What makes the Samsung brand successful Essay Example

and design.

Baines et al (2013) state that brands communicate not only the differentiation in product functionality but also convey their intangible philosophy that fulfills consumers' psychological needs. Successful brands establish lasting positive impressions through communication, evoking both psychological and functional experiences. Building a brand goes beyond the core product by transforming features into benefits that satisfy both functional and emotional values. To meet these consumer values, various tools such as brand name, image, service, guarantees, packaging, delivery, quality, and design can be utilized to enhance a product.

Creating a brand involves adding distinct values to a core product to distinguish it from competitors (Jobber et al., 2012, p.321).

When a brand is created, there is always a chance for success or failure. Not all product features effectively convey benefits to consumers. However, through product augmentation, attractiveness can be enhanced. As a result, the augmented product becomes associated with the company and becomes its brand. By successfully augmenting a product that aligns with consumer values, a strong brand can be established and developed further.

Developing a strong connection with the main product and emphasizing its quality are crucial for achieving success with the brand as a whole.

The core product must have quality in order to avoid brand failure. Failing to get the basics right is a common reason for brand failure (Jobber, et al, 2012, p.325).

To establish and strengthen a brand, various strategies can be utilized. These include focusing on quality, positioning the product effectively, and being a market pioneer. Meeting the market's expectations in terms of quality is crucial as failing to do so can result in negative

consumer perceptions and damage the brand's image.

Branding is essential for establishing a successful brand, as emphasized by Brassington & Pettitt (2006, p.117). They highlight the significance of good products, effective communication, and appropriate service and support. Samsung has effectively built its brand by prioritizing high-quality products and recognizing the role of branding in achieving success and creating positive consumer associations. Sue Shim, Executive Vice President & Chief Marketing Officer at Samsung, emphasizes that while new technologies may come and go, the enduring nature of the Samsung brand surpasses its products. Furthermore, Samsung's business philosophy centers around utilizing its talent and technology to create superior products and services that contribute to a better global society.

According to Shim, Samsung should prioritize social purpose in order to address the change in consumer expectations. This is because the Brand Ideal, which emphasizes social purpose, aligns with current consumer trends. Brandindex data shows that Samsung has consistently been recognized as the top international performer for two consecutive years. Moreover, Samsung appears in the Top 10 rankings for eleven out of fourteen monitored countries. Notably, Samsung has achieved top ten rankings in Brazil and China and is the only brand to secure the number one spot in multiple countries.

Samsung's goal is to be the top player in the market by being the first to venture into new segments. They have already achieved this in the Smartwatch industry, where they entered before Apple. By following this strategy, Samsung has not only established its brand but also secured a position in a rapidly expanding market that is expected to reach $5 billion within five years. For companies

aiming for success in the marketplace, effective brand positioning is crucial. It is important for companies to carefully evaluate their capabilities and make use of available tools before entering a new market.

Brand positioning is the act of enhancing the worth of a brand within its designated market segment. This is accomplished by focusing on two key concepts: target market and differential advantage. In order to identify a target market, a company must first engage in the process of market segmentation.

According to Jobber et al. (2012, p.286), the process of identifying individuals or organizations with similar characteristics is crucial for determining marketing strategy.

Market attractiveness is determined by considering three main areas: Market, Competitive and Political, and Social and Environmental factors. These factors have sub-groups which include new entrants, price sensitivity, and social trends. These sub-groups help companies assess their likelihood of success based on their resources and competences. Companies segment the market into groups based on customers with similar characteristics. The consumer market consists of three main categories: behavioural, psychological, and profile. Further sub-categories such as benefits sought, lifestyle, and socio-economic are then formed. Online market segmentation is similar to the consumer market, but organisational markets are segmented using macro and micro segmentation methods.

...Market segmentation is the process of dividing a diverse market into smaller, more similar submarkets (Jobber, et al, 2012, p.290). Performing market segmentation can reveal market opportunities. Companies must be vigilant in the segment they operate in and protect against threats from competitors.

Target marketing is when a company concentrates on a particular market segment that it deems profitable. Once the target market is

chosen, the subsequent step is to pursue brand positioning by establishing a differential advantage.

Linking skills and resources with the key attributes that customers look for in a product offering is what creates a differential advantage (Jobber, et al, 2012, p.302).

The marketing mix, including price, place, promotion, and product, can be utilized to achieve a differential advantage. If a company has a supplier offering goods and services at a lower price than competitors, this creates a price advantage for the segment that appreciates it. Alongside gaining a differential advantage, four factors - clarity, consistency, credibility, and competitiveness - must also be implemented to effectively establish a positioning strategy.

Perceptual mapping can be employed by management to comprehend consumer perceptions. Both qualitative and quantitative research are conducted to identify potential market segment opportunities. The segment can then be targeted with a unique advantage. In case of poor performance or evolving customer preferences, a company can utilize one of four repositioning strategies: image, product, intangible, or tangible repositioning.

Samsung electronics successfully implemented a tangible repositioning strategy. Previously, the company was known for producing inexpensive and undifferentiated televisions and microwaves (Jobber, et al, 2012, p.292).

China is a rapidly expanding and significant market for smartphones, known for its low-cost android solutions. Samsung has successfully focused on the behavioral segment in this market, considering price and quality as crucial factors influencing consumer purchase decisions. This strategic positioning has allowed Samsung to gain a competitive advantage over rivals like Apple by identifying the attractiveness of the market and leveraging differential pricing. Additionally, Samsung has effectively catered to various market segments and capitalized on disposable

income by offering multiple smartphone versions. To combat market saturation, Samsung drives growth by continuously introducing new technology products.