SAMPLE 360 MARKEITNG -Recurring Rev Model
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SAMPLE 360 MARKEITNG -Recurring Rev Model SAMPLE 360 MARKEITNG -Recurring Rev Model Presentation Transcript

  • Meeting with Steve Altman Vice President & General Manager Samsung Telecommunications America Date: June 8, 2007 Agenda and Discussion Items: Budgeting, Anti-Churn Product Roadmaps, Segments, Channels, Metrics Prepared by : Barbara Armour Location: Six Concourse Pkwy. NE Ste #1520 Atlanta, GA 30328
  • Agenda Items
    • BUDGETING
    • How are budgets for marketing assigned by Samsung? Is it a fixed dollar amount towards projected sales of handsets?
    • Does Samsung assign dollars based on higher profit margin or unit sales of handsets?
    • Who owns the budget? Sales or Marketing?
    • Do specific Carriers/Account receive any additional brand dollars from headquarters for account specific and regional media?
    • Does Samsung isolate % of handset sales by channel? AT&T Retail, AT&T Online, AT&T Dealer Agents? Is spend then allocated based on volume of units and margin of return?
    • Are you using metrics including Cost Per Handset Moved (Overall and by Product Line) and ROI/SRR for various program efforts? So if we spend $100k on POS and Sales Spiffs at ATT Retail and Dealer Agents – what sales dollar return, unit returns did we see per tactic and per channel?
    • (Examples follow later in this presentation and can also be found in the Case Histories CD Rom.)
  • Agenda Items
    • ANTI-CHURN
    • Current efforts to prevent churn among the customer base for ATT/Cingular?  As the customers contracts come up for renewal what efforts are being made to retain these valued customers? 
    • Are there specific efforts to also up sell new Samsung handsets based on ARPU levels at the same time?
    • What are the goals for retention?
    • Does Samsung have access to customer base up for renewal?
    • Are online, direct mail and telemarketing being used to approach the 9-12 month or 18-24 month base?
    • Is there a stay and earn program with reward points being used to purchase next handset and MMS, Data services and SMS add ons?
    • Defending the existing base is usually less expensive than acquiring new customer's plus- would allow Samsung to efficiently target specific handset sales based upon known ARPU thus making the sale more likely to be successful.
  • Agenda Items
    • Product Road Map
    • Average number of new handsets introduced annually for AT&T/Cingular?
    • Average life cycle for Samsung handset?
    • How will Samsung combat the Apple IPhone soon to be released into ATT/Cingular?
    • Is the Samsung portfolio weighted towards moderate to high end (Buyers and Prosumers)? Does this align with the ATT/Cingular customer base?
    • Does Samsung track shelf space by product by channel to validate life cycle decisions?
  • Agenda Items
    • Segments/Channels
    • AT&T Wireless originally pursued business and early adopter segments. Cingular focused on business users, family plans, pre-paid and young independents. Is this still true?
    • How open is AT&T Cingular in sharing/partnering on segmentation and product alignment with Samsung?
    • What are the growth segments for AT&T in demographics?
    • What are the growth segments for AT&T in area’s such as paid data services/mobile content, MMS, SMS?
    • Does AT&T share ARPU by segment and goals for ARPU by segment? How will the Samsung product align to meet those ARPU goals? (I.e. Qwerty keyboards standard, oversized displays, enhanced memory, faster download speed? All at highly competitive price?)
    • Does AT&T share percentage of sales by channel?
  • AT&T / Cingular Overview Possible Segments Sources: Jupiter US Wireless Consumer Survey 2007. US Census Data 2005-2006 * Averaged across all carriers in study Levels Of Use –ARPU Impact Age / Income/ Gender Use Ranked in order of priority % Adoption Noted where possible* Segments Heavy Users Should skew 150.00 + ARPU A30+ HH Income 65K + 47% College Educated Assoc + 50/50 M-F Voice –Heavy Data –Heavy 54% Email –Heavy- 54% SMS- Moderate use - 46% MMS –Light Use 10% Business Users BUYERS Lighter Users Skew < $65.00 ARPU for family 25-49 HH Income $42K-$65K Voice –Moderate SMS- Moderate Free Mobile Content –Heavy Want Family Uses TALKERS Moderate Users-constrained by enforced budget. Potential for heavy use likely. 64% On Parents Plan 80% of 13 year old <$50 ARPU. 66% of 17 Years Olds >$50 ARPU SMS –Heavy Use -Communication Data Services -76% MMS -Moderate Use 17 % Teens 13-17 Tweens 8-12 TEXTERS Need Data Prepaid Segment Moderate users- most likely to skew heavy as income increases. 18-24 HH Income – TBD 21% College Education Assoc + SMS Heavy 88% MMS –Heavy 36 % Data Services Moderate - 42% Voice- Moderate Young Adult Semi- Independents Buyers/Early Adopters
    • ONLINE CHANNEL
    • ATT / CINGULAR WEBSITE
    Overview Channels, Media & Segments
    • DEALER AGENTS
    • BIG BOX
    • MASS MERCH
    • GROCERY
    ATT RETAIL STORES
    • Teens/Tweens 10-17 with Parents 30-54
    • Young Adult
    • Pre-Paid Users
    • Business Users
    • Current Base – Known User –segment by growth potential (Single, New Family, Empty Nesters, Young Adult )
    • Family Users
    • Business Users
    • Young Adult
    • Current Base – Known User –segment by growth potential (Single, New Family, Empty Nesters, Young Adult )
    • POS Elements
    • MEDIA-TV, OOH, ROP
    • ONLINE-Email, Search Ads, Paid Banners WWW Site
    • In-Store Circulars &TV &Radio
    • POS Elements
    • MEDIA-TV, OOH, ROP
    • ONLINE-Email, Search Ads, Paid Banners WWW Site
    Media Segment Media Media
    • ONLINE-Email, Search Ads, Paid Banners WWW Site
    • Email Statements-Current Base
    Segment Segment
  • Overview Channels, Media & Segments ATT Corporate Sales
    • Medium to Large Business
    • Government
    • Print –Trade Pub.
    • B2B Mail
    • Trade Shows
    • Online Media
    Media Segment
  • Agenda Items
    • Metrics Example:
    • ATT Retail Channel. Tactic: Sales Incentive Spend= $25k
    • Assumptions/Results: Total Inc. Vol. ATT= 5,000 Handsets over promo period. (Incremental volume based on ST/YAG or 8 Weeks Prior Avg. of Unit Volumes).
    • $5.00 Cost Per Handset Moved. ($25,000/5,000) This should be compared to previous similar tactics to see if we over or under performed. Further break outs by model and spend for CPHM should be added into the overall cost of producing the handset. So we would know by model the average cost per handset model moved and add that to the cost of production – and thus cover our cost when setting the sell in price to the carrier.
    • The ROI calculates as $25,000/ 5,000 Units x $75 Sell In Price to ATT.
    • ROI = $25,000/375,000= 6.6% ROI .
    • Spend Return Ratio = Or for every $1.00 spent we received $15.00 back; [$375,000/$25,000]
    • Second Metrics Example:
    • DA Retail Channel Tactic: POS Elements Spend= $10K
    • Assumptions/Results: Total Inc. Vol. ATT= 2,200 Handsets over promo period. (Incremental volume based on ST/YAG or 8 Weeks Prior Avg. of Unit Volumes).
    • $4.55 Cost Per Handset Moved. ($10,000/2,200) This should be compared to previous similar tactics to see if we over or under performed.
    • Further break outs by model and spend for CPHM should be added into the overall cost of producing the handset. Determine by model the average cost per handset model moved and add that to the cost of production
    • The ROI calculates as $10,000/ 5,000 Units x $85 Sell In Price to ATT/DA. ROI = $10,000/187,000= 5.3% ROI .
    • Spend Return Ratio = Or for every $1.00 spent we received $18.75 back; [$187,500/$10,000]
  • Fun Facts and New Horizons
    • Mobile Data Services- Web Surfing, Games , Ring Tones, Graphics (Wallpapers and Themes) Covers both free and paid. T Mobile leads the way with 35% of subs purchasing content ; with a blended ARPU of $52 Q4 2006. Sprint is second with 25%, AT&T /Cingular = 22% and Verizon 21%.*
    • SMS- Short Message Services- Plain texting mobile to mobile. Again T Mobile ranks first with 67% of subscribers using SMS; 53% for Cingular; 53% for Verizon and 51% for Sprint.*
    • MMS- MultiMedia Messaging Service –Photos and Clips messages – a growing revenue stream for most major carriers. Part of the 3G enhancements. 39% growth in adoption from 2005 to 2006 among adults 18-34.*
    • In general-a vertical market becomes economically viable once 15-20% penetration /adoption has occurred. Currently 28% of the entire cell phone base owns video capable mobile phones-and based on bullet 1 –the tipping point definitely occurred this year for all carriers.**
    • In the US , spending on mobile entertainment is expected to grow to $15 Billion by 2010.**
    • *Source: Jupiter US Wireless Consumer Survey 2007. US Census Data 2005-2006
    • ** Source –Media Magazine, 2007 . Loziades, Lydia. Proof on Media Metrics 8, Issue 5 Pgs 48-49