sample mkt strategy

“HiT” Marketing Strategy Propositionfor #1

2005. 8.

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Contents

1. Part I. Background1. Part I. Background

2. Part II. Analysis of market and product2. Part II. Analysis of market and product

3. Part III. Marketing strategy proposition3. Part III. Marketing strategy proposition

4. Part IV. Globalization4. Part IV. GlobalizationS P E

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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 only for 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

52.660

203040506070

2003 2004 2005year

mil

lio

n u

nit

s

Market share - Korean market (2004)

SONY, 14

Techwin, 30Canon, 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 Techwinlaunched a new digital camera #1, with the concept of slim, stylish and smart.

This strategy proposition will provide

the marketing and communication strategies to “hit” #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.

Output quality

• Good picture quality• Good color

• Stability at shot• Not too many functions

Easy shot

• Good design• Easy manipulation

• Automatic optimization• Multi-functions

Enjoying 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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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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II-2. Characteristics of #1

• Characteristics of #1 can be summarized into four appeals.

Portability

• Slim, compact design • Durability • Colorful

Versatility

• Still photos • Moving pictures • Voice recording

• Character recognition • Easy connection

High performance

• Fast start-up • Fast AF speed

• Short image saving time • High definition lens

Smart intelligence

• 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 20’s

• 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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III-2. New positioning proposition

• Digital Camera •Digital Diary(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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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

Core benefit proposition

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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III-3. Product mix - brand strategy

Digital Camera

D seriesV series

U-CA seriesCyber series

Film Camera

#1

CreativeOpticalWorld

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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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

Extendedservices

• 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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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.S P

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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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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 Shop”s.

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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