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Device Solution: semiconductor, DRAM, hard disk, CD-ROM.
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Digital Media: TV, LCD monitor, digital camera.
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Digital Appliance: washing machine, microwave oven, dryer
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Telecommunication: mobile phone, telecom device
Considering the nature of business to business is different from business to consumer, we will focus on the business to consumer area.
Logo
Samsung’s logo was redesigned in 1993. The new logo attempts to express an overhauled image of Samsung’s dynamics after its organisational restructure. The elliptical logo shape symbolises the world moving through space, conveying a distinctive image of innovation and change. The first letter, "S", and the last letter, "G," partially break out of the oval to connect the interior with the exterior, show Samsung’s desire to be one with the world and to serve society as a whole.
The strong blue color suggests stability and reliability, and exudes a warm and intimate feeling. However, the color is not always fixed, altering occasionally to fit specified promotion programs or product designs.
Slogan
The three business to consumer divisions (Digital Media, Digital Appliance, and elecommunication-Mobile phone) operate under the slogan of “SAMSUNG DIGITall, everyone’s invited”.“SAMSUNG DIGITall “ means for all generation, for all customers, for all products. The appeal of this slogan is to convey the message that “Samsung makes everyone’s life more convenient, abundant and more enjoyable through the development of innovative and multi-functional products.”
The slogan tries to delivers the concept that Samsung integrate and converge “information, communication and entertainment” in their products. For example, Samsung refrigerators are equipped with an LCD monitor and the Internet, thus consumers can order fresh food or download recipes through the Internet.
Under this main slogan, each Samsung mobile phone has its own specific words combined with “DIGITall” (e.g. Samsung mobile phone T400, DIGITall surprising) to demonstrate its particular appeal.
The Competitors
Logo
Slogan
“Connecting People.”,“ at Nokia, we call it human technology”. Nokia puts emphasis on the connection of “people”; it delivers the message that technology should be used to assist humans’ life, not dominate it. Therefore the threshold of development of technology ought to come from consumers’ needs rather than research laboratories.
Under these two brand slogans, each mobile phone has a particular slogan to reinforce its specific functions and appeals. (e.g. Nokia 5100, made for performance. Nokia 7210, it might change your life!)
Slogan
“intelligence everywhere.” This slogan demonstrates Motorola’s ambition to facilitate their consumers’ life by bringing more simplicity, more intelligence, and more synchrony to their appliances and products.
The Mobile Phone Market and 4P Strategies
Nokia is still the leader in the mobile phone market. In 2003, Nokia’s market share stands at 35.9% globally, rising for the fifth consecutive year. Nokia’s product line is the most complete in the market, offering all kinds of features with their mobile phones, of which prices range from $199AUD for entry-level to $1549, for platinum level.
Motorola sits in second place in the market. In 2003 its share stands at 14.6% of the worldwide market, however its share has been dropping for several straight years.
It has been criticised for the user-unfriendly interface of its products and relatively rigid, cold brand image. Consequently, in January, 2003, Motorola has tried to transfer its brand image by changing its mobile brand from “Motorola” to “Moto”, attempting to communicate a more lively and vivid image to the market. Motorola’s mobile phones’ focus mainly on the low to middle end market, from $312 to $599(AUD). Its high-end products often combine functions of PDA, by which Motorola has created a unique market segment for its high-end handsets.
Samsung, after struggling for years, has achieved a record-breaking global market share of 9.9% in 2003(Q2). In terms of CDMA mobile phone, Samsung is the market leader with a dominant 23% of the market. One of the most unique features of Samsung mobile phone is its color screen LCD, since it endeavors to create the image of high-end products, Samsung is a pioneer in terms of massively adopting color, high distinction and high clarity screens on mobile phones. Samsung’s product line ranges from entry-level ($300 AUD)to high-level(more than $1000 AUD), but it mainly focuses on its middle to high-level products.
The three major brands adopt similar channel and distribution strategies. They all have indirect and direct channels. They adopt three indirect channels: 1. Operators’ outlets: Handsets are often bundle-sold with the operators’ accounts and programs 2. Independent retail stores 3. Third party websites: such as Amazon.com or Yahoo! Shopping. Two direct channels are used: 1. Brand flagship store: Owned by manufacturers, exclusive of other brands. 2. Website: handsets sold directly through company websites.
Methodology
A questionnaire (see Appendix-1) was designed to assess and analyse the sources of brand equity of the Samsung Mobile brand. The questionnaire was based on the model (see Figure-1) presented by Keller, K.l., (1998) and questions were derived from this model of consumer based brand equity. The questionnaire covered only certain elements of the model, namely the Brand Awareness and Brand Association components. It comprised 12 questions, which were targeted to mobile users of no specific age group or occupation.
Furthermore, a limited number of personal interviews were conducted, with the purpose of observing Samsung Mobile's brand conception in terms of its brand awareness and brand associations.
Figure – I
Consumer Based Brand Equity
(Portion of the model)
Source: Keller, K,. 2003
Respondents were asked to use the following ordinal scale to respond to questions 5 (a & b), 6 (a & b) and 11,
Strongly disagree (1)
Disagree (2)
Neutral (3)
Agree (4)
Strongly Agree (5)
Respondents were asked to use the ordinal scale below to respond to question 7.
Not at all Unique (1)
Same as competitor (2)
Highly Unique (3)
Respondents to answer question 9 used a further ordinal scale as under.
Very uncomfortable (1)
Uncomfortable (2)
Neutral (3)
Comfortable (4)
Very comfortable (5)
Brand picture of Samsung Mobile (see Appendix-II for survey results)
Responses to the first survey question indicated that only 7 of the 28 surveyed people used a Samsung mobile phone. Additionally, the results of question 4 (a,b,c,d) indicated that consumers related more to competitors' brands (such as Nokia and Motoroal) in their purchase and consumption situations.
The results of question 3 indicated that consumers were able to recognise both the Samsung brand logo and slogan equally as well as they could recognise those of their competitors (Nokia and Motorola). One of the interviewed respondents attributed his ability to recognise the Samsung brand logo to its distinctive elliptical shape and prominent blue coloring.
In the different purchasing and consumption situations provided to those surveyed, 60% recalled the Samsung brand with regard to sophistication yet few were able to recall it when related to fashion. It was surprising that none of the surveyors recalled the Samsung mobile brand as high quality, reliable or easy to use.
It was also observed during the personal interviews conducted that the consumers considered Samsung to be their second choice in purchase and consumption situations. The “buy button” for other brands had a bigger picture in their mental models.
Consumers consider Samsung innovative in design, style and functionality. In terms of how relevant specific attributes were to Samsung mobiles, consumers rated Samsung highest in the categories of fashion and slimness and lightness, followed by sophistication.
The questions pertaining to relevance and consistency were measured using identical scales and attributes. Unfortunately, respondents were unable to differentiate between the two questions and consequently their answers to the separate questions did not differ
The results for desirability and deliverability represented significant improvement in the graded rankings of the respondents. Most of the surveyors were currently in a pre-purchase situation, and if purchasing a Samsung mobile phone in the future would do so because of their perception of Samsung mobile as providing style, functionality and good battery life.
According to those surveyed, Samsung's most unique product attribute with regard to its competitors was its fashion sense. Consumers were most comfortable using Samsung mobile phones in public gatherings like weddings, receptions and nightclubs, which shows that consumers consider Samsung Mobile to be unique in that it provides an aura of prestige.
It was observed from the results of question 9 and 11 that consumers view Samsung brand as a customer focused market leader in terms of innovation and considered it to be very proactive and advanced in creating new technological trends in the mobile industry and also in other product lines.
From the results provided by the survey, it was concluded that consumers believe Samsung delivers more tangible/product related attributes rather than emotional wants and needs.
As with all empirical studies, this study has limitations.
Customer segments, financial markets, employees, and business partners are all critical carriers of brand equity and therefore any brand equity research undertaken should be focused on all of these. Contrastingly, the study undertaken was only targeted to a very small customer segment, therefore limiting the scope of the research.
At one end of the brand concept is the simple idea that a brand constitutes a name, a logo, a symbol, an identity, or a trademark. At the other end of the spectrum exists the complex idea that a brand embodies all that the business stands for. In its most complex incarnation, the brand is the hallmark of quality, a promise or an assurance to the buyer, a set of associations or expectations, a perception, an icon, or an image that triggers a tendency on the part of customers to purchase that brand's products. No single measure (as in the study conducted), of brand equity is likely to capture all the important aspects of such a complex notion.
The majority of questions were measured using unidentical scales and attributes. Respondents came across more similarities than differences in the ways in which the attributed were measured. Unfortunately, they were unable to differentiate significantly between the questions and consequently their answers to the separate, differing questions yielded very similar results
Furthermore, the present research procedure lacks validity. It is extremely hard to believe that the goodwill Samsung has generated over a number of years has been completely neglected in the present research.
Discussion and Managerial implications
The purpose of the present study is twofold: 1) to measure the equity of brands, which vary along selected criteria; and 2) to investigate the impact of brand equity on brand preferences and purchase intentions. These substantive findings have several important managerial implications. In general, Samsung brand managers should devote more marketing effort to non-product related attributed like emotional wants and needs than to the product’s attributes. On the other hand the most important product related attributes are innovation of design, style and functionality and they can be promoted through advertising and promotion.
According to the online edition of The Business Times (2003) Samsung has newly centralised its marketing activities through a single company rather than 55 different companies around the world. Samsung now articulate their branding strategy very clearly and in very clear formats. Consistency and clarity for Samsung electronics in their branding strategy is also one of the managerial recommendations concluded on the basis of the present study. With the change in the marketing strategy, Samsung electronics can have a consistent brand image and can leverage this with regard to other product lines. Along with looking at a consistent brand image of being innovative, Samsung should also look for potentially powerful new sources of brand equity to surmount the strong brand association and points of parity of the competitive brands like Nokia and Motorola.
Results indicated a strong level of brand awareness among the end consumers. Marketing activities for Samsung electronics should attempt to leverage or capitalise on existing brand awareness and association to gather constant financial gains.
Results also indicated that Samsung’s brand equity lies in product related attributes such as innovation and design. Marketing strategies for Samsung Electronics should therefore comprise aggressive promotion of their new and innovative products or product attributes. As explained by Keller (1999), failure to innovate can have dire consequences for brands whose core associations are innovation in product design, product-related attributes and/or functional benefits.
Overall, our results indicate that Samsung successfully creates its brand associations through innovation of design, style and functionality, all of which are parts of its brand identity and slogan” Digitall, everyone’s invited.” Our results also indicate the Samsung brand to be a market leader in terms of innovation and to be very proactive and advanced in creating new technological trends in the mobile industry. The results summarise a long list of sources of brand equity for Samsung mobile. However, long lists must be prioritised in order to give direction for brand strategy. Too many brand descriptors are complex and costly to communicate and ultimately aren't credible with the intended audiences. Messages must be clear, consistent, and limited in number.
The research approach adapted for the present study has its limitation. Consequently, future research should attempt to examine brand equity across different aspect of brand equity. As brand equity is complex in nature, the research should be conducted with different quantitative research tools over a bigger and broader base of respondents.
Conclusion.
This research supplements our understanding of effective brand management and measurement of brand equity, which requires taking a long-term view in regard to marketing decisions. Brand equity is a key indicator of the state of health of a brand. One of the research methods adapted to measure consumer based brand equity provided us with a Brand Snap shot of Samsung Electronics. From the results we can conclude that particular attention should be paid on effective measurement and managing of brand equity and the marketing activities shall be associated with a core and a consistent message about the brand. Along with the marketing activities the research methods should enable the management to encompass and narrow the dissimilar customer perceptions.
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