Integrated Marketing Communications Design for Samsung Galaxy S5 - Case Study Example

Name Unit name Topic: Integrated Marketing Communications Design for Samsung Galaxy S5 Date of submission Word count: 4,022 Table of contents Introduction Integrated marketing communications (IMC) refers to consistent product, service or brand messages that a company uses across different marketing channels (Naeem, Bilal & Naz, 2013). The concept is touted as beneficial to firms and customers since it enables marketers to focus on customers’ preferences, media exposure and buying patterns among other things when formulating different marketing strategies. To the firm, IMC creates attractive and credible messages, which may lead to successful marketing strategies hence enhancing a firm’s market penetration. Jones (2008) opines that IMC is critical in modern firms especially since most such firms separate marketing efforts such as advertising, sales promotion, direct marketing, public relations/publicity, and internet marketing. With IMC however, a customer-centric planning process is undertaken, which often results in not only a harmonious marketing strategy, but one that has greater clarity, consistency and potential for greater impact. With the foregoing in mind, this paper constitutes a design for an IMC programme for the latest Samsung smartphone in 2014 (i.e. Samsung Galaxy S5) in the Australian market. The IMC design in this paper is made in recognition of the fact that in order for Samsung to coordinate its marketing communication strategies for Galaxy S5 in Australia, it needs to deliver messages that are not only clear but also consistent and competitive. The objective of this paper is to bring together all marketing communication in a manner that will provide clarity and consistency about the smartphone in discrete but related messages. IMC situational analysis 1. Company analysis Samsung’s business is Australia is a reflection of the company’s business worldwide. The company operates on a philosophy that seeks to devote its technology and talent to the creation of superior products and services that should better the global society (Samsung, 2014a). Its objectives include creation of products and services that provide the best satisfaction to customers, attaining world leadership in the creation of products and services that provide superior customer satisfaction, and contributing to society (Samsung, 2014a). Samsung’s strengths in the Australian market include an extensive distribution channel that has enabled the company to penetrate the market quite easily. Additionally, the firm has products that resonate with the changing needs and preferences of most Australians and is constantly investing in research and development in order to manufacture products and services that meet consumer needs (Samsung, 2014a). The company’s weaknesses however include competition from the likes of Apple Inc, HTC, and Chinese manufacturers who are flooding the Australian market with cheaper (but lower quality) smartphones. Samsung’s main threat in the Australian market is that being a South Korean company, Australians do not have any sentimental attachments to it other than what is generated from superior product and services. The foregoing places the firm in a sensitive position especially if its products fail to meet future customer expectations. Samsung’s opportunities in Australia are linked to its research and development capacity, which it uses to generate superior products. The R&D should however be done according to prevailing and prospective needs and preferences in the target market. 2. Product analysis The Galaxy S5 is touted as having the “best performing smartphone display” and consequently, is said to “have raised the bar for top display performance up by another notch” (Hopewell & Simpson, 2014, n.pag.). The phone (seen in figure 1 below) has the following features: a 5.1-inch full high definition super active-matrix organic light-emitting diode (AMOLED) display; a finger scanner, which through a partnership with PayPal, has made it easier for users to make payments via PayPal; two internal Wi-Fi antennae to make connection faster; a download booster that enhances the download speeds; a health fitness tracker; a heart rate sensor; water and dust resistance capabilities ; an ultra power-saving mode; and a 16 megapixel (MP) camera that has a fast autofocus and a selective focus (Samsung, 2014b). Source: Samsung (2014b). The Galaxy S5 has strengths that include a superior camera (16 MP), dust and water resistance, a different design, look, feel and weight from its predecessors, a diverse display that can be used even in bright sunlight, and an enthusiastic smartphone that is always looking out for the next superior innovation. The Galaxy S5 has weaknesses that include its high price, which makes it hard to afford for the low-income segment of the population. The foregoing is especially concerning since Samsung has always targeted the mass market as opposed to a niche market. The Galaxy S5 is not overly unique when compared to its competitors yet, its price is relatively higher especially compared to HTC One (M8) and iPhone 5s. The smartphone has opportunities that include fully utilising the smartphone market that is growing as people embrace the new phone models. Additionally, young people present a potential market especially as they get into the job market and start earning. Threats that Galaxy S5 faces include rivalry for market share by competing products and the fact that the device’s unique (or differentiating factors) are not too hard to imitate by the rival smartphone manufacturers. Cheap smartphones from Chinese manufacturers also pose a threat to Galaxy S5. 3. Audience analysis Based on the different aspects of the Galaxy S5, the targeted audience are: travellers or people who use their phone without getting a chance to recharge batteries (because of the long battery life (estimated 21 hours) – the iPhone 5s has 17 hours of talk time only; people who want to document memories without using a different gadget other than their phone (i.e. because of the 16 MP camera that has an autofocus and selective focus); fitness enthusiasts (because of the heart rate monitor); and finally, for technology enthusiasts who want to utilise the benefits of new technologies when they come up. Such benefits include fast surfing speeds, fast downloading speeds and the basic phone functions like calling, text messaging and connecting with others via social networks. 4. Competitor campaigns When launching its M8, HTC hosted journalists for a seafaring launch, where they (the journalists) were allowed to get a feel of the new phone. Consequently, HTC got free reviews, hence creating publicity around their product. The distribution of HTC is through major telecom service providers, which is a similar strategy to what Samsung has done with the Galaxy S5. While arguably a better looking phone, Griffith (2014) indicates that the HTC One (M8) has a lower-capacity camera (4 MP) compared to Samsung, and its resolution during daylight could still do with some improvements. It also lacks the water-resistant qualities of the Galaxy S5. Apple’s iPhone 5s is sold in Apple’s retail stores and on its online stores (Catanzariti, 2013; Patchell, 2013). The foregoing is in addition to using telecom providers’ outlets thus marking a difference between its distribution and Samsung’s. Communication objectives Through direct marketing, internet marketing, personal selling, sales promotion and publicity, this IMC design seeks to realise the following objectives: 1. Create awareness among Australians regarding the Galaxy S5, its qualities and where to find it. Additionally, create awareness about the promotional activities around the smartphone (e.g. the six scholarships it will be offering as indicated elsewhere in this paper). 2. Arouse interest among targeted audiences, with the potential of generating preferences among audiences. 3. Generate sales in the target market. Campaign impact and duration The marketing campaign (through the IMC design stipulated herein) is expected not only to generate sales for Samsung, but also enable customers to enjoy using the smartphone though providing quality customer services. Additionally, the campaign is expected to have an impact on the lives of winners of Samsung appliances featured in the sales promotion, and especially in the lives of six scholarship recipients whose tuition, food, and accommodation expenses will be financed during their entire studies. The campaign will last for two months (except for internet marketing which will last for six months in order to prolong the marketing communications after the initial product awareness has been created), but its effects will no doubt be felt long after the two-month period. Integration strategies i. Coordination: the American Association of Advertising Agencies (cited by Peppers, 2013) defines IMC as “an approach to achieving the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other” (n.pag). This means that to be successful, promotional methods need to be coordinated. With this in mind, for the Galaxy S5, the IMC will involve proper coordination of all promotional activities so that all of them run within two months and all will contain similar messages (albeit delivered in different) approaches. Additionally, the promotional mix will be coordinated in a manner that will facilitate maximum effect. ii. The second strategy will involve having a customer-centric approach when designing and communicating messages about the Galaxy S5. Messages will also be unified across different channels. iii. The third strategy will involve leveraging the strengths of different promotional strategies on the Samsung brand identity. In other words, the different marketing communications will promote the Galaxy S5 while remaining within Samsung’s brand identity. IMC design for Galaxy S5 The IMC approach is based on the belief that firms should not tolerate miscommunication or leave a chance for confusion (Joseph, 2011). To successfully design an effective IMC for the Galaxy S5 Smartphone, this paper will utilise components of marketing communication mix (also known as promotional mix). The promotional mix components that will be used include: direct marketing, internet marketing, personal selling, sales promotion and publicity. This paper will specifically discuss how each of the promotional mix components can be integrated in Galaxy S5’s marketing communications to have maximum impact on potential Australian smartphone buyers. Figure 1: The available colour choices for Galaxy S5 Source: Samsung (2014). Direct marketing The British Direct Marketing Association (Cited by Yeshin, 2012) defines direct marketing as the “interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location” (n pag.). Following this definition, Lambin (2007) makes a distinction between direct-order marketing (i.e. non-store marketing where purchases are made from home and delivered to customers), and direct-relationship marketing (i.e. establishing contents with potential customers and establishing relationships). For Galaxy S5, direct-order marketing will be used, specifically through two avenues namely: television marketing and online selling. Television marketing will involve purchasing airtime spots on TV persuasively describing the new smartphone and telling potential customers how they can buy/order the Galaxy S5. As Lambin (2007) indicates, TV marketing is important where demonstrating the product quality and/or appearance is necessary. Through TV advertising, viewers will be told about the phone’s looks, functionalities and specifications. The TV advert will run during prime time for 30 seconds for 6 weeks and in three major TV channels in Australia. The adverts will be aired for two months. Rate Frequency Number of channels days Total amount 30 second TV advert at prime time $7,000* 2 times every night 3 60 $25.2 million *Based on the cheapest prime time rates in Australia. Online selling will be used strategically for its promise at attaining distance sales. According to Lambin (2007), “online selling is probably the most promising distance selling method today” (p. 3). The online stores where the Galaxy S5 can be found will be popularised in the advertising that the company will place in different media. Internet marketing Internet marketing is a form of interactive marketing that allows for a two-way flow of marketing information over the internet (Kumar, 2011). Ideally, information recipients can modify and/or seek clarification about any information they receive in real time. The advantage of internet marketing is that it leads higher levels of involvement between marketers and potential customers. Additionally, customers are able to access a wide breadth of information. Moreover, marketers can tailor marketing messages to the needs and interests as expressed by customers (Kumar, 2011). Establishing a social media presence is one of the marketing strategies that Galaxy S5 will adopt. Specifically, Twitter, Facebook and LinkedIn as well as dedicated weblogs will be established to provide customers with platforms where they can receive real time information from the Galaxy S5 marketing team, and where they can send their questions, concerns or opinions. Ideally therefore, internet marketing platforms will provide interactive platforms for the customers. Notably, no setup costs for the three will be required; however, the Galaxy S5 marketing team will need to have a dedicated team of people to interact with customers in real time. Like all other promotional mix strategies, internet marketing will underscore the enhanced functions of the Galaxy S5 and will stress its cost-friendly nature. Samsung Galaxy S5 will also use banner advertisements on websites across Australia. Online advertising in Australia has been touted as providing consumers with information, choices and convenience (Australian Association of National Advertisers et al., 2011). Banner advertising falls in the general display advertising, which can be used to build consumer awareness, increase consumer knowledge about or familiarity with a product, stimulate purchase intentions, and ultimately drive customers into acting through purchasing a product. The banner advertisement is embedded into a website and interested customers can click-through to find more information about the product. The cost estimates of banner advertising are indicated in the table below. Rate Frequency (months) Total amount Total web presence $5,000* 6 $30,000 *based on rates provided by Reachlocal.com (2014). Personal selling Personal selling is defined as “personal communication of information to unselfishly persuade a prospective customer to buy something – a good, service, idea or something else, that satisfies an individual’s needs” (Futrell, 2001, p. 49). On his part, Fill (2009) defines the concept as “selling through a person-to-person communications process” (p. 4). The main function of personal selling is indicated as revenue generation and service provision in a manner that makes customers satisfied with the product/service they purchase. It is hence indicated as a good relationship building strategy which even enhances brand penetration and recall in a competitive environment (Futrell, 2001). Service quality is especially underlined as an important aspect of personal selling since customer satisfaction is subject to the quality of services offered by the salespeople. For Galaxy S5, sales outlets in different towns in Australia will be set up. In the outlets, the same message of superior smartphone functions and affordability will be repeated. However, the sales outlets will offer services which including showing customers how to operate the smartphone, the apps that are compatible with the phone, and other services as may be requested by the customer. To enhance the capacity of direct selling and the impact it has on customers, the Galaxy S5 marketing team will ensure that the sales outlets will have knowledgeable salespeople, people who can listen to customers and provide them with desirable and satisfactory answers, and people who will be willing to provide superior after-sales services to their customers. The Galaxy S5 marketing team will adopt consultative selling, whereby its salespeople will help customers achieve short-term and long-term goals they had envisaged while purchasing the smartphone. To effectively succeed in consultative selling as indicated by Futrell (2001), the Galaxy S5 team will have to get committed salespeople. The salespeople will have to stay involved with their customers and they will need to stay focused on what customers need in order to recommend the appropriate products and/or services to them. As Futrell (2001) notes, consultative selling requires the salespeople to “take on the roles of team leader, business consultant, and long-term ally” (p. 56). In order to satisfy the team-leading role, the Galaxy S5 team will ensure that its sales people are able to coordinate information, activities and resources necessary for purposes of giving their customers quality services before a purchase is done, during the purchase, and after a sale. In other words, the salespeople will have the responsibility of bringing together all organisational resources to the reach of potential and existing customers. As business consultants, the salespeople at Galaxy S5 sales outlets will be mandated with providing services and advising customers about the product. To successfully satisfy the role of business consultants, Samsung will need to invest in training the salespeople about all there is to know about the smartphone and the needs customers have when seeking to purchase a smartphone. Fill (2009) indicates that salespeople need to act from a place of knowledgeable authority – a position which they can only attain if they are conversant with customer needs and the product/service offered by an organisation. Such knowledge enables salespeople to refine their offers in a manner that meets a customer’s needs. As Futrell (2001) notes, salespeople have to act as knowledgeable business professionals as opposed to being persuasive peddlers. Finally, and for purposes of satisfying the long-time ally role, salespeople at Galaxy S5 sales outlets will need to help customers meet their needs. Customers need to know that they can always come back for more assistance in using the product (or installing apps) in future. When the sales people interact in a friendly manner to customers, Futrell (2001) observes that a transaction where the customer purchases a product becomes the beginning of a relationship. Notably, customers’ interest in the functions of a product increases after the product has been purchased. Salespeople must therefore be willing to provide after-sales services whenever requested by customers. Notably, the after-sales services enhance brand recall, and future products by Samsung may attract attention from customers of earlier products based on the relationship that the firm’s salespeople have with customers. The strategy for Galaxy S5 will be to use Samsung’s sales outlets across Australia. The foregoing will minimise setup costs while ensuring that S5 is seen as part of the larger Samsung brand of products. The only relevant costs will go into training existing salespeople about the new smartphone and informing them about potential customer needs that the Galaxy S5 will satisfy. The estimated cost of training will be $250,000. Sales promotion Sales promotion is the direct inducement offered by the manufacturer/marketer of a product or service, which includes extra incentives or values in order to generate sales (Odunlami & Ogunsiji, 2011). On her part, Achumba (2002) defines sales promotion as marketing activities which differ from publicity, advertising, and personal selling, but which stimulate purchases by consumers. Some of the sales promotion activities cited by Achumba (2002) include displays, demonstrations, shows and expositions among others. The objective of sales promotion is to stimulate customers’ interest in a product in a manner that they (customers) would end up trying out the product/service or buying it (Arya, 2008; Bagavathi, 2007). According to Odunlami and Ogunsiji (2011), sales promotion focuses on customer relationship management (CRM), price discounts, free samples, and free gifts among other strategies that provide customers with an incentive to purchase a product/service. To get the word out, the Galaxy S5 marketing team will engage in pull strategies, which will include coupons and sponsorships. Specifically, the sales promotion strategies will involve customers winning other Samsung merchandise once they purchase the Galaxy S5. Once a person purchases the new device, they will be given a raffle ticket, which will enable them to win Samsung merchandise that will include plasma TVs, fridges, air conditioners, microwaves, and headphones. Six lucky winners will also win university scholarships to pursue a business course of their choice. This strategy will ensure that young people, especially those who are just starting out in life participate. The reasoning behind the strategy is that all the items included in the sales promotion have more appeal among young people. Those who wish to pursue higher education will specifically be attracted by the scholarship incentive. The scholarship offers will most likely attract media attention and will hence be the focus of a publicity strategy discussed elsewhere in this paper. Since advertising compliments sales promotions, all the sales promotion activities described herein will be included in the advertisements that the marketing team of Galaxy S5 will run. The sales people handling the direct sales will also need to make consumers aware of the incentives offered in sales promotion. The costs of the sales promotion activities will hence constitute the following: Samsung Items Quantity Cost per item ($) Total costs ($) Plasma TV (51”) 30 900 27,000 Fridges 30 1200 36,000 Air conditioners 30 1600 48,000 Microwaves 60 200 12,000 Headphones 500 40 20,000 University Scholarships 6 $1,000,000* 6,000, 000 Total 6,143, 000** *Expected to cover tuition, accommodation and food among other needful for the entire duration of a course **The cost of advertising is not included since it is featured in the direct marketing section Publicity Publicity is part of public relations, and specifically refers to the act of securing free space or airtime in the media through which the organisation communicates its ideas, products and services (Scriven, 2001). Publicity’s power relative to other promotional strategies such as sales promotion or direct selling is that it is considered more credible and trustworthy. Unlike the larger public relations concept, publicity is short-term and does not last for a long period of time. However, as long as publicity is positive, it can enhance the perceptions that consumers have regarding a product or service that is the focus of an IMC programme. For Galaxy S5, the scholarships that will be on offer will most likely attract media attention because the offers will show audiences across the country that Samsung is willing to do some good in the society instead of pursuing sales and profits only. One of the ways that Samsung will enhance the chances of getting free media coverage is by sending press releases to the media inviting interested persons to do the needful (i.e. participate in the sales promotion) in order to get into the competition, from which six lucky winners will be chosen and offered scholarships. Since the promotion will run for two months, there will be three winners each month, and Galaxy S5’s marketing team should invite the media to cover both events when the winners are handed their scholarship cheques. Other ways through which publicity can be generated is to provide a Galaxy S5 smartphone to technology writers, who would then be free to review the product in their respective newspapers, and/or TV segments that deal with emerging technologies. Notably, it is usual for new smart phones, tablets, laptops and other technology devices that are in high demand to get reviews in newspapers, TV channels and other popular media. In this plan, six Galaxy S5 smartphones will be given to technology journalists in both print and broadcast media to facilitate an experience with the device in order to enable them make informed reviews. Some of the reviews of Galaxy S5 have been done by Hopewell (2014) and Hopewell and Simpson (2014). Samsung had facilitated Hopewell’s travel to the mobile congress prior to the reviews, but reading his reviews, there is no doubt that the writer was objective even going to the extent of comparing the new smartphone by Samsung with its competitors the HTC One (M8) and iPhone 5s. With a retail price of at least $ 912 in most retail outlets, the foregoing form of publicity will cost $5472. Conclusion This integrated marketing communication design is meant to ensure that all promotional activities for Galaxy S5 are integrated, and that they communicate the same message to the customers. The messages contained in direct selling initiatives, sales promotion activities, internet marketing approaches, personal selling activities and publicity are all meant to generate sales, while positioning the new smartphone as the ideal phone for everyday use. In all the promotional activities, the qualities of the smartphone will be communicated. The qualities include its strong, elegant, sturdy and grip-able look. The smartphone is lighter and thinner, which is something that its competitors are lacking. Additionally, unlike its predecessors the Galaxy S3 and Galaxy S4, Galaxy S5 has a 5.1-inch display, which is extremely versatile in a manner that makes it usable in bright sunlight, and when one moves indoors, the brightness adjusts itself to make the user experience seamless. Galaxy S5’s enhanced camera is also something worth communicating to the target audience. Overall, however, this IMC design is meant to ensure that the marketing messages that the firm sends out through different promotional channels provide clarity and consistency about the smartphone in discrete but related messages. References Achumba, I. (2002). Sales management concepts, strategies and cases. Lagos: Al-Marks Educational Research Inc. Arya, T. (2008). Advertising, sales promotion, & public relations. London: Taylor & Francis. 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