Case Study: Positioning & IMC Strategy Implementation for Silver Nano

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.


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


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).



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.



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]



Prints by Corporations in the SEA market

Thailand Vietnam

Panasonic TOSHIBA TOSHIBA SANYO




Panasonic LG SHARP SHARP

Malaysia Indonesia




LG Panasonic TOSHIBA LG

Philippines Singapore



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


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.


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


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.



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




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





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





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



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


Communication Concepts for Silver Nano Health System


(1) Hiding-Creative Rationale (2) Purity-Creative Rationale

(3) Protected Zone-Creative Rationale



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


Integrated Marketing Communication

One Voice, One Look

– communicate products’ technical features and distinctive benefits with a consistent

image.

AD Campaign

PR

Road Show



AD Campaign : Print



AD Campaign : Banner & POP

1

1

2

23

3

4

4

5

5

6

6

7

7

8

8



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.



PR

Vietnam “ Side By Side –a wonderful idea ”



Road Show2 day road show, 6 countries Thailand, Singapore, Malaysia, Philippines, Vietnam and Indonesia)


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


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.


Thank You!

Documents

Case Study: Positioning & IMC Strategy Implementation for Silver Nano