276,000 180,000 300,000 180,000 300,000 648,000 1,080,000 648,000 1,080,000 300 300 300 300 300 300 300 300 54,000,000 90,000,000 54,000,000 90,000,000 194,400,000 324,000,000 194,400,000 324,000,000 3.4% 3.8% 3.4% 3.8% 3.4% 3.8% 3.4% 3.8% Besides, an amount of 10% of above budget will be kept as a backup plan 3.3.6 Evaluation: As some objectives above, after marketing plan is going, some key performance index of this plan will cover through branding, channel and products First of all, monthly review sales volume has evaluation and correction Secondly, half and yearly business review have to identify the gaps and update Finally, Samsung can achieve target sales volume, brand awareness KPI and Most Preferred score, market share Planning Phases & Milestones Planned deadline Tracking Problems to solve Recommendations Decisions Revised deadline 29 CHAPTER IV CONCLUSION Samsung is a big company which is familiar with Vietnam market During 16 years, Samsung has been become a beloved company with many products This is a great effort which Samsung is trying step to step to become leader in smart phone The project has set up the marketing plan for Samsung smart phone in Vietnam It gives a detailed analysis of the situation by secondary data, visiting at retail shops in combine with company internal data In that situation, having a right marketing plan for Samsung in Vietnam help Samsung sustains in strengths and helps the company exists in this difficult situation and have the right development direction in the future The SWOT analysis highlights the strategic plans to improve brand preference, channel and products for Samsung smart phone In the first two years, the market penetration strategy is mainly focus on brand awareness, brand image After that, strategy continues improve strong points of products, line up models Samsung is trying to increase sales with flexible price Depending on the market trend, the budget is estimated at 1.8 -3.48 billion VND for the marketing plan to achieve 300,000 sets of the smart phones In next years, Samsung increase sales volume of smart phone and take over No market share from Nokia at sales volume 90,000 sets /month Then project gives some recommendations on how to bring the smart phone into the market by reinforce channel network by the marketing program, customer relationship program and implementation and control By doing so, Samsung would achieve its objective to become smart phone leader in Vietnam market 30 REFERENCE - GFK Jan 2011 - Philip Kotler, (2000), Marketing Management Millennium, Prentice-Hall, Prentice-Hall, Inc, p.46 - TNS Research Company - Kham Pha Mobile Review No 46, page 48 - Thanh Nien Daily, 3rd Mar 2011, p.2 - DigimartVietnam magazine, 20 Feb 2011, p.20 - http://www.fundinguniverse.com/company-histories/Samsung-Electronics-CoLtd-Company-History.html: access date 4th Mar 2011 - http://www.thongkeinternet.vn/jsp/trangchu/index.jsp access date 2nd Mar 2011, access date 4th Mar 2011 - http://www.gso.gov.vn/default.aspx?tabid=507&ItemID=10836 access date 4th Mar 2011 - http://www.gfmag.com/gdp-data-country-reports/146-vietnam-gdp-countryreport.html#axzz1F90po8dS: Vietnam Country Report, access date 4th Mar 2011 - http://vietnambusiness.asia/experts-warn-of-more-rises-to-cpi/: Vietnam Business News, access date 5th Mar 2011 - http://www.thesaigontimes.vn/Home/diendan/ykien/48514/Bai-hoc-tu-dieu-chinhty-gia.html, access date 4th Mar 2011 - http://baodientu.chinhphu.vn/Home/Dieu-chinh-ty-gia-Thuc-day-san-xuat-kichthich-xuat-khau-gop-phan-kiem-che-lam-phat/20112/64234.vgp Vietnam Government Portal News, access dated 3rd Mar 2011 - http://baodientu.chinhphu.vn/Home/Khanh-thanh-nha-may-dien-thoai-di-dongSamsung-Viet-Nam/200910/23809.vgp Vietnam Government Portal News, access dated 3th Mar 2011 - http://www.thanhnien.com.vn/Pages/20101229/nhung-xu-huong-cong-nghe-nam2010.aspx: Thanhnien Online 31 APPENDIX Appendix 1: Vietnam’s GDP from 2002 to 2010 (Source: GSO) Appendix 2: Vietnam’s CPI from 2000 to 2010 (Source: GSO) 32 Appendix 3: Percentage of mobile users with a smart phone (Source: Samsung internal report) 33 Appendix 4: Channel comparison between traditional shop and modern trade Traditional channel: 68.6% market share (Q’ty) Modern trade: 24.4% market share (Q’ty) Advantages: Advantages: • • • • Authorized products with cheaper price (5-10% lower than big shops) Only local independent shops sell “grey market” mobile phones that are a large cheaper than authority products Purchasing second-hand mobile phone (this trend is very popular in Vietnam) Selling sim/card so traditional channel still very popular in Vietnam Disadvantages: • • • Not ensure the source of products Shortage categories Small place for product display • • • • • • • Prestige Ensure quality of product Various categories Added value ( set up game, picture, MP3 without charging fee) Have big space for product display Marketing programs (promotions, advertisement) Authority warranty Disadvantages: • Higher price Many people line up to download some Music Nguyen Kim Shopping Center-HCM Shop staff helps customer to download music from internet Mobimart-Hanoi 34 Appendix 5: Comparison customer using smart phone and non-smart phone There are example of in-depth interview for market research which is using smart phone and non-smart phone: SMARTPHONE USERS & INTENDERS SENIOR PROFESSIONALS Male & Female Aged 28-40 years old Monthly personal income > VND 10 million Officer Phone usage Currently using Smartphone or intend to purchase Smartphone in the next months Current phone valued at over VND million Phone bill amounts to over VND 500 thousand per month Use Value Added Services NON-SMARTPHONE USERS YOUNG PROFESSIONALS Male & Female Aged 22-27 years old Monthly personal income > VND million Officer Phone usage Not using phone with Smartphone capabilities Current phone valued at > VND million Phone bill amounts to over VND 200 thousand per month Use Value Added Services (Source: Samsung internal report) 35 Most common brands mentioned for smart phone Less commonly mentioned by respondents Only mentioned by SP users and some intenders Appendix 6: Brand share of competitors (Source: GFK Jan 2011) 36 Appendix 7: Recommendation Rate Trend (Source: GFK Jan 2011) Appendix 8: Brand KPI (Source: BAS 10H2, Samsung Internal report) 98 100 95 87 93 84 83 21 86 73 30 26 08H2 09H2 10H2 08H2 KPI BAS Samsung Nokia 2H2007 2H2008 2H2009 2H2010 UA (T3%) MP (SA) MP (SA) Vietnam 86.4 09H2 79.2 6.3 Gender Male Female 4.4 11.5 88.5 84.4 86.8 7.6 18-29 7.5 84.4 73.5 Age 30-39 40-49 9.4 6.8 84.4 90.5 93.3 50-60 8.8 89.5 10H2 +/(%) 19.8 -1 Household income High Middle Low 8.3 8.5 92.5 85.7 85.5 37 Appendix 9: Samsung smart phone line up (Source: Samsung internal report) Appendix 10: Key USPs of Samsung smart phone line up (Source: Samsung internal report) Pl ati num Performance • 3.3” AMOLED OnCell with mDNIe Powerful CPU (Cortex A8 1GHz) Rich Multimedia (HD Playing/Recording, Music UI with DNSe2.0) Wi-Fi(802.11n), BT3.0 Enjoyabl e appl i cati ons • Social Hub Application store Touch Wiz 3.0 • Smart Search(Offline & Online) Uni que Si mpl i ci ty of Desi gn 38 Appendix 11: Retail Price and Profit Retail price : 4.599.000 VND SMS incentive : 115.000 VND Total profit : 322.000 VND ++ Special package from distributor Wave II (723) Retail price : 9.499.000 VND SMS incentive : 400.000 VND Total profit : 827.000 VND Wave II (S8530 Retail price : 5.700.000 VND SMS incentive : 140.000 VND Total profit : 396.000 VND Wave II (723) Retail price : 15.990.000 VND SMS incentive : 400.000 VND Total profit : 1,120.000 VND Galaxy Tab P1000 (723) 39 Appendix 12: Retail model investment Shop S: Samsung: >300 sets/month Retailer Shop A: Samsung: 150 300 sets/month Shop B: Samsung: 50 150 sets/month Shop C: Samsung: 20 -50 sets/month Invest for shop, for display - SE support PS at retailer SE visit times/week SE visit times/week SE visit time/week SE visit time/2 weeks Training & Education Frequent Frequent Unfrequent Unfrequent - PS support Appendix 13: Key USPs of Samsung smart phone line up Online PR - TVC & Print Conquer taskforce Wave’s community • - Micro-site Viral marketing Web banner Outdoor -Billboard -Elevator Challenge the limits Event Activation POSM Mobile live - 10 SM -10 S stores Full set of POSM (shop type) 40 Appendix 14: Shop visiting City HCMC Hanoi Can Tho Hai Phong Danang Hong Linh Mobile, 34 Tran Phu Công ty TNHH Thương mại Hồng Lĩnh Công ty TNHH Alô, 53 Nguyen Trai Thai Thanh Mobile, 105 Tran Phu Cửa hàng ĐTDĐ Viễn Thông Q Công ty cổ phần Thế CÔNG TY CPDT Giới Di Động, 89A Ho Guom Mobile, PHƯƠNG TÙNG, 103 Nguyen Dinh Chieu, 37 Hai Ba Trung Nguyen Trai Dist Tien Phat, 34 Dien Bien Phu Cửa Hàng Phong Huy Lan Anh Mobile, Công Ty Thế Giới Di 98 Nguyen Thai Động, 14 Hung Vuong Hoc Hiep Mobile, 05 Da Nang, Hai Phong Công Ty Thế Giới Di Động, 14 Hung Vuong CTY TNHH THƯƠNG MẠI DỊCH VỤ QUỐC HƯNG, 56 NKKN VP, 72 Lach Tray, Hai Phong Cửa hàng Nam Cường 4 Công ty TNHH TM Công ty cổ phần đầu Công ty Phúc Hải, & XNK Đức Hiếu tư phát triển Viễn 199 Ly Chinh Thang, 02 Ly Thuong Thông Miền Tây, 31 Dist Kiet CMT8 Fone Mart VIỄN THÔNG A, 330 3/2 street, Dist 10 Channel Cty TNHH TM DV Phước Lập, 144 Vo Thi Sau, Dist Mobilemart 165 Thai Ha, Hanoi Công ty TNHH TMDV D&C Mobile, 12 Ý Nhi 1A Lê Văn Việt, Dien Bien Phu Thủ Đức Dist Total 4 ... SWOT implications 17 CHAPTER III MARKETING PLAN 2012- 2015 FOR SAMSUNG SMART PHONE AND ACTION PLAN 21 3.1 Marketing objectives 21 3.2 Marketing strategic plan 21 3.3 Marketing Mix 23 3.3.1 Product... and channel decide the success of Samsung smart phone in Vietnam market 21 CHAPTER III MARKETING PLAN 2011 -2015 FOR SAMSUNG SMART PHONE AND ACTION PLAN 3.1 Marketing objectives Short-term (upcoming... opportunities and threats for the Samsung mobile phone in general, and then point out strengths and weaknesses in particular A marketing plan 2012- 2015 and action plan for Samsung as well as marketing programs