case study: positioning & imc strategy implementation for silver nano
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A wonderful case study regarding samsungs success.TRANSCRIPT
Case study: Positioning & IMC Strategy Case study: Positioning & IMC Strategy Implementation for Silver Nano Health System Implementation for Silver Nano Health System
ProductsProducts
Prof. Youngchan KimSchool of BusinessYonsei University ([email protected])
Prof. Youngchan Kim 2
Introduction
Description:The Southeastern Home Appliance (SEA HA) market is a very attractive one
with a high growth potential. Samsung(SS) company as a late comer, needed to
come up with strategies aimed at boosting sales and establishing a premium
brand image. To that end, SS applied silver nano technology to its products, and
implemented strategies to effectively communicate product benefits to
consumers.
Prof. Youngchan Kim 3
Contents
1. Environmental Analysis
2. Strategic Direction & Marketing Goals
3. Segmenting & Choosing Target Segment
4. Product Positioning & Concept Development
5. Integrated Marketing Communication
6. Market Reaction
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Environmental Analysis
Current Status of SEA Market– Composed of markedly different nations in terms of culture and ethnicity.
– Abundant agricultural and mining resources and low production cost.
– Rapid growth of consuming population with purchasing power.
– Wide income gap composed of both developed and less developed countries.
– Changes of consumers’ purchasing behavior (demand of medium-to-high priced durable goods).
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Environmental Analysis
Competitive Environment of SEA Market– Home Appliance(HA) market of SEA expanded about seven times in
terms of demand and market size.
– The percentage of premium products in the HA market, which stands at 7% as of 2004, is expected to jump to 60% by 2006.
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Environmental Analysis
3.22.82.93.16175.620Australia
7.57.17.77.2455.683Vietnam
4.84.66.16.71642.165Thailand
4.24.18.41.11074.04Singapore
4.44.56.14.28611.988Philippines
5.04.97.15.31183.625Malaysia
4.04.65.14.42569.9214Indonesia
‘06F‘05‘04‘03
GDP Growth Rate (%)GDP ($billions )
UnemploymentRate (%)
Population (millions)Country
Economic Growth Rate by SEA Countries (2005)
[Source: JP, BOA, CITI, SCB, DEUTSCH Bank Average]
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Environmental Analysis
Prints by Corporations in the SEA market
Thailand Vietnam
Panasonic TOSHIBA TOSHIBA SANYO
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Environmental Analysis
Prints by Corporations in the SEA market
Panasonic LG SHARP SHARP
Malaysia Indonesia
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Environmental Analysis
Prints by Corporations in the SEA market
LG Panasonic TOSHIBA LG
Philippines Singapore
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Environmental Analysis
Communication Strategy by Corporations in the SEA market
Brand claim
OpportunityCurrent situation
NeedsSS has an opportunity in: Lifestyle and “higher” Needs
Lifestyle
Opportunity
Sharp: Plasma cluster/ Silver Ions (Purifies, Refreshes) Nature Shows it. Research Proves it.
LG: Plasma Air Purifying SystemLife’s Good. There with you every precious moment.
Hitachi: Silver Ion Deodorizer(Neutralizes bacteria and eliminates odors)
Toshiba: Hybrid PlasmaFresh, longer, healthier
Product claim
Opportunity
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Strategic Direction & Marketing Goals
1. Recognize economic differences of Southeast Asian nations and draw up branding and marketing communication strategies localized for each country.
2. Formulate the same branding strategies for the entire Southeast Asian countries to build a consistent brand image across the world, and reflect national differences in implementing marketing communication strategies.
3. It was hard for SS to release a premium product to the market as there was a widespread perception that manufactures low-to-mid-end products. Thus, SEA needs to develop a new communication strategy to launch premium products to the market.
4. Draw up a strategy to emphasize the brand of SS itself as it has a strong brand power across the world.
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Segmenting & Choosing Target Segment
SEA Market Segmentation
Ethnographic interviews per market with families, AV products and HA
F2F interviews per country
OUTPUT :Statements for Quantitative Insights for quant segment generation
OUTPUT :Segmentation Solutions
Survey per country
OUTPUT : Market Segmentation
Sample : • Decision Makers of DA products
• Countries : Australia, Singapore, Thailand, Indonesia
• Age : 25-49 years old
• Purchase Behavior : 60% past 2 years purchasers & 40% intenders in next 12 months
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SEA Market Segmentation
The purchasing factors are summarized as 1) consumers’ needs 2) attitude toward technology 3) attitude and involvement for washing machine and refrigerators
Cluster Analysis :
1) Segment 1 (30%): They purchase a product if they really want it.
2) Segment 2 (15%): They purchase a product that can be used over the long term, that is,
a big great durable product.
3) Segment 3 (20%): They purchase the best product that suits their own taste.
4) Segment 4 (15%): They have used a product for long, and do not want to change it with a
new one
5) Segment 5 (10%): They purchase a product that can show their success.
6) Segment 6 (10%): They want to enjoy their life through a product they purchased.
Segmenting & Choosing Target Segment
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Choosing a SEA Target Market
Segment 5
High / Strong
Low / Weak
Fit with Samsung’s corporate targets
Ability to Influence
Segment Size
Level of Category Involvement
Segment 3 Segment 6Segment 2Segment 1 Segment 4
AU TH
Growth Potential
Segmenting & Choosing Target Segment
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Choosing a SEA Target Market
In General Technology Adoption Demography
Segment 1 (30%)
• active, pursue progress
• purse consistency
avoid leading
• adopt technology not to lag
behind others
• use only a confirmed and
proved technology
• educated a little higher than
average
Segment 2(15%)
• prefer leisure time
• environment-friendly &
futuristic
• generous
• prefer an easy-to- use , reliable
technology
• invest in the future
• adopt technology, but have a low
understanding of technology
• aged 40 to 44
• female
• married
• receive a junior-college or
higher
• education
Segmenting & Choosing Target Segment
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Choosing a SEA Target Market
In General Technology Adoption Demography
Segment 3(20%)
• risk-taking
• have a string tendency
to present their own
opinion
• have a good
understanding of
technology
• pursue a free life
• pursue flexibility
• aged 25 to 34
• live alone or
• with a girl/boyfriend
• highly educated
• young DINK
Segment 4(15%)
• resistant to changes,
introversive
• pursue cheap products
• resistant to technology
• use only a confirmed and
proved technology
• aged 45 to 49
• female
• married
• not well-educated
Segmenting & Choosing Target Segment
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Choosing a SEA Target Market
In General Technology Adoption Demography
Segment 5(10%)
• eager to try new things • adopt technology initially
• design-centered
• lifestyle-centered
• aged 35 to 44
• white collar,
• middle-to-high income
class
Segment 6(10%)
• adaptable to society,
family-centered
• adopt technology depending
on functions and social values
• aged 25 to 29
• Make a single living with
parents
Segmenting & Choosing Target Segment
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Product Positioning & Concept
Product Positioning & Concept Development
System Appliance
Silver NanoSilver Nano
SS is the ONLY brand that has the same technology across all products
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Communication Concepts for Silver Nano Health System
Product Positioning & Concept Development
(1) Hiding-Creative Rationale (2) Purity-Creative Rationale
(3) Protected Zone-Creative Rationale
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Product Positioning & Concept Development
Supportive:Nothing butthe best
Supportive:Partner for Modern Day Living
Primary: Total Well Being
Progression
Feeling good
Trendsetter
Achiever Aspirant
Primary Message: Drive “Protected Zones” Benefits Through 3 main positions
On top
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Integrated Marketing Communication
One Voice, One Look
– communicate products’ technical features and distinctive benefits with a consistent
image.
AD Campaign
PR
Road Show
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Integrated Marketing Communication
AD Campaign : Print
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Integrated Marketing Communication
AD Campaign : Banner & POP
1
1
2
23
3
4
4
5
5
6
6
7
7
8
8
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Integrated Marketing Communication
PR
Philippines SS strengthen their position as a leader in home appliance biz. By launching several models with Silver Nano tech. in refrigerator,washing machine and air conditioner.
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Integrated Marketing Communication
PR
Vietnam “ Side By Side –a wonderful idea ”
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Integrated Marketing Communication
Road Show2 day road show, 6 countries Thailand, Singapore, Malaysia, Philippines, Vietnam and Indonesia)
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Market reaction
Market Share increased in HA market.
API rose across overall HA product categories.
Sliver Nano Health System’s communication strategies received a positive evaluation from the media and won a 2005 Asia Pacific PR award for excellence in the area of product and promotion.
REF DRUM
MS (%)
81
88
WM
10 12
SBS
28 32
RAC2 8
REF WM RAC
API
100 10692 103
85190
20042005
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However, need more effort
Consumer response survey
– Financial performance and brand awareness fared well, communication of health benefit was
not effective.
– Consumers had a low understanding and trust in the anti-bacterial and germ-killing functions
enabled by Silver Nano technology.
– Explanation through ad campaigns is not enough for enhancing trust and understanding of the
technology.
– It is hard to trust the benefits offered by Silver Nano technology just by reading a few phrases
in ads, and consumers needed a proof they can see with their own eyes.
Prof. Youngchan Kim 29
Thank You!