Advertising Campaign for Samsung Galaxy Note Edge - Essay Example

Development of an Advertising Campaign for Samsung Galaxy Edge By Affiliation: Company Samsung Electronics is a publicly traded South Korean electronics’ company. The company trades at the Korea Stock Exchange. The company was founded in 1969 as Samsung Electronics Industries and later in 1988 rebranded as Samsung Electronics. The company adapts a diversification strategy of trading its products which involves the saturation of various versions and types of products to attract all social classes of prospective customers (SAMSUNG INC. (2014a: Para. 1-10). The financial capability of the company is measured through its key financials which show that Samsung Electronics has 214.075 trillion South Korean won worth of assets and employing 326,000 employees (Samsung Electronics, 2014a; para. 2-3). The company targets international market as it makes a variety of products tailored to meet the needs of various market segments. Samsung Electronics is a part of the Samsung Group which is the parent company behind various brands of consumer goods’ and ship & bridge building sub-companies. The company’s management is centralized and communication flows vertically with minimal mixed vertical-and-horizontal communication when it comes to decision-making (Samsung Electronics, 2014). Product Figure 1: Samsung Galaxy Note Edge (VOX-CDN, 2014) The Samsung Galaxy Note Edge is a smartphone flagship iteration of the Samsung Galaxy Note 4. The Samsung Galaxy Note Edge is a 2014 flagship iteration of the Galaxy Note 4, which is the latest smartphone of the Samsung’s Galaxy Note Line of supersized smartphones or shrunk versions of computer tablets. The Galaxy Note Edge differs from the original version, the Galaxy Note 4, in that it comprises of two screens, the major screen on the front panel and a second one on the right edge of the gadget. The Galaxy Note Edge is produced to showcase the marketing strategy of differentiation that Samsung applies to compete with arch rivals such as Apple Inc. and LG Electronics (SAMSUNG INC, 2014b; para 2). Provided that Samsung’s market strategies include the flooding of products in the market to meet the needs of various segments of the market, the company develops three lines of premium devices among them the Note Series. The Note Edge is a premium device produced to provide a new user experience and optimizing gaming, browsing, and drawing capabilities (the S-Pen technology and large front facing screen encourage art). For a premium device, the device is designed and indented to target the middle upper and upper class customers. Target Market The Samsung Galaxy Note series continues to provide customers with enhanced versions of the original device at approximate intervals of 7-9 months. In this case, the expectation that customers will be looking forward to upgrading their current Note gadgets once a newer version is launched keeps the company afloat in terms of performance within the consumer electronics sector. Under this observation, young elites are the target market for the Note Series. The Note Edge on the other hand isn’t targeting the general Note Series fans; instead, the gadget targets the geeks, multitaskers, heavy users of smartphones, and handheld-device gamers. These categories of customers range within the ages of 25-40 years. The age bracket in this case coincides with the average age of the typical middle-upper and upper class customers. Additionally, the gadget is designed to showcase differentiation and innovation capability of the company behind the company. However, based on the popularity of the Samsung Brand, the company elevates the technical bar on its gadgets to attract more young and developing customers who can be nurtured to be loyal customers to protect the company’s future financial projections. However, the technical edge of the Note Series devices not only provides the young with multitasking capabilities but it also attracts curiosity of non-edgy customers (simple customers in need of calling and texting capabilities only). MESSAGE OBJECTIVES The Samsung Galaxy Note Edge is designed and presented to customers worldwide. a) To convert diehard fans of other smartphone brands to be owners of “The Next Big Thing” – slogan for trading Samsung’s flagship smartphones (SAMSUNG INC., 2014b; para. 3) b) To relief customers of the need to attend local clinics for confirmation of physical fitness and blood pressure (HeartRate Scanner, S-Health, and UV sensors) c) To enhance the productivity of regular smartphone user from average of 70% to exceptional of 90-95% based on time management d) To provide businesspersons, employees, employers, senior management, executive management, and all types of white color stakeholders with scheduling assistant at hand. e) To limit the number of basic and important gadgets corporate workers have to carry with them at the same time (Note Edge combines a phone, a tablet computer, and computer capabilities in one piece) (SAMSUNG INC, 2014b; para 4). MEDIA SELECTION The placement of the Galaxy Note Edge advertisement will be the major cable television stations as it focuses on the international market. Additionally, the device’s ad will be positioned in the virtual space, social media and online shops such as Amazon, e-Bay, and Google. Facebook, Twitter, and Google+ will be among the social networks to facilitate the use of virtual space – Google AdWords will be incorporated. Radio and billboards will be utilized only on developing markets such as China and Africa. Cable television will be utilized to run the commercial between the hours of 12 noon and 2 pm, 7pm and 9pm, and 6am to 8am when most of the target market is awake or on a break (time differences apply). Social media will run simultaneous ads in which infomercials, commercials, and audio bytes of embedded materials can be accessed through a mouse click or generated automatically as popup windows. CREATIVE STRATEGY Market Segmentation The Galaxy Note Series devices have, for a long time, been created to target a certain portion of the middle-upper and upper classes. However, the Galaxy Note filters the target market and segments ensuring that the product meets the needs of specific smartphone users. In this case, the gadget will target the middle-upper and upper class segment of customers. However, the gadget will further target all corporate stakeholders such as founders, senior employees, managers, CEOs, and office secretaries. In the past, Note Series’ devices have targeted the artist, writer, and gamer market sub-segments of the middle-upper and upper. The current version adds the above named sectors of the target market to widen the scope and amplify sales. Due to size and utility, the Note Edge is also selective of who among the target market members can comfortably use it – potential customers with small palms may find the 5.7” Quad HD Super AMOLED Screen uncomfortable to use. Samsung Note Edge includes a capability of resizing the active window to allow small-palmed users to type much comfortably. Positioning Samsung Electronics is a large international company whose range of devices provides a gadget to every member of the society who can afford one. The Galaxy Note Edge is specifically positioned to trade as a premium gadget for the well-off customers. Although competing devices make it hard for new versions of the Note Series to trade at a very high price like Apple iPhone Series, the Galaxy Note Edge trades at a fairly high price comfortably affordable by middle class customers and other social classes above that. The device is to be traded in the international market especially in North America, Brazil, Europe, South Korea, China, New Zealand, Australia and Japan. Among the competing devices to the Note Edge are Samsung’s own Galaxy Note 3 and 4, Apple’s iPhone 6 and 6 Plus, LG’s G3, and Nokia Lumia Series of phablets (phone-tablet). Collaterals Since target market already has an idea of what the Note Series device packs in terms of features, design, and usability; associated collaterals for use in the advertisement include the popular “Gadget-Unboxing” video strategy. Additionally. E-shots will be an added method of attracting customer attention. Attention in this case is needed as the edge-factor of the Note Edge is a new technology altogether that all smartphone and Galaxy Note owners have no experience with. Thus, the e-shots and the unboxing videos will be available online for streaming or downloading as they will feature product information, usability, and overall functionality conclusions of first-time users. Timescales The timescales of the advertisement campaign will differ with reference to the channel used and the approach identified. In this case, the selected channels include cable television commercials, radio ads and billboards, social media (Google+, Twitter, Facebook, and YouTube), and Google AdWords (commercialized advertising service). The table below summarizes the respective timescales of the ads. Channel Starting Ending Airing Hours Total Duration TV commercials December 15/2014 January 10, 2014 6-8 am 12 noon – 2 pm 7-9 pm 25 days Radio and Billboard ads December 15/2014 January 30, 2014 6-8 am 12 noon – 2 pm 7-9 pm 45 days Social Media (Excluding YouTube) December 15/2014 February 9, 2014 Always 60 days YouTube December 15/2014 None Randomly Lifetime Google Adword December 15/2014 January 15, 2014 Randomly 30 days Budget The budget for the advertisement campaign is summarized in the table below. The table includes the type of advertisement channel used and the expected cost of running the ad. Channel Starting Ending Total Duration Approx. Budget TV commercials December 15/2014 January 10, 2014 25 days $1,400 per 30-second, 7 times a day for 25 days (totaling $245,000) Radio and Billboard ads December 15/2014 January 30, 2014 45 days 200 radio spots per month at $1000 collectively 100 billboard locations at $3000 a location (totaling $3,000,000) Social Media (Excluding YouTube) December 15/2014 February 9, 2014 60 days Expected number of clicks per ad duration (10,000,000 clicks) Facebooks clicks $0.59 (Kemmerer, 2014) per click (totaling to $5,900,000) YouTube (gadget-unboxing, and e-shots) December 15/2014 None Lifetime Free to Host Google Adword December 15/2014 January 15, 2014 30 days $0.77 per click (JIM, 2010). 15,000,000 clicks for the ad duration (totaling $11,550,000) Total - - -TV Ads -Radio/billboard -Social Media -Google AdWords $245,000 $3,000,000 $5,900,000 $11,550,000 $20,695,000 Table 2: Ad placement price and cost summary (KAMMERER, 2014; para 1-5: JIM, 2010; para 2-8) Resources The sources needed to facilitate and deliver this advertisement campaign are summarized in the table below: Resources Number Description Advertising Agency 3 agencies (5 members each) A commercialized advertising agency for designing the adverts External Auditor 3 (one for each agency) To audit expenditure and report on budget effectiveness Business Analysts 2 To analyze the markets and determine the different versions of the advertising campaign, paying attention on business cultures of various target markets Web-analytics’ specialist 2 For analyzing clicks-per-page on the social or online platforms in terms of how many times it is viewed, shared, saved, or led to an actual purchase Stunt performers 15 Individuals include in the media pieces as performers/actor in the ads Camera and audio recording crews 2 (2 members each, 1 crew of each type) For shooting the necessary footage for use in television ads, radio ads, online commercials, and “device-unboxed” Media editing specialists 2 For analyzing the effectiveness of the ads with reference to image quality, color transition, flow, and audio quality. EVALUATION OF EFFECTIVENESS Using five advertising approaches is expected to create market for 30,000,000 pieces of the Galaxy Note Edge. Selling at an average rate of $550 with reference to introductory, peak, and declining prices; the expected revenue from the sale of 30,000,000 pieces will generate $16,500,000,000 (550 x 30,000,000). Assuming the cumulative costs of producing, advertising, and distribution to final customer amount to $250 per piece. The expected ROI is 120.67% for each gadget and total sales as well. Additionally, based on each channel and advertisement strategy used, all the expected views, clicks per page/product, video views, and audience covered by the TV, radio, and billboard ads must attain a score of 80% of the projected results. This will translate to 80% of the expected ROI - calculated as below. Cost of production = $250 per piece Price per Device = $550 per piece Expected Sales = 30,000,000 pieces Total Cost = $250 x 30,000,000 = $7,500,000,000 Total Revenues = $ 550 x 30,000,000 = $16,550,000,000 Profit = Cost – Revenue = [(16,550,000,000 – 7,500,000,000)/16,550,000,000]*80 ROI = 96.53% If the advertising campaign fails to produce a minimum ROI of 96.53%, the campaign will have failed to meet expectations. The target market is a supporting entity to the expected ROI since demand and supply for middle-upper and upper classes are not affected by price of the commodity for premium products (Shimp, Andrews, 2013; pp. 160-163). References JIM. (2010). AdWords Cost per Click Rises 26% between 2012 and 2014. http://www.adgooroo.com/resources/blog/adwords-cost-per-click-rises-26-between-2012-and-2014/ KAMMERER, M. (2014). The Social Media Advertising Beginner’s Guide for Twitter, Facebook and LinkedIn. Accessed online on December 4, 2014 from https://blog.bufferapp.com/social-media-advertising-twitter-facebook-linkedin SAMSUNG ELECTRONICS. (2014a). About Samsung. Accessed online on December 4, 2014 from http://www.samsung.com/us/aboutsamsung/corporateprofile/history06.html SAMSUNG INC. (2014b). Introducing Galaxy Note Edge. Accessed online on http://www.samsung.com/global/microsite/galaxynoteedge/ SHIMP, T., and ANDREWS, C. (2013). Advertising Promotion and Other Aspects of Integrated Marketing Communications. Boston: Cengage Learning. pp. 160-163 VOX-CDN. (2014). Samsung Unpacked Galaxy Note Edge. Accessed online on December 4, 2014 from https://cdn2.vox-cdn.com/entry_photo_images/10637200/samsung-unpacked-galaxy-note-edge-6_2040_verge_super_wide.jpg Read More