Effective communication for Samsung Printer Market.Categorizing Message Strategy

How an effective communication for Samsung printer market can increase its brand value and encourage customers through categorizing products and generating creative key messages.

Aim

Contents01. Market

02. Consumer & Product

03. Message Strategy

01. Market

What is Happening?

　 2006　 　 2007 First Quarter

　

Ranking manufacturer Market Share Ranking manufacturer Market Share

1HP 56% 1HP 44%

2Brother 14% 2Samsung 15%

3Epson 10% 3Brother 9%

4Canon 5% 4Xerox 7%

5Konica Minolta 4% 5Epson 6%

6Xerox 4% 6Dell 4%

7OKI 4% 7OKI 4%

8Ricoh 2% 8Konica Minolta 4%

9Dell 1% 9Ricoh 3%

10Lexmark 1% 10Cannon 2%

Total 　 100%Total 　 100%

　 　 　 　 　 　　 　 　 　 　 Source: IDC

Technology dependent Market

Razor Blade Market

Global Color Multifunction laser printer Market share

Rapid increase

Successful entry

The size of Global printer & consumable market

The size of Printer market by product type

Multi-Function Inkjet Printer

Source: IDC Source: IDC

Printer makers usually derive more than two thirds of their profit from selling such consumable ink.

2006 SERI

Market_ Overview

The SMP-300, our latest screen printer, is the first printer designed specifically to complement a family of pick-and-place machines.Circuits Assembiy JULY 2007

CRN 2004

No1 Laser MFP in 11countriesMono LBP in 7 countries

Grown super fast.Major leader in Mono Laser Printer Market.

Friendly Image.

Samsung: Main leader in Mono laser product

Market_ Samsung

2001 2003 2005 % point change

% % % 2001-05

Hardware:

Printer 75.0 76.6 74.2 -0.8

Modem 59.6 64.9 60.8 +1.2

Scanner 39.7 45.6 46.3 +6.6

Flat-screen (TFT) monitor

- - 29.5 -

TV tuner 8.8 8.1 8.2 -0.6

Printer as PC peripherals_ The Largest Share

Source: Mintel

•Edge to Edge Printing HP

•Nozzles Galore- Speed for Inkjet Cannon

•Ink

•Paper HP ColorLok Technology

•Instant-on Fusers & Scanners– no more yawning & stretching

•Solid-Ink Printers Xerox

•3D Printing- rapid prototypes

Market & Brand has been explained by

the Advanced technology

Is a peripheral any longer?

e week2007

Technology dependent

Market_ Definition & Technology

MLP PrintersThe effect of falling prices has been to shift consumer interest towards MFPs and away from

SFPs, as well as making colour printers the norm. Reduced printer prices have also increased the profile of laser printers

MLP: Scanning, copying and printing. photo printing capabilities with media card reader.UK retail sales of SFP/MFP printers, 1999-2005 Source: Mintel

Kiss the Copy Shop Goodbye! Increasingly, in-house printing is a smart move Source: SPRING, 2007

Samsung laser printer ranked 4th Source: pcworld 2006

Price Falling!! caused popularity of multifunctional device and made closer to advanced technology at personal

environment.

Market _ Trend: MFP, Laser printer& Home printing

“New products Every minute & direct campaigns”

-Epson is launching a direct campaign to promote its Stylus D120 high-speed inkjet printer. The activity, through Tullo Marshall Warren, spans in-store material, email and press ads. Direct News 2007

“Offer--and without brand “

-Xerox Printer is Free!marketing message offering something for nothing.

Company makes up for this by selling supplies such as toner or ink. Buy supplies directly from Xerox

, "think ink“- Kodak“Our strategy around point of sale is to crystallize for consumers that they're not only buying a printer today, but also buying into three to four years of ink purchases.” Source: Advertising Age 2007

-Xerox is unveiling a costly solid-ink printer for businesses that will print color pages at the same price as black and white. New York Times 2007

•“New Entrants”

•Dell, HP Set For Printer Market Battle •Source: Dallas Morning News 2004

Dell’s introductory success

•Panasonic Introduces New Fax Device•Source: Yahoo! 2004 •  Panasonic unveiled its latest fax machine in the Panafax line, the multifunction UF-9000

Competitive market, Overloading products & competitors. Ink pricing is responded by technology & free offer strategy

Market _ Competitors

Store-brand catridgesTHE STAT: 10% The price differential on store-brand printer cartridges vs. HP-brand cartridges. (Data: BusinessWeek)

Laser printers may pose health risks Source: CNET News 2007

•Emissions from office laser printers•toner particles that can get deep into the lungs •17 out of 69 tested

Save Money and Environment Source: PC World 2007

-Over half of printer ink is wastedAs much as 60% of the ink contained in a typical inkjet cartridge is wasted when printers ask users to throw away half-full cartridges, according to Epson.

HP playing Hard Ball?

Social & Health IssuesConsumable market

Market _ Threats

02. Consumer & Product

You & Printer

Overall Score

Reliability

% needing Repair

Likelihood of Recommending

All Printers 7.9 8.4 4 8Business 7.6 8.3 8 7.7Home 8 8.5 3 8.2Printers less than a year old

8 8.5 4 8.3

Mono Laser 8 8.5 3 8.2

Source:Pcworld 2007

Overall Score is high.Business Printers seem to lack in the competition.

Mono laser printers and relatively new printers have a good impression.

All in one printers are not noticeable in the market yet.

Business Market is to be considered.

Consumer _ User’s Choice: ‘how would you rate samsung printer?’

Personal projects dominate their printer usage.

Inkjet printer’s selling prices are falling and it underscores their popularity

Sacrifice brand loyalty for a better printer value.

Over 60% use their printers on a daily basis. More than 62% uses for printing photos & text. 84% respondents print the same annual

volume or more. 16% say they are printing less.

88% would buy branded ink cartridge or toner

Retail is winner of the printer ink market. 61%

only 12% are using the more economical and environmentally friendly refill options.

Consumer _ PrinterPC Pitstop Printer Survey Results (UK)

http://www.pcpitstop.com/research/printersurvey.aspThe results of our January 2007 Printer Survey.

Cons

•Little Economical and environmental awareness•Printing less trend-Is online printing services becoming an alternative route? •Business Printers seem to lack in the competition. •All in one printers are not noticeable in the market yet. •Business Market is to be considered

Pros

•Overall Score is high.•Personal usage

•Photos & text.•Daily basis.

•Same annual volume or more.•Inkjet printer No1. Laser printer No2

•No brand loyalty but value for money. •Branded Ink cartridge or toner at retail store

-Is HP’s ‘Hard Ball’ working?

Consumer _ Summary

02. Consumer & Product

What’s Out There?

CF-360

ML-2510 ML-3471DK

SCX-4321 CLP-300 CLP-510Product_ Samsung

SCX-1470 SCX-1630

ML-1610 ML-1631/SCX-4501K

SCX-4200

Personal

Small BusinessCLX-2161K

Corporate

Consumerables

MLP, Color/Mono/Inkjet MFP, CLP, Inkjet, Laser/Inkjet FAX

Target Consumer

EN

VO

LV

EM

EN

T

THINK FEEL (BRAIN)

LO

WH

IGH

LEFT RIGHT

FCB Grid Plot for Creative Strategy

Dicisions

MJC-6750 MJC-8700 SCX-4321

Product_ Samsung attributes

Multi-Function•Source: New York Times 2003 •  •Samsung has introduced its SCX-4016 multifunction laser printer, scanner, and copier. •Appealing to college students, the unit uses Toner Save technology, which reduces toner consumption by 40%.

DesignNOVELTIES New York Times 2007

This Printer Is Glossy, Even if the Paper Isn’tML-1630, A new Samsung printer has a piano like finish

Compact, Stylish

Very Positive.but

Do Samsung Printers have a consistent Product/Brand attribute?Can several Product categories create a harmonized Brand

Identity ?

Low Price

Total cost effective

Fast

Research Findings

For Business

- Xerox launches new printers, fax machinesSource: PC Magazine 2007

Xerox has launched three color printers and two multifunction systems aimed at small to medium-sized businesses.

- HP launches new business printers Source: Yahoo! 2007

HP Officejet J5700 printer that can print, scan, copy and fax documents at a starting price of $149.

Price War

•Dell releases $99 laser printer•Hewlett-Packard to revamp printer line-up Source: CNET News 2006

Co-brandingWal-Mart will carry one of Kodak’s new inkjet all-in-one printers,

General Electrics:

Digital Camera & Photo PrinterBusiness Week 2007To woo a new generation of loyal buyers, youth-oriented consumer electronics products

Laser printer for its HDTV-compatible cameras that prints quality images in about 45 seconds and is designed to be positioned unobtrusively in a living room.

HP Web RevolutionNew York times 2007

We are in the content consumption business,” Software creates templates that reorganize the photos and text blocks on a Web page to fit standard sizes of paper. Ubiquitous, like Adobe’s Flash and Reader or Sun Microsystems’ Java.

Sony

Product_ Competitors_Casestudies

Product _ Categorisation

How should Samsung Printers be categorized foran effective communication?

Six-Segment Strategy Wheel ModelTo determine the categories of products(Printers) for USP

Tayor’s six-segment strategy wheel 1999

Consumer profile

Six-Segment Strategy Wheel applied

Product Categorisation

DESIGN

TECHNOLOGY/SMALL/DESIGN

EXPRESSIVE/DESIGN/ SMALL

COMPACT/CONSUMERABLE

EFFICIENCY/SPEED

PERFORMANCE/SPEED/QUALITY

Emot

iona

l

Informatio

nal

Mono Laser

Colour Laser

Colour Laser Multifunction

Mono LaserMultifunction

Inkjet

RationalConsciousCalculativeDeliberateIndividual

Show VisibilityAdmireWish

Must buy Product or PartIn need

MomentOf Pleasure

Feel

RationalHabitMotiveSmallexpenditure

Emotional needs By egoIndividualSelf-actuationIdentity

ML-1630SCX-4500

ML-3561NDML-3510CLX-2160NCLP-300ML-1630

ML-1630SCX-4500CLP-300

ML-2510CLP-160NDINKJET

ML-3471NDSCX-4200SF-560

ML-3561NDML-3527NSCX-4725FNSF-565CLX-6200FX

Consumer profile

Product _ Categorisation

DESIGN

TECHNOLOGY/SMALL/DESIGN

EXPRESSIVE/DESIGN/ SMALL

COMPACT/CONSUMERABLE

EFFICIENCY/SPEED

PERFORMANCE/SPEED/QUALITY

Quality EfficientAssistant

Category A

Quality,UniqueIdentity

Category B

Aesthetic quality

Love(emotional)

Precious

Category C

Integrative(friendly) AffordableLifestyle

Category D

RationalConsciousCalculativeDeliberativeIndividual

Show VisibilityAdmireWish

Must buy Product or PartIn need

MomentOf Pleasure

Feel

RationalHabitMotiveSmallexpenditure

Detailed categorising concept: consumer profile adapted

Emotional needs By egoIndividualSelf-actuationIdentity

The Holistic Message: Artifact Personification through

the tangible Experience

03. Communication

What kind of message do you want to hear?

Communication _ Samsung

‘Character Marketing’

‘TV-Ad’

‘Co-Branding’

Cost effective advertisement

Communication _ Competitors

Lexmark: Corperate world (B to B)March Madness ad 2007

Lexmark International "Every day, Lexmark printers go to work for some of the world's most important companies." Copy: "75% of the top banks, retailers and pharmacies use Lexmark.“

Kodak: New strategy•from cameras to online service to chips inside camera phones to consumer printers. •Target marketing efforts to push competitive advantages-ease of use for digital cameras and for inkjet low per-print prices printers. •Use edgier online and viral creative to attract a

younger, hipper audience .

HP: Star Marketing-Developing Retail Kiosks to Reach 'iMoms‘ Brandweek, 2006 -Gwen Stefani as saleswoman and stresses- self-expression. -Museum-quality art

Epsonality: Online MarketingIt has a strong brand and wants to replicate that online.“nma.co.uk 2007

Xerox: Brand Image Campaign with Viral video, blogs, virtual communities all part of latest multimedia campaign

“fun,“"energetic" "exciting“

A Free Printer Strategy- Closer to customers

“Quality&Reliability”

Target: Young consumers to Corporate level Strategy: Convergence/Compatible

Economic consciousVarious Contents

Communication_ Strategies

How can the catergorized products generate a Consistent yetUnique and effective communication strategies for Samsung?

“Creative strategy typologies applied to Six-Segment Strategy Wheel as a guiding approach to

Message strategy”Tayor.1999

Creative Strategy Typologies Located within the Strategy Wheel

Comparative GenericPreemptiveUSP

Brand familiarity

Hyperbole

Intellectual StimulationAffective

User Image

ResonanceUse occasion

Social approval

sensory

Pros

•Overall Score is high.•Personal usage

•Photos & text.•Daily basis.

•Same annual volume or more.•Inkjet printer No1. Laser printer No2

•No brand loyalty but value for money. •Branded Ink cartridge or toner at retail store

-Is HP’s ‘Hard Ball’ working?

Category A Category B

Category CCategory D

Cons

•Little Economical and environmental awareness•Printing less trend-Is online printing services becoming an alternative route? •Business Printers seem to lack in the competition. •All in one printers are not noticeable in the market yet. •Business Market is to be considered

Now, consider these with…

Communication_Message A: - ‘Personal Assistant” -ATL

Quality EfficientAssistant

Seg6

Seg5

RationalConsciousCalcualtingDeliverativeIndividual

Must buy Product or PartIn need Generic & preemptive

Brand familiarity strategy

Marketing Objective

Role

Expected Effect

Media & Content

“Printer is your personal assistant”

Increase the Familiarity and be Recognizable, Informative and Persuasive. Encourage social responsibility(Ink) byMessaging the consumer as a director.

Print & Internet advertisement to allow the knowledge to be transferred. As well as outdoor ads for familiarity.Mild tone of voice, Human appearance(Whole/Part), Clear logo & Detail

Everyone notices the product and gets even more surprisingWhen discovers the specification. Increase the brand knowledgeAnd feel confident about product. Recover the weak business attribute

Communication_Message B: “Who art thou?”

Quality,Unique

Identity

Seg1

Seg3

Emotional, Artistic Thoughtful, discoverystrategy

Marketing Objective

Role

Expected Effect

Media & Content

“Who art thou?”

Enhance the quality to the maximum level. Pass unique and special message So become curious or attracted to the product.To print more and show the importance of printing quality (Ink)

Interactive source preferred. Curious at first sight, adventurous becomes next. Tone should not demand purchase. Parts of human body for mysterious effect for visual ad. High quality service with human interaction at the point of purchase.

Increase sales in Design led products and sleek and compact Multifunction products, to gain design reputation for company. Encourages work of art. therefore printing more & buy genuine Ink

Moment of Pleasure

Feel

Emotional needs By egoIndividualSelf-actuationIdentity

Communication_Message C: “prototyper” ATL

Aesthetic quality

Love(emotional)

Precious

Seg2

Seg3

Statement of othersSocial occasion with Emotional strategy

Marketing Objective

Role

Expected Effect

Media & Content

“Prototypes your sense”

Stimulate inertia to purchase and position as a special equipment. Turn intangible to tangible and long-lasting

Fantasy of the product, curiosity rises.. linked to purchase.Encourage brand ownership for unconscious display marketing And mouth to mouth promotion.

Show VisibilityAdmireWish

MomentOf PleasureFeel

Trendy magazine & Internet advertisement to be eye catching and Fit for lifestyle. As well as seasonal TV advertisement for reminder.Desirable tone of voice and Human appearance(Whole/Part), use Sensual Images to connote what can happen with the product.

Communication_Message D: “Your job operator.” BTL + ATL

Integrative(friendly) Affordable

Any Lifestyle

Seg1

Seg4

Experimental(trial), Feel freeIntuitive strategy.

Role

Expected Effect

Media & Content

“Your job operator.”

Justify this basic product fits your lifestyle. Send the message thatIt is neutral that does no harm to you(price as well)But it only stands out with you!

Field (direct) sale campaign for trial and experience the benefit. As well as outdoor ads to become a noticeable product.Ambiguous and short tone to make consumer to either think or accept(no explanation. Human appearance(Physical), Clear logo & Simple design.

The two extreme customer attributes meet to balance the market.Develop the habitual and intuitive purchase pattern. More Printer &Ink sales expected.

RationalHabitMotiveSmallexpenditure

Emotional needs By egoIndividualSelf-actuationIdentity

Marketing Objective

“If it is touched by a human, it can be treated as a human”

Thank you