BUS 620 Week 6 Assignment Final Paper

Samsung 3D Television Marketing Plan


Ashford University

Managerial Marketing

BUS 620

Executive Summary:

The following market plan has been designed as the basis for introducing the Samsung

3D line of televisions (TVs) to the global market. This analysis is provided to outline the best strategies for the achievement of Samsung’s strategic goals in the home electronics market. Samsung 3D TVs will be marketed as innovative, industry-leading technology that is priced right, while maintaining the company status as a leader in the global home electronics market. These marketing strategies will enable Samsung to reach a market size of an estimated 878,927,505 households (targeted ), sales growth forecasted of 17.5% over the next three years ($ 10.5 billionprofits), while allowing Samsung to satisfy the wants and needs of global consumers in the 3D television marketplace. “NPD DisplaySearch exudes a bullish outlook for 3D TV set sales, emphasizing that TV will “drive global demand for 3D-ready devices”(“As I Was Saying,” 2012, para. 1). Success shall be defined by the capture of a dominant share of the market (at least 40%) and remaining the number-one market leader in the 3D television global marketplace.

Brief description of company

In 1938, Lee Byung-chull a member of a wealthy land owning family came to the city of Daegu and founded Samsung Sanghoe; a small trading company with 40 employees dealing with groceries produced in and around the city, and made its own noodles.

Samsung group entered into the electronics industry byforming several electronics companies such as Samsung electronics devices, Samsung electro-mechanics, Samsung Corning and Samsung semi- conductor and Telecommunication Company. The first item built in the Samsung semi-conductor and Telecommunication Company was a black-and-white TV. The present Samsung group is a South Korean conglomerate that consists of approximately 80 companies. It is an extremely important factor in the entire economy of South Korea and is exceptionally powerful politically. Samsung is a diversified company with activities in electronics, shipbuilding, financial services, construction, and medical services. In fiscal year 2009 Samsung Group,had revenues of $172.5 billion. In fiscal year 2010, they reported consolidated revenues of $258 billion with profits of $27.6 billion. Additionally, these figures do not include revenues from all the Samsung subsidiaries existing outside of South Korea.

Brief description of product and mission

All Samsung 3D TVs can convert 2D to near 3D quality. Samsung brings cinematic 3D entertainment directly into your home with full high definition (HD) resolution. It will allow you to watch, in 3D, movies, programming, and enjoy your favorite TV shows and even home movies. Just put on the lightweight Samsung active 3D glasses and elect 3D on the remote;be ready to experience the wonder of 3D TV.“What you get from 3D at its best: complete involvement in the physical realm of the story” (Murry, 2010, para. 5). Active 3D TV is a feature that is available across many of Samsung’s Plasma and LED series TVs. You can watch your favorite movies and TV shows in Full HD Resolution in either 2D or 3D mode. Samsung offers thin line TVs in full HD and 3D in 13 different sizes from 51-inch screens to 75-inch screens; with prices ranging from $849.99 to $10,000 for the new75-inch ES 9000.

The introduction of these series of 3D TVs in the strategic role of Samsung is centered onremaining the market leader in new technology 3D TVs.

To satisfy the wants and needs of consumers with a futuristic/innovative product.

To dominant the 3D global television market with a minimum of a 40% market share.

Situation Analysis

Industry Analysis/Trends

Samsung has 35 3D products and approximately 25 of them are capable of being Internet connected. Samsung has invested heavily in the IP and 3D areas. The IP for 3D content stream has already been developed and is in use globally. In production and marketing,3D is where the market is at currently and where it will continue to develop for many years in the future. “We are experiencing a revolution in the field of 3D displays, says Diego Gutierrez of the Graphics and Imaging Lab at the University of Saragossa in Spain” (Hecht & Venkatramav, 2012, para. 8)

In worldwide 3D television sales, in the consumer market alone,Q1, in 2012 the rankings were:

Samsung, 26% of market

LG, 14.6% of market

Sony, 9.4% of market

Sharp, 6.5% of market

Panasonic, 5.3% of market

Other, 38.3% of market

Currently, Samsung has fully developed sales networks in 61 countries and is expanding. North American consumer families alone purchase a new television every seven years, and the average household owns 2.8 televisions. As of 2011[update], 48 millionTVs were sold each year.The NPD study foresees a leap in worldwide sales of 3D display screens from 50.8 million units last year to 226 million units in 201 9. The company forecasts [that] 3D-ready TV penetration [will] increase from 10% to more than 50% by 2019 worldwide” (“As I Was Saying,” 2012, para. 8).

Starting in 2010, 3D television was being advertised to the world in a very weak marketing and advertising campaign by all of the companies. They touted the new innovations of the 3D televisions at all kinds of industrial meetings among themselves but never really started a massive market advertising campaign to the populace of the world. Consequently, 3D television sales were not as large as expected, due to the fact that most of the people who were considering buying 3D televisions had never experienced how different and marvelous 3D television is. Recently, Samsung started advertising with display models through their independent sales partners. The secret to fully developing the 3D television market is to get more people to experience the wonders of 3D imaging. Due to the weak advertising campaigns most consumers considered 3D TV prices to be too high in relation to the benefits gained. However, people who do the math comparing the premium for 3D versus a comparable 2D TV the difference is only around $200 more for the 3-D television and 3D TV comes with IPTV and 240 Hertz (Hz) in a LCD or LED package.The top three major players constitute approximately 50% of the market share; their products are amazingly similar to each other in many ways with small differences used to differentiate eachorganization’s products. Price selling of comparable units is the best differentiation of products at this time. Samsung group has tremendous production facilities in-house that are used to develop parts for their 3D televisions which, enables them to produce 3D TVs cheaper and develop either better profit margins or more sales than their competitors in the industry.

SWOT ANALYSISSTRENGTHSOutstanding global brand strength and consumer recognitionExceptionally strong existing distribution channelsTelevision parts, and accessories are core products WEAKNESSESUninformed consumersPriceConsumers do not like to wear 3D glasses
0PPERTUNITIESBrand is attractive globally3D TV is in its infancy with tremendous growth possibilitiesNew markets for 3D TVs with internet connectivity (IP) globally THREATSStrong CompetitionFree Trade


Brand Strength

Samsung is one of the largest manufacturers,distributors and marketers of 3-D TVs in the world. The Samsung brand name is unarguably one of the most recognized brands in the 61 countries where it markets its products. Strong brand name is one of the basis for Samsung’s competitive advantage in the marketing of 3D television.

Distribution Channels

Samsung has global operations, and maintains well-established distribution channels using many sales partners. Therefore, the new 3D TV product launch is just an addition to the existing distribution system. Using these existing distribution systems will require no major supply or delivery developments.

Core Products

Samsung is one of the leaders in chip design and production as well as many other parts used in the development and production of 3D televisions. Due to these core strengths, Samsung can assume better control of product cost and can price sell where needed much easier than their competitors.


Uninformed Consumers

In the global marketplace today there is a preponderance of consumers who have never truly experienced the 3D option. This lack of knowledge and information on the benefits of 3D television instills sales resistance in potential customers.


Many consumers believe that 3D televisions are overpriced and only for elite customers. Additionally, they do not understand the benefits of the 3D over the 2D television experience.


Brand is attractive globally.

Samsung group is an extremely large corporation (including value, brand name and operating revenues) it maintains an exceptionally strong purchasing power over its suppliers and also attracts large partnerships with various levels of consumer reach. Its outstanding brandawareness provides a global market for powerful marketing strategies.

3D TV is in its infancy, and the global markets are completely open to any company that can satisfy the consumers wants and needs.

3D TV is now Internet connection capable which, means that 3D entertainment is easily accessible throughout the world and all its markets.


Strong Competition

Samsung competes in the global market that is characterized by an oligopoly between five major competitors. In emerging markets the fight for market share and maximum sales is complex and any company can become dominant quickly reducing the market share of established companies.

Free Trade

In a global market, large international competitors have comparative advantages with their ability to become and remain the first mover and the market leader in a long-term market due to the preexisting assets. Additionally, and issues arise about price competition and economic growth.


Samsung’s top competitors in the 3D TV market are LG with 14.6% of market and Sony with 9.4% of the market. Samsung presently holds 26% of the market and between these three companies they control approximately 55% of the entire global market. The other 50% of shares belong to numerous other smaller companies who are either behind in research and development (R&D) or cannot compete on the scale of the three primary corporations. While LG and Sony constitute some fierce competition in individual segments of the market, they do not, at the present time present an overall threat in the completeness of their market mix. Samsung’s ability to out produce both of these companies and consequently, having a much larger market mix will be able to capture even larger shares of the market.


In a general sense, there are many indirect competitors. Some of the indirect competitors would be cinema movies, computers, tablets, iPods and iPhones, and movie rentals just to name a few. 3D TVs market will be larger than these indirect competitors due to the Internet provisions, easily obtaining entertainment materials, price, and the ability to have everything in a home-based comfortable atmosphere. In producing TVs many companies rely on the same supplier; and at times there are shortages of parts for these companies which slows down production. Most of Samsung’s television parts are manufactured by other companies within the group and their outputs can easily be increased or decreased when required.


The objectives of this marketing plan are centered on three criteria. To create strong consumer awareness of the new, innovative 3D TV products from Samsung, to expand an even wider brand recognition, to the capture of more market shares in the 3D TV segment, and to remain the market leader.


Due to the SWOT analysis indicating that the three major player’s products in 3D television are exceptionally similar, the ability to differentiate is difficult and can only be done by size of screen and other small services and accessories. Samsung’s marketing strategy will be a very broadly defined market due to the advantage of scale in the tremendous size and economic power of the Corporation.“Lower costs can be derived from economies of scale and experience curve efficiencies in manufacturing and other operational areas of the organization” (Finch, 2012, para. 5) Samsung will market 3D TVs in all 61 countries that they now service; covering all income levels with a five TV series approach. SEGMENTATION AND TARGET MARKET

Segmentation will originally be strictly by income level of the consumers and price of the 3D televisions. All 61 country marketplaces serviced by Samsung will receive televisions in each of the five price categories initially. Larger, wealthier economies and countries will receive a balanced mix of 3D televisions until tracking trends can be formulated in which case the marketing mix will be adjusted. Samsung will service all economic levels but will concentrate in the LED 6030 series, LED 6900 series, and LED 8000 series.



Services:Full technical and part services will be maintained by Samsung in accordance with the written purchase agreements and warranties provided in the sale package.

  • ES 9000 series, 75 inch, priced at $10,000.
  • LED 8000 series, 65 inch, priced at $3799.99
  • LED 6900 series, 50 inch, priced at $2429.99
  • LED 6030 series, 55 inch, priced at $849.99
  • LED 4050 series, 32 inch, priced at $419.99

Pricing:Initial pricing shall be defined by sales areas, product demand in these areas, cost of goods sold, and the ease or difficulty of market penetration compared to major competitors.

Promotions:The major marketing promotional initiative is to build a strong awareness of the benefits of 3D IP televisions over the 2D televisions and the indirect competitors like tablet and iPod.

Advertising: Advertising campaigns on television, multimedia, the Internet, person-to-person sales, and 3D active displays for consumers to experience the thrill of 3D television. “Due to their power to increase presence, both stereoscopic 3-D advertising formats have a significantly stronger impact on diverse marketing variables than flat 3-D advertising”(Yim, Cicchirillo, & Drumwright, 2012, p. 113).

Distribution:Distribution shall be through the well-developed and efficient supply channels previously developed for delivering other items, including television sets and other electronic products.

Location:Samsung presently has licensed and sales partner agreements in 61 different countries throughout the world. All 61 countries will be serviced in the 3D television market.




  • All sales partners and marketing agents in the Samsung television sales network shall be briefed on this marketing plan, the marketing strategy, and its implementation procedures starting February 1, 2013.
  • February 1, 2013 last check of production quantities and distribution effectiveness. Make sure allotted quantities of 3D televisions have arrived at each sales point.
  • Make sure that monitoring mechanisms to track return on investment and other critical data are fully developed, tested, and functional by February 28, 2013.
  • Training of marketing staff and sales strategy and psychology must be completed by March 15, 2013.
  • Provide all required support to local and international wholesale and retail companies distributors to help advertise 3D TVs and to build relationships.



  • Monitor and control (on weekly basis) cost-effectiveness and efficiency ratios to interpret market share and sales revenue. Make use of this research to drive marketing efforts with a focus on new customers.
  • Ensure all managers and sales partners refresh and extend sales training of their marketing staff.

This Marketing Plan has discussed and analyzed the 3D television global market. The SWOT analysis helped decide the industry trends, the degree of competition and threats, and development of the organizational mission which, allowed the forecast of performance goals, and the creation of marketing strategy. It was determined that the targeted consumer market would be an exceptionally broad market that would be segmented by price ranges. It was decided to use a five series of 3D TV system in our integrated marketing mix that will cover all economies and personal incomes. 3D IP television is the undisputed wave of the future in-home electronics entertainment.


As I Was Saying [Journal issue]. (2012, Oct 1, 2012). Multichannel News. Retrieved from http://search.proquest.com.proxy-library.ashford.edu/docview/1086326176?accountid=32521

Finch, J. (2012). Managerial Marketing ( ed.).. Retrieved from www.bridgepointeducation.com

Hecht, J., & Venkatramav, V. (2012, Sept. 18, 2012). MIT Develops-No Glasses 3D Retrieved from http://search.proquest.com.proxy-library.ashford.edu/docview/1046967688?accountid=32521

Murry, M. (2010, Aug. 4, 2010). No I don’t hate 3D. Extreme Tech.com. Retrieved from http://search.proquest.com.proxy-library.ashford.edu/docview/741124855?accountid=32521

Yim, M., Cicchirillo, V., & Drumwright, M. (2012). The Impact of Stereoscopic 3D Advertising. Journal of Advertising, 41(2), 113-128. Retrieved from http://search.proquest.com.proxy-library.ashford.edu/docview/1060099980?accountid=32521

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