Impact of Brand Value on Revenue: A Study of Samsung Mobile Phones

This research project investigates the correlation between brand value and revenue within Samsung's mobile phone division. The report examines the impact of brand image on sales, particularly focusing on the role of technological innovation and the introduction of affordable mobile phones with new features. The study employs a qualitative methodology, utilizing secondary data and thematic analysis to explore revenue trends, brand value creation, and consumer perceptions. The analysis includes critical literature review, aims, objectives, research questions, and a discussion of findings, including graphs and tables. The research aims to explore the approach of the consumer regarding the brand value of the mobile phones regarding their affordability. The research concludes with recommendations, limitations, and suggestions for future research, offering insights into how Samsung can maintain a balance between brand value and revenue growth. The study is contributed by a student and available on Desklib.

RESEARCH PROJECT

Executive Summary
The report would focus on the brand value and the revenue relationship that exists and how
each of the elements of the two impacts the other’s value. This exploration would explore the
Samsung Company smartphone department and how the company has been impacted by the
brand value of the company and its products. The research would be conducted through the
regressive analysis and the direct as well as indirect relationship of the two element would d
be explored and stated with clear indication of the graphs and other graphical representations.
The research would utilise the various research tools and techniques in order to gain accuracy
in the findings of the result. The research has utilised the secondary data collection
methodology which has provided some justified and authentic results.

Table of Contents
Introduction................................................................................................................................3
Aims and Objectives..................................................................................................................3
Critical Literature Review..........................................................................................................4
Research Methodology...............................................................................................................5
Findings and Analysis: Thematic Analysis................................................................................6
Discussion..................................................................................................................................9
Conclusion................................................................................................................................10
Recommendation......................................................................................................................10
Research Limitation.................................................................................................................11
Future Scope.............................................................................................................................11
References................................................................................................................................12

Introduction
The research has rightly concentrated on the revenue and the brand value relation and how
each of the element has been impacting the other within the organisation has been explored
well. The exploration has utilised the Samsung Group which is manufactures multiple
machinery items, the research has explored its mobile phone sector in concern to the revenue
and the brand image. The research has utilised the secondary data collection method which
has been done through exploring various sources and the accuracy of the information has
been achieved through acknowledging the facts of the company. The technological
innovation plays a vital as well as crucial role in creating the brand image and this has been
reflected through exploring the revenue trend of the organisation (Fischer & Himme, 2017).
The research carried a purpose of identifying each possible connection between revenue of a
company and its brand image which has been met through understanding the Samsung brand
image and the trend of its revenue. The cross check of the two variables has been done which
provided with some useful information. The secondary data has been analysed through
thematic approach and this helped in gaining the view of the various authors concerning the
topic (Liu et al. 2018). The research also provides with some recommendations at the end
which could be utilised by the concerned company in order to maintain a balance between the
two variables of the research. The literature gap has provided with some future scope of the
research which has been clearly outlined and the limitations of the research has also been
marked which helped in creating a balanced research.
Aims and Objectives
Aims
The aim of this research is to, “explore the approach of the consumer regarding the brand
value of the mobile phones regarding their affordability”.
Research Objectives
 To look at the revenue of the company manufacturing mobile phones.
 To explore that whether the cheap mobile phones with new features would help in
increasing the revenue.
 To examine brand value of the cheap mobile phone with the application of innovative
and latest techniques.
 To provide present the link between the brand value and the revenues of the company
Research Questions

1. Would the revenue rate of an organisation increase sufficiently if cheap mobile
phones with new features are launched in the market?
2. What revenue trend has been followed in Samsung Mobile manufacturing company?
What is the link or connection between the brand value and the revenue of a
company??
3. Would the brand value creation of the cheap mobile phones with additional features
would help in increasing the revenue? Can the new technologies be used in creating a
brand image of the cheap mobile phones?
Critical Literature Review
Relation between Brand Value and Revenue Trends
As per Baena (2016), brand value is an intangible value created through the quality of the
products and the goodwill of the company which helps in setting a mind-set of the people that
the organisation name would be enough to attract the customers. Brand Image is the
ingredient for providing the brand value which provides value to the intangible asset created
through the maintenance of the quality and the intact customer segment. The customer
segment plays a vital role in the brand image creation as opined by Kim et al. (2015). The
creation of the brand image is based on the goodwill of the organisation and this helps in
impacting the psychology of the people at large that the organisation’s products would be
sold through exploiting the organisations name. The value provided to the brand image could
be through various approaches such as cost based brand valuation, income approach brand
valuation, market based valuation and few more are there. These valuations provide the
organisation with the value of the brand created in monetary terms.
According to Kim & Baek (2018), the creation of the brand value provides the company with
an opportunity to add on to its revenues. There exist a direct relation between the two
variables, as the brand value increases through the required actions, the products of the
company gets hike in sale which adds on to the revenues of the company. It has also been
mentioned by Winter et al. (2018), that company works hard for creating the brand image and
once the company achieves it, the revenues and the sale of the company automatically gets a
hike. People get impacted psychologically and thus, once the people has framed up the image
of the company the sales would get a hike.
Use of Technology in creating Brand Value of Cheap Mobile Phones

According to Banks (2018), mobile phones has been the invention of technology and the
smart phones has been the updated version of the same. The mobile manufacturing
companies has been gaining tremendous success through the technological innovations and
the segregation of the cheap mobile phones to the high class mobile phones, has been the
special features and the fluency of operations. The promotional activities used by the mobile
companies has been based on the technology too, but it could also be applied in creating the
brand image of the companies. The technologies which could favour the cheap mobile phones
in creating their brand image could be through the use of the social media and the
presentation of the mobiles on big screens. As per Harding (2018), the brand image or value
to be created for the cheap mobile phones should explore the concept of reaching to the
correct and specific customers that is the middle class people. The main source could be
through presenting the product in a lavish manner or celebrity promotion could be utilised.
The brand would be created through the name of the celebrity using the phone and thus, once
the image gets stuck in the people’s mind, the product would get acceleration in its sales and
in its revenue.
As has been marked by Biraghi & Gambetti (2017), that mobile phones has become a
necessity good which is being used by almost all class people and in order to accelerate the
brand image of the cheap mobile phones, the presentation of the mobile phones needs to be
re-checked.
Research Methodology
The research has been executed through following the Qualitative Methodology as this has
helped in gaining the most accurate and the informative facts about the research. The
secondary data collection method has been applied which was done through exploring
various articles, journals, books and other sources including the annual report of the
company. The secondary data has been collected regressively and the analysis has been done
through the thematic tool which helped in presenting the findings in the most feasible manner
through relating it to the objectives of the research. The thematic analysis provided the views
of various authors too concerning the findings and thus, the accuracy of the research has been
gained. The deductive approach has been use in the research which provided with the concept
of gradually understanding each and every element of the research and it has been supported
by the descriptive design of the research too (Chen et al. 2016). The descriptive design
helped in presenting the research in the smoothest manner and thus the positivism philosophy
also provided it with the scope of being authentic and reliable. The methodology of the

research has been selected through clear understanding of the research requirements and thus,
the selection has been productive in nature which supported each other through various
means.
Findings and Analysis: Thematic Analysis
Theme 1: To look at the revenue of the company manufacturing mobile phones.
According to Filieri et al. (2017), the revenue of the mobile manufacturing companies has
been on an increasing trend since last few years due to the change in the lifestyle of the
people and the transformation of the mobile phone products from a luxury good to a necessity
good. The mobile manufacturing company, Samsung has been into the business of mobiles
from may years and in 2012, the company was provided with a title of being the world’s
largest mobile manufacturing company based on the unit sales (Samsung reports Q4 2012
financials: $8.27 billion in operating profit on $52.45 billion in revenue, 2019). The
concerned company has been into the manufacturing of many electronic appliances as well as
non-electronic appliances. The revenue of the company has been quite attractive which
accelerated with the inclusion of mobile phones in the list. The company’s 2012 revenue was
56 trillion with 8.8 trillion profit which reflects the contribution of the mobile phones in the
company’s increased revenue.
Figure 1: Revenue of Samsung 2011-2018
(Source: Giovanis & Athanasopoulou, 2017)

The graph clearly outlines the increasing trend of the revenue of Samsung in the last ten years
when the company has also accelerated its mobile manufacturing.
Figure 2: Brand Value of Samsung
(Source: Goldring, 2017)
According to Alomari et al. (2016), the brand value of Samsung mobile phones has been
added on through including the features of hi-tech mobile phones in the cheap mobile phones
which provided the company with the huge customer base for its mobiles and this also
impacted the competitors which geared up the entire mobile manufacturing sector
(Samsung.com, 2019).
Theme 2: To explore that whether the cheap mobile phones with new features would help in
increasing the revenue.
The acknowledgement of the special features of the mobile phones has provided with the
information that the people are keen towards the use of such phones as it makes the day to
day life easy and much simple. The inclusion of the special features in the cheap mobile
phones has been the reason for the transformation of the category of good in which mobile
phones used to fall and is now counted into (Merz et al. 2018). The initiation was taken by
some smart company who included the features of the mobile phones at a cheaper cost and
thus provided the world with some cheap mobile phones with smart features. As per Xing &
He (2018), this attracted huge number of customers and gradually as the people began to use

the phones, the perspective of the mobile phones changed and it transformed into a necessary
good from a luxury one. The increased demand has been the result of the brand image of the
company’s serving the mobile phones with special features at lower price which increased the
competition in the market in a manner that the revenue and sales figure of almost all the
mobile manufacturing companies increased.
Figure 3: Sales of Mobile Phones Worldwide
(Source: Dedrick & Kraemer, 2017)
The brand image played a vital role in this act as the presence of the big names of the
company with the cheap mobile phones helped in attracting the people and the human
psychology also played a vital role in accelerating this chain.
Theme 3: To examine brand value of the cheap mobile phone with the application of
innovative and latest techniques.
According to Gehani (2016), brand value is one of the intangible components of the product
which provides or benefits the product maximum as compared to the tangible ingredients.
The technological implication in understanding the value of the brand has been quite
productive in nature and the techniques has been provided on a broader scale. The

technologies which could be utilised for acknowledging the brand value of the cheap mobile
phones includes the social media promotional activities along with the new software’s which
could be applied in the finances of the company and the sales value could provide with the
brand value. The profit valuation has also been enhanced by the unique technological
innovative software’s which has helped in reaching to a brand value through accessing the
sales and the revenue figures along with the profit figures.
Theme 4: To provide the link between the brand value and the revenues of the company
It has been opined by Almutairi et al. (2019), there exist a direct positive relationship
between the brand value and the revenues of the company. This means that with the increase
in the brand value the revenues of the company would also increase and thus, in order to ad
on to the revenues the company needs o add on to its brand value. The revenue is connected
to the sales of the company which is dependent on the promotional activities of the company
and the promotional activities supports in creating the brand image of the company which
provides with the brand value. The building up of the brand image is a tough task but once it
is done the company could sustain in the market for longer period of time, though some
sustain activities are demanded.
Revenue Chart
Figure 3: Revenue Chart

(Source: Teimouri et al. 2016)
Revenue Factor Description
Sales Sales and revenue are directly linked up and
the change in any of the factor impacts the
other. The revenue is completely dependent
on the sales of the organisation and thus,
sales needs to be accelerated in order to gain
more revenue.
Brand Value The brand value of the company, helps in
gaining the customers and this reflects that
the brand value needs to be built up in an
accurate manner so that the sales gets a hike
and thus the revenue increases.
Goodwill The goodwill of the company helps n
framing up the brand value and thus the
sales of the organisation which impacts the
revenue to great extent. Thus all the factors
are interdependent on each other.
Discussion
The analysis the secondary data has been quite informative and helpful for the research as it
provided with some hidden facts about the brand value and the revenues. The research helped
in gaining the knowledge about the direct and positive relationship between the brand value
and revenues. The information has been cross checked and it has been observed to be agreed
by Teimouri et al. (2016), that brand value impacts the revenues of the company directly due
to which the organisations, work hard in building up the brand image of the company. The
entire analysis provided with the information that the Samsung Group has been one of the
company’s which overtook the Nokia in 2012, in the sales of the smart phones and was
provided with the title of being the world’s largest selling company of mobiles phones. In the
words of Liu et al. (2018), the brand valuation could be done through various techniques and
procedures but the technological sector has provided with some new techniques for doing it.
The accuracy and the reliability of the valuation has increased through the application of the
various software’s and tools which enhances the financials of the company and thus, provides

with some exact figure of the brand value (Iglesias et al. 2017). Brand image is an intangible
asset of the company which gets built up through the quality of the products and services that
is served by the company and the actions and ethical considerations of the company in doing
so, also contributes to the brand value of the company. The increased demand has been the
result of the brand image of the company’s serving the mobile phones with special features at
lower price which increased the competition in the market in a manner that the revenue and
sales figure of almost all the mobile manufacturing companies increased (Ramaswamy &
Ozcan, 2016). The mobile phones has been transformed into a necessary good which reflects
the contribution of the brand image in the act. The people has been manipulated with the
benefits that they can gain through utilising the cheap mobile phones, and once the customers
has been accustomed to the use of it, the sector has utilised this as its source of revenues.
Though the companies has been maintaining the quality of the products, the benefits that the
mobile sector has gained has been an act of the entire sector and not of any particular
company. Though the sale of some particular company, suppose Samsung has attracted the
most customers, due to its brand value, but the other competitive companies has also gained
in the market. According to Baena (2016), the companies has rightly acknowledged and
utilised the demands of the consumers which helped in gaining the sales figure and thus the
revenues of the company has been accelerated.
Conclusion
The research has rightly acknowledged the information on the brand value and the revenue of
the companies, specifically of Samsung Group. The exploration has been successful through
utilising the research tools that is the Qualitative methodology, secondary data collection,
descriptive design, deductive approach and positivism philosophy. All these factors provided
support in the research and the accurate and the authentic data has been collected through it.
The facts has been presented through graphs too which helped in presenting the theoretical
facts in a simpler form. The relation between the brand image and the revenues of the
company has been stated clearly in connection to the mobile phones which has utilised the
technologies for accelerating its sales. The role that brand value plays and the way it impacts
the people ta large has also been explored which provided the research with a broader
perspective.

Recommendation
On exploring the facts about the role that brad value plays in concern of the revenues, few
recommendations has been framed for the company Samsung Group, which would help it in
gaining more benefit from the brand image it has.
 The foremost recommendation is that the company should work more hard on the
brand image so that a monopoly s created for it. The company could do so through
adding on the high class mobile features such as features of i-phones and other such
phones in the mobiles would provide the company with more revenues.
 The second recommendation is that the company needs to sustain its brand image
through maintaining its quality and this requires the company to take on the new
technologies of production which would reduce its cost.
Research Limitation
The research has been carried out in the most authentic and ethical manner which has
provided with the most authentic and accurate facts to be presented. There exist a limitation
to the research which is that the research could have utilised the Quantitative Methodology
too and the primary data collection would have helped in presenting the facts in a more
authentic and viable manner. The research could have conducted a survey of the mobile
companies which would have helped in providing the facts in a justified and authentic
manner.
Future Scope
The research has been quite narrow in approach and the exploration has been done confined
to the Samsung Group, which has provided just a small picture of the entire market of mobile
phones. There exist a future scope of presenting the facts about the mobile market in a wider
and broader concept through exploring the entire industry. This would help in understanding
the role of the brand value in concern of revenues and thus, the approach would help in
applying it in the other sectors too.

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