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Preview Edition - IFA International

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A well-informed buyer is

A well-informed buyer is also more likely to buymore or to “buy up”. He logs in everyday on... Consumer Lifestyle News (web based news service and newsletter) and the SMARTreport Consumer Lifestyle create a vital new source of “information intelligence” for professionals in what’s now known as the greater “Consumer Lifestyle” field. From industry professionals through the channel right down to the sales people on the floor, everyone in the industry in Europe benefits from this highly comprehensive news and information service. By the Publisher of IFA International CONTACT Anthony Faget Project Manager Tel: +33 (0)4 42 77 46 00

Exclusive Interview 3D and “Smart” TV… Samsung’s Kevin Lee Explains Samsung’s Marketing Strategy Interview The flat panel TV market is tougher than ever, and it is evident that the only way for manufacturers and retailers to make any kind of profits at all is through differentiation and the adding of value. We spoke to Kevin Kyungshik Lee, Vice President of Visual Display at Samsung Electronics about how the brand is facing up to the main challenges in the market… IFA International: How do you get feedback from the market? Kevin Lee: Our Marketing Intelligence team (MI Team) gather information on new products and features by reading comments from customers on various blogs and sites online. This is now our normal process to check customer responses to new products. We look at how they see the pros and cons. I’m particularly interested in the negative comments, because that helps me develop products more efficiently. 3D is the “big thing”… What is Samsung doing as a differentiator in this segment? I think it’s the fact that we are demonstrating a “new experience” to the customer. Until last year, customers could only experience 3D in the cinema, and we did a customer survey that showed that people would also like to have this kind of experience at home. That’s why we are preparing our 3D TV, Blu-ray and content service “total solution” this year to provide a new experience to the customer. There is a strong incentive for people to buy such a “complete solution”. You are talking about the TV “experience” changing, and this possibly also has to do with the cross-platform web widgets that you announced earlier this year. How is the roll-out of this going? It’s really going well. For example in the UK market, we have launched a unique combination of content from such sources as YouTube, Facebook and Google Maps, along with many other different applications and local content. From this year, we are providing this kind of service in virtually all zones worldwide. Popularity of course depends on the capacity of each country’s broadband service, however take-up is most popular in the USA, Western Europe and Korea. Where do you see this all going in five or ten years? Will we get all content over the Internet? It’s true that even now, in many emerging markets, people can have access to broadband, so it seems evident that in a few years, this will very much become the most popular experience for the customer. Before, the TV was just a unidirectional, passive display, but that will all be changing. One could just change the channel and see broadcast programmes. But now we can provide various new experiences through the TV; not only broadcast programmes, but also 3D content, applications and even movie titles through the Internet like a VoD service. By using Samsung apps, customers can download new applications, and these are continuously being updated. The possibilities are limitless. What is the marketing plan for 3D TVs? In the first half of the year, we successfully launched our 3D TV worldwide, and in the second half, especially Q4, this is the hot season for the TV industry, so we would like to sell as many 3D TVs as possible. Our target is over two million units worldwide, but I think we can sell more than that. Are you happy with the sales of 3D TVs so far? Are you happy with the sales of 3D TVs so far? Until now, yes… more than we expected! The percentage of 3D TV sales this year is less than ten percent, but next year, we expect that around 20% of TVs we sell will be 3D capable How important is IFA as part of your global marketing plan? In the CE industry, especially TV and AV products, the second half of the year is a lot better for us than the first half. IFA is the only show in the September timeframe, so it is very important for us to emphasise our marketing strategy and expand our business opportunities. During IFA we are demonstrating our full line up for TVs and AV products and explaining our marketing strategy in order to be successful in the second half. To summarise, how would you describe the marketing strategy in Q4? We have a plan to emphasise our marketing strategy, especially for the Smart TV area… this is a big opportunity. Based on that strategy we have a plan to emphasise our marketing and communication on the Smart TV. For example in the domestic market, in Korea, we held a kind of application contest for developers. We opened our SDK (Software Development Kit) to the developers, and provided awards for the best developers. We have plans to implement a similar application contest in the US and European markets in the second half. There is no boundary to developing new applications to fit large screen sizes. So our two big promotional pushes are in 3D TV and Smart TV. Kevin Lee, VP of Visual Display, Samsung (right), with Richard Barnes, IFA International Editor-in-Chief (left) at Samsung R&D offices, Suwon, South Korea. year, we expect that around 20% of TVs we sell will be 3D capable. IFA International • Monday, 30 th August 2010 19

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