Introduction samsung commenced its operations in the year 1938 a
1. Introduction
Samsung commenced its operations in the year 1938 as
Samsung General Stores in Kyungsang South Korea. Before the
1970s, it was engaged in operations revolving around wool,
commodities and insurance fertilizers broadcasting and
manufacturing.It was famous for manufacturing and producing
cheap Japanese Electronic goods. However, it is current
manager Lee Kun- Hee played an instrumental role in laying its
foundation when he became its leader in the year 1993. As such,
it is his declaration for new leadership principles and doctrines
that focused heavily on intellectual capital employee
empowerment, technological innovation and organizational
creativity that has made Samsung what is seen today. For this
reasons, one of its main business unit; Samsung Electronics is
now accepted as a global electronics business unit that is
capable of producing world-class wide-screen plasma a screens,
mobile phones, household appliances and digital camcorders.
Set up in 1969, it has been responsible for generating positive
net revenues of around USD 27.2 billion by the culmination of
the year 2012.As result; this has been the flagship business
operation within Samsung Group. According to Bloomberg
Business Week reviews, Samsung Electronics was stated as the
first business unit when it comes to Information technology
around the globe in 2002.Yet; it was ranked as the 5th Most
Admired Electronics Company according to Fortune Magazine
in 2003.By making approximately USD 216.7 Billion sales in
2013 in terms of revenues, Samsung Electronics became the
largest electronics company when it comes to revenue.
Apparently, its success is attributed to brand management
process. Since its initiation and repositioning of the brand from
the cheap manufacturers and producers to a brand of quality and
class, it has possessed a consistent policy of focusing all its
operations in while with its brand strategy. It is acting as a good
example in stewardship and brand management with the
2. chairman himself at the top of the agenda in nurturing and
managing the brand.
Evaluation of Samsung’s brand and its personality
Since its initiation, Samsung had to work harder to change
the perception of its customers of it as the manufacturers and
producers of cheap Japanese electronic products. Beginning the
year 1993, the company has developed an aggressive branding
and promotional strategy. Its branding philosophy revolves
around five primary pillars which include cutting-edge
technology, innovation, recruiting the global best talents,
world-class designs and internal branding. As such, for the past
fifty years or so, Sony was one of the undisputed brand leaders
when it comes to the electronic business across the globe before
being slammed with a period of rapid decline which it has not
found a solution to. When Samsung commenced its brand
journey, it purposed to emulate what Sony was doing. Being a
competitive industry, the company had to try and convince its
customers through the invention of innovative products just in
the same manner that Sony did with the Play Station and
Walkman when it launched in 1994.As such, with the relatively
short product life cycle and standardized products in the
electronics industry, Samsung purposed to put its innovation
into creating new features, and new appliances usage and
categories. The company management was of the idea that
profitable and successful innovation was supposed to be
supported by best designs and superior technology.
The company has also invested heavily in Research and
Development to help with the innovation of new technologies.
For instance, in 2016, the European Union Industrial Research
and Development stated that Samsung is the top technology
spender and the second in the world with USD 13 Billion in
Research and Development Investment. The company also went
ahead to pump USD 4,5 Billion more in 2013 in R& D with the
establishment of five new centers in its native country. In the
modern era, the company boasts of approximately 50,000
individuals working in Research and Development around the
3. globe across 42 global research facilities which also encompass
design centers and R&D centers. The figures and statistics
mentioned above exemplify the commitment of Samsung as a
brand to developing cutting-edge technology to see to it that a
competitive edge noting that it is competing with companies
such as Apple in a number of categories. Additionally, another
potential commitment to its brand personality is shown by the
fact that Samsung possessed the second highest number of
patents in 2014 awarded by USPTO- United States Patent and
Trademark Office. The position was consistently maintained in
the subsequent years. However, IBM is the highest ranked
company in patents awarded.
Increasingly, Samsung also discovered the significance of
being the best in product design. Supported by cutting-edge
technology and innovation, the coolest, trendiest and latest
designs have uniquely positioned it in the minds of the
consumers and in the electronic market. As such, with cut-throat
completion, it is accepted that the most powerful visual threat
of its products has revolved around marked differentiator from
its rivals. Additionally, the company also set up its Innovative
Design Lab which is an in-house academy responsible for
teaching study design. Since the lab received the support of the
company chairman, it functioned as the design laboratory for
future product designs of Samsung. Moreover, the company also
commenced comprehensive development and training courses
for its design workers to ensure that they grasp the latest design
in trends coupled with courses in mechanical engineering and
ergonomics. By exploring culture, art and sculpture of different
countries, the IDS lab ensured that its design engineers are the
best. In the end, the concept of the IIDS became the current
global design centers of Samsung.
In recent years after the significant foray in the space of
mobile electronics where the company is a direct competitor of
Apple, the company has channeled a renewed focus on its
products design. In an interview carried out in 2013 by the
Forbes magazine, the head of Design Strategy Team Dong-hoon
4. Chang gave a glimpse of the philosophy of the design 3.0 which
is guided by the doctrine and principle of “make it Meaningful.
In summary, he stated that Design 3.0 is made up of three
phases that purposes at creating meaningful and new product-
service experiential lifestyle and value to consumers which
ensures that the company goes beyond convenient use and
exterior style. In simple terms, the design focus of Samsung has
now revolutionized from a product-focused philosophy to what
is now accepted as a service focused strategy. The seriousness
and emphasis on design is down to the fact that the company’s
Corporate Design Centre that coordinates and manages the
seven Global Design Centers that are situated in London, Delhi,
Tokyo, Beijing, Seoul, San Francisco and Sao Paulo reports
directly to the Company CEO.
For Samsung to be ranked as the best in designs or cutting-
edge technology, it required the best talent pool available.
Accepting this element in brand positioning and personality,
Samsung has been one of the leading recruiter from a number of
top ranking business schools around the globe. For instance,
this was evident when its Former COO and Vice President, Hak
Soo once stated that individuals re the biggest challenge facing
Samsung. The Company needs to hire and train the best talents
in the globe since it is an international company. However, the
company has developed and grown from the periods when hiring
talent used to be one of its greatest problems.
By focusing on the five-pillard strategy, the company has
reaped the benefits in repositioning in its brand around the
globe. Products such as Samsung galaxy Smartphone series and
the Curved and Smart televisions are seen as technologically
innovative and sophisticated products. However, it is important
to note that as much as is repositioning strategy has been
successful, it shifted the concentration of the company away
from establishing a distinct identity. The largest competitor of
Samsung as at the moment is Apple whose product and
corporate brand enjoys a strong emotional connection with its
users besides being technologically advanced and innovative.
5. The operating and business environment of Samsung has
incurred changes around the globe and in Asia. It requires a
holistic, integrated and structured brand philosophy that can
successfully connect the corporate brand with the product brand
in the portfolio through different effective brand portfolio and
architecture strategy to ensure that there is a ring connection.
Current Promotional Strategies to Build Brand Equity
Based on the brand personality, it is accepted that not too
long ago, Samsung was not famous as it is now. They struggled
and incurred challenges keeping up with the Smartphone market
.However, it has not progressed so much that they have
developed into the main competitor of Apple. Additionally, it
has become one of the largest businesses in terms o revenue and
the seventh rankled most valuable brand in the modern era. As
such, what assisted it to develop into the leading technology
company is down to its promotional and marketing strategy it
applied. Its marketing and promotional strategy is stated as an
effective strategy that has ever grazed the earth since it assisted
a cost-driven company to revolutionize its structure and develop
into an authority manufacturer. Because of the ever-changing
consumer tastes and preferences in the technology industry, it
was normal for companies to follow the in the same breath and
offer progressive and evolving gadgets to their consumers. For
this reason, Samsung had to incur changes so as to gain a
competitive edge on the market and the new promotional and
marketing strategy was the primary element to building its
brand equity in the evolution process.
The Master Brand as a Promotional and Marketing Strategy-
Growth and development form an instrumental part of
technology. In the past, consumers had no attachment to certain
technological products; they always purposed to experience and
have the best. It is through such situations that have made so
many manufacturers to rapidly manufacturer new gadgets that
would ensure that the needs of consumers are met and for quite
a number of years, Samsung has never failed in this regard. It is
in the best interest of the society for a product to maximize
6. their life comfort and reduce the time wasted on unwanted or
simple tasks. In the modern day, Samsung has sparked when it
comes to innovation and instead of focusing on satisfaction of
society needs, they have commenced creating the demand and
need for individuals. Additionally, the company has managed to
create an interesting product portfolio which ranges from
tablets, laptops, smart phones, cameras, refrigerators and
televisions. Consequently, this implies that Samsung
promotional and marketing strategy has assisted the company in
creating trust ad loyalty on every product they manufacturer.
Samsung’s Marketing Mix
Samsung has realized unbelievable levels with its smart phones
which have assisted the brand to develop into a symbol of
reliability and quality to consumers. In addition to the product,
the company is also renowned for its customer service although
product variation is one of its powerful elements of its
marketing mix.
Pricing strategy
The company; pricing strategy revolves around two pricing
techniques which are chosen to meet different goals and
objectives. They inklcud eth following”
Skimming price: Samsung Smartphone’s are currently the
leading in the market along with the Apple’s iPhones. Just like
Apple, Samsung also uses skimming price to help gain a
competitive edge over its competitors. For instance, S6 Edge
and Samsung galaxy S6 are the current leading company
products in the market carrying the slogan “Next is Now” which
makes the company to claim that they are the most sophisticated
and beautiful smart phones that have ever been manufactured.
Without any doubts or worries, S6 Edge which boasts of around
64GB and costs approximately 1180$ will be smoothly and
brilliantly be acquired by consumers around the globe.
However, the question that so many people are asking is what
will happen if other competitors are able to develop a
Smartphone with the same features. It is simple to note that the
simple thing that Samsung will do will be lowering the price
7. and easily attract consumers from other competitors.
Competitive Pricing:Unike in the smartphone market, Samsing
has difficulties in surpassing other companies in other products
. For instance, it is accepyted that the company has challenges
in keeping up with yhre robotic vacuums such as the Roomba
650 and 880.As much as Samsung is an authentic brand, in
terms of home applicnes, it ha sproblems surpassing LG.
Addityionnaly, in Cameras, Nikon and Cannon are the currently
leading in the market. As such, for Samsung to withstand and
cope with the fierce competition, it is important to use
competitive pricing. Additionally, the company is never a late
comer in innovation and production since they are mostly
among the first companies to introduce a change.
Placing
Samsung uses channel marketing and promotional strategy in
the industry. In most instances, this strategy only takes service
dealers into consideration for corporate sales. The retailers that
present the technology chain are capable or bound to include
Samsung among its list because of the global recognition that
the company has received and can also function as an
alternative to customers. Another compelling part of the
Samsung promotional strategy is distribution.