2012 Smart TV > Communication Strategy

Confidential

2012 Smart TV > Communication Strategy

Confidential

ContentsI. Market Overview & Business Ob-

jectives

II. Smart TV Communication Strat-egy

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Market share by key segmentsTotal CTV Market share in 2011

45%40%35%30%25%20%15%10%5%

0%2008 2010 20112009

6.0%

MARKET OVERVIEW : M/S PERFORMANCE

Samsung as the market leader continues its dominant position in both Smart TV and LED TV

※ Source: NPD, Dollar base ※ Source: 2011, NPD, Dollar base (Smart TV filtered by Network Capability)

LED TV

Smart TV

38.9%38.6

%

8.2%

10.8%

25.0%

12.9%

19.4% 15.8

%11.7%

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34.9%

38.5%53.4%

44.8%

13.8%

12.8%

9.7%

12.7%

Etc. 28.7%

Etc. 24.1%

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DAS (RR*)BAS (MPSA*)

31%36% 36%

17% 19% 19%

14% 15% 16%

* MPSA: Most Preferred Single Answer (%) * RR: Dealer Recommendation Rate (%)

However, Samsung is still behind Sony in Brand Preference despite its rapid growth and strength in dealer recommendation

MARKET OVERVIEW : BRAND PERFORMANCE

17%20% 22%

30% 30% 29%

12% 12% 13%

※ Source: 2011 1H BAS / DAS data

2009 2010 2011 2009 2010 2011

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Confidential2012 BUSINESS STRATEGY

Clearly Differentiate Smart TV Benefit Accelerate Transition to LED TV

Beyond Comparison(Cho Gyuk Cha)

Differentiated Smart TV features(Smart Interaction and Evolution)Unique Samsung Smart ContentIncreased locally relevant content

LED TV made accessible with F-LED TV

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Our Objective is to firmly establish ‘Beyond Comparison’ position in both Smart TV and LED TV

Confidential2012 BUSINESS OBJECTIVE

2012 Business Strategy will allow us to achieve growth in our strategic cate-gories;Smart TV Series 7 / 8 sales by +15000 units 1

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ContentsI. Market Overview & Business Ob-

jectives

II. Smart TV Communication Strat-egy

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Future Smart TV Usage and Ex-pectations Current Usage and Pain-points of Smart TV

Consumers expect variety of internet content and easy web searching from Smart TVComplicated User experience is the biggest pain-point in Smart TV usage

PRODUCT STRATEGY: Smart TV consumer needs

• Smart TV usage takes too long and is compli-cated

• Samsung Smart TV

Consumer Percep-tions

- Positive on Overall and Content Quality

- Negative on UX due toToo many steps

- Especially, App access hard

Preference 75Uniqueness 89Necessity 67

Purchase inten-tion 70

Smart Interaction Concept Acceptance (Top 2%)

Viewing online video content

Searching on Web

Full browsing

Multi-tasking

Downloading Apps

SNS

48.2

36.9

29.1

22.1

20.8

16.2

• Consumers expect ‘new content’ from Smart TV

Smart TV Expectations (Top 2%)

※ Source: Consumer Tracking 2011 Q2~3 ※ Source: 2011 Online buzz tracking / 2011 Line-up study

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Existing Players

Google TV

LG Smart TV

• Launched Google TV 2.0 up-grade Nov. ‘11

• Improved UX, enhanced search, improved web content to feel more like TV

New Entrants

• Content & Services

Pool of con-tent and ser-vices readily used

“The simplest user interface.” – Steve Jobs

• Content Access/Storage

• Device Connectivity

“Automatic and effort-less” cloud service

Seamless shar-ing with other Apple Devices

New entrants who will try to change the rule of the game is a potential threat,especially Apple TV

Apple TVSony Internet TV• Input device

• 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 non-smart TVs (add-on device)

• Enjoy high-quality web content• Entertainment choices leverag-

ing Sony pictures• Separate platform from Google

TV

PRODUCT STRATEGY: Competition

ConfidentialPRODUCT STRATEGY: Samsung vs Competition

※ Source: Competitor Intelligence from Product Strategy team Strong

Exis

ting

Pl

ayer

sN

ew E

ntra

nts

Com

pany

A

Com

pany

G

Interac-tion

Content Evolution Picture Design Conver-gence

Voice and Motion con-trol in ‘magic con-trol’

N/A

N/A

N/A

N/A

N/APotential of Playstation move

No signature servicesLack local killer appsNo signature servicesLack local killer apps

To have ‘Siri’ with compre-hensive voice control

To leverage ‘iTunes’ con-tent base

No signature servicesAndroid mar-ket expan-sion to TV

N/APotential to introduce on Google plat-form

To leverage ‘iCloud’ ser-vice and ‘Air Play’

Narrow bezel but no arch flow stand

N/A

N/A

Potential D2D shar-ing b/w Sony De-vices

DLNA

N/A

N/ATo utilize Android plat-form

Aver-age

Weak

Heritage over picture quality , continues with Bravia engine

No strength in picture quality

Pushed Monolithic design with little suc-cess

Com

-pa

ny X

Com

-pa

ny B

Sam

sung Evolution Kit

New fea-tures/content ev-ery year

Signature servicesSuperior local Killer apps

Finest pic-ture quality with Micro Dimmingtechnology

Super Nar-row bezel with arch flow stand

AllShare play service between multi-Sam-sung de-vices

Voice and Motion controlFace Recogni-tion

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 of difference vs Apple TV

ConfidentialPRODUCT STRATEGY: 2012 Smart TV Strategy

2011 2012

Build Category Unrivaled Differentiation

Smart Content

• New Family Services with a focus on Family Story

• Locally relevant Apps• Seamless sharing with All-

Share

Smart In-teraction

• Voice/Motion control &Face recognition

• Market’s 1st Evolution capa-bility to make your TV New every year

Smart EvolutionD

evic

e/U

XCo

nten

t

Sam-sung

Apps / Smart Hub

Cont

ent

• Focus on communicat-ing Appsand Smart Hub Services

In 2012, Samsung Smart TV will achieve ‘unrivaled differentiation’ throughdevice/UX innovations and unique and relevant content

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a. WHO Smart TV Target

b. WHAT Unrivaled differentiation of our positioning

MARKETING PLAN : WHO

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• Seek new value added features (connec-tivity, content) & benefits that enhance the total TV experience

• Willing to spend above average• Combines male youngster and oldies like-

wise, with an average income

• Love watching with family/friends• Newer features and Screen resolution are

fairly important• Most influential are consumer reports,

expert opinions and various online sources

• In-store experience is vital

Target Insight

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.)

Replace pic.

Connectivity Content / Online In-store

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a. WHOSmart TV Target

b. WHAT Unrivaled differentiation of our positioning

MARKETING PLAN : WHAT

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2012 Communication Strategy“El Futuro de la Televisión, HOY”

MARKETING PLAN : WHAT – Communication Strategy

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2012 Samsung Smart TV communication should;Deliver on the business objective of ‘Beyond Comparison’Drive innovative brand image through technology leadership posi-tioning

1

2

3

Business Objective

BrandImage

Call to Action

1 2 4

‘Beyond Comparison’ Innovative Tech.Leadership

Experiencing & Purchasing

The Future of Smart TV NOW

CTV Cate-gory

Position-ing

3‘Transforming

viewing together’

Reinforce Category positioning3

Communicate call-to-action of experiencing & purchasing new Smart TV

4

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Smart ContentSmart Interaction Smart Evolution

• Evolution Kit• Voice control• Motion control• Face recogni-

tion

““El Futuro de la Televisión, HOY””

• Family Services (Family Story, Kids, Fitness)

+ Locally relevant Appli-cations (+1,400 Apps globally)+ AllShare play

MARKETING PLAN : WHAT – Communication Strategy

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“The Future of Smart TV, NOW” will be delivered by;

Key Message‘Make your TV new, ev-ery year’

Highlighting Smart Interaction and Smart ContentAnd Smart Evolution (Make your TV new, every year)

1

2

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Thank you.