Brand audit samsung 2013 seeking luxury independently

___________________
Seeking Luxury
Independently
___________________
Strategic Brand Management

___________________
Brand:

Centre: Strategy College- Sri Lanka
Name: S.V Kamburugamuwa.
Student No: MSC-13-01-293.

Student ID: MSC-13- 01-293

-

Page 1

Contents
1.0 Executive summery .......................................................................................................................3
2.0 Background ..................................................................................................................................4
2.1 Type of industry ........................................................................................................................4
2.2 Nature of the particular industry in USA .....................................................................................5
2.3 Competitor Analysis ..................................................................................................................6
4.0 Data Review .................................................................................................................................7
5.0 Understanding the brand ................................................................................................................8
5.1 Audit Modelers .........................................................................................................................8
5.1.1 Keller’s Identity and Positioning Prism (Model No 1)............................................................8
5.1.2 Kapferer’s Identity and Positioning (Model No 2) .................................................................8
5.1.3 POD’s and POP’S (Model No 3) ..........................................................................................9
5.1.4 Samsung Brand Value Chain (Model No 4) ........................................................................ 10
5.1.5 Customer Base Brand Equity Pyramid (Model No 5) ........................................................... 11
5.1.6 Brand Mapping Matrix (Model No 6) ................................................................................. 12
5.1.7 Five Dimension Brand Model (Model No 7) ....................................................................... 12
5.1.8 Brand Positioning Bulls Eye Model (Model No 8 ................................................................ 13
5.1.9 Brand Pyramid Model (Brand essence) (Model No 9) .......................................................... 14
5.1.10 Brand Code – 4D Branding (Model No 10) ....................................................................... 15
5.1.11 Brand Asset Value Model (Model No 11) ......................................................................... 15
5.2 Audit Analysis ........................................................................................................................ 16
5.2.1 Demographical and Physiographical Analysis ..................................................................... 16
5.2.2 Brand Association Analysis ............................................................................................... 17
5.2.2 Brand Profits, Growth, Value Share Marketing Cost, Manufacturing Process Analysis ......... 18
6.0 Conclusion ................................................................................................................................. 19
7.0 Recommendation ........................................................................................................................ 21
8.0 References.................................................................................................................................. 22


-

Page 2

1.0 Executive summery
Samsung is in nature a diversified company with a large portion of its turnover is contributed
from electronics in which they manufacture wide range of products. This evaluation emphasize
about the segment of smartphone which is the big contributor to Samsung’s profits .In the USA
market Samsung is the second largest smartphone company to run its business although it is the
first worldwide it has a steady growth in its highly penetrated market in which Apple being the
market leader and has a resonance of a high end brand image and high perceived quality
compared with Samsung.
The purpose of this audit is to find out a way to build its image out of android its highly
dependent operating system and only the secondary data’s were reviewed to seek out a way from
darkness that Samsung will face in the mere future.
The audit modules used to audit Samsung’s performance in the US market are mostly Keller and
Kapferer’s mainly brand positioning, pods and pops, CBBE, Brand mapping, Brand value chain,
BAV, Brand mantra, Five dimension prism etc.
The audit analysis was based on the secondary data gathers thus supporting the modules
elaborating accordingly.it was categorized to three parts as demographical and physiographical
analysis, association analysis, profit growth, manufacturing process analysis which will give out
a clear picture to the reader about the brands pros and cons.
The conclusion is based on the analysis and the audit modules which clearly depicts the lack of
brand image luxury effect and self-recognition that Samsung provides although it has numbers in
its accounts and ratings in its graphs. This was due to its own fault of manufacturing various
models to grab all the segmented markets which made models unidentified when kept alongside.
Recommendation is to give away solution to increase Samsung sale volume and to gain its brand
value.


-

Page 3

2.0 Background
2.1 Type of industry
Started with a three star logo Samsung Group is a South Korean multinational conglomerate
company headquartered in Samsung, Seoul. It comprises numerous subsidiaries and affiliated
businesses such as electronics, heavy industries, engineering and construction, insurance, leisure,
aerospace, defense and advertising.
Since 1990’s Samsung has increasingly globalized its activities with electronics particularly
mobile phones and semiconductors which have become its most important source of income and
has been the leading subsidiary company by revenue since 2009 which is a 201 trillion USD and
a profit of 23.845 trillion USD in 2012 financial.
Samsung mobile which is the largest cluster within Samsung electronics and consisting sub
divisions of mobile communication, telecommunication system, computer, MP3 business team,
mobile solutions and telecommunication R&D center. Telecommunication Business produces a
full spectrum of products from mobiles and other mobile devices such as MP3 players and laptop
computers to telecommunication network infrastructure.
In 2007 Samsung Telecommunication Business reported over 40% growth and became the
second largest mobile device manufacturer in the world. Its market share was 14% in Q4 2007,
growing up from 11.3% in Q4 2006. At the end of November 2011, Samsung sold more than 300
million mobile devices worldwide which was a close second after Nokia with 300.6 million
mobile devices sold in the first three quarter of 2011. Samsung In 2013 (Q2) became the top
mobile handset vendor in the world by a huge margin and have shipped an estimated 113.4
million cell phones worldwide in the second quarter to take 26.2% of the global market, up from
23.9% in the same quarter last year as of Q3 2012.


-

Page 4

2.2 Nature of the particular industry in USA
The mobile phone market has strong (+46% yoy) growth, between April and June 2013 which
sold more than 225 million phones against 153 million a year earlier and USA market has a
growth. And USA has sustain and strong (+40% yoy) growth in the smart phone market
Out of 315 million total population, 240 million mobile users in USA out of that 138.5 million
People owned smart phones with a 58 % mobile market penetration during the three months
ending in April which had a growth 7 % since January 2013.
Google Android ranked as the top smart phone platform with 52 % market share, while Apple’s
IOS share increased 1.4 percentage points to 39.2 percent. BlackBerry RIM ranked third with 5.1
percent share, followed by Microsoft (3%) and Symbian (0.5%).


-

Page 5

2.3 Competitor Analysis
Apple ranked as the top OEM with 38.9 %of U.S. smart phone subscribers (up 3.9% points from
Nov 2012 to Feb 2013). Samsung ranked second with 21.3 %t market share (up 1.0 % points
same period), followed by HTC with 9.3% dropping 1.7%, Motorola with 8.4 % dropping 1.1%
and LG with 6.8% dropping 0.02% (Graph 1.1).
Samsung mobile smart phones consist of two main supplier elements which are the hardware and
software. Hardware equipment’s used to manufacture Samsung mobile device s are in house
supplied and the software is from a outside supplier (Google android and windows OS) Samsung
uses more than 90% of android platform for their devices and it is a 42% usage of Android
platform over other competitors using android in USA. Samsung is highly dependent from
android platform. Therefore, supplier’s power is low in hardware and very high in software
(Graph 1.4 and 1.7).In the US market the strength of mobile carrier networks are very much
strong since they offer contract basis Smartphone plans which again has a supplier side of
demand. When we consider the contract mobile network criteria consumers are given selectivity
to choose Smartphone for contract basis which opens up a window for high valued products to
enter an easy payment scheme dependent market. Samsung and apple compete to the throne of
supplying high end brands on contract basis to famous mobile network providers. Verizon stands
at the top with 35% up 1.1% from 2012 Feb to 2013 Feb followed by AT&T 26.7 dropping 3.7%
same period but has total market share of 61.7 which makes them the giants of cellular networks
which has the largest Smartphone share (Graph 1.2) and it does not have rapid change of
customers as such in the Smartphone category (Graph 2.9).considering the prepaid smartphone
category sale Q1 of 2013 Samsung has a huge strength of 32% which the competing rival Apple
has only 8% from the total market but the total market of prepaid is 21% in Q1 2012 and 32% to
Q1 2013 whereas the postpaid is still in leading but decreasing 79% Q1 2012 ton 68% Q1 2013.
Threat of substitutes are weak since laptops and tablets offer direct threat to mobile smart phones
but lacks easy mobility and usage opportunities and high research and development is put to
evolve as a product.
Threat of new entrance is low since 2 major sellers (Samsung and apple) take 61% of market and
the startup cost is very high for new comers especially for the Northern American countries and
fro the Europe.
USA market is dominated by top 5 main firms (Apple, Samsung, HTC, BlackBerry, LG) which
is 76% mobile manufacturers and it contains niche markets which changes aggressively as the
technology advances therefore rivalry is very high (Graph 1.5).
Buyer’s power is moderate to low since switching cost is very high (direct factory unlocked). But
with carrier contract the buyer power is high since the initial costs are low.


-

Page 6

3.0 Purpose for the Brand Audit
Since Samsung is the second largest smart phone vendor for the USA market and has a market
share of 22% and has a growth of 1% between 6 months .The market leader Apple is at a
level of 40% and a growth of 4% which is comparatively high and sustaining.
Thus the total market of smart phones in USA has a growth of 40% (yoy) the growth of Samsung
is prominently low which open up a gate way to expand its measures and numbers. Secondly
Samsung as a brand has a high dependency on Android (>97%) by which they will face a threat.
from a suppliers point of view Thirdly Samsung although is the second market leader in its
numbers it has a very low profile of resonance as a brand image and a social reflection and
luxury.
This study evaluates the pros and cons of Samsung which will find out a way of coming out from
this situation by utilizing its strengths and opportunities.

4.0 Data Review
There was no primary data taken since the market selected for the audit was outside the country
.only secondary data was taken with charts from reputed survey organizations such as Neilsen,
CIRP, Forbes, Yankee Group, Com Score MobiLense, Brand Finance, Business Choice,
CHITIKA insights, J.D Power and associates, IDC and official websites of Samsung. Some of
the written data was taken from other online sources such as Gigaom, BGR, Business insider and
etc.


-

Page 7

5.0 Understanding the brand
5.1 Audit Modelers
5.1.1 Keller’s Identity and Positioning Prism (Model No 1)
Who the target consumers?
For consumers who seek stimulations for their mental requirements through all in one device for
an affordable cost.

Who the main Competitors?
All Mobile digital media devices that provides mental satisfactions

How the brand similar to these competitors?
Similar hardware and software that has same primary and secondary features

How the brand is different to them?
Various models with Humanized sensors which supports consumers in their day to day life needs
by giving them freedom and efficiency

5.1.2 Kapferer’s Identity and Positioning (Model No 2)
Brand for what?

Brand for whom?

Mobile Devices which
acquires mind space through
its hardware and software at
an affordable cost

Consumers who seek
stimulations to their mental
requirements through all in
one mobile device at an
affordable cost.

Samsung
Brand for Why?

Brand against whom?

High performing processors
and humanized sensors with
quick responses which save
time and money and energy
and offers freedom


All mobile digital media
devices that provides mental
satisfactions

-

Page 8

5.1.3 POD’s and POP’S (Model No 3)
7P’s

POD

POP

Product

Humanized Sensory features, different
hardware features tailor made for
consumer requirement from same
smart phone models, fully android
dependent >97%
And hardware manufacturer for other
mobile phone companies

Complete touch, Based on Applications,
camera ,operating system, sound, Internal
memory ,Smart phone Category

Price

Price based on the TG

Place

Distributors and sub distributors

Promotion

ATL ,BTL and Carrier Contract

People

Well trained work force

Process

FAB Sync and CIP implementation

Physical
Evidence


All the main 5 competitors contain unique
logos ,colors and ringtone

-

Page 9

5.1.4 Samsung Brand Value Chain (Model No 4)
Marketing
Program
Investment

Customer
Mindset

High
Awareness

Samsung
Digital Product
Launch
Seminars,
Sponsoring
Olympic events
and football
events,
sponsoring
WCG (World
Cyber Games)
online video
advertisements
, Social Media
(FB,
TWITTER) ,
NYC Billboard

Market
Performance

Low price
models to
high prices
models

Value for
money,

Stock Price at
636.50 USD up
2.00 at 0.32%
Est. PEG Ratio
0.6050 Market
Cap (M USD)
186,922.86

High elasticity

Young, Fun
and Fancy
Devices

High stock
value

High tech
humanized
features

Shares
Outstanding (M)
294.60 30 Day

Moderately
profitable

Average Volume
57,912
Dividend
Indicated Gross
Yield 0.07% Cash
Dividend (USD)
0.1551 Last
Dividend
06/26/2013 5 Year
Dividend Growth
-0.93%

Android
smartphones
tailor made
for different
usage
situations

promotions

MARKET
Place
Conditions

Program
Quality

Multiplier

Shareholders

Clarity

Maximum
Coverage
(Distributors, Sub
Distributors) Only
competition from
Apple and HTC,
Consumer Demand
and Choice High

Relevance
Distinctiveness
Consistency


-

Investor
Sentiment

Brand is No 1 in the
portfolio, Chinese
economy growth
High Market Growth
Dynamic Market
with high risk profile

Page 10

5.1.5 Customer Base Brand Equity Pyramid (Model No 5)
What about you and
me?
Moderate level of Repeat
purchase and Recommendation.
Low level of personal attachment.
Low level of social reflection

Dependable
Concerning
Understanding
What about you?

High Level of Fun,
security and excitement.
Low level of Social
Approval since there is
variety of models
available. Low Level of
self-respect for the
consumer all models looks
in the same design.

Rapid Modifier of
features
RESO NANCE

Mind reader
Trend Setter
What are you?

JUDGEMENT
FEELINGS

High level of
Fancy, Fun and
Stylish young
unisex Image.

PERFO RMANCE

IMAGARY

Technology advancer
(New opportunity
openings from older
ones)
Market reader

SALIENCE

Global thinker
Who Are You?

Wide range of Mobile phones for
different needs with android capability
and with features unparallel to a
Smartphone in the same price category.
Depth of brand awareness as ANDROID
Phone and breadth as wide range of
products with unparallel features for an
affordable price.


-

High Performance
stylish designed
mobile phones with
options and features
at an affordable
cost Low level of
reliability and
durability

A digital leader who
understands and
fulfills consumer
untouched needs and
wants.

High level of brand
consideration and
credibility. Low level of
brand superiority and
quality.

Page 11

5.1.6 Brand Mapping Matrix (Model No 6)
Galaxy
Series

Mobile
Phone

Korean

Big
Display

Samsung

Vibrant
Colors

Android
Motion
Sensors

Fantasy

Touch
Fancy

5.1.7 Five Dimension Brand Model (Model No 7)

Touch

Sound

Taste

Sight

Smell

-

Page 12

5.1.8 Brand Positioning Bulls Eye Model (Model No 8)
Consumer
Target:
Discreming
Smartphone
user

Understanding, Open
Minded, Sharing,
Freedom, Life
Companion

Consumer
Insight:
tailor made
options
which caters
different
user
situations is
often
unsatisfying
Consumer
Need State:
desire for
smart phones
with different
user situations
and feature
experience at
an affordable
cost

R&D facilities worldwide
In house build
motherboards, processors,
and memory chips,
creative boxes to bring up
imaginative knowledge out
from employees, software
development funding for
universities.

Values/Personalities/Character
Substantiates
POP

Complete touch,
Based on
Applications,
camera operating
system, sound,
internal memory
Smart phone
Category Price
based on the TG.
Distributors and
sub distributors
ATL ,BTL and
Carrier Contract
Well trained work
force All the main
5 competitors
contain unique
logos and colors

Brand
Mantra

POD

Executional Properties/Value
Identities

Competitive
Product Set:
organizations
offer mental
satisfaction
through
digital media
devices

Everybody’s invited

Samsung Jingle,
Samsung Logo, Color
Blue, Ring tone


Consumer
Takeaway:
Samsung gives me
a wide range of
smartphones
selections with
unmatched features
for an affordable
cost.

Humanized Sensory features,
different hardware features tailor
made for consumer requirement
from same smart phone models,
fully android dependent >97%
and hardware manufacturer for
other mobile phone companies

-

Page 13

5.1.9 Brand Pyramid Model (Brand essence) (Model No 9)
Understanding, Open
Minded

Sharing, Freedom

Personality
Traits

Values

Life Companion

Emotional
Rewards

User friendly

Benefits

Design and features
(hardware and
software)

Brand Attributes

Humanized


-

Page 14

5.1.10 Brand Code – 4D Branding (Model No 10)
Functional Dimension:
Energy efficient Smart
phones tailor made for
different user requirement
supported by humanized
sensors

Mental Dimension
Everyone’s invited

Brand Mind Space

SAMSUNG

Spiritual Dimension

Social Dimension

Samsung Citizenship
Program

Value for money

5.1.11 Brand Asset Value Model (Model No 11)


-

Page 15

5.2 Audit Analysis
5.2.1 Demographical and Physiographical Analysis
Samsung smart phone is a successful brand which has an image of a Google introduced android
featured Smartphone with unmatched features to Smartphone in the same price range in US
market. Samsung faces a huge threat from the US based innovative brand Apple which has very
high brand image and has a high reliability score of 3.47 where Samsung stands in 1.21 and
Nokia at 0.68 (Graph 2.26).Samsung differentiate its brand mostly with model and options
suitable for different needs and requirement 35% and secondly ease of purchase 22% thirdly
20% for affordable price and it has very less likability for being innovative 5% and 18% for
cutting edge technology and design features among people (Graph 2.27).
According to an article based on the CIRP survey which states that Samsung and Apple gets their
customers by first timers and the so called ―feature phone ―users. Samsung draws more first
timers than apple (37% to 26%) but has a very low retention rate in them where apple took away
33% and Samsung 11% respectively. Samsung also gets their customers by other android mobile
phone users 43% which makes them the ultimate android phone choice among other android
based smart phones but not with Apple (Graph 2.3). Demographically Samsung versus apple
again has much more competition compared to other smart phone brands people who have a
salary level o below 25000$ per annum tend to go for Samsung brand 11% where as apple is in
9% and people who have a salary level between 25000-50000$ again prefers Samsung as their
brand 34% and Samsung 22% and the major breakthroughs comes from the people who earn
more than 50000$ per annum which is 69% for Apple and 55% for Samsung (Graph 2.6).When
it comes to the age of buyers consumers between 18-24 tend to go for apple 25% and Samsung in
22% at the age between 25-34 age group 44% people prefer apple to 43% of Samsung ,people
between the age group of 35-44 prefer Samsung 28% and 20% for Apple there not much
preferential age group for both the product. When we consider about buyer’s education levels as
a selectivity tool high school students and some college with associates students prefer Samsung
over Apple (69% to 51%) but college degree students, master degree students prefer Apple to
Samsung (43% to 29%) ratio (Graph2.8).
According to Yankee group study in 2013 people who own a phone and people who are planning
to buy a phone Samsung remains below the line of losing share 20% to 18% respectively but the
market leader Apple stands at above the line of losing share at 31% to 40% respectively.
Whereas the remaining brand are far more behind compared with Samsung (Graph 1.6).
USA smartphone penetration by ethnicity is 42.7% with Hispanic 55.3% with whites, 45.6%
with African Americans finally 32.7 with Asian pacific islanders where there is a huge potential
of converting non smart phone uses in to smart phone users (Graph 2.13).


-

Page 16

Considering the fact of generations who uses Smartphone brands are mainly the generation ―Y‖
which is 72% secondly generation ―Z‖ at 64% also the younger boomers have huge potential of
using a smartphone since they stand in 39% mobile phone uses in that category is 92% .older
boomers and golden generations uses less smartphones 28% and 16% but use 85% of mobile
phones each which opens up a huge market. When Samsung is considered against apple
generation ―Y‖ uses more apple than Samsung 29% to 20% whereas ‖X‖ generation and ―Z‖
generation uses 22% and 24% each (Graph 2.22).

5.2.2 Brand Association Analysis
A survey based on 1188 US adults to see what kind of applications and the frequency they used
apps in a smartphone. It was categorized to three segments one is use at least a week, use at least
a month, and final is used in the past three months Cleary showed that people upgrading from a
basic phone to a smart phone are less advance and do not use hi-tech features of a smartphone
which the operating system provide, the basic features they use day today is internet, personal
mails, social networking, work mail weather apps, downloads and the apps they rarely use is
TV/Video, shopping, barcode reader ,finance (Graph2.14).and when a consumer considers the
factors before purchasing a smartphone they really go for network quality, operating system,
apps, overall monthly service cost, data plan cost, music and video capability, brand name of the
service provider and finally price of phone which clearly shows that people are more likable to
the basic smart phone properties rather than advanced features but they will definitely prefer and
high tech advancement to ease their usage of the properties in day today life within their
consideration area (Graph 2.15).
Samsung introduces different models with different features with what the user request from the
market but apple as only introduced 7 models of Smartphones so far whereas Samsun has over
100 models with different sizes to satisfy customer needs which means that they are towards
segmentation of products but with Apple it’s a narrow product focus to a mass market (Graph
2.25).According to the freeform dynamics people who supported the online survey mainly
commented and responded from Samsung and apple smartphones 350 out of 1122 responded on
Samsung and 320 out of 1122 responded on Apple whereas HTC stands at 220 out of 1122. The
satisfaction level ―Very Happy‖ towards Samsung is more than Apple 62% to 59% and ―Very
Unhappy‖ level towards Apple is more than Samsung 4% to 2% also when people responded
that reconsideration of buying the same brand more than 80% to 75% said yes to Samsung and
Apple respectively and 15% to 3% said ―No‖ to Apple and Samsung respectively (Graph 2.17,
2.18, 2.19).
A wireless smartphone satisfaction study done by J.D Power and Associates in 2013 people rate
Apple as the most satisfied brand (amongst the best) with a score of 855 whereas Samsung
stands third in 793 which the study averages at 796 (Graph 2.20). Samsung brand has a strong
advocacy towards the brand awareness to purchase, consideration to purchase, purchase to
loyalty 77%, 89%, and 100% respectively. Conversation and identity helps out by 85% to 57% in

-

Page 17

awareness to consideration towards buying a Samsung, affiliation at 55% helps out the
consideration to purchase a Samsung and finally utility at 86% in a Samsung wins the race of
purchase to Loyalty (Graph 2.23 & 2.24).
According to the CIRP data reviews Samsung has differentiation factors amongst consumers
rating in 5 ways such as ease of purchase (22%), cutting edge technology and design (18%)
,affordable price (20%), innovative ( 5%) and models and options suitable for different needs
(35%) also brand association chart has highest rating >50% for young look, fun, fancy, unisex,
excitement, reliable, ruggedness, relevance, credibility , rating =50% for durability, efficiency,
service effectiveness and finally rating<50% for satisfaction, value, superiority, social approval,
self-respect for the brand (graph 2.27 & 2.28).Apple and Samsung has a popularity amongst
owners , mobile gamers and paying mobile gamers according to the CIRP study done with 225
Million online consumers aged (10-65) and they prefer 25% to 26% , 35% to 25% and 45% to
22% respectively with the category and brand (Graph 2.28).

5.2.2 Brand Profits, Growth, Value Share Marketing Cost, Manufacturing
Process Analysis
According to the brand finance global 500 in 2013 Apple was named no 1 with a brand value of
87.3 (US$ bn) and previous year with 70.6 (US$ bn) a change of 24% and Samsung was second
with 58.5 (US$ bn) in 2013 previously 38.2 (US$ bn) a change of 54 % this might have been
because of the 401$ M advertising cost in 2012 which Samsung has spent on television, print,
billboards, and internet where as in 2011 it was only 78$ M which is a huge leap of expenditure
over the previous year and comparatively high to the competitors whereas apple in 2011 spent
253$ M to 333$ M in 2013 not much of a leap but taking advantage over the brand value they
persist (Graph 3.3,3.4,3.7.3.8,3.10).Compared with Apple Samsung has a very low operating
profit with online paid applications which drives their business with a concept of the mobile
ecosystem which provide not only the mobile device but millions of applications which supports
that device to a nominal fee, in that case Samsung fails to do so since they are dependent >90%
from android and the application fees are directly to the supplier itself Apples operating profit
stands in 6 bn US$ whereas Samsung is stagnated at 1.5 bn US$ this is a big drawback with
Samsung (Graph 3.6).according to IDC Samsung has its revenue growing from mainstream entry
products which is 75.5% whereas its high end products create 16-9.8 % YTY(Graph 3.1).
When considering the process of manufacturing Samsung uses three types of processing system
one for management of manufacturing and two for the manufacturing Which are the traditional
and integrated system which makes the effect system and the FAB sync and CIP implementation
which makes them a far more ahead in manufacturing their hardware parts and equipment’s in
successful manner and in cost effective manner.


-

Page 18

6.0 Conclusion
According to the research data Samsung has an impression of a Smartphone which exaggerates
android, value for money, all in one device. Its identity and position focuses on target consumers,
such as people who seek for above requirement by satisfying segment of consumers who seek
mental satisfaction through a mobile device which can acquire their mind space through all in
one device at an affordable cost.it competes with all the mobile digital media that offers
consumers mental satisfaction through its different characteristics, with its high performing
processors and humanized feature Samsung offers unmatchable productivity values such as
saving time, money and energy and giving freedom (Keller’s identity and positioning and
Kapferer’s identity and positioning).
Samsung has its characteristics with humanized sensory features such as 5 different motion
sensors, hardware and software features unmatchable to other competitor brands and also its
>90% android platform dependent whereas other brands offer platforms of their own and
windows platforms with android platform, also it is the mobile microprocessor manufacturer for
almost all the famous smartphone companies worldwide which gives them a huge competitive
advantage over the manufacturing cost in total. The implementation of FAB sync and CIP
systems and its integrated management process differentiate its manufacturing process over other
mobile manufactures.
Everybody’s invited is Samsung utmost brand mantra and that is very much differentiated and
elaborated with its jingle, color, advertising and logo. Considering Samsung’s marketing
programs and investments in USA it has the highest expenditure over other competitive brands.
It spends 104 M US$ more than its arch rival Apple to stay ahead in the race and to compete.
Samsung’s marketing and advertising includes digital product launches, winter Olympic promos,
New York City billboard promotions, and World cyber games promotions, online advertising
etc. focusing on the brand awareness, value for money, young, fun and fancy, humanized
features and tailor-made smartphones for different usage situations in a consumers mind set.
With these values passed by to consumers Samsung gains a huge market share and makes it more
dynamic an elastic and competitive to competitors due to its product features and marketing
strategies Samsung benefits its shareholders with a consistent stock value and deviance.by
delivering its products through carries contracts and stores around USA it has a wide distribution
channel with selectivity to its customers (brand value chain).
With its vision statement for Samsung mobile ―A digital leader, a global thinker‖ it elaborates
the idea of technology ideator that understands global requirement and fulfills them at an
affordable cost and as they exaggerates them self as a trend setter ,mind reader, rapid feature
modifier which makes the consumer think that ―you want features ,selectivity with android think
Samsung‖. But it fails to make a feeling at consumers mindset ―when you carry a Samsung you
get recognized, self-respect‖ and it gives a young, fancy, fun, excitement unisex image towards
users not an image of a luxurious product .the reason to its failure is its advantage of different

-

Page 19

models to suite different needs and for different price category this will drive Samsung profit but
not fame as in Apple. People tend to ask ―what is the model you are carrying‖ but with apple
people can clearly understand that it’s Apple and it’s an expensive product and luxury which will
resonate consumer’s personality and ideology (CBBE Keller).
The essence that makes Samsung consumers feel that it is more humanized product by its
hardware and software which benefits them as ‖user friendly‖ and give them out an emotional
benefit of life Companion which they can share and feel free which elaborates out as
understanding, open minded product in their hands. Samsung has a very big brand strength with
its market share but lacks in its stature where as Apple has a huge market share and stature thus
making it a high resonating product amongst consumers in the USA (BAV model & Brand
Essence).

.


-

Page 20

7.0 Recommendation
Samsung overall does not have a big threat from HTC, Nokia, BlackBerry, or Sony its main
threat in the USA market is Apple.to overcome this state of competition Samsung needs to come
up with a new strategy to introduce a new line of product while retaining its earlier product folio
which runs on Android and windows. The operating system ―TIZEN‖ is its new born child to its
operating systems after the failure of ―BADA‖ the previous version of its operation system ,also
Samsung needs to build up its eco system as Apple introduces I cloud and iTunes and Apple app
store which will draw more business after the resale of their smartphone plus apple has a concept
of paying a higher share to their app designers, anybody who’s willing to make a profitable app
for Apple gets paid 30% straight away once the app is downloaded by a consumer to an Apple
IPhone. This will continuously bring profits as well as recognition amongst people who design
applications and community will be built around Samsung brands as in Apple. Once it gets
popular among the community Samsung needs to focus on a product segment and develop its
operating system to a luxury highly resonating image to run in it. So that people who own that
category will also be benefited with the operating system as well a luxury high end mobile phone
with 100% Samsung support so in future they can run their own phones with their own operating
system thus bringing down the threat of suppliers side for the operating system platform.
The second strategy they can implement is that making their smartphones to run on two different
platforms (Android and Windows) at a touch of button already Samsung has introduced a tablet
segment called ―ATIV‖ with multiple platform availability with a touch of a button. This will
draw consumers who seek for products with both the platforms.
Thirdly Samsung can draw customers who are in need for compatibility by introducing Smart
gadgets which can be used with all models of smart phones and also they can introduce
smartphones with a bonus of the gadget to a nominal price e.g.: Samsung Note 3 came up with a
smart watch that is compatible with other phones but it’s given a lower price along with the
smartphone. Also Samsung can come up with smartphone accessories such as Apple provides
with covers, keyboards, adopters, which is in high quality and price range comparatively to third
quality accessories introduced with Chinese sellers at online stores.
These are all hardware and feature advancements which will stimulate untouched needs of
customers to draw towards Samsung brand and retain in it. The marketing should be planned as
such to highlight its performance and features comparatively to competitors which will make
Samsung the independent luxury brand in USA and worldwide.


-

Page 21

8.0 References
ComScore Reports April 2013 U.S. Smartphone Subscriber Market Share - comScore, Inc. 2013.
comScore Reports April 2013 U.S. Smartphone Subscriber Market Share - comScore, Inc.
[ONLINE] Available at:
http://www.comscore.com/Insights/Press_Releases/2013/6/comScore_Reports_April_2013_U.S.
_Smartphone_Subscriber_Market_Share. [Accessed 19 September 2013].
Who's Winning the U.S. Smartphone Market? . 2013. Who's Winning the U.S. Smartphone
Market? . [ONLINE] Available at: http://www.nielsen.com/us/en/newswire/2013/whos-winningthe-u-s-smartphonemarket-.html. [Accessed 19 September 2013].
Mobile subscriber growth in the U.S. slows to a standstill — Tech News and Analysis . 2013.
Mobile subscriber growth in the U.S. slows to a standstill — Tech News and Analysis .
[ONLINE] Available at: http://gigaom.com/2013/08/13/mobile-subscriber-growth- in-the-u-sslows-to-a-standstill/. [Accessed 20 September 2013].
US Smartphone Market Share Q2 2013: Apple increases lead, Android up | BGR. 2013. US
Smartphone Market Share Q2 2013: Apple increases lead, Android up | BGR. [ONLINE]
Available at: http://bgr.com/2013/08/06/us-smartphonemarket-share-q2-2013-nielsen/.
[Accessed 20 September 2013].
Survey New U.S. Smartphone Growth by Age and Income . 2013. Survey New U.S. Smartphone
Growth by Age and Income . [ONLINE] Available at:
http://www.nielsen.com/us/en/newswire/2012/survey- new- u-s-smartphone- growth-by-age-andincome.html. [Accessed 20 September 2013].
US Smartphone Market - Business Insider. 2013. US Smartphone Market - Business Insider.
[ONLINE] Available at: http://www.businessinsider.com/us-smartphonemarket-2012-9.
US smartphone sales and share by OS and carriers - February 2013. 2013. US smartphone sales
and share by OS and carriers - February 2013. [ONLINE] Available at:
http://www.androidauthority.com/android-us-smartphone-sales-early-2013-182182/. [Accessed
22 September 2013].
With 51.7% Smartphone Market Share Google Inc’s Android Is Prominent In The U.S Market..
2013. With 51.7% Smartphone Market Share Google Inc’s Android Is Prominent In The U.S
Market.. [ONLINE] Available at: http://www.dazeinfo.com/2013/06/03/with-51-7-smartphonemarket-share-google- incs-android- is-prominent- in-the-u-s-market/. [Accessed 22 September
2013].
Nielsen Survey: Apple Slips In Desire Stakes To Android — paidContent . 2013. Nielsen
Survey: Apple Slips In Desire Stakes To Android — paidContent . [ONLINE] Available at:

-

Page 22

http://paidcontent.org/2011/04/26/419-nielsen-survey-apple-slips- in-desire-stakes-to-android/.
. 2013. . [ONLINE] Available at: http://heidicohen.com/wp-content/uploads/U.S.-SmartphoneBattle-Heats-Up_-Which- is-the-%E2%80%9CMost-Desired%E2%80%9D-Operating-SystemNielsen-Wire1.png. [Accessed 22 September 2013].
Freeform Dynamics - Published Content. 2013. Freeform Dynamics - Published Content.
[ONLINE] Available at: http://www.freeformdynamics.com/fullarticle.asp?aid=1617. [Accessed
25 September 2013].
Motorola, Samsung top smart phone reparability ranking | Mobile - CNET News. 2013.
Motorola, Samsung top smart phone repair ability ranking | Mobile - CNET News. [ONLINE]
Available at: http://news.cnet.com/801-1035_3-57604761-94/motorola-samsung-topsmartphone-repairability-ranking/. [Accessed 27 September 2013].
Vernacular. 2013. Vernacular. [ONLINE] Available at: http://www.samsung.com/in/languages/.
About Samsung - Samsung. 2013. About Samsung - Samsung. [ONLINE] Available at:
http://www.samsung.com/in/aboutsamsung/. [Accessed 27 September 2013].
Citizenship - About Samsung - Samsung. 2013. Citizenship - About Samsung - Samsung.
[ONLINE] Available at: http://www.samsung.com/in/aboutsamsung/citizenship/index.html.
Samsung’s Latest Numbers Are In! - Samsung Blog - Samsung Village. 2013. Samsung’s Latest
Numbers Are In! - Samsung Blog - Samsung Village. [ONLINE] Available at:
http://www.samsungvillage.com/blog/2013/08/samsungs-latest-numbers-are- in.html. [Accessed
27 September 2013].
Manufacturing Overview | Samsung Semiconductor Global Website. 2013. Manufacturing
Overview | Samsung Semiconductor Global Website. [ONLINE] Available at:
http://www.samsung.com/global/business/semiconductor/foundry/manufacturing/overview.
Apple predicted to gain additional U.S. smartphone share over Samsung in 2013. 2013. Apple
predicted to gain additional U.S. smartphone share over Samsung in 2013. [ONLINE] Available
at: http://forums.appleinsider.com/t/156556/apple-predicted-to-gain-additional-u-s-smartphoneshare-over-samsung- in-2013. [Accessed 30 September 2013].
SMSN:London Intl Stock Quote - Samsung Electronics Co Ltd - Bloomberg. 2013.
SMSN:London Intl Stock Quote - Samsung Electronics Co Ltd - Bloomberg. [ONLINE]
Available at: http://www.bloomberg.com/quote/SMSN:LI. [Accessed 30 September 2013].

-

Page 23


-

Page 24

Brand audit samsung 2013 seeking luxury independently

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Brand audit samsung 2013 seeking luxury independently

Similar to Brand audit samsung 2013 seeking luxury independently (20)

Recently uploaded

Recently uploaded (20)

Brand audit samsung 2013 seeking luxury independently