Rahim BhimaniPresented to Samsung PIT (Product Innovation Team)August 2013

Samsung: Opportunity to Breakout

EXECUTIVESUMMARYToday the iPad has been a prominent commercial success. The tablet market is on an incline and it’s big and bright. Samsung has a great selection of tablets, with numerous features. The company is poised to take an advantage of this great breakout opportunity.

OPPORTUNITY:•Leverage the breadth of existing Samsung products•Focus on targeted high growth markets •Elevate Samsung’s features into meaningful experiences

Samsung: Opportunity to Breakout

Understanding the tablet marketspace.

METHODOLOGIES +PRIMARY RESEARCH

PRIMARY RESEARCH

RESEARCH METHODOLOGIES 4

50+ INDIVIDUALS PARTICIPATED IN MY RESEARCH

10+ ON SOCIAL MEDIA PLATFORMS

30+ INTERVIEWS WITHCONSUMERS

5 RETAIL STORE VISITS

8 INTERVIEWS WITH EMPLOYEES

PRIMARY RESEARCH

Individuals in my network across various demographics were interviewed to understand their take on tablets andidentify the tablet features they use most.

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WHAT DO CONSUMERS SAY ABOUT TABLETS?

ENTREPRENEURAdil, 26 - Samsung Tab 2.0

STUDENTFarah, 20 - iPad

RETIREDTim, 69 - iPad

"I love that I can transfer my pictures onto it with the EXPANDABLE MEMORY feature for when I travel!”

"I Purchased a Tab 2.0 because it was CHEAPER than an iPad!”

“I love having all my readings in one place and SO MANY APPS to help me!”

"My iPad is a lot easier to bring to class than my text books, EBOOKS ARE ALSO CHEAPER!”

MOTHERTasneem, 36 - iPad

"I love my APPLE ECOSYSTEM and it works seamlessly withall my Apple devices.”

"My daughter plays with it more than I do! I love the quality of fun EDUCATIONAL GAMES on the App Store!”

“As a FIRST TIME user, I was taught how to use it at the Apple Store and it was so SIMPLE!”

"I love using FACETIME with my family especially my grandkids!”

Rahim BhimaniPresented to Samsung PIT (Product Innovation Team)August 2013

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UNDERSTANDING THE USERS NEEDSPRIMARY RESEARCH

Spending time at Best Buy, AT&T, Costco, Target and the Apple Store allowed me to talk to customers and understand why they were purchasing tablets.

“I like the PRICE POINT of the Tab however I had a hard time choosing between 7” , 8” or 10” and I went

with the 7“ because of the price.” - Mary

“I love the FREEDOM of the Samsung Tablet, and I wonder if these devices will be able to talk to my other SAMSUNG PRODUCTS in the future.” - Edward

“My friends have told me about how EASY it is to use an iPad as it’s my FIRST TABLET and I’m excited for

my kids to use it as well.” - Karen

“I own a Macbook Air and an iPhone, which makes me love the APPLE ECOSYSTEM and that’s why I will

probably purchase an iPad.” - James

BEST BUY APPLE STORE

Analyzing quantitative data to understand areas of opportunities.

SECONDARYRESEARCH

SECONDARY RESEARCH 8

QUANTITATIVE DATA ON TABLETS“STUDENTS WHO USED AN INTERACTIVE, DIGITAL VERSION of an Algebra 1 textbook for Apple's iPad in California's Riverside Unified School District in 2012 SCORED 20% HIGHER on standardized tests vs. students who learned with print textbooks.”- Mobiledia.com

“About 62% OF PHYSICIANS in the United States are now USING TABLETS, according to the most recent data from Manhattan Research.” - Mobihealthnews

“ONE-THIRD OF STUDENTS in grade 4-12 already OWN A TABLET.” - Pearson Student Mobile Device Survey 2013

1.9% 2.7%

43.5%

2013 2017

0.6% 0.4%

46.0%

7.4%

2.8%

46.0%48.8%

40%

30%

20%

10%

0%Android iOS Windows Windows RT Others

50%

60%

Global Market Share Forecast for Tablet Operating Systems

Market Share of Tablets with Android (2012)

Kindle Fire36%

Samsung Galaxy Tab

36%

Asus Transformer

7%

Motorola Xoom

4%

Toshiba Thrive

6%

Source: Strategy Analytics Tablets Service

Source: New Media Trend Watch

Source: New Media Trend Watch

Source: New Media Trend Watch

Source: Flurry Analytics

Other7%

AcerIconia Tab

7%

Global OS Market Share (Q2 2013)

Android67%

Apple28.3%

Windows4.5%

Blackberry0.2%

Average Age ofTablet Users (2012)

13-17: 18-24: 25-34: 35-44: 45-54: 55-64:

65+:

6%13%24%21%18%11%8%

Tablet Activities of US Tablet Owners (2011)

Playing games: Searching for information:

Emailing: Reading the news:

Accessing a social network: Consuming music & videos:

Reading books: Shopping Online:

Other:

84%78%74%61%56%51%46%42%19%

Through these insights, I have learned why the iPad has been a preferred choice among consumers and why other tablets have been struggling.

FINDINGS

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A COMPETITIVE AND OVERCROWDED TABLET MARKETEven though the Android OS outperformed the iOS in Q2 of 2013, Android is still dispersed across from many di�erent companies. Android tablets are completely saturating the current marketplace though they lack a competitive advantage or an identity to make them stand out.

Saturated Android Market

FINDINGS

Di�cult to make a choice based on so many similarities.

FINDINGS 11

HOW CAN WE CREATE A MEMORABLE EXPERIENCE FOR FIRST TIME USERS?As tablets are becoming popular amongst consumers, people are willing to take the plunge into purchasing them. However, the learning curve can be a huge barrier and be intimidating for first-time Android users as opposed to the ease and simplicity of use in the iOS.

Every application that comes stocked on an iPad serves a core function for the user.

These are the applications that come stock on a Galaxy Tab 3.0. Many apps are unnecessary and frivolous resulting in a cluttered experience.

“I love the FREEDOM of the Samsung Tablet, and I wonder if these devices will be able to talk to my other SAMSUNG PRODUCTS in the future.” - Edward

“My friends have told me about how EASY it is to use an iPad as it’s my FIRST TABLET and I’m excited for

my kids to use it as well.” - Karen

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SIMPLICITY IN MAKING DECISIONSWith two distinctly di�erent sizes, the Regular and the Mini, Apple simplifies the decision process of its iPad consumer.Novice users are often overwhelmed by the number of Android tablet options available, making it di�cult to find the 'right' piece of hardware for each individual. The Galaxy tab comes in 7” , 8” and 10” which can be a little challengingfor a customer to decide.

FINDINGS

iPad displayed at the Apple Store Galaxy Tablets on display at Best Buy

Source: Flurry Analytics

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FOCUSING ON A GREAT EXPERIENCE AND NOT SPECS OR FEATURESApple approaches the sales of their tablet by asking how they will be used and how it will enrich lives. Most other tablet companies tend to focus more on the price and features rather than focusing on the tablet's user experience.

FINDINGS

Advertisement with an emotional connection.

Advertisement focused on

specs.

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ECO-SYSTEMMany individuals choose the iPad because it is easy to adapt into the Apple ecosystem. Many are also familiar with existing Apple products which they may already own. The user experience with Apple products is consistent across all platforms and results in a holistic and cohesive experience.

FINDINGS

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EMOTIONAL CONNECTION

My grandmother and her sister saw each other for the first time in 15 years, as one lives in Toronto and the other in London.

Many parents love how much joy an iPad brings to their kids. Having over 100,000 education apps, parents love how the iPad has created a fun and engaging way for their children to learn.

FINDINGS

Apple products tend to market their tablets as a product that enhances and enriches one’s life. Their focus is not for their customers to buy a tablet for the sake of it, but for their product to add value to the lives of their customers.

•Leverage the breadth of existing Samsung products•Focus on targeted high growth markets •Elevate Samsung’s features into meaningful experiences

RECOMMENDATIONS+ APPROACH

RECOMMENDATION + APPROACH 17

LEVERAGING OPPORTUNITIES WITHEXISTING PRODUCTSSamsung has a breadth of products across many categories, including lighting, home appliances and televisions. Using this as a competitive advantage through a preparatory app exclusive to the Galaxy Tab products, Samsung can become a leader in connected home appliances resulting in a future ecosystem.

samsung smart home

samsung smart home

Living room

KITCHEN

75°

85°2:59LEFT

RECOMMENDATIONS

RECOMMENDATION + APPROACH 18

FOCUS ON TARGETED HIGH GROWTH MARKETSCurrently the Android OS is cluttered and makes it di�cult for new users to adapt to the Samsung Tab. The goal for this recommendation is to simplify the interface and focus on students and doctors initially. The tablets would be equipped with applications for students and for doctors by associating organizations.

Student Edition• Curated applications by top

education organizations

Doctor Edition• Curated applications by top

medical organizations

RECOMMENDATION + APPROACH 19

FOCUS ON GREAT PRODUCT EXPERIENCESAs future Samsung tablets make their way into the market, Samsung must truly believe theirs is the better product. For example, if the next Samsung Galaxy Tab has a better camera, better screen, or a stylus, these competitive advantages can be marketed as such. These life experiences will allow the product to resonate with consumers.

Experience the STYLUS at:An Art Gallery

Experience the CAMERA at: The Golden Gate Bridge

Experience the SCREEN QUALITY at:a Movie Theater

Samsung EXPERIENCE NOW@

Samsung galaxy tabSketched on a

Samsung galaxy tab EXPERIENCE NOW

Samsung galaxy tab

Samsung EXPERIENCE NOW@

EXPERIENCE NOW

Samsung galaxy tabWatch on a

Samsung galaxy tab

Samsung EXPERIENCE NOW@ The Golden Gate Bridge

Samsung galaxy tabTake a picture with

EXPERIENCE NOW

Tourists will be able to try out the CAMERA on the Tab during the day and night.

Movie-goers will be able to try out the quality of the SCREEN on the new Tab.

Art Enthusiasts will be able to try the STYLUS by drawing something on the new Tab.

Thanks.

CONCLUSIONLeveraging Samsung’s breadth of products, focusing on targeted high growth markets and elevating tablet features into meaningful experiences will allow Samsung to breakout in the tablet market.

www.rahimbhimani.com415.900.7627

Rahim Bhimani