Presentatie Strategisch advies Datum 2011-02-08

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Vraagstelling Aanpak stappenplan

1. 2. 3. 4. 5. 6. Huidige situatie 2003 SEC Omgevingsfactoren SWOT analyse Genereren Strategische opties Marketing adviezen Rol van de CMO voor de implementatie
x x Communicatie Change management

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Wat zijn de onderdelen van de strategische turnaround ? Hoe sterk is het merk tov Sony ? Wat zijn de verantwoordelijkheden , taken en rol van de CMO ? Hoe invloed opbouwen ? Wat zijn uw marketing adviezen taan de CEO van SEC ?
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Communicatie
x x

Change management
x X

Hardware & devices - Technology focus Betting on Open architecture

x Not developing Proprietary Systems x Not developing Software, Content, movies, Video games

Building blocks for Digital Convergence

x Offering Consumers more choice x Software vs. competitor devices

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Product diversification
Nokia (cell phones) ; Sony (Consumer electronics); Intel (Chips) SEC R&D multiple categories (5)

97 : Focus on Innovation of high quality products, all categories

03. Samsung leader in LCD TV & Video cell Phone . Samsung Top-3 Brand in major product categories

Telecoms
First entrance with Samsung branded cell phones via SPRINT in US Market share Samsung 99 -> 02 resp. 2,7% 10% despite higher prices (+20% for high-end models)

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Transition from Analog to Digital in the 90-ties

Once in a life time opportunity Attracting and retaining top scientific talent R&D 17.000 scientists & engineers & designers

Relentless flow of new digital products, twice as fast as competition (*), setting STDs

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2 Trends
1. Merging different technologies into 1 major product 2. Multiple technologies linked into 1 major network Ubiquitous Network

Samsungs intent
x to be squarely @ center of this future society (linked)

Challenges
x Standardization & simplification x Customer education on the benefits of convergence x Cannibalization of existing Samsung products + render obsolete

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90s: Product Manufacturer, selling to OEMs (B2B) 93: 97: New management initiative Low-end Commodities High-end Premium goods Setting up Global Marketing Operations

99:

Build Corporate Brand Image (200 markets, 17 Product BUs ) Pillar Products Turning internal education into Communicable message wow + simple + inclusive

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99: GMO Global Marketing Operations - 90 FTE

x x Developing the corporate Marketing Program S. Strategic Brands outside Korea - seperate team for Korean home market

99: GMO - teams

x x x Global Marketing Strategy - Team Controling Regional Strategy - Team Product Strategy - Team

01: Consolidation of SEC advertising

x x x => Consistent message => Uniqe Brand essence for Samsung to differentiate => Help to strip away sub-brands (distracted mgt & resources)

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Marketing Budget % of sales => Potential growth 03: Budget split GMO (HQ 40%, 17 BUs 60%)
x GMO => Advertising & Brand Franchising; 70%/30% (opport.) x BUs => Price promos (consumers & trade)BUs to

Systematic allocation: M-Net Software

x Sales Analysis -> Improvement opportunities balancing spend x Positive results: brand preference; market share; operating profit x Change enablers: Incentive program:

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Marketing function - More then advertising & product price promos Building Products based on Customer Insights 02 03 Creating Brand visibility with new brand campaign
x DigitAll = Digital Convergence

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next level Brand activities

x Co-marketing campaign WB Movie The matrix reloaded x Target 20- 30-yr old segment solidify there brand experience x Campaign video game (+200 Samsung brand impressions)

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WW Olympic sponsor 00-onwards

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South Korea -> Separate Mkt. Team

x 40 year brand known (similar for GE in US) x 15% of total Samsung sales WW x 50% share aprox. all products; high repeat sales
=> Launch market for new products => Though tech challenge non-urban users 70% urban users use broadband

x Multi-brand, Multi segment x Launch of sub-brands targeting all age groups

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Other Markets
x Focus on corporate brand building image needed

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Different stages of development/country markets

x A. Accelerator: build brand awareness aided + unaided x B. Turning point: ok awareness, brand image reinforcement x C. Advanced: strong unaided brand awareness & reputation

Growth opportunities
x China: B C, well positioned in cities, strong Regional Mkt efforts + 5 m customers for phone services /month 02 x Latin America: mobile internet + 47 m users by 05 x India: VARs PC-packages assemblers; fast growing IT market greater brand recognition then Intel or MS

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99: FCB brand image analysis

x Relationship model
(1) # 13 Relationship dimensions brand connections +/attitudes & opinions associated w/each dimension

(2) # 7 Relationship styles types of customer- brand rel. Levels of Brand Loyalty: Transacting->Attraction->Connection->Bonding

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00: Samsungs Relationship style Index (RSI)

in 6 markets: BZL; CHI; GER; HK; UK;US Different levels of development - different Marcom Strategies

00: Key competitors (also on RSI)

Consumer perceptions of Brand Personalities
=> cell Phones starting.

Aims:
Shape brand image in F(future consumer trends) Be the brand of choice among vanguard consumers (young opinion L WW)

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02: Industry experts interviews in 11 countries

=> 6 consumer trends & Samsung implications to build brand image
1. Living on Demand & In Control 2. 3. 4. 5. 6. Living the Converged life From Consumers to experiences Milking the moment Technology gone from wow to oh Moving by instinct

03-04: Conclusion
Positive consumer response to DigitAll campaign CONCERNS: Enough to propel Samsung into the premier league of global brands ?

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 Gestructureerde samenvatting van de tekst Fase 0 Timing: 30 november Analyse van de omgevingscomponenten Fase 1 Timing: 14 -december Bepalen Kernproblemen Fase 2 Timing: 21 december Visievorming - mogelijke oplossingen Fase 3 Timing: 28 december Besluitvorming: keuze uit de alternatieven Fase 4 Timing: 11 januari Planning & implementatie Fase 5 Timing: 18 januari - FINALE
Fase 30/11 0 1wk 14/12 2wk 21/12 1wk

1. Wat zijn de onderdelen van de strategische turnaround ? 2. Hoe sterk is het merk tov Sony ? 3. Wat zijn de verantwoordelijkheden , taken en rol van de CMO ? Hoe invloed opbouwen ? 4. Wat zijn uw marketing adviezen taan de CEO van SEC ?

Fase 1

Fase 2

Fase 3

28/12 1wk

Fase 4

11/1 2wk

Fase 5

18/1 1wk
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1980s: Global 1993: 1997:

Mass production commodity products New Management initiative & Brand focus top100->10

Analog

Digital = opportunity in a live time

Asian financial crisis Negative Profits

Call for change to build a resilient & enduring Value Proposition unique to Samsung-Products to distinguish from competitors (avoiding commoditization trap)

1998:

Vertical integration
FOCUS: Core Manufacturing + R&D competence Innovation on high Quality Products = Avoiding Commoditization trap

Hardware focus & Product breath & Product development pr.

Technology focus; betting on Open architecture (not SW, games, content,etc.) ; Digital convergence: fast releases all categories, high premium Quality products, price & margin Brand image analysis RSI 13;7 Brand Relationship Dimensions, Types Key Competitors analysis based on RSI index model Global, Regional, and product Marketing strategy; Consolidation advertising agency Marketing Budget spend control f(growth potential) - M-Net Market driven Change: Customer Insights; Segmentation; Trends analysis & anticipation International Expansion stages of develop. Growth opportunities

1999: Marketing Organisation GMO HQ/17 BUs / Home Market

2002: Brand Visibility & Campaigns DigitAll

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8 A4-tjes niet vergeten.

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Why decided Kun Hee Lee in 93 to change a radical transformation (new management initiative) ? Financial analysis 2000 2003 - 2005 by product portfolios

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Memory chips leader info 2005 2010 Top-100 Global Brands

x Best Global Brands - Methodology x Samsung position

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2010 Top-10 risers & fallers 2010 Industry insights 08 10 Brand Value Ranking Samsung 2003 2010

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2003

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Interbrands method looks at the ongoing investment and management of the

brand as a business asset. This means that our method takes into account all of the many ways in which a brand touches and benefits its organization from attracting and retaining talent to delivering on customer expectation. The final value can then be used to guide brand management, so businesses can make better, more informed decisions.

3 Key aspects
1. The financial performance 2. The Role of the Brand 3.The Brand Strenght

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2001 2002 2003 2004 2005

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2006 2007 2008

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2009

2010

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