Group 7; Sec A; IIM LUCKNOW

SUPER MIRACLE Marketing and advertising for the CC large screen TV market
Submitted By: Group 7; Sec A Members: Abhiruchi Bhushan <PGP28343> Jaishree V <PGP28340> Pallavi M <PGP28372> Namit Jain <PGP28378> Prateek Gupta <PGP28200> Priyanka S <PGP28145>

Going forward
2

Problem Statement

Introduction
Advertisement

Technological development Gold Star Changing Product range Large screen TVs

Super Miracle CC 25 TV ad Advertising strategy Competitor's advertisement Competitive response Effectiveness of TVC Relationship between SOM & SOV Growing the market share

Group 7; Sec A; IIM LUCKNOW

Problem Statement
To achieve leadership in the large-screen TV segment by increasing the market share compared to its closest competitor, Samsung. Group 7; Sec A; IIM LUCKNOW

Introduction

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Technological Development
5

First, demonstrated by CBS(U.S.)

France : SECAM Rest of the Europe:PAL

Japans NHK introduced the concept of Hi-Vision HDTV

Disruptive changes in Korean Television market

1947

1960

1966

1980

1985

1988

Japan began broadcasting TV in 1960

Korea started colour TV programming in the NTSC format

NHK broadcasted its first HDTV programming for the Seoul Olympics

Group 7; Sec A; IIM LUCKNOW

GoldStar
6

Leader in Koreas electronics industry Manufacturer of Koreas first B&W TV Independent technology development

Competition

Market Share trend (3 years) Korean Electronics Market

50% 40%
37% 39% 35% 38% 39% 40%

Market Share

30% 20% 10% 0% GoldStar Samsung 1988 1989 Daewoo 1990 Others
15% 16% 10% 10% 10% 11%

Group 7; Sec A; IIM LUCKNOW

Changing Purchase Trends

7 # of Color TV sets (in 000)

Demand for black & white TVs was on a constant decline whereas color TVs skyrocketed around the 1988 Olympics

500 400 300 200 100 0 1981 1982 1983

25 20 15 10 5 0

1984 Color

1985

1986 1987 Black & White

1988

1989

1990

60% 50% 40% 30% 20% 10% 0%

Demand Trend by Purchase Type

52%

41%
32% 26% 25% 29% 32% 23% 32%

Proportion of first-time purchases were decreasing while that of additional or replacement purchase were increasing steadily
Group 7; Sec A; IIM LUCKNOW

New TV purchase 1988

Additional purchase Replacement 1990 1991(Expected)

# of Black & White TV sets (in 000)

Demand Trend by Product Type

Large Screen TVs

8

February 1990 Excellent Max

April 1990 Super-vision Pro

October 1990 Super Miracle Only 20 and 29 sizes

Available in 20, 25 and 29 sizes

GoldStars late entry and narrow product range proved to be major obstacles in giving the expected boost to sales

Reasons for rising demand of Large-screen TVs

Rising living standards Increased demand for high visual quality
Group 7; Sec A; IIM LUCKNOW

Strong relationship with culture and strong influence over consumers

Advertising

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Super Miracle CC 25
10

Target Market
Age Group: 30 years & above

Advertising Objectives
Increase Market Share

Marketing Objective
Create awareness

Super Miracle was popular among 40 years and above To increase market share, they had to target customers in their 30s

Features
Black Monitor IQ Colour Coordination AI Aero Dome Speakers

POD / POP POD POD POP POP

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Consumer Recognition Visible and Refreshing Logical Hackneyed Hackneyed

TVC
11

Group 7; Sec A; IIM LUCKNOW

Advertising Strategy
12

Approach

Analogy and Fantasy Emotional appeal

Creative Strategy

A unified theme for print, radio and TV commercials

TV Commercials Printed Advertisements Metaphor Same as TV; Medium restrictions Serialized Product Concept Stage 1: Product Awareness Stage 2: Product Differentiation Stage 3: Product Benefits

Ad Execution Concept

Metaphor Life like rendition of high quality vision Creating customer orientation towards products visual attributes.

Strategy

Group 7; Sec A; IIM LUCKNOW

Competitor Advertising
13

Total Ad Spend
5000 4519 3410 2228 1073 3298 2328 1029 2235

4000
3000 2000 1000 0

1081

1988 GoldStar

1989 Samsung

1990 Daewoo

TV and Print Spend

5000 4000 3000 2000 1000 0 1988 GoldStar 1989 Samsung Daewoo 1990 3039 3109 2295 2062 1081 4302

2118
1027

919

Competitive Response
14

GoldStars Super Miracle CC (Launched in Oct 1990)

Advertising Concept Functions Live Image Ultra sensitive TV Black-colored screen IQ color-coordinated visual quality Artificial intelligence Aero dome speakers TV, radio, printed fish (long nose-butterfly), woman in a black veil

Samsung Cinema (Launched in Feb 1990)

Visual quality Audio quality High quality TV RGB visual quality CCDs comb filter Dome speakers Artificial intelligence

Daewoos Super Vision (Launched in Apr 1990)

Audio quality Visual quality Horizontal 800 Dome sound system Mid-to-low frequency woofer TV, radio, printed Computer graphics

Advertising Medium Subject Material

TV, radio, printed parakeet, eagle

Group 7; Sec A; IIM LUCKNOW

Effectiveness of TVC
15

Super Miracle CC TV Commercial Impression

Areas of Impressions
High Visual Quality Subject Material

Percentage
50 9

Model 18%
Scenery 17% Announcement 4%

Viewers' Content Retention

Life-like Clean Vision Live Vision Vividness Clarity 0 5 10 15 20 25 30 35 40 45 4.2 6.8 15.7

16.3
47.4 50

Viewers' Content Retention

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Rate of Recognition of Promotion

16

Newspaper Ad Recognition
35 30 25 22.7 18.9 20.5 21.2 33 32.2

35 30 25 26.8

TV Commercial Recognition
28.6

20.8 20 15 10 5 0 13.4 16.7 16

20
15 10 5 0 Seoul

Daejon

Seoul

Daejon

Super Miracle CC

Cinema

Super Vision Impact

Super Miracle CC

Cinema

Super Vision Impact

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Relationship between SOM and SOV

17

To gain Market Share, a competitor resorts to a huge ad spending push

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Growing the Market Share

18

Market Shares for Top 3 TV producers Company 1988 1989 GoldStar 37 35 Samsung 38 39 Daewoo 15 16 Others 10 10

1990 39 40 10 11

Dramatic Increase in largescreen TV demand

Focus on 25 product

Market Shares for Large-Screen TV, 25" & over (1991) (%) Company Q1 Q2 Q3 Q4 GoldStar 29 33 34 35 Samsung 37 30 33 33 Anam 27 28 24 22 Daewoo 7 9 8 10
Group 7; Sec A; IIM LUCKNOW

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