This report analyzes the strategic brand management process of Samsung and its brand positioning in the competitive marketplace. It explores the steps involved in brand development and offers recommendations for future improvement. The report also discusses the role of branding and brand development in strategic marketing.
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Running head: STRATEGIC BRAND MANAGEMENT OF SAMSUNG Strategic Brand Management of Samsung Student ID Module Code Assignment Title Word Count
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1STRATEGIC BRAND MANAGEMENT OF APPLE INC Executive Summary The strategic brand management processhas been implemented for Samsung and the steps within this process are analyzed for the brand in order to analyses its brand positioning within the competitive marketplace. The objective of the report was to explain the role of branding and the brand development in the strategic marketing field along with explaining the performance of the brand in attaining value competition.From analyzing the position of the brand’s product in the marketplace, it has been observed that Samsung focuses on sustaining its high quality standards based on which Samsung refuses to implement an new brand development strategy used by its competitors. Considering such scenario, recommendation is offered to Samsung regarding modifying its old versions of iPhone to make it more users friendly for the consumers.
2STRATEGIC BRAND MANAGEMENT OF APPLE INC Table of Contents Introduction..........................................................................................................................3 Analysis of Branding Activities in Steps.............................................................................3 Step 1: Identifying and Developing Brand Plan..............................................................3 Step 2: Designing and Implementing Brand Marketing Programs..................................4 Step 3: Measuring and Interpreting Brand Performance.................................................5 Step 4: Growing and Sustaining Brand Equity................................................................6 Recommendations................................................................................................................7 Conclusion...........................................................................................................................8 References............................................................................................................................9
3STRATEGIC BRAND MANAGEMENT OF APPLE INC Introduction Strategic brand management explores the importance of brands along with analyzing the ways in which it is represented among consumers in order to implement suitable brand positioning based on market demand (Brexendorf, Bayus and Keller 2015). The objective of the report is to explain the role of branding and the brand development in thestrategic marketing field along with explaining the performance of the brand in attaining value competition. This aspect will be explained through considering the example of Samsung and explainingthe strategic development of this brand in four steps of strategic brand management. Moreover, certain effective recommendations will alsobe offered to Samsungin ensuring brand’s future development in the emerging competitive marketplace. Analysis of Branding Activities in Steps The strategic brand management process has beenimplemented for Samsung and the steps within this process are analyzed for the brand in order to analyses its brand positioning within the competitive marketplace (Brooks and Anumudu 2016). These steps are described under: Figure 1: Strategic Brand Management Process (Source:Du Preez and Bendixen 2015) Step 1: Identifying and Developing Brand Plan Consumer Based Brand Equity
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4STRATEGIC BRAND MANAGEMENT OF APPLE INC Brand equity isdeveloped by Samsung through focusing on developing brand awareness and brand image among them.This is ensured by the company through developing brand recognition by means of providing vast information and knowledge regarding its gadgets through which consumers will be able to distinguish its brand based on experience.For instance, galaxy series are traditionally associated with the Samsung brand.Moreover, the brand equity strategy of Samsung is focused on empowers the consumers to recognize a brand from their memory. For instance, Samsung’s brand logo is easily recognized by users of the brand’s products (Ertimur and Coskuner-Balli 2015). Brand Resonance Model Brand identity is maintainedby Samsung through employing its engagingtangible assets such as brand values, culture, employees, brand color, tagline, voice tone and the type of imagery that can grab consumer’s attention. Brand meaningis developed by Samsung in attracting huge consumer base and this is done through developing exceptional product design and quality (Hanna and Rowley 2015). In positioning thebrand as unique among its target consumers mind and for responding to current consumer trends, Samsung implements innovative technology and demand premium prices in the market. To develop better brand relationship, Samsung intends to develop strong command for its products in the marketthrough developing emotional value of its products among its consumers. Figure 2: Brand Resonance Model (Source:Frow et al. 2015) Brand Positioning Samsung focuses on brand positioning among its target consumers through establishing Points-of-Parity and Point-of-Difference in its products in compassion to its business rivals. The market segment of the brand includes male and female from age group 22-55 years belonging to mediumto highincomefamilies(Högström,Gustafsson and Tronvoll2015). The brand position’s its products among its consumers as luxury offerings which carries an increased connection and loyalty among its target consumers so that it develops an effective position among minds of its consumers. Step 2: Designing and Implementing Brand Marketing Programs Brand Elements In positioning its brand in the leading position in the electronics industry,Samsung .has developed its brand names, URL, Logos and Symbols, Characters, Slogans and Packaging. The slogan of the brand is“Where Imagination becomes Reality” and the philosophy of this brand message is focused on provoking emotions of liberty, aspirations andhopes among consumers. The symbols of the brand usesminimalistic clouds that simply portrays it products are of innovativetechnology and premium prices. The brand names of Samsung are short and simple
5STRATEGIC BRAND MANAGEMENT OF APPLE INC that is “Galaxy series” whichindicates the products offered by them are unique and different (Hollebeek, Conduit and Brodie 2016). Figure 3: Brand Positioning Elements (Source:Iglesias, Ind and Alfaro 2017) Events Marketing and Sponsorship Samsung applies events marketing and sponsorship strategy through its exceptional launch events that generates high buzz to make sales and the consumers become enthusiastic to purchase its latest offerings (Vomberg, Homburg and Bornemann 2015). Moreover, the brand has also focused on increasing its brand visibility through sponsoring “Super Bowl host committee” with offering free products and equipment. Brand Communication Program In developing relationship with its target consumers,Samsung focuses on implementing an effective brand communication program through making its advertisingand brand promotion strategies more effective which can develop unique brand associations. For addressing consumer feedbacks and for interacting with them on new product updates, the brand employs social media advertising strategy. For instance, the brand usesTwitter and has a page “@Samsung support twitter handle” that supports consumers to attain solutions regarding their concerns about Samsungproducts (Urde 2016). The brand also shares “how-to” videos and tips for solving consumer concerns. Step 3: Measuring and Interpreting Brand Performance Product Brandingstrategy of Samsung .is focused on developing a brand personality as per consumer trends and presenting a high-end smartphone.The brand is focused on renewing interest in existing galaxy goods through making improvements in the product(Jugenheimer, Sheehan and Kelley 2015). Corporate Brandingstrategy ofSamsung is to develop “Think Different” advertisement campaign through competing successfullywith its business rivals and developing functional as well innovative design advantages (Samsung (UK) 2019).
6STRATEGIC BRAND MANAGEMENT OF APPLE INC IngredientBrandingstrategyofSamsungiscenteredonmakingnewproduct introductions that can build strong consumer loyalty and will be difficult to replicate.For instance, the brand develops revolutionary iPhone along with creative electronic gadgets that leads the market by its fascinating features (Nguyen, Yu, Melewar and Chen 2015). Ansoff Growth Matrix Products ExistingNew Product s ExistingMarket Penetration Opening new stores Increasing market share Employingeffective advertising techniques Increasingturnover (RamaswamyandOzcan 2016) Product Development Developing product base of iPhone Attractingexisting consumers through offering constantlydeveloped Samsung gadget ranges NewMarket Development Launching Samsung Itv in other nations Diversification DiversifyingiTunesand iPod among new consumer base Brand Extension Strategy (Vertical) Samsung vertical brand extension strategy is to sustain successful business through developing highly qualitative and state of art and style based consumer electronics and computer systems within suitable price. It extends itsproduct line of galaxy series as per consumer demands through content innovation in the product design (Luxton, Reid and Mavondo 2015). Step 4: Growing and Sustaining Brand Equity Country of Origin Effect The “Country of Origin” or “The Halo Effect” focuses on dealing with the perceptions of consumers regarding the quality offered by Samsung products. This effect has less power on the brand as it has high brand equity (Ramaswamy and Ozcan 2016). The halo effect caused by Samsung’s new brand offeringsdeveloped type of confirmation bias in which positive feelings of consumers regarding few of its products developed ambiguous or neutral traits that is positively viewed. For instance, at the peakgrowth of Samsung’s Galaxy the brand was able to attract few hundred million consumers and most among them preferred Galaxy than the Samsung J2 and the overall Samsung brand experience. Moreover, the windows experience was observed to be worse and the halo effect worked best on its target consumers those has brought a Galaxy which can increase sales of the company. Based on the halo effect it has also been gathered that Samsung Watch will also surely attain enough market shares of Android users to its Galaxy Phone which further boost sales. Brand Equity Measurement System through Brand Audit
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7STRATEGIC BRAND MANAGEMENT OF APPLE INC Samsung offers unique and innovative mobile phones to its customers for drawing their attention towards its products. This is because it becomes relatively easy for the consumers to distinguish Galaxy of Samsung from the mobile phones of the rivals.Thus, it could be stated that thedifferent significant associations of the organization are connected consistently with its Galaxy Series. Inaddition, the products of the organization consist of top-of-the-mind awareness when it comes to general mobile phones along with smart phones and multimedia. It implies that Samsung makes emotional appeal in the minds of the customers in order to attract their attention. However, the organization designs its products only for the rich segments of the society, since its products are highly priced with advanced features and other attributes, which could not be afforded by the middle class customers (Ertimur and Coskuner-Balli 2015). Recommendations Based on Samsung brand performance in the marketplace through analyzing the four steps of strategic brand management certain effective recommendations are provided to the company for its future improvement those are explained below: It is observed that the companyfollows premium pricing strategy because of which they are not able to purchase products of Samsungand the brand is losing its consumer base. Considering such issue, the brand is recommended to modify its pricing strategy in attaining competitive edge within the marketplace. Certain effective brandmanagement strategies those are considered to be effective in supporting the future brand development of Samsungis mentioned below: Updating new technology to be used for developing its upcoming technological products Improving the comparability of its electronic goods with its rival brands Developing several strong distribution channels Decreasing cost through employing global sourcing Focusing to offer its newly launched gadgets in the emerging markets along with down market Focusing on developing core designs of the brand’s gadgets along with considering launching new products of the brand in the routine manner. Decreasing the price along with offering high performance goods to target consumers From analyzing the position of the brand’s product in the marketplace, ithas been observed that Samsung focuses on sustaining its high quality standards based on which Samsung refuses to implement an new brand development strategy used by its competitors. This makes the products of the brand packed with advanced features that might be quite advanced but operating the device is turning out to be complicated and not that user-friendly. Considering such scenario, recommendation isoffered to Samsung regarding modifying its old versions of Galaxy series to make it more users friendly for the consumers.This strategy can be implemented through correcting its problematic features and launching latest cell phone series that is a better version of the first generation cell phones.The brand must focus on making continuous improvement of its offerings that can further attract new target consumers along with increasing Samsung’s market shares in new markets. Samsung is also recommended to “improve use of its product experience in branding” that can be done through focusing its technological innovation on integrating concepts of simplicity
8STRATEGIC BRAND MANAGEMENT OF APPLE INC and conveniencewithin its products. Moreover, the company is also recommended to develop its band image by putting an increased emphasis onconsumer experience which can be done through developing sense of community along the Samsung users. The product strategies of Samsung are also recommended to ensure positive consumer experience through expanding its distributionchannelsandmakingpartnershipswiththerenownedtelecommunication organizationsinvariousnationsoftheworld.Intensivegrowthstrategymustalsobe implemented by Samsung in improving its brand positioningamong target consumers. This can be done through authorizing new sellers in the new geographical market segments. For instance, the brand can launch more advanced versions of its new product line like Samsung Watch as per market trend analysis.This strategy can enhance Samsung’s brand identity and differentiate its gadgets from its major business rivals. Conclusion The objective of the report was to explain the role of branding and the brand development in the strategic marketing field along with explaining the performance of the brand in attaining value competition. It was gathered from the reportthat Brand equity is developed by Samsung through focusing on developing brand awareness and brand image among them. This is ensured by the company through developing brand recognition by means of providing vast information and knowledge regarding its gadgets through which consumers will be able to distinguish its brand based on experience. Based on such findings,recommendation is offered to Samsung regarding modifying its old versions of Galaxy series to make it more user friendlyfor the consumers.
9STRATEGIC BRAND MANAGEMENT OF APPLE INC References Brexendorf, T.O., Bayus, B. and Keller, K.L., 2015. Understanding the interplay between brand and innovation management: findings and future research directions.Journal of the Academy of Marketing Science,43(5), pp.548-557. Brooks, A.K. and Anumudu, C., 2016. Identity development in personal Branding instruction: Social narratives and online brand management in a global economy.Adult Learning,27(1), pp.23-29. Du Preez, R. and Bendixen, M.T., 2015. The impact of internal brand management on employee jobsatisfaction,brandcommitmentandintentiontostay.InternationalJournalofBank Marketing,33(1), pp.78-91. Ertimur, B. and Coskuner-Balli, G., 2015. Navigating the institutional logics of markets: Implications for strategic brand management.Journal of Marketing,79(2), pp.40-61. Frow, P., Nenonen, S., Payne, A. and Storbacka, K., 2015. Managing co‐creation design: A strategic approach to innovation.British Journal of Management,26(3), pp.463-483. Hanna, S.A. and Rowley, J., 2015. Rethinking strategic place branding in the digital age. InRethinking Place Branding(pp. 85-100). Springer, Cham. Högström, C., Gustafsson, A. and Tronvoll, B., 2015. Strategic brand management: Archetypes for managing brands through paradoxes.Journal of Business Research,68(2), pp.391-404. Hollebeek,L.D.,Conduit,J.andBrodie,R.J.,2016.Strategicdrivers,anticipatedand unanticipated outcomes of customer engagement. Iglesias, O., Ind, N. and Alfaro, M., 2017. The organic view of the brand: A brand value co- creationmodel.InAdvancesinCorporateBranding(pp.148-174).PalgraveMacmillan, London. Jugenheimer, D.W., Sheehan, K. and Kelley, L.D., 2015.Advertising media planning: a brand management approach. Routledge. Luxton, S., Reid, M. and Mavondo, F., 2015. Integrated marketing communication capability and brand performance.Journal of Advertising,44(1), pp.37-46. Nguyen, B., Yu, X., Melewar, T.C. and Chen, J., 2015. Brand innovation and social media: Knowledge acquisition from social media, market orientation, and the moderating role of social media strategic capability.Industrial Marketing Management,51, pp.11-25. Ramaswamy, V. and Ozcan, K., 2016. Brand value co-creation in a digitalized world: An integrativeframeworkandresearchimplications.InternationalJournalofResearchin Marketing,33(1), pp.93-106. Samsung (UK)., 2019.Business. [online] Available at: https://www.samsung.com/in/business/ [Accessed 3 Jan. 2019].
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10STRATEGIC BRAND MANAGEMENT OF APPLE INC Urde, M., 2016. The brand core and its management over time.Journal of product & brand management,25(1), pp.26-42. Vomberg, A., Homburg, C. and Bornemann, T., 2015. Talented people and strong brands: The contributionofhumancapitalandbrandequitytofirmvalue.StrategicManagement Journal,36(13), pp.2122-2131.