Digital  Marke,ng  Plan   Alexander  Ten   Akhmed  Rishad   Brennan  Neoh   Stella  Lee  

Outline   Environment  Analysis   Internet  penetra)on,  Internet  usage  …   Strategic  Plan   Differen)a)on,  Segmenta)on  …   Objec,ves   Marke,ng  Strategy   Pricing,  Place  …   Implementa,on   Applica)on  Bundle,  Targe

Environment  Analysis  

Current  trends:   Internet  Penetra,on   0   2   4   6   8   10   12   14   16   18   2009   2010   2011   2012   Millions   •  2011   –  Popula,on:  16.7  million   –  Penetra,on:  40%   •  2012   –  Popula,on:  16.8  million   –  Penetra,on:  56%   •  2011-­‐2012  growth:  71%   •  9.4  million  ac,ve  users   *  Ministry  of  Transport  and  Communica,on  of  the  Republic  of  Kazakhstan  

Current  trends:   Internet  Usage   39%   38%   2%   10%   11%   2010   34%   40%   10%   7%   9%   2011   *  Kazakhstan  Sta,s,cs  Agency   Communica,on   Search   E-­‐commerce   Government   Educa,on  

Current  trends:   Purchasing  Power   12.7   0.3   21.8   10.4   3.9   10.8   0   5   10   15   20   25   Almaty   Astana   West  Kazakstsan   South  Kazakhstan   East  Kazakhstan   North  Kazakhstan   West Kazakhstan *  Kazakhstan  Sta,s,cs  Agency   Million  Tenge  

Current  trends:   Payment  Modes   Cash   57%   Credit  Card   10%   Debit  Card   33%   *  Center  of  Analy,cal  Research,  Chocolife.me    

Current  trends:   Items  Purchased  Online   *  Center  of  Analy,cal  Research,  Chocolife.me     Garments   13%   Children  goods   10%   Home  Appliences  and   Electronics   50%   Food   5%   Books   2%   Miscellaneous   4%   Soaware   1%   Sport  equipment   4%   Jewelry  and   accessories   4%   House   goods  and   furniture   7%  

Current  trends:   Top  3  Internet  Stores  in  Kazakhstan   Company   Revenue   (million,  US$)   Merchandise     5.7   Electronics   Sulpak   3.7   Miscellaneous   3.6   Electronics   *  Center  of  Analy,cal  Research,  Chocolife.me    

Current  trends:   Purchasing  Mo,va,ons   •  INVESP   17.4   29.2   30.8   31.5   33.1   35.1   38   0   5   10   15   20   25   30   35   40   More  to  choose  from   Easy  to  buy   Saves  ,me   Free  delivery   Easy  to  compare  prices   Open  24/7     Lower  prices  

Objec,ves  

Objec,ves   •  Matching  lifestyle  of  people  to   corresponding  Samsung  products.   •  Comparing  different  type  of   products  from  the  same  category.   •  Empower  customers  to  customize   their  product  via  personaliza,on.   •  Increase  interac,on  between   new  and  exis,ng  customers.  

Strategic  Planning  

Differen,a,on   •  Products  based  on  core  design     •  First  to  market   •  Large  product  porgolio  

Segmenta,on   Geographical   Ci,es   •  Almaty   •  Astana   Regions   •  Atyrau   •  West  Kazakhstan   •  Aktobe   •  Pavlodar   Age  Groups   •  6  to  18   Primary  and  Secondary   School  Students   •  19  to  25   Ter,ary  Students   •  25  to  55   Working  Adults   •  55+   Senior  Ci,zens  

Segmenta,on:   Geographical   Major  Ci,es   (Almaty  and  Astana)   •  Upper  to  middle  class   •  Have  Internet  access   •  Migrant  workers  from   Minor  Ci,es   Regions   (Atyrau,  Aktobe,  Shymkent,     Karaganda  and  Taraz)   •  Middle  to  lower  class   •  Limited  Internet  access   (especially  in  outskirts)   •  Internet  access  via   Workplace  

Segmenta,on:   Age   6  to  18   Primary  and  Secondary  School   Students   •  Ac,ve  users  of  social   media   •  Purchasing  power   through  parents  and   guardians.   •  Less  financial   independence.   19  to  25   Ter,ary  Students     •  Ac,ve  users  of  social   media   •  Purchasing  power   through  parents  and   guardians   •  More  financial   independence   (Debit  Cards)  

Segmenta,on:   Age   25  to  55   Working  Adults   •  Ac,ve  users  of  social   media   •  Working  Income   •  High  purchasing  power   •  Financial  independence   55+   Senior  Ci,zens   •  Users  of  tradi,onal   media   •  Re,rement  fund   •  Financial  independence  

Targe,ng   •  Products  vary  from  high-­‐end  to   low-­‐end  in  same  product  range   •  Example:  GALAXY   – Galaxy  S3  (high-­‐end,  US$800)   – Galaxy  Smart  Camera   (photographers)   – Galaxy  Tab  (tablet  users)   – Galaxy  Note  (tablet  +  phone  lovers)   – Galaxy  Y  (low-­‐end,  US$100)  

Marke,ng  Strategy  

Pricing   Fixed  Pricing   •  Same  Prices:  Online  and  Offline   Major  Ci,es   •  Customers  strongly  encouraged  to   purchase  both  online  and  offline.   Regions   •  Customers  encouraged  to  purchase   online.   •  Reward:  por,on  of  sales  to  charity.  

Place   •  Leverage  on  exis,ng  resellers   (Sulpak,  Technodome,  Alser,  Planet  Electronics…)   •  Have  a  Samsung  Online  Store.   •  Targeted  microsites  for  different  segments.  

Distribu,on:   Major  Ci,es   Mobile  Accessories   •  Customers  order  online  in  Samsung  store   •  Stock  will  be  coordinated  with  3rd  Party   Logis,cs  Provider.  (B2B)   •  Store  will  delivered  to  customer  by  3rd  Party   Logis,cs  Provider.  (B2C)  

Distribu,on:   Regions   Online  Store   •  Customers  order  products  online   •  Samsung  will  pledge  por,on  of  sales  to   charity,  in  return  for  not  using  intermediary.   •  Products  will  be  delivered  to  customer   doorstep  via  3rd-­‐party  logis,cs  provider.  

Logis,cs   •  Warehouses  at  four  key  regions,  Almaty  and   Astana.   •  Coordina,on  with  retailers  via  inventory   system,  integrated  with  ERP  system.   •  Analysis  of  data  collected  for  future  sales  and   churn-­‐rate  projec,ons.  

Promo,on   •  Already  use  social  media  as   communica,on  tool   •  Adver,se  on  top  sites  in   Kazakhstan   –  nur.kz  –  news  portal   –  voxpopuli.kz  –    photo  blog   •  Invite  famous  bloggers  to   personal  presenta,on  of  the   product   •  Screen  product  launches  online.   •  Organize  targeted  events  for   exis,ng  and  new  customers.  

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Alisher  Elikbaev  

Implementa,on  

Implementa,on:   Personaliza,on   “As  apprecia,on  for  the  posi,ve   media…  one-­‐of-­‐a-­‐kind  Samsung   Galaxy  S  III  …”  

Marke,ng  Strategy:   Personaliza,on   •  Allow  customers  to   submit  personalized   design  online.   •  Design  is  printed  on   devices  by  3rd-­‐party   companies.  (B2B)   •  Commission-­‐based.   – Samsung  will  have  share   of  profits  as  we  are   intermediatary  

Marke,ng  Strategy:   Mobile  Applica,on  Bundles   Singtel  Silverline   •  Applica,ons  for  Senior  Ci,zens   •  Communicate  with  family  and  loved  ones   •  Emergency  applica,on  for  cri,cal  ,mes  

Implementa,on:   Value-­‐Added  Services   Phone  Insurance   •  Compensa,on  for  thea  and  accidents.   •  24  hour  hotline   •  Remote  data  wiping  

Cyber  Terrorism:   Mi,ga,on  Strategy   CLOUDFLARE   “protects  and  accelerates   any  website  online”   •  DDOS  Asacks   •  SQL  Injec,ons   •  Spammers  

Evalua,on  

Metrics   Google  Analy,cs   •  Measure  success  through  goal-­‐tracking   •  Track  amount  of  referrals  from  social   networking  sites  (especially  VK)   Data  from  ERP   •  Track  success  of  data  collected  from  retailers.  

Metrics:   Google  Analy,cs   Goal  Tracking   •  “If  customer  were  to  enter  his  personal  details   and  completes  a  purchase  of  product.”   •  Returning  customers,  purchases  accessories   •  100  impressions…  from  VK  Samsung.  

Budget   Item   Annual  Cost   Linux  VPS  Hos,ng  (JSC  Kazakh  Telecom)   -­‐  Web  store   -­‐  Microsites  for  Applica,on  Bundles,   Customiza,on     204,000  Tenge   SaaS  Web  Security  (Cloudflare)   US$  2,000   (300,759  Tenge)   Micrsosite  (Local  Design  Agency)   US$  7,000   (1,052,659  Tenge)   Community  Managers  (In-­‐House)   VK,  Facebook,  Linkedin  engagement   US$  72,000   (10,816,199  Tenge)   TOTAL   12,373,617  Tenge  

Return  on  Investment   Phone  Model   Retail  Cost   Net  Profit   (aGer  logisIcs  and  retailer   costs)   Samsung  Galaxy  S3   US$800   US$500  (71%)   Samsung  Galaxy  Y   US$100   US$50  (50%)   Samsung  Galaxy  Camera   US$300   US$100  (  33%)   •  Projected  Sales   –  Galaxy  S3:  2  million  units   –  Galaxy  Y:  1  million  units   –  Galaxy  Camera:  0.8  million  units   •  Projected  Return   –  US$1.13  billion  (169  billion  Tenge)  

Q  &  A