1.0 Executive Summary
This marketing plan has been prepared as per the wish of the top executive to extend Samsung’s market horizons in the electronic industry. It has been developed to identify the possible future market for our company’s new glasses-free 3D televisions that we have recently introduced into the market for tasting. The current market that we are serving is the global market, with offices across all the continents. Although the product is the newest technology in the television industry, it has shown some positive reactions in the past few months. There is an anticipation of more rapid growth if the necessary measures are adopted. However, there are still many unexploited markets and opportunities to exploit.
The company prides itself in innovation, and thus, we are trying to be ahead of our competitors in producing the most advanced products, even those that the market is not ready to absorb. Due to the innovation persistence, we have already settled the company as the market leader in the electronics area, and we plan to achieve the same in the glasses-free 3D televisions field. We are currently at the growth stage in this product, but we plan to use our creative nature to spur the technology to the maturity stage. The potential market that we are focusing on is the mid-aged youths, who have enough to spend and are well-advanced in technology. To reach on to potential customers, we will need to conduct extensive product promotion. However, the return will be rather rewarding as we anticipant a 40% annual increase in sales for the next five years. After the maturity stage, just before the product sales decline, we shall introduce a much advanced Android television.
2.0 Situation Analysis
Samsung is an international electronics manufacturing company with its headquarters in South Korea and several other offices across the world. We are currently the biggest and the fastest raising electronic company, producing a wide range of electronics in the industry. Our glassless-free 3D television was introduced into the market five months ago, and it has seen a steady growth rate at the taste stage (see Table 2.1). As the market leaders, we face little competition, but there is a need to maintain our market position as high as possible.
2.1 Market Summary
The potential market for the new glassless-free 3D television is the youth in their mid-twenties to late thirty. There are an estimated 400 million people that are capable of purchasing this set of 3D television under this age group. These age groups provide two essential characterises that we require in the currents market. First, they are technologically advanced users able to understand the value of 3D television. Moreover, they are ready to accept the innovative ways of technological development, and thus they will offer us a good sustainable market. They also have enough income as they have been recently employed with young or no family to support. With the current price of one TV set that is relatively high to many people, they will be able to afford the price. The males in this age group will form a most suitable target market they demonstrate a particular interest to t new technology (see Table 2.2 for target market growth expectation).
2.2 SWOT Analysis
The main strength that we have is our advanced technological base. It enables us to introduce new and the most innovative products in the market, such as glassless-free 3D television set. However, it should be noted that our products are also distinct in nature. Despite the fact that other companies have launched the glasses-free 3D television, only the product of Samsung has received top rating. Moreover, the products we offer are reasonably priced compared to other products in the market. We offer both high quality and relatively inexpensive products due to our advance technology as well as innovative nature of the company, which is among the major strength of the company.
One of the weaknesses faced by the company is the unfamiliar nature of technology offered to the target customers. There is not enough information available about the glasses-free 3D television, and thus, it is a weak point that may affect the product demand. Another weakness in this regard is that potential buyers do not see any outstanding merits in this technology. Moreover, the presence of the 3D television that requires the use of glasses is the biggest problem we are facing. People feel that they are already enjoying a 3D entertainment; hence, they may feel that they do not need more.
The biggest opportunity that our company has at the moment is the high demand for the technologically advanced products in the market. As far as we can prove the worth of our new product, there will be a lot of people willing to purchase it no matter the cost. Another opportunity lies in the current large number of youths who have a lot of disposable income. These youths are always looking for new explorations. The global dominance of the electronic industry also gives an upper hand in venturing new markets.
The biggest threat faced by the company is the new technologies introduced by the competitors. Although we have a market dominance of over 80%, this share may reduce if we allow the competitors to continue introducing more impressive glasses-free 3D television. Direct competition is also another threat that we are facing. Lastly, the threat lies in the pollution regulations placed by many governments across the world.
LG Electronics Company in Korea is our main competitor in the industry; it has been ranked second in the production of glasses 3D television. Therefore, their entry into the glasses-free 3D television niche is a threat to us. This company also has a strong focus on mass production and strives to become a leader in the market. Sony is our second threat. Its advance websites advertisement method gives them a competitive edge in the television industry. They are also known for good quality, and they capitalise on it extensively. This company makes rather slow moves, but their entry into the sphere under discussion may pose a big threat to us. Panasonic Company also presents a threat in the industry. It practices the culture of innovation and is a competitor in terms of producing better and innovative products.
2.4 Product Offering
What makes our product unique; other than the glasses-free 3D view, it also has an amazing colour combination. The size of the TV is quite portable and can be placed in almost all sections of the house due to its unique shape and size.
3.0 Marketing Basics
3.1 Value Proposition
The current product that we are offering to the market is more improved than any other because the cost of glasses for 3D televisions is being removed. The product is also important as it can be found in varying sizes, which proves to be comfortably fitting, not only in terms of the housing space but also the income earned. The Samsung glasses-free 3D televisions are also unique as they offer more spectacles of colour than any other product in the market.
3.2 Value Definition
The pricing is expected to be friendly to the target market users’ income as per our research and evaluation. At the entry into the market, since the launch of the product into the market five months ago, we have gained a 5% profit from sales. However, if we formally introduce the product to all our target markets, we will receive a 10% profit on all our sales. The profit from this product is expected to prove its real value once its market growth stabilizes, which is expected to take place in three months.
One set of this television is expected to have a net profit of $250 to $650. With an average of $450 net profit per one television set, we expect to have a market sale of two million sets. The total net profit, in this case, shall translate to $ 900 million. With the current net profit of $17.5 billion, it means that the company will have an increase of 5.3% in net profit. It is a profitable venture that is expected to be beneficial for the next five years before the product reaches its maturity stage.
In this new market, we want to position ourselves as the product leaders in the market. Our technological advancement and innovative nature will give us an upper hand in positioning the company this way. We have already entered this market while other rival companies have not yet made such a move, and thus, we have excellent chances to solidify and strengthen our position as the market leader. The moderate pricing of our product and using the high technology will help to maintain this position in the market regarding this product. Additionally, we focus on the differentiation of our product to position it as unique in the market. The current glassless 3D televisions that we have introduced are relatively big in size and thus more expensive. We will produce smaller and cheaper sets to give them a unique appearance.
4.0 Marketing Strategy
Our company has a mission of devoting all the talent and technology we have to producing quality and unique products. This mission forms the cornerstone of the marketing strategy were the price, quality and innovation are put on the first place.
4.2 Marketing Objective
Our primary marketing goal is to ensure that this product will have an increase of 40% in sales for the next five years. For us to achieve this, we plan to increase our target market awareness by 80% by the end of the year, and 50% for the next four years. This promotion will increase the actual number of customers as planned. We will also focus on educating customers on the benefits of the new product so that they can shift their preferences to this product.
4.3 Financial Objectives
We anticipate an increase in the net profit by 5% at the end of the first year after the launch of the product. However, after five years of the product’s availability to the consumers, the percentage is expected to rise to 8%, from where it shall start declining steadily.
4.4 Target Markets
The target market for this product are the youths in the mid-twenties to late thirties who Are mostly found in the major cities in the world, where they settle after landing their first jobs. These individuals usually belong to the middle class. However, the upper class representatives will offer a good consumer niche, too. These people go in line with the major technological advancements, and thus, they will demonstrate a high demand for this product. Another group that we anticipate incorporating into the target market are the cinema and video shop owners who operate using the television sets. They constitute a relatively low market share, but we can use them as a channel for promoting our product through personal experience.
4.5 Market Segmentation
The segmentation shall be done based on gender peculiarities. The first segment that will offer the primary market is males of middle age that have less or no commitment to families. These individuals, as a rule, have enough money to spend and particularly enjoy entertainment. The females of this age group will constitute the second segment, but they are expected to demonstrate low buying potential as compared to males. However, some technological advanced femaled, especially of Caucasian origin, form a particular segment.
5.0 Marketing Tactics
The product that we are offering to the market is the glassless 3D television. It is a revolutionizing new product that we have tested in the market for the last five months. We plan to launch it fully after the approval by the board hopefully from next month. The products range in different sizes, quality and specification, according to most customers’ specifications. We are focused on providing what the market desires the most. The products will also bear the logo of Samsung because we believe we have millions of loyal customer always waiting for our new products. Each product shall also carry a two-year guarantee under certain rules and regulations.
The pricing of the new glassless 3D television will be friendly to most our customers. The smallest television set shall be sold for only $ 2500 of which only 20% shall be the expected profit. The largest set shall be sold at $ 5000 where the company shall gain 18% as the profit margin. This price includes shipping, storage as well as distribution cost.
The company shall have a direct distribution channel in most nations to conduct sales. The most economically advanced countries are likely to buy more hence presenting themselves as the potential markets. With this in mind, we already have existing sales outlets in such countries, which we shall use to distribute our sales. Few developing countries, in Africa, for example, are anticipated to demonstrate fewer sales. Thus, product will be distributed using our partners. They shall earn from the distribution margin added to the final price.
The primary method that we shall use to communicate to our target markets is through the advertisement industry. We shall advertise the new product in major television channels across the world. Apart from the television advert, intensive promotion shall be conducted in showrooms across the world where the demonstration of the product shall be conducted. We shall also offer promotional services like sponsoring major games in the world, which will increase our level of publicity.
We expect the top management to increase the cost of producing more items of this product to 10% per month for the next year as our market expands. However, our break-even will come only three months after the launching of the product. We are anticipating an increase in profit for this product by 40% for the next five years.
The implementation plan for this products runs for a total of three months. Over this period, we plan to introduce the major product specification based on the response from the market. The marketing management shall then control and maintain a fixed sales rate until the product maturity.