0. 2012 Smart TV > Communication Strategy

1. Contents Market Overview & Business Objectives
Smart TV Communication Strategy

2. Total CTV Market share in 2011 Market share by key segments
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
45%
40%
35%
30%
25%
20%
15%
10% 5% 0%
2008
2010
2011
2009
38.9%
Etc. 24.1%
34.9%
38.5%
38.6%
9.7%
53.4%
12.8%
25.0%
12.9%
LED TV
19.4%
15.8%
Etc. 28.7%
6.0%
44.8%
11.7%
10.8%
12.7%
8.2%
13.8%
※ Source: NPD, Dollar base
※ Source: 2011, NPD, Dollar base
(Smart TV filtered by Network Capability)
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3. MARKET OVERVIEW : BRAND PERFORMANCE
However, Samsung is still behind Sony in Brand Preference despite its rapid growth and strength in dealer recommendation
BAS (MPSA*)
DAS (RR*)
2009
2010
2011
2009
2010
2011
* MPSA: Most Preferred Single Answer (%)
* RR: Dealer Recommendation Rate (%)
※ Source: H BAS / DAS data
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4. Beyond Comparison (Cho Gyuk Cha)
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
Increased locally relevant content
LED TV made accessible with F-LED TV
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5. 2012 BUSINESS OBJECTIVE
2012 Business Strategy will allow us to achieve growth in our strategic categories;
Smart TV Series 7 / 8 sales by units 1

6. Contents Market Overview & Business Objectives
Smart TV Communication Strategy

7. 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 usage
Future Smart TV Usage and Expectations
Current Usage and Pain-points of Smart TV
Consumers expect ‘new content’ from Smart TV
Smart TV usage takes too long and is complicated
Smart TV Expectations (Top 2%)
Samsung Smart TV
Consumer Perceptions
Positive on Overall and Content Quality
Negative on UX due to Too many steps
Especially, App access hard
Viewing online video content
Searching on Web
Full browsing
Multi-tasking
Downloading Apps
SNS
Smart Interaction Concept Acceptance (Top 2%)
Preference 75
Uniqueness 89
Necessity 67
Purchase intention 70
※ Source: Consumer Tracking 2011 Q2~3
※ Source: 2011 Online buzz tracking / 2011 Line-up study 7

8. 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
Device Connectivity
“The simplest user interface.” – Steve Jobs
Seamless sharing with other Apple Devices
Enjoy high-quality web content
Entertainment choices leveraging Sony pictures
Separate platform from Google TV
Content & Services
Content Access/Storage
Pool of content and services readily used
“Automatic and effortless” cloud service
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 non-smart TVs (add-on device)
Google TV
Launched Google TV 2.0 upgrade Nov. ‘11
Improved UX, enhanced search, improved web content to feel more like TV 8

9. PRODUCT STRATEGY: Samsung vs Competition
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
Interacti on
Content
Evolution
Picture
Design
Convergenc e
Company X
Company B
Samsung
Signature services
Superior local Killer apps
Evolution Kit
New features/ content every year
Voice and Motion control
Face Recognition
Finest picture quality with Micro Dimming technology
Super Narrow bezel with arch flow stand
AllShare play service between multi-Samsung devices
No signature services
Lack local killer apps
Voice and Motion control in ‘magic control’
Narrow bezel but no arch flow stand
No strength in picture quality
N/A
DLNA
Existing Players
N/A
Potential of Playstation move
No signature services
Lack local killer apps
Heritage over picture quality , continues with Bravia engine
Pushed Monolithic design with little success
Potential D2D sharing b/w Sony Devices
N/A
Company A
Company G
To have ‘Siri’ with comprehensive voice control
To leverage ‘iTunes’ content base
To leverage ‘iCloud’ service and ‘Air Play’
N/A
N/A
N/A
New Entrants
N/A
Potential to introduce on Google platform
No signature services Android market expansion to TV
To utilize Android platform
N/A
N/A
N/A
※ Source: Competitor Intelligence from Product Strategy team
Strong
Average
Weak

10. Unrivaled Differentiation
PRODUCT STRATEGY: Smart TV Strategy
In 2012, Samsung Smart TV will achieve ‘unrivaled differentiation’ through device/UX innovations and unique and relevant content
2011
2012
Build Category
Unrivaled Differentiation
Smart Interaction
Voice/Motion control & Face recognition
Samsung Apps /
Smart Hub
Focus on communicating Apps and Smart Hub Services
Content
Device/UX
Smart Evolution
Market’s 1st Evolution capability to make your TV New every year
New Family Services with a focus on Family Story
Locally relevant Apps
Seamless sharing with AllShare
Smart Content
Content

11. MARKETING PLAN : WHO WHO Smart TV Target WHAT
Unrivaled differentiation of our positioning

12. 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
Seek new value added features (connectivity, content) & benefits that enhance the total TV experience
Willing to spend above average
Combines male youngster and oldies likewise, 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
Replace pic.
Connectivity
Content / Online
In-store

13. MARKETING PLAN : WHAT WHO Smart TV Target WHAT
Unrivaled differentiation of our positioning

14. “El Futuro de la Televisión, HOY”
MARKETING PLAN : WHAT – Communication Strategy
2012 Samsung Smart TV communication should;
Deliver on the business objective of ‘Beyond Comparison’ 1
Drive innovative brand image through technology leadership positioning 2
Reinforce Category positioning 3 3
Communicate call-to-action of experiencing & purchasing new Smart TV 4 1 2 3 4
Business Objective
Brand Image
CTV Category Positioning
Call to Action
Innovative Tech. Leadership
‘Transforming viewing together’
Experiencing & Purchasing
‘Beyond Comparison’
The Future of Smart TV
NOW
2012 Communication Strategy
“El Futuro de la Televisión, HOY”
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15. ““El Futuro de la Televisión, HOY””
MARKETING PLAN : WHAT – Communication Strategy
“The Future of Smart TV, NOW” will be delivered by;
Highlighting Smart Interaction and Smart Content 1
And Smart Evolution (Make your TV new, every year) 2
““El Futuro de la Televisión, HOY””
Smart Interaction
Smart Content
Smart Evolution
Voice control
Motion control
Face recognition
Family Services (Family Story, Kids, Fitness)
Evolution Kit
+ Locally relevant Applications (+1,400 Apps globally)
+ AllShare play
Key Message
‘Make your TV new, every year’
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16. Thank you.