Shweta, Danielle, Grace, Larry, Olivier

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• Shweta, Danielle, Grace, Larry, Olivier

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Canadian Electronics Market

• Market Trends
• Increasing interest in home theatre
• Digital lifestyle
• 40 of Canadians use the Internet to support
  purchase decisions
• 7 of them will purchase digital products

• Market Needs
• Modern products
• Attractive design
• Easy of use and reliable products

• Market Demand and Segmentation
• Digital products boost the Canadian electronics
  market
• Visual equipment sector mainly
• ? 78.2 of the markets value in 2003
• ? 3.86 billion

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Canadian Electronics Market

• Market Growth

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Internal Analysis
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External Analysis (1)- Opportunities

• No political restrictions on trade
• Possibility of free trade agreement with South
  Korea
• Strong economy
• Growing consumer expenditure
• More than half of consumers make purchases online
• More than 15 online electronic specialty stores
  have own online shopping and sell wide range of
  products
• Canadians quick to adopt new technology

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External Analysis (2)-Threats

• Consumers more price-sensitive and more concerned
  about the environment
• Increasing income gaps in Canada
• 68 of Canadians have debts- the average debt
  being about 55, 155
• Rate of unemployment is low and steady
• Increased labour costs

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Competition

• Sony is one of the world's largest consumer
  electronics companies
• Nokia Corp. and Motorola Inc. are large mobile
  phone players
• Toshiba is one of the largest suppliers of
  electronics and electrical products

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Performance Metrics and Financial Analysis

• millions in dollars

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Performance Metrics and Financial Analysis (Cont)

• Millions in dollars

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Problem Statement

• Samsung Canada is challenged with positioning
  itself as a leader of high quality, premium
  products in the consumer electronics marketplace.

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Alternatives

• Ways of budget allocation
• Eliminate low end items
• The Samsung Boutique/The Samsung Experience
  Center
• Connect two brands together

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Recommendations

• The Samsung Boutique alternative.
• No comparison in the boutique
• More power to control the image
• Understand the consumer needs

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Marketing Objective

• Redefine the brand image of Samsung among 20
  percent of the target market in one year
• To create the awareness of the new brand image
  among 30 percent of the target market within the
  first year of implementation.
• To increase Samsungs market shares in Canada by
  3 in two years.

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Target Market

• Age 20-35 single individuals with financial
  independence
• Age 36-50 high income families

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Positioning statement

• Samsung is the leading producer of high
  quality, innovative and fashionable designed
  electronics as home decorations in the consumer
  technology market.

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Product
Name each new product line

• Young Market
• Focusing on the fashionable and creative design

• Mature Market
• Focusing on creative functions and the mature
  designs

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Products

• To eliminate low end product lines step by step
  in 1 year and half
• Keeping repair department for these product lines
  for 10 years

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Place

• Boutiques at big shopping malls in the three
  major cities of Canada that are Toronto, Montréal
  and Vancouver.
• Distributing their products in the large
  distributors
• Eliminating the small, medium distributors and
  the department stores

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Place
Young Section
Mature Section
Promotion Area
Promotion Area
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Price

• Young market
• ?be sufficiently high but affordable

• Mature market
• ?be relatively more expensive

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Promotion

• Posters and banners will hang in high traffic
  areas and boutiques
• Promotional uniforms
• Products will be displayed in window, but there
  will be point-of-purchase demo display
• Seasonal fashion show in Toronto, Montréal, and
  Vancouver

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Promotion

• Advertising through fashion magazines and TV
  channels in both English and French.

• Advertising through home decoration magazines and
  mature fashion magazine in both English and
  French.

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Financial Objective

• To increase the sales of Samsungs high end
  products by 10 percent in 1 year
• To make a profit in the newly introduced products
  within three years after its launch.

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Financial

• The total financial budget will be between 1.5
  million and 2 million.
• RD department
• Rental cost
• Promotion spending
• Temperate Decrease in NI in the 1st year ? but
  expect to get recovery after

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Conclusion
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Thank you