Samsung Smart Fridge
Marketing Plan
Prepared by:
Elizaveta Chernova
Susanne Pfisterer
Kelly Seawell
Semih Yilmaz
CONTENTS
Page
EXECUTIVE SUMMARY….4
MISSION STATEMENT…5
CURRENT MARKET POSITION…..5-9
Product
Target Market Analysis
Place
Price
Promotion
Processes
Physical Evidence
MARKET OVERVIEW…….9-10
Description
Laws and Regulations
Current Business Trends
SWOT ANALYSIS10-13
Strengths
Weaknesses
Opportunities
Threats
Key Issues
Key Opportunities
Competitor Analysis
ASSUMPTIONS..13
Sales
Revenue
Customer Base
OBJECTIVES…..13-15
ANSOFFS MATRIX..15
STRATEGY16-21
Corporate Strategies
Target Market
Positioning Statement
Brand Development Strategy
Pricing Strategy
Marketing Strategy
Public Relations Strategy
Advertising Strategy
Sales Promotion Strategy
Sales Strategy
Distribution Strategy
Partnerships
FINANCIAL FORECAST..22-23
Break Even Analysis
CONCLUSION23
Executive Summary
This BBM report is written to strategically plan the launch of the new Smart Fridge
The Smart Fridge is a new fridge with multiple new aspects making it one of the most
modern and advances fridges in the world. The product is made by Samsung and has a
high potential of becoming the next hype on the fridge market.
By reading this report it will become clear what strategies, obstacles, trends, threats and
marketing/ communication tools are needed to make sure this product will become
successful. The report contains a full market analysis, different recommendations and a
clear understanding on the future potentials for this new innovative product.
Marketing Plan
1.1 Mission Statement
Samsungs aim is to achieve prominent contributions, to execute their work professionally
and to deliver innovative and useful products to their customers. They try to actively
participate with their customers so that they can be improving products to meet the needs
of their customers. Samsungs philosophy is to devote their people and technology to create
superior products and services.
2.0 Current Market Position
Samsung is the number one consumer electronics brand in the world. They are
acknowledged as the leader in the digital convergence revolution. Samsung was founded in
1969. They bring in $36.9 US dollars a year in product sales and employ over 75,000
people. The global network of Samsung includes 47 countries. Samsung has the image of
strength and reliability in their products and they are also an innovative company which
brings up the idea of selling a new product known as the Samsung Smart Fridge.
2.1 Target Market Analysis Customer Analysis
When preparing to produce the Smart Fridge, Samsung defined its target market groups as:
Hotels
Restaurant
Restaurant Chains
Canteens
With Samsungs good name in the consumer electronics realm, they have an opportunity to
partner with a variety of hotels, restaurant chains and canteens to sell their products to. In
the data charts below there is evidence of a number of possible partners and customers.
Hotels
Name of Hotel
Number of Properties
Hilton Hotels 514
Intercontinental Hotels 3800
Sofitel Hotels 1000
Marriott Hotels 2900
Swiss Hotels 290
Mestin Hotels 120
Restaurant Chains
Name of Restaurant
Number of Properties
McDonalds +30000
Burger King +11000
KFC +11000
This data shows the large extent of two of the target markets for the Samsung Smart
Fridge. The tables above only show a fraction of the possible consumers and even then
there are thousands of consumer options. Samsungs goal is to form a partnership with at
least one of these companies in hope that they will purchase a Samsung Smart Fridge for
each of their properties.
A survey was completed about these big companies and it was found that they are not very
interested in changing their supplier without persuasion. This could make entering the
market and forming a partnership a challenge for Samsung. In order to create a smooth
entrance into the market Samsung will begin their sale interactions with one company or
restaurant at a time and not by creating a partnership. Samsung can provide these
consumers with evidence of why they are the number one consumer electronics brand in
the world market and this will provide larger businesses with reason to be interested in
creating a partnership with Samsung.
In the marketing area of hotels, the six hotels listed in the chart above constitute for almost
65% of the total market. According to surveys, big companies are searching for better
technology to make their business processes more profitable. That is the goal of Samsungs
Smart Fridge, so once it is noticed in the industry, Samsung will market their products
primarily to this group of hotels.
What holds true for the hotel industry is also found in the restaurant chain industry. A small
number of companies hold control of the market. The three chains listed in the chart above
(McDonalds, Burger King and KFC) control almost the entire restaurant chain industry.
Each company has chains all over the world, which could potentially open up infinite
possibilities for Samsung if able to create a partnership with one of these chains. The
competition in this area will be extremely tight though due to the small numbers of market
controllers.
After gathering the information regarding the target markets it is clear that Samsung hopes
to gain a partnership with one or more of the hotels and restaurant chains, but they will
also target less chain oriented restaurants, canteens and hotels in order to gain market share
to build their brand image among businesses. Samsung is well known in consumer
electronics, but they must build their image on the business to business market. The
customers that Samsungs hopes to reach are not necessarily the easiest market to gain, but
with Samsungs history in quality and innovation they hope to break into the market.
2.2 Product
Samsungs Smart Fridge has a large number of features including the following:
It tracks expiration dates and alerts consumer when products are nearing their expiration
dates
It tracks product inventory
It places orders for product shipments automatically when products are low
Large in size
Wireless connection capabilities
Touch Screen
Energy Efficient
If the consumer selects a product using the touch screen, the product then comes through a
large slot in the fridge door
The Smart Fridge is specially created for restaurant chains, hotels and canteens.
2.3 Place
Samsung will use its factories that are already in place and in working condition to
produce it. These factories are located in South Korea, Malaysia, Mexico, South Africa,
Dubai of the United Arab Emirates, Morocco, Saudi Arabia, the Philippines the United
States, Canada, Panama, Colombia, Brazil, Argentina, North East Asia, South East Asia,
Austria, Belgium, Denmark, France, Germany, Hungary, Italy, Netherlands, Poland,
Portugal, Russia, Spain, Sweden, Switzerland and the UK. Samsung is already situated as
to supply the Smart Fridge word wide.
2.4 Price
The price of Samsungs Smart Fridge is based highly on competitors with similar products
on the market. While no other company has a smart fridge built with all the same qualities
as the Samsung Smart Fridge, the price has been based off of similar market prices. The
pricing policy includes a high margin as to bring in the most profit for Samsung. While
there is a high margin for the prices, they are still priced according to the current market
trends. Prices do not include tax or delivery costs. A variety of discounts will be offered to
consumers for large purchases, partnerships and direct payments. While consumers do
receive a 3% discount for direct payments, a progress payment plan is also offered.
Samsungs pricing policy includes:
high margin
priced for business customers
competitively priced against competition for the quality and innovations
progress payments offered
discount of 5% is offered for large purchases of ten of more Smart Fridges
discounts of 5% is offered for partnerships with large chain businesses
when payments are made directly, a 3% discount on the purchase will be applied
delivery cost is not included in price
tax is excluded in listed price
two year service warranty is included
2.5 Promotion
Samsung is known as the number one consumer electronics brand in the world. That is a
pretty powerful promotional message on its own. They provide sponsorships for sports
team, athletes and events. They also donate to a variety of charities and organizations. In
addition to these promotional activities, Samsung also is featured in magazines, radio and
television commercials, newspapers and billboards. They do special promotional activities
where the consumers get discounts and rebates.
The above are all very successful forms of promotion for Samsung and have worked in the
past, but for entering the business to business market there are a few changes that must
take place. In order to reach the business target markets, Samsung must direct their
promotion to reach businesses on a large scale. A good way to promote to businesses is at
national conferences. Having a speaker do a presentation on the Smart Fridge or offering a
viewing session of the product could be extremely beneficial to Samsungs business.
Samsung must not simply promote a product; they must back up the product with details
and provide these details to the business consumers. That is a major change necessary for
the promotion of the Samsung Smart Fridge.
2.6 Processes
The business processes of Samsung are extremely important to the success of the
innovative Smart Fridge for the business to business market. Specifically for the success of
the Smart Fridge, Samsung will open up a website focusing only on the features and
qualities of this new product. This website will have answers to commonly asked questions
about the technology and prices, a video demonstration of the product, a virtual tour of the
inside of the fridge and it will include a link to the 24 hour rapid support system. Samsung
has a reputation in place for their strong CRM systems already in place and they plan to
expand this system by offering a 24 hour rapid support system via the Internet specifically
for the Smart Fridge technology. The support group will be built of specifically trained
specialists in the technology.
In addition to the website and support system, Samsung will provide consumers will
