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BUDGET ANALYSIS

There is going to be some initial investment as this product is completely new for the
company. Initially, in its launch year, the Company plans to produce 7500 TV sets of 32" ,
5000 TV sets of 42", 1000 TV sets of 55" and 750 TV Sets of 60. Therefore, the
manufacturing cost of TV can be roughly estimated as Rs 32,50,00,000. A rough budget
analysis of advertisement is mentioned below
Advertisement Expenses
Newspaper and other Print Media Rs. 3,50,00,000
Televisions Rs. 9,00,00,000
Social Media and Internet publicity Rs. 3,50,00,000
PR activities and Events Rs. 4,00,00,000
Total Rs. 20,00,00,000
Therefore, the initial investment including manufacturing cost , advertisement expenses,
other expenses and taxes for launching this new DDB series will be approximately Rs.
55,50,00,000.
According to SEC grades, our major focus is on A1, A2, B1 category in urban and R1 in rural
area This constitutes to 17.3% of urban population and 4.3% of rural population. The current
market share of Samsung is about 22%. Out of this 2.3 million high end customers, approx.
5% total high end customers are expected to adopt the new Samsungs DDB TV. Thus, the
market for new TV series is estimated to be about 0.2million for the next three years.
5 Ms of advertising
1) Mission
The kind of communication about the product with the target market planned involves
informative style of advertising. With the launch of product as a form of line extension, the
advertising objective aims at creating awareness and imparting comprehensive knowledge
of features of the product.
2) Budget analysis
A total of INR 20 crore have been estimated as a part of promotional activities and
advertisements via various mediums. The budget amount for total advertising is estimated
keeping in mind the high market share of Samsung and high differentiability of the brand in
the market.

3) Message
The product is positioned in such a manner that it sets in the minds of customers about high
convenience of incorporating this product into their lives and providing best class of
entertainment through its differentiating features. The tag line, A universe within reflects
inclusion of wider features of a DDB TV.

4) Media
The major forms of media chosen for advertising Samsung Smart TV are newspapers and
travel magazines amongst print media, Television, social media advertising and through
Public Relation. While the advertisement on television will also include creative elements
which might distract customers to notice the product features, the print media ads will solely
provide detailed product information keeping in mind that it will be the customers choice to
go through the ad completely.

5) Measurement
The advertising campaign and promotional activities are expected to create awareness
about this new innovative TV series. This in turn will help in increasing the sales of Samsung
TV's.
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