Samsung's Brand Extension Strategy and S20 Solar: A Detailed Report

This report analyzes Samsung's brand extension strategy, focusing on the introduction of the Samsung S20 Solar. The report begins with an executive summary and table of contents, followed by an introduction outlining the concept of brand extension and its application by Samsung. The methodology section explains the use of secondary sources for data collection. The findings section delves into Samsung's brand value, the application of Kapferer's Brand Identity Prism, and a description of the target market, including segmentation, targeting, and positioning strategies. The report analyzes new market trends using PESTLE and Ansoff Grid frameworks to understand the impact of brand extension. The product is described with its features. A comparison with competitors, particularly Apple, is provided using the marketing mix. The conclusion summarizes the success of the brand extension strategy. The report references various books, journals, and online sources, including appendices with relevant figures. The report highlights how Samsung utilized brand extension to capitalize on its existing brand image to launch new products like the Samsung S20 Solar, aiming to increase market share and profitability. The report examines the effectiveness of this strategy, using secondary research to analyze the impact of the brand extension on Samsung's growth and operations. The report includes an overview of the product, target market, and competitive analysis to determine the success of the brand extension strategy.

CW2 Brand Extension Report
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Executive summary
The report is about Samsung that have make use of brand extension strategy to introduce
new product named as Samsung S20 solar to enjoy huge market share and profitability. It has
make use of relevant information and data to understand whether strategy used by existing brand
results in better outcome or not. Secondary sources or method have been used to gathered
accurate information with an aim to understand impact of brand extension on growth and
operation of enterprise.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Methodology................................................................................................................................4
Finding.........................................................................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Appendix....................................................................................................................................10
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INTRODUCTION
Brand extension can be termed as technique in which organisation make use of existing
brand name to launch of new products or services so that maximum number of individuals are
motivated to prefer it for satisfaction of their respective needs. Samsung is private firm that was
initially started in 1 March, 1938 with consumer electronic products to fulfil needs of diverse
individuals. Company have generated equal to 17% of South Korea’s $1,082 billion GDP and
known as 8 th highest global brand values. Main aim of report is to understand the way brand
extension of Samsung to new products launched named as Samsung S20 Solar helped in
achievements of objectives.
Methodology
It can be stated that secondary sources have been used to collect accurate information
and data regarding the way brand extension strategy of Samsung has contributed in growth and
expansion of business. All information are taken from valid sources like books, journals, articles
and websites so that research can be made reliable and valuable for all users.
Finding
There are several information that have been identified from conducting research about
brand extension of Samsung like:
Existing brand and brand value: Brand is a value, symbol, term or logo that helps company in
having unique identity from other competitors so that customers can easily influence to select
particular brand as compared to others in market. Samsung have strong brand image in market
that helps company in effectively pursuing several individuals to be part of organisation for
fulfilment of their respective needs. Brand extension is a concept in which firm that have strong
image or reputation in market to enhance sales volume of new products extend its brand name so
that maximum individuals are influence to have it for satisfaction of their wants (Gill, Murad
and Muhammad, 2020). Kapferer’s Brand Identity Prism is a model that can be used to
understand existing value of brand i.e, Samsung in market. Like :
Physique: Company have creates its distinct or unique image in minds of customers when it
come about to have electronic products or smart phones. It can be stated that Samsung S20 solar
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have unique design, packaging and distinctive features that helps Samsung brand to easily
influence consumers to make purchase products so that their need can be fulfilled.
Personality: Samsung brand products view as innovative and trendy by 28.7% of individuals,
whereas some other see it as a conveying high social status and masculine. Products like
Samsung S20 solar have ruggedness, cool crowd and Vibrant Blue colour personality that helps
in adding more and more customers within organisation(Chen and Bei, 2017).
Culture: The brand is well- known to follow innovative, cutting edge technology and value for
money culture that helps in making millions of customers of Samsung products happy and
satisfied. Therefore Samsung S20 solar is also more innovative as it have make use of solar
battery to charge phone.
Relationship: Samsung as a brand have tried to build strong relationship with customers so that
they can be retained within firm for longer time frame. Like in case of Galaxy Note 7
controversy it does not sweep matter rather than apologized to public and make necessary
improvements (Sevova, Dmitrijenko and Ishonova, 2016). Samsung S20 solar by providing more
innovative and better experienced to customers has make customers happy and satisfied.
Self –image: Most of the people related themselves with brand named as Samsung as it may
them look more unique and distinguish. Thus, by using Samsung S20 solar customers feel that
they are adopting themselves with new trends and technology.
Reflection: It have been identified that Samsung or Samsung S20 solar is consumer centric like
it have provided loyalty offers of free mobile apps thus it is more better adventures for people
who don’t believe in paying for software.
Description of Target market: Samsung in order to increases sales of new products have make
use of segmentation, target and positioning strategy like it have segmented people on basis of
demographical, behaviour, psychological and geographical basis. On the basis of geographical it
have segmented people on basis of both rural and urban thus launched galaxy series for urban
and Samsung guru for rural people. Demographically Samsung has segmented people that are in
age group of 22-55 and belong to middle and upper middle class. At last it have psychologically
segmented people that like to make use of more innovative and trendy phones, that have stylish
design and features.
Target customers that are between age of 15-45, medium to high income group whether male or
female having interest to buy innovative or more advances phone (Davydov, 2018).
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 People that are highly concerned about price and quality of products.
 Youngsters and old age
 Rural as well as urban.
Samsung brand has effectively positioned its brand image in minds and hearts of huge
number of customers that are living across worldwide. Therefore, company have effectively
positioned itself as provider of best quality smart phones to range of customers that are living in
society. Company have make use of unique tagline for different products so that customers can
easily identified.
Brand positioning of Samsung or it have 20% market share across global at the same time it
is strong competitors of Apple brand. Therefore company have effective positioned its brand
image in minds of millions of customers.
Analysis of new market trends
Pestle and ansoff grid will be used to analysis market trends in near future in order to
understand whether use of brand extension strategy by Samsung was fruitful or not.
Political and legal factor: Free trade regulation adapted by several companies has provided
opportunities to Samsung to expand its business in international market.
Economic factor: There are numerous changes in economic that is employment rate, disposable
income of individuals, interest etc so Samsung by adapting its price with economic condition can
grow and sustain for more timeframe (Marin, Ruiz De Maya and Rubio, 2018).
Social factor: People wants to use advance and innovative technologies or smart phones so
Samsung by launching new features Samsung S20 solar have make them happy.
Technology factor: Samsung by adopting itself with new and innovative technology have
provided experienced beyond their expectancy (Alavinasab, Soltani and Alimohammadi, 2017).
Environment factor: Due to limited resources, people have become more concerned about
environment so brand by taking steps towards sustainability or Introducing phone that have solar
battery is able to retained customers satisfaction.
Ansoff Gird
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Figure 1: Ansoff matrix
(Source: The Ansoff Model, 2020)
Company out of four future strategies can make use of product development as Samsung
by bringing new products like Samsung S20 solar can inspired more individuals to have mobiles
phone of firm thus attain its end goals (The Ansoff Model, 2020).
An explanation of new products
Samsung S20 is mobile phone that has portable power capacity to charge 5G up to 2-3
times, packed with 6000mAh of power. Have Dual led flashlight thus have three useful models
like Strobe, SOS and Steady with dimension of 137*76*20mm/5.4*30*0.79. It has innovative
and attractive packaging that helps in attracting maximum number of individuals (Samsung
Galaxy S20 Ultra 5G Battery, BoxWave, 2020). Out of several brand extension, Samsung S 20
solar have make use of similar product in different form from its original parent products. As
company already manufactured mobile phones so it just has made addition in feature to meet
changing customer’s expectancy (Sevova, Dmitrijenko and Ishonova, 2016).
Competition
Marketing mix Samsung Apple
Product Samsung have products such Mac, iphone, apple watch and
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as Tables, mobile phone,
washing machine and
microwave oven.
apple Tv are some of the
products of Apple brand.
Price Skimming price strategy used
by company.
High or premium price is
charged by Apple as it deal in
more qualitative products
(Apple Inc.’s Marketing Mix
or 4Ps (An Analysis), 2019).
Place Dealers and distributors
network
Stores and authorised sellers
Promotion Offers, discount, sales
promotion and Tv
advertisement (Marketing mix
of Samsung – 4P of Samsung,
2019).
Public relationship, mouth
publicity and sales promotion.
CONCLUSION
It can be concluded from above report that company in order to retained its market share
or increases profitability of new product introduce make use of brand extension technique. Thus,
it can be summarised that brand extension strategy used by Samsung have become successful as
it help in adding more new customers within firm.
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REFERENCES
Books and journals
Alavinasab, S .M., Soltani, M. and Alimohammadi, J., 2017. The Effect of Brand Extension
Strategy on Brand Image to Customers. Journal of Economics, Management and Trade,
pp.1-9.
Chen, Y. S. A. and Bei, L. T., 2017. How the Logo Frame Impacts on Brand Extension (An
Abstract). In Creating Marketing Magic and Innovative Future Marketing Trends (pp.
449-450). Springer, Cham.
Davydov, I., 2018. Analyzing Brand Extension Through Consumer Response to Marketing
Campaign.
Gill, S. A., Murad, M. and Muhammad, N., 2020. EXTENSION TO BRAND CATEGORY, AN
EXPLORATORY INVESTIGATION ON BRAND EXTENSION ATTITUDE.
Marin, L., Ruiz De Maya, S. and Rubio, A., 2018. The Role of Identification in Consumers'
Evaluations of Brand Extensions. Frontiers in Psychology, 9. p.2582.
Sevova, P., Dmitrijenko, K. and Ishonova, D., 2016. Brand extension process.
Online
Apple Inc.’s Marketing Mix or 4Ps (An Analysis), 2019. [Online]. Available
Through:<http://panmore.com/apple-inc-marketing-mix-4ps>.
Marketing mix of Samsung – 4P of Samsung, 2019. [Online]. Available Through:<
https://www.marketing91.com/marketing-mix-of-samsung/>.
Samsung Galaxy S20 Ultra 5G Battery, BoxWave, 2020. [Online]. Available
Through:<https://www.amazon.com/Samsung-Battery-BoxWave-PowerPack-
6000mAh/dp/B084TB2GPS >.
The Ansoff Model, 2020, [Online]. Available Through: <
https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-
model/ >.
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Smartphone Shipments: Apple Down 30%, Samsung Down 8%, But Huawei Up 50%, 2020,
[Online]. Available Through:<
https://www.forbes.com/sites/johnkoetsier/2019/05/01/smartphone-shipments-apple-
down-30-samsung-down-8-but-huawei-up-50/?sh=1c8ee18376b0 >
Appendix
Figure 2 Samsung market share
(Source: Smartphone Shipments: Apple Down 30%, Samsung Down 8%, But Huawei Up 50%,
2020)
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