Confidential 2012 Smart TV > Communication Strategy Confidential Contents I. Market Overview Objectives II. Smart TV & Business Communication Strategy Confidential MARKET OVERVIEW : M/S PERFORMANCE Samsung as the market leader continues its dominant position in both Smart TV and LED TV Total CTV Market share in 2011 Market share by key segments Smart TV LED TV ※ Source: NPD, Dollar base ※ Source: 2011, NPD, Dollar base (Smart TV filtered by Network Capability) 2/45 Confidential MARKET OVERVIEW : BRAND PERFORMANCE However, Samsung is still behind Sony in Brand Preference despite its rapid growth and strength in dealer recommendation BAS (MPSA*) 30% 30% 20% DAS (RR*) 29% 2009 2010 * MPSA: Most Preferred Single Answer (%) 19% 19% 31% 17% 12% 36% 22% 17% 12% 36% 13% 2011 14% 15% 16% 2009 2010 2011 * RR: Dealer Recommendation Rate (%) ※ Source: 2011 1H BAS / DAS data 3/45 Confidential 2012 BUSINESS STRATEGY Our Objective is to firmly establish ‘Beyond Comparison’ position in both Smart TV and LED TV Beyond Comparison (Cho Gyuk Cha) Clearly Differentiate Smart TV Benefit Accelerate Transition to LED TV Differentiated Smart TV features (Smart Interaction and Evolution) Unique Samsung Smart Content LED TV made accessible with F-LED TV 4/45 Confidential 2012 BUSINESS OBJECTIVE 2012 Business Strategy will allow us to achieve growth in our strategic 1 Smart TVcategories; Series 7 / 8 sales by +15000 units Confidential Contents I. Market Overview Objectives II. Smart TV & Business Communication Strategy Confidential PRODUCT STRATEGY: Smart TV consumer needs Consumers expect variety of internet content and easy web searching from Smart TV Complicated User experience is the biggest pain-point in Smart TV Future Smart TV Usage and Current Usage and Pain-points usage Expectations of Smart TV • Consumers expect ‘new content’ from Smart TV • Smart TV usage takes too long and is complicated Smart TV Expectations (Top 2%) • Viewing online video content 48.2 36.9 Searching on Web 29.1 Full browsing Multi-tasking Downloading Apps SNS ※ Source: Consumer Tracking 2011 Q2~3 Samsung Smart TV Consumer Perceptions -Positive on Overall and Content Quality -Negative on UX due to Too many steps -Especially, App access hard 22.1 20.8 16.2 Smart Interaction Concept Acceptance (Top 2%) Preference 75 Uniqueness 89 Necessity 67 Purchase intention 70 ※ Source: 2011 Online buzz tracking / 2011 Line-up study Confidential PRODUCT STRATEGY: Competition New entrants who will try to change the rule of the game is a potential threat, especially Apple TV Existing Players New Entrants Sony Internet TV Apple TV • Input device • Enjoy high-quality web content • Entertainment choices leveraging Sony pictures • Separate platform from Google TV LG Smart TV • Magic motion remote includes gyroscope for navigating menus and playing games • Expected to have Voice control on the magic motion remote • Smart TV Upgrader for nonsmart TVs (add-on device) “The simplest user interface.” – Steve Jobs • Content & Services Pool of content and services readily used • Device Connectivity Seamless sharing with other Apple Devices • Content Access/Storage “Automatic and effortless” cloud service Google TV • Launched Google TV 2.0 upgrade Nov. ‘11 • Improved UX, enhanced search, improved web content to feel more like TV Confidential PRODUCT STRATEGY: Samsung vs Competition Samsung Face Recognition Voice and Motion control in ‘magic control’ N/A Company A Potential of Playstatio n move To have ‘Siri’ with comprehensiv e voice control N/A services Kit Superior local Killer apps No signature services New features/ content every year Lack local killer apps No signature services N/A N/A Lack local killer apps To leverage ‘iTunes’ content base N/A No signature Potential N/A services to Android introduce market on Google ※ Source: Competitor Intelligence from Product Strategy team expansion platform Company G New Entrants Company B Existing Players Voice and Motion control Company X In 1H, new Smart TV will pre-empt market with clear differentiation with Smart interaction & content, while in 2H Smart evolution will be focused as a point vs Apple Interacti Content Evolution Picture of difference Design Convergenc TV on e Signature Evolution Finest picture quality with Micro Dimming technology No strength in picture quality Heritage over picture quality , continues with Bravia N/A engine N/A Strong Super Narrow bezel with arch flow stand Narrow bezel but no arch flow stand Pushed Monolithi c design with little success Potential D2D sharing b/w Sony Devices To leverage ‘iCloud’ service and ‘Air Play’ To utilize Android platform N/A N/A Average AllShare play service between multiSamsung devices DLNA Weak Confidential PRODUCT STRATEGY: 2012 Smart TV Strategy In 2012, Samsung Smart TV will achieve ‘unrivaled differentiation’ through device/UX innovations and unique and relevant content Smart Hub Apps and Smart Hub Services Smart • Voice/Motion control & Interact Face recognition ion Smart • Market’s 1st Evolution Evolutio capability to make your n TV New every year Device/U X Samsung • Focus on communicating Apps / Unrivaled Differentiation Content Content Build Category Smart Content • New Family Services with a focus on Family Story • Locally relevant Apps • Seamless sharing with Confidential MARKETING PLAN : WHO a. WHO Smart TV Target b. WHAT Unrivaled differentiation of our positioning Confidential MARKETING PLAN : WHO – Smart TV Target Smart TV targets seek ‘connectivity and new content’ that will enhance over all TV experience (14.1% of gen. pop.) Target Insight • Love watching with family/friends • Seek new value added features (connectivity, content) & benefits that enhance the total TV experience • Newer features and Screen resolution are fairly important • Most influential are consumer • Willing to spend above average • Combines male youngster and oldies likewise, with an average income reports, expert opinions and various online sources • In-store experience is vital Replace pic. Connectivity Content / Online In-store Confidential MARKETING PLAN : WHAT a. WHO Smart TV Target b. WHAT Unrivaled differentiation of our positioning Confidential MARKETING PLAN : WHAT – Communication Strategy 2012 Samsung Smart TV communication should; 1 2 3 4 Deliver on the business objective of ‘Beyond Comparison’ Drive innovative brand image through technology leadership positioning Reinforce Category positioning Communicate call-to-action of experiencing & purchasing new Smart TV CTV 1 2 3 Business Brand Category Objective Image Positioni ng Innovative Tech. ‘Transforming ‘Beyond Comparison’ Leadership viewing together’ Experiencing & Purchasing The Future of Smart TV NOW Call to Action 4 2012 Communication Strategy “El Futuro de la Televisión, HOY” 14/45 Confidential MARKETING PLAN : WHAT – Communication Strategy “The Future of Smart TV, NOW” will be delivered by; 1 Highlighting Smart Interaction and Smart Content 2 And Smart Evolution (Make your TV new, every year) ““El Futuro de la Televisión, HOY”” Smart Content Smart Interaction • Voice control • Motion control • Face recognition • Family Services (Family Story, Kids, Fitness) + Locally relevant Applications (+1,400 Apps globally) + AllShare play Smart Evolution • Evolution Kit Key Message ‘Make your TV new, every year’ 15/45 Confidential Thank you.