CIRCET WRISTBAND

Marketing Plan
By:
Mubeen Memon
Safia Motan
Sagar Kumar
Rana Asim

Submitted to:
Sir Mazhar Ali
Marketing Management MBA 1 (B)
Table of Contents
1.0 Executive Summary 1
1. Situation Analysis ……………………………………………………………………………………………1
2. Market Summary ……………………………………………………………………………………………. 1
1. Market Demographics …………………………………………………………………………………………2
2. Market Needs ………………………………………………………………………………………………………3
3. Market Trends …………………………………………………………………………………………………….3
4. Market Growth ……………………………………………………………………………………………………4
3. SWOT Analysis ……………………………………………………………………………5
1. Strengths …………………………………………………………………………………………………………….5
2. Weaknesses ………………………………………………………………………………………………………..6
3. Opportunities ………………………………………………………………………………………………………6
4. Threats ………………………………………………………………………………………………………………..6
4. Competition ………………………………………………………………………………..6
5. Services ………………………………………………………………………………………8
6. Keys to Success……………………………………………………………………………8
7. Critical Issues ……………………………………………………………………………..8
8. Historical Results ………………………………………………………………………..9
9. Macroenvironment ……………………………………………………………………….9
1. Marketing Strategy ………………………………………………………………………9
2. Mission ……………………………………………………………………………………..10
3. Marketing Objectives ………………………………………………………………….10
4. Financial Objectives ……………………………………………………………………10
5. Target Markets …………………………………………………………………………..10
6. Positioning …………………………………………………………………………………11
7. Strategy Pyramids ……………………………………………………………………….11
8. Marketing Mix ……………………………………………………………………………..11
1. Services Offered …………………………………………………………………………………………………..11
2. Price ………………………………………………………………………………………………………………………12
3. Promotion ……………………………………………………………………………………………………………12
4. Service ……………………………………………………………………………………………..………………………12
9. Marketing Research ………………………………………………………………………13
1. Financials …………………………………………………………………………………….13
2. Break-even Analysis ………………………………………………………………………13
3. Sales Forecast ………………………………………………………………………………14
1. Sales Breakdown by Segment ……………………………………………………………………………..16
2. Sales Breakdown by Region …………………………………………………………………………………16
4. Expense Forecast ……………………………………………………………………………………………..16
1. Expense Breakdown by Segment ………………………………………………………………………..17
2. Expense Breakdown by Region …………………………………………………………………………..17
5. Linking Expenses to Strategy and Tactics…………………………………………17
6. Contribution Margins ……………………………………………………………………18
1. Controls ………………………………………………………………………………………19
2. Implementation………………………………………………………………………………………………………20
3. Marketing Organization…………………………………………………………………………………………21
4. Contingency Planning …………………………………………………………………………………………..21
1.0 Executive Summary
Samsung Electronics specializes in multinational electronics and information
technology company headquartered in Suwon and the flagship company of the
Samsung Group. Currently, it ranks as number one worldwide in Computers,
Electronics and Technology. The companies holding the largest market share in the
Global Consumer Electronics Manufacturing industry include Hon Hai Precision
Industry Co. Ltd. and Samsung Electronics Co. Ltd. (IBIS World).

The Circet is a new product launched by technology giant, Samsung Electronics. The
Circet will take Electronics, Technology and Smartwatches to new heights. The
Circet will introduce a new way of using technology and smartphones that have
only been imagined to date.

The Circet is, quite literally, a wristband which brings full smartphone functionality
to your arm. It’s all built around a tiny projector stashed inside the wristband. Aside
from replicating your phone’s screen, it is also able to detect movements and
inputs. The proximity sensor can track what is happening and relays commands to
your device via Bluetooth.

CIRCET commercial: https://www.youtube.com/watch?v=9J7GpVQCfms

2.0 Situation Analysis

Samsung Electronics is a multinational conglomerate. Samsung’s main headquarters are

in Suwon, South Korea, and manages it under a two-person management team, with
Choi Gee-Sung, CEO and vice chairman, and Lee Jae-Yong, chief operating officer and
president.

Samsung has reorganized its overseas marketing bases in line with changes in the
market, including a combined Britain/Continental Europe regional subsidiary, and a
combined China/Taiwan regional subsidiary. There are also dedicated Samsung
Electronics stores in South Korea, Canada and the United States.

Samsung Electronics will initially launch its Circet in South Korea and North America in
May 2020. Following the launch, the product will be released worldwide in August 2020.
1. Market Summary

Smartphone Industry is growing very fast, as new technologies are introducing day
by day and new companies are coming in the market with new concept or
renovate existing product by some changes in it, first smartphone was introduced
by Apple in 2007 which is the successful idea by apple then every phone companies
divert on this idea and provides a big changes in a market by samsung too and now
in 2019 100+ companies had given their concept of smartphone in a market and
fulfilling every customer needs and wants so market is extending and extended so
far, every company is working on touchscreen concept but Samsung is now moving
on a new concept of Circet wristband in which every function of mobile could be
done, it's a concept we can say screen on your arms and can be touched by just
touching on screen available on your wrist by concept of projector in band by
connecting with your phone by bluetooth. this is the new concept in a market by
Samsung. samsung is working on newly concepts to make their customers life easy,
this product is very easy to take everywhere even you can use it while taking
shower or eating or while driving and this product has no competitor in a market as
samsung is first, who has launched a screen on arm of their customers.

The following graph shows that overall, there has clearly been an increase in
smartwatch usage in the past 5 years, growing from less than 5 million in 2014 to
nearly 50 million in the past year.
 Target Markets

This chart shows the demographics of current smartwatch users worldwide by their
gender, age brackets and income. As we can clearly see, that the majority of
smartwatch users, around 70% are between the ages of 25 and 54. Additionally, it is
those who are in the lowest income bracket, earning less than $45k per year, who
are most likely to buy smartwatches.

We will initially be working with the North American market as they are the highest
smartwatch users increasing from 2% in 2013, to 14% in 2018, which means that
our market has increased by 7 times in just the past 5 years, in 1 region.
1. Market Demographics
Samsung has targeted in smartphone industry for youth mostly, age 16-29 and
above 29, samsung smartphone has a lot of models to target every needy people in
market as they have 3G phones who has less use of the internet can use 3G phones
or according to region facilities available internet speed. Cicret product is mostly
easy to use for old aged people who can not handle heavy weight of mobile.
Samsung has the biggest market in electronics item especially in smartphones,
market awareness is very strong created by samsung by reaching all types of
audience through fulfilling their needs, Samsung Electronics markets in global based
on lifestyle and demographic variables, The top level captured market of Samsung
are countries like North America, Central and South America, Europe, Middle East,
Southeast Asia, Southwest Asia, China and Korea. The Market differ based on
lifestyle and demographics.

Market Forecast

Of all the wearables industry worldwide, the smartwatch industry has captured the
largest market and is expected to grow the most as well.

The smartwatch market was valued at USD 48.14 billion in 2018 and is expected to
reach a market value of USD 130.55 billion by 2024. This graph shows the different
segments worldwide, of smartwatches, fitness trackers and other kinds of smart
wearables, which have increased exponentially over the past 5 years, and will
continue to increase.
2. Market Growth

Market growth of all our regions and segments, the fastest growing region is North
America.
 Target Market Growth

2. SWOT Analysis
 1. Strengths
Samsung has won many awards for its high quality features and smooth touch and
camera function in smartphones and best screen colour has made samsung a favourable
company for their customers, Samsung is spending a lot of money to capture customers
demand on research and development and innovation. Samsung work to provide a best
design and colours in a model, samsung products are low production cost and
environment friendly products.

2. Weaknesses

There are weaknesses of the Samsung’s smartphones like the company has many
smartphone prototypes in the market, and thus, the company suffers the issues of
the low return margin. Samsung’s smartphones are also facing the issues of the low-
end segment and technological innovation, Samsung is not creating its own software
that is why it relies on other companies to buy and largest buyer of samsung is its
competitors Apple, samsung buy many equipment from Apple to complete their
products.

3. Opportunities

Samsung is growing demand for smartphone in a market,Growing demand quality

application processors. Offering new technologies to fulfill needs of customers and
attract new ones, researching on new technologies and giving new concepts of
smartphones like a product of Cicret is launching by Samsung.

4. Threats

Threats from competitors like Apple smartphones and apple watch which is the
substitute product of Cicret of samsung product and other low cost companies of
china playing in a market.

3. Competition

The competition comes in several forms:

1. In the smartphone industry, Innovation is the key to success because customers

are motivated and ready to pay high cost for new concepts and advance
technology. Samsung smartphones are working according to their competitors
as competitors are giving low cost products and Apple is working on advanced
technology to the customers. thus there are huge competition in android
market that samsung smartphone are facing by Qmobile, Huawei, Oppo,
infenix, sony, lenovo, nokia, intel, due to these competitors samsung is
 launching new models and series of products to cover that gap which is created
by competitors.

2. Samsung Circet wristband product substitute are Apple watch, android

smartphone watches, which has awareness already in a market due to their loyal
customers already in a market and the product samsung is going to launch is totally
different from these smartphone watches as it is the concept of mini projector
which has touch screen and easy to carry.

3. Samsung is enjoying high profit margin in the industry and samsung is a world
largest smartphone company and getting high revenues by struggling on innovation
and benefits in the market.
4. Other Chinese brands are struggling on smartphone and capturing maximum
customers on lower price.

Competitor by Growth and Share

The biggest competitor by brand that Samsung is facing right now is Apple.
Currently, the sales for 2019 show that Apple holds 43% of the market while
Samsung only holds 11%.

This is despite the fact that the Samsung was the first one to launch a smartwatch in
2014, and used to dominate the market. With this new smartwatch, we will see the
rise in numbers of Samsung’s market share.
 However, Samsung also faces competition from other smartwatches, such as the
fitbit, which focuses on the health aspect. Therefore, our new product will have a
specialized focus on health features to compete with these brands, and also to
make it more appealing to our B2B sector, the health sector.

4. Services

Samsung offers expertise in different technology products distribution, Research

and development, and market development, sold and packaged in various ways
that allow clients to choose their preferred Products and warranty for every
product is provided.

1. Franchise Service: Samsung represent their company by introduces franchises

in every city of their targeted market region and these franchises works to help
their customer complaints and warranty claims from customers.

2. Research & Development: Samsung works for identify their customer

needs and work on fulfilling their demands and wants of advanced technology
and research helps company to innovate according to demand by customer.

3. Market Research: Market research helps the company to work on

competitor’s ideas and new models introduced in a market as like by Apple
concept of Apple watch in a market helps Samsung to introduce the concept of
Cicret wristband.

5. Keys to Success

1. Excellence in fulfilling the promise completely and product satisfaction,

confidential, reliable, trustworthy expertise and information.

2. Developing visibility to generate new advanced technology.

3. Extending market from a single pool of expertise into multiple

revenue generation opportunities by different concepts of advanced
technology by Research & development.

6. Critical Issues

Samsung market is increasing as increases in smartphone industry, company has

targeted different social classes, as company has diverse products by introducing
different smartphones for all types of their customers. Apple iphone is the giant in a
market, has better position then Samsung market and smartphones are admired
but no doubt samsung has also attractive customers and competitive smartphone
in a market.
 Moreover samsung smartphones have high features and best screen display and
compatible with Apple iPhone in the industry, the smartphone industry is the
innovative concept, every model has to be innovated according to market and
continues innovation gives the advantages to being in a market.

Samsung market is created in deeper level of engagements with customers and

have taken a huge amount of market share 22.3% in 2016, however Apple has
12.9% of market share.

Samsung Company is growing quickly in a market by continuous efforts on

advanced technology, Samsung stay focused on high share industry grew company
and current Circet wristband product is the best concept to grow on high level of
technology in the market, this product is going to make samsung advanced
technology company in the world. the product has excellent quality and other
series of smartphone has exceeds quality than other Chinese company in a market
The company is making their customers to a high level of technology used
customers.

7. Historical Results

In 2014, Samsung was the leader in smartwatches industry, as they have sold 1.2M watches in
2014, where Apple is the biggest competitors in smartwatches for Samsung but in 2014 Apple
was just came in a market with it’s product of Apple watch but then Apple makes the market
and make the name as a leader of the market in smartwatches industry, Samsung is coming
through new concept of this Circet wristband now in 2020 and the goal is to take the market
and lead again in an industry and also targeted health care industry with their smart products,
they can be B2B target audience by Samsung.
 8. Macro Environment

Samsung business market is largely affected by both internal and external

influences, It effect by local environment by using low cost smartphones less
features phone which have 2G or 3G internet functions and other global
performance influenced by advanced technology products by samsung. Macro
Environment can easily understandable and analysis by PESTEL analysis (Political
environment factors and Economic environmental factors) by gaining and
understandable of external environment of Samsung. All electronic companies are
investing huge amount of money on R&D as needs of new concepts are identified
by research and new ideas worked to compete with competitors. The reason for
this is because there is a lot of demand for innovative electronic products around
the world. If an electronic company falls behind in the technological aspect, then
they will absolutely see a decline in sales.

1. Marketing Strategy
Our marketing strategy is to focus on the distribution, this is our best channels to sell
our products. Thus our products are in the market, and our position in the market is
better than others. And this is the best product ever for those who do not have time
to use the mobile for some urgent work. The best thing for this product is we can
easily market, because this is one of the most unique products.
Our target market is all the upper level management, which are the CEOs, managers,
and other people who can afford the price of our new bracelet. Because these people
are those who need to attend all the calls, and reply to all the emails immediately.
Our smart bracelet helps them to give the reply from where they sit, and there is no
need to pick up the phone, and they can easily attend the call with the help of this
bracelet.
Now we are target the North American and European market, and this is a very good
market for buying the unique products. In our marketing strategy we are targeting
an upper class segment. Because this class is easily afford our product. And we will
directly contact with the distributor to distributor our product to the outlets.

2. Mission

Samsung has manufactured a high quality product to not only match its
competitors, but also surpass them. It provides the competitive edge, gives the best
service to customers, and encourages employee creativity, Motivation, and also
appreciate the team work, and they are continuously doing the great job, and give
them a platform for future growth, and expecting to create more creative products.

3. Marketing Objectives

1. We need to establish ourselves as the leading experts in smartwatches. This means

that, with our new, groundbreaking product, we want to replace Apple as the lead
in smartphones, smartwatches and innovative technology. This means that we
 need to capture the market share that Apple currently holds. As of right now,
Apple holds 35% of the market share for smartwatches.

2. Our marketing objective is to reach the maximum people, and especially for
those who really needs this sensor bracelet. Because the best thing for this
bracelet is people save time. And the most important thing, people do not need
keeping phone every time with in hand. The objective of marketing is to reach
maximum people, and convey our bracelet specifications.

3. Provide technical expertise and support to our customers and businesses.

4. Financial Objectives

1. Increase market share of 11% to 35% in the next 5 years (by 2024) and 50% by
2030 (in the next 10 years).

2. Increase unit sales of Samsung smartwatches from 5.3 million to 15 million by the
next five years.

3. Our gross margin is higher than 75%.

4. Net income more than 15% of sales from our distributor or third party after
2024.

5. Target Markets

Our target market is to target the 5 thousand customers who are able to pay our
product price. These customers are expanding our products through the positive
word of mouth. And also we pitch the multinational companies to buy our premium
product.

6. Positioning

We have the best and creative team who made the unique product. They believe in
teamwork, and that is why our products are going to be successful in the market.
And our priority to make the high position in the market, and also in the mindset of
the customers also.

7. Strategy Pyramids

Our main focus is to our own expertise, that what we are good at it, and what we
manufacture that is going to competition to our competitors. We have many
international competitors, and we are coming up with something new, and
something unique, and this is going to fly the top. And we want to have a good
position in the international markets.
 Based on our employee expertise, we provide the quality of the products, and
making the best marketing strategy for the people to easily understand our
product. And the important thing, in this time the sensor bracelet having high
technology used, means this is the best.

8. Marketing Mix

Our product needs the high marketing, and making the good marketing strategies.
We need to see every factor which is going to use in the market. And we see the
whole process of the marketing mix and how our resources are going to fit in it.

1. Services Offered
The sensor bracelet have many features, and also provide the best services. The main
services is to use your mobile function in your arm with the help of sensor. And you
can easily use your mobile phone apps in your arm, all you need is to wear the
bracelet in your arm. For instance: if you are stuck in traffic and your mobile is on
the back seat, and you are driving, on that time listen the call music means
someone calling you, and you would not be able to take your mobile from the back
seat. If you wear the sensor bracelet, then you receive call through the bracelet.
There are many other services which is similar to this situation.

2. Price

The price is always set according to the product actual cost. The price of our
product is a little high, because of the use of high technology, and other expensive
equipment, which makes the product good. We target the upper class, which is
going to afford and like our product.
.

3. Promotion

The promotion of the new product is very important. Now a days the best platform
of the promotion of the social media platform. Because 95% of the people are on
social media. And they like to know everything which comes from the social media
platform. We make some blogs of our sensor bracelet, and also the short clips,
which is going to describe our product properly, and then we are going to promote
our promotion stuff to the different platforms

4. Service

In this situation, the service is not what we are directly provide the services to our
customers, but what our product is going to give them services. This is very important, if
customer paying you high amount of a product, then the customer wants the best
service from the product. So giving services through your product is a good thing.
 When you provide your customer products, or provide products to your distributor,
then there are few pieces which are not performing good, then being a manufacturer of
the product, your responsibility to repair your product, in a short time, that your
customer feel good from your service.

9. Marketing Research

This is very important when you are launching your product in the market. First you
need to conduct the marketing research about your competitors, and what your
competitor is selling, and their product price. What is your target customer
affordability, they need some new and unique product, are they able to buy a new
product.

This type of research is very important. Because introducing the sensor bracelet
without marketing research is give you the tough time. If you are entering the
market after marketing research, then you know everything and every factor of the
market, then on launching time you are playing good.

1. Financials
We wish to increase our sales of smartwatches from 5.3 million units to 10 million
units by 2024. That means that we currently have sales of 530,000 million KRW, and
we wish to increase it to 1,000,000 million KRW by 2024. Our marketing expenses
are 5,000 million KRW. This is about 50% of our current sales in smartwatches.
However, we predict that with the launch of the new smartwatch, a brand new step
in the industry, there will be an exponential growth in sales.

By the year 2024, we plan on decreasing the marketing expenses to just 15% of the
sales, which will be about 15,000 million KRW.

The plan assumes two important trends:

First, we expect that production costs will decrease significantly over the 5 year
plan, as there will be more expertise available on the market. Over that time
period, with the growth in our plants and properties, we will raise further capacity
to produce more units on a decreasing cost. In addition, over the years we also
expect an increase in skilled labor force.

Second, a decline in marketing expenses as a percent of sales. A budget of 50% of

sales for marketing expenses is very high, however since this is a new product, and
one that we believe will allow Samsung to regain its position as the market leader
of smartwatches, that amount will be regained over the following years. It is
important to capture the market immediately with the launch of this new product
while there are no rivals or competitors in the market. By the end of our 5 year
plan, we expect that our marketing expenses will be around 15% of sales.
2. Break-even Analysis

Since this is the launch of a new product, our manufacturing and marketing costs are
very high. However, at the end of our 5-year time frame, we expect the price to be a
fraction of our sales.

This is a new product, which requires a high level of expertise in manufacturing that
restricts us and increases the cost of production. We predict that over the time
period of 5 years, our production costs will be marginal to the sales.

Additionally, since this is the launch of a new product, sales costs are higher as it
needs to be advertised to all our markets and regions. Additionally, since Samsung
creates different and specialized marketing for its various segments and target
audiences, this raises the cost of market as well.

This profile is very different, since we are launching a new product, and additional
marketing is needed to give this product a concrete base. Additionally, there is a high
increase in fixed costs as we build the capacity for production.

3. Sales and Expenses Forecast

Our current sales of smartwatches is 5.3 million units. By the end of 2020, with the
launch of Circet, we expect it to increase to at least 7 million the first year due to the
new product. After that, we expect it to grow by 0.75 - 0.8 million additional units each
year to achieve the target of 10 million unit sales by 2024. Additionally, there are plans
for upgrades each subsequent year, which should help to keep the sales not only
consistent, but to increase them.
 Tri-Monthly Sales Forecast

This is our 3 month sales forecast:

1. Sales Breakdown by Segment

We expect that our age demographic of 18-30, and 31-45 will respond much faster to
our product than our 45-60 age bracket, as the above mentioned are more tech savvy
and will be quicker in switching from the current smartwatches to Circet. The other age
demographic will struggle a little to make that switch and it will take a longer time.

Additionally, direct consumers will take longer to switch to the product as they need to
be convinced to buy the product and make the switch. However, our B2B segment,
particularly our health industry will switch fastest to the new product due to the
dedicated health features in the smartwatch.

2. Sales Breakdown by Region

In the beginning, we will focus our marketing towards the North American and
Eurpoean markets, as well as locally in South Korea. We expect to capture a large
market in North America and Europe since there is already a large market of
smartwatch users there.
 After that, once the product is properly launched, we will turn to the regional areas in
Australia, Asia, Africa and China. We expect sales from these areas, however, initially we
will focus on the North American and European markets in regards to the relative sales
expected from these regions.

1. Controls
Controls is being included to capture customer feedback according to their product and
service provided by samsung and customer feedback helps to launch a new model of the
same product or launching another series of product and innovate their technology in other
upcoming products.

2. Implementation

When new product market is created and budgeted sales forecast and budgeted expense
forecast is created then new product of new concept like Circet is going to be launched in
May 2020 and is going to take reviews of the product for the goodwill of the company and
earn a profit from that product sells.

3. Marketing Organization
4. Contingency Planning

 Back up plans of product introduces for customers if needed.

 Provide Luxury, style and advanced technology products.

 Will more focus on Research & development.

 Don’t go head-to-head with Apple.

 Stay on Brand Focus.