BUILDING BRAND EQUITY: SAMSUNG 2
Building Brand Equity: Samsung
Marketing Communications Concept (Textbook)
Moreover, the ever-present problem of marketers developing successful and efficient
marketing communication strategies has been made more difficult by the new media landscape.
According to economic theory, funds should be allocated to a marketing communication budget
and distributed across communication choices based on marginal income and cost. Television is
an effective advertising medium because it covers a wide range of people and provides sight,
sound, and action. Televisions are found in almost every American home, and in 2010, the
average weekly hours watched by each individual in the country reached an all-time high of 34
hours. 7. TV advertising has a large audience base and a low cost per exposure (Keller &
Swaminathan, 2019).
TV advertising has two key advantages when it comes to building brand equity: it can
clearly depict user and usage imagery, brand personality, emotions, and other intangibles; also, it
can successfully explain product characteristics and customer benefits. However, there are
disadvantages as well. For example, customers may ignore brand and product-related messaging
due to the widespread usage of digital video recorders, clutter, fragmentation, and transient
creative aspects. Furthermore, fragmentation brought about by the abundance of television
channels makes it challenging for viewers to ignore or forget advertisements.
In addition to these efficiency concerns, distinct market segments may be the focus of
various communication strategies. For instance, promotions can aim to reward devoted brand
users, while advertising might try to expand the brand's consumer base or draw in customers
from rival brands. Marketers will always use a variety of messages to accomplish their
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objectives. To do this, they need to comprehend how each communication alternative functions
as well as how to put together and incorporate the optimal collection of options. An overview
and analysis of the four main marketing communication choices from the standpoint of brand-
building are presented in the next section (Keller & Swaminathan, 2019).
Marketing Communications and Samsung
Businesses use marketing communications as a tool to educate, convince, and remind
customers about the brands they sell, either directly or indirectly. Marketing communications, in
a way, are the brand's voice and a way for the company to interact with customers and develop
relationships. Even though it's frequently the focal point of a marketing communications
campaign, advertising is typically not the only—or even the most crucial—component for
establishing brand equity (Keller & Swaminathan, 2019).
Samsung promotes its goods and builds a solid brand identity using print and digital
marketing techniques. Digital marketing, public relations, sales promotions, personal selling, and
advertising are all incorporated into Samsung's marketing plan. With little brand promotion,
Samsung's advertising approach concentrates on promoting particular goods, such as the Galaxy
S and Note smartphones. Live advertisements on Jimmy Kimmel Live and Late Night with
Jimmy Fallon, as well as collaborations with Fox channel, are noteworthy examples of media
campaigns. Additionally, Samsung used print advertising to take aim at rivals such as Apple by
drawing functional comparisons between the iPhone 5 and Galaxy S III. Viral marketing, like
"Anticipation," links success and enthusiasm to Samsung's Galaxy S6 (Dudovskiy, 2018).
Samsung has communicated the positioning and personality of its brand through every
medium available. The primary means of brand communication for Samsung has been through
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mass media advertising, public relations, event sponsorship, sports sponsorship, product
placement, the Samsung experience gallery, and Samsung experience retail outlets. There were
two primary goals for the brand message. First, to restore Samsung's reputation as a high-end,
worldwide brand that offers credibility, quality, and design. Secondly, to be recognized and
regarded as a competitor with brands like Sony at first and, more recently, as the leading
consumer electronics brand in the world. Apple has become Samsung's main rival in the high-
growth categories of smartphones, tablets, and smart wearables following the fall of Sony and
Samsung's forceful entry into the premium smartphone market (Roll, 2017).
Samsung’s Brand Management Effectiveness
Developing a promotional campaign to enhance Samsung's brand image was the main
goal of Samsung's marketing strategy. The success of a new competitive strategy depended just
as much on their refocusing their marketing efforts because, in the absence of customer
awareness, accessibility, and value, even the most technically complex and well-designed items
are likely to fail. Eric Kim was brought on board to oversee a worldwide marketing initiative
(Proecho Solutions, 2021). Rearranging the company's distribution channels to better align with
the strategic goal of making Samsung a premium brand was one of his first actions. Originally, a
large number of the company's items were taken out of low-cost discount chains and distributed
via big-box technology retailers like Best Buy as well as online via Amazon.
Additionally, they reduced the number of advertising agencies on their roster from 55 to
one global advertising group (WPP), who initiated the company's first brand-building campaign,
in order to guarantee consistent marketing communications across all regions. They emphasized
the technological expertise of their products while simultaneously evoking a modern sense of
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style through stylish TV ads. In addition, WPP used earned media, sponsorships, social media
ads, product placements, online advertising, and earned media to bolster the brand.
In conclusion, Samsung's marketing initiatives and competitive strategy helped boost the
company's global brand value by more than 200% between 2003 and 2008. This led to a notable
rise in unit sales, which reached $119 billion by 2009, and revenue, which reached $218 billion
as of 2018. By the end of 2020, the company had generated $400 billion in sales and was among
the top 5 in terms of overall brand value. Samsung is still committed to creating innovative
products and technologies; two of its most recent creations are the Galaxy Z Flip and Galaxy
Fold (Proecho Solutions, 2021).
Samsung’s Capitalization on Media Forms
Samsung has made use of several media platforms. Through their frequent and active
participation on social media, the business may connect with a wide range of people throughout
the globe. Additionally, by making itself more visible on social media, Samsung provides
customers and brand ambassadors with additional avenues for them to express their experiences.
SEO was introduced to the Samsung Customer Care Department's website naturally to increase
traffic. But now, the business has an SEO team that has developed into a little but effective
internal division in charge of content planning, search engine marketing, and optimization
(SEO). Samsung uses celebrity endorsements as a potent tool in its marketing mix to sway the
intended demographic. From musicians to athletes, the company has collaborated with many
well-known stars, including Wayne Rooney, Lionel Messi, and Cristiano Ronaldo in their 2013
commercial. In 2010, they worked together as brand ambassadors with Amir Khan and Priyanka
Chopra, and in 2022, they released two digital films featuring their explosive collaboration with
Bangtan Boys (BTS) (Lakshmi, 2023).
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Compensated Weaknesses
Due to price sensitivity, Samsung has seen a decrease in smartphone sales since 2017,
which is consistent with the trend in China. The Indian market is seeing a decline in the price of
many Samsung devices, which is hurting Samsung's sales. Samsung has tried to concentrate
more on India, but this approach hasn't produced very positive outcomes. The price-sensitive
nature of the Chinese market has also had an impact on the organization, as evidenced by the
notable rise in the quantity of goods offered at reduced costs.
To correct this, Samsung is getting ready to introduce the "Triple Protection Proposition,"
a new air conditioning product that combines state-of-the-art engineering with flawless design.
In order to maximize client retention, the product is designed with a target consumer base in
mind. Samsung's investment in HR management is another noteworthy transformative
achievement. This will benefit the company's sales as well as provide it with an advantage over
competitors. To raise productivity and performance, the corporation can recruit highly competent
workers and use its brand image.
Brand Recommendations
Additionally, Samsung has to start giving brand promotion for the whole organization top
priority. Samsung may increase its investments in AI and ML technologies to enhance its product
offerings across many industries, such as automobiles, home appliances, and smartphones.
Integrating AI and ML skills may improve user experiences, creativity, and product efficiency.
Samsung Pay may face an increase in software development costs in addition to growing its
offerings, which include its digital payment platform Samsung Pay, Internet of Things platform
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SmartThings, and voice assistant Bixby. Samsung can improve its software and service offerings
to attract and retain customers, set itself apart from competitors, and boost revenue.
Conclusion
The Samsung brand is deeply ingrained in the minds of consumers thanks to the
company's enormous success in harnessing the power of digital platforms, a well-balanced
marketing mix, and innovative campaigns. The company's ability to innovate, adapt, and
emotionally connect with customers proved crucial in establishing its dominance in the market
and value as a brand. Samsung's marketing approach, which combines antiquated and modern
digital methods, is still a great case study for companies everywhere. Samsung's journey is a
shining example of strategic vision that paved the way for its sustained success.
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References
Dudovskiy, J. (2018, January 8).MSamsung marketing communication mix - Research-
Methodology. Research-Methodology. https://research-methodology.net/samsung-
marketing-communication-mix/
Keller, K. L., & Swaminathan, V. (2019).MStrategic brand management: Building, measuring,
and managing brand equityM(5th ed.). Pearson Education Limited.
Lakshmi, A. (2023, December 1).MInteresting insights from Samsung’s marketing strategy.
EngageBay - All-In-One Marketing, Sales, and Service Software for Growing
Businesses. https://www.engagebay.com/blog/samsung-marketing-strategy/
Proecho Solutions. (2021, November 26).MHow Samsung’s marketing strategy transformed them
into a global brand. Proecho Solutions. https://proechosolutions.com/how-samsungs-
marketing-strategy-turned-them-into-a-technological-powerhouse/
Roll, M. (2017, November 4).MSamsung – The global asian brand. Martin Roll.
https://martinroll.com/resources/articles/branding/samsung-global-asian-brand/
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