Student ID: MSC-13- 01-293 - Page 1

___________________

Seeking Luxury

Independently

___________________ Strategic Brand Management

___________________ Brand:

Centre: Strategy College- Sri Lanka

Name: S.V Kamburugamuwa.

Student No: MSC-13-01-293.

Student ID: MSC-13- 01-293 - Page 2

Contents

1.0 Executive summery .......................................................................................................................3

2.0 Background ..................................................................................................................................4

2.1 Type of industry ........................................................................................................................4

2.2 Nature of the particular industry in USA .....................................................................................5

2.3 Competitor Analysis ..................................................................................................................6

4.0 Data Review .................................................................................................................................7

5.0 Understanding the brand ................................................................................................................8

5.1 Audit Modelers .........................................................................................................................8

5.1.1 Keller’s Identity and Positioning Prism (Model No 1)............................................................8

5.1.2 Kapferer’s Identity and Positioning (Model No 2) .................................................................8

5.1.3 POD’s and POP’S (Model No 3) ..........................................................................................9

5.1.4 Samsung Brand Value Chain (Model No 4) ........................................................................ 10

5.1.5 Customer Base Brand Equity Pyramid (Model No 5) ........................................................... 11

5.1.6 Brand Mapping Matrix (Model No 6) ................................................................................. 12

5.1.7 Five Dimension Brand Model (Model No 7) ....................................................................... 12

5.1.8 Brand Positioning Bulls Eye Model (Model No 8 ................................................................ 13

5.1.9 Brand Pyramid Model (Brand essence) (Model No 9) .......................................................... 14

5.1.10 Brand Code – 4D Branding (Model No 10) ....................................................................... 15

5.1.11 Brand Asset Value Model (Model No 11) ......................................................................... 15

5.2 Audit Analysis ........................................................................................................................ 16

5.2.1 Demographical and Physiographical Analysis ..................................................................... 16

5.2.2 Brand Association Analysis ............................................................................................... 17

5.2.2 Brand Profits, Growth, Value Share Marketing Cost, Manufacturing Process Analysis ......... 18

6.0 Conclusion ................................................................................................................................. 19

7.0 Recommendation ........................................................................................................................ 21

8.0 References .................................................................................................................................. 22

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1.0 Executive summery

Samsung is in nature a diversified company with a large portion of its turnover is contributed

from electronics in which they manufacture wide range of products. This evaluation emphasize

about the segment of smartphone which is the big contributor to Samsung’s profits .In the USA

market Samsung is the second largest smartphone company to run its business although it is the

first worldwide it has a steady growth in its highly penetrated market in which Apple being the

market leader and has a resonance of a high end brand image and high perceived quality

compared with Samsung.

The purpose of this audit is to find out a way to build its image out of android its highly

dependent operating system and only the secondary data’s were reviewed to seek out a way from

darkness that Samsung will face in the mere future.

The audit modules used to audit Samsung’s performance in the US market are mostly Keller and

Kapferer’s mainly brand positioning, pods and pops, CBBE, Brand mapping, Brand value chain,

BAV, Brand mantra, Five dimension prism etc.

The audit analysis was based on the secondary data gathers thus supporting the modules

elaborating accordingly.it was categorized to three parts as demographical and physiographical

analysis, association analysis, profit growth, manufacturing process analysis which will give out

a clear picture to the reader about the brands pros and cons.

The conclusion is based on the analysis and the audit modules which clearly depicts the lack of

brand image luxury effect and self-recognition that Samsung provides although it has numbers in

its accounts and ratings in its graphs. This was due to its own fault of manufacturing various

models to grab all the segmented markets which made models unidentified when kept alongside.

Recommendation is to give away solution to increase Samsung sale volume and to gain its brand

value.

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2.0 Background

2.1 Type of industry

Started with a three star logo Samsung Group is a South Korean multinational conglomerate

company headquartered in Samsung, Seoul. It comprises numerous subsidiaries and affiliated

businesses such as electronics, heavy industries, engineering and construction, insurance, leisure,

aerospace, defense and advertising.

Since 1990’s Samsung has increasingly globalized its activities with electronics particularly

mobile phones and semiconductors which have become its most important source of income and

has been the leading subsidiary company by revenue since 2009 which is a 201 trillion USD and

a profit of 23.845 trillion USD in 2012 financial.

Samsung mobile which is the largest cluster within Samsung electronics and consisting sub

divisions of mobile communication, telecommunication system, computer, MP3 business team,

mobile solutions and telecommunication R&D center. Telecommunication Business produces a

full spectrum of products from mobiles and other mobile devices such as MP3 players and laptop

computers to telecommunication network infrastructure.

In 2007 Samsung Telecommunication Business reported over 40% growth and became the

second largest mobile device manufacturer in the world. Its market share was 14% in Q4 2007,

growing up from 11.3% in Q4 2006. At the end of November 2011, Samsung sold more than 300

million mobile devices worldwide which was a close second after Nokia with 300.6 million

mobile devices sold in the first three quarter of 2011. Samsung In 2013 (Q2) became the top

mobile handset vendor in the world by a huge margin and have shipped an estimated 113.4

million cell phones worldwide in the second quarter to take 26.2% of the global market, up from

23.9% in the same quarter last year as of Q3 2012.

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2.2 Nature of the particular industry in USA

The mobile phone market has strong (+46% yoy) growth, between April and June 2013 which

sold more than 225 million phones against 153 million a year earlier and USA market has a

growth. And USA has sustain and strong (+40% yoy) growth in the smart phone market

Out of 315 million total population, 240 million mobile users in USA out of that 138.5 million

People owned smart phones with a 58 % mobile market penetration during the three months

ending in April which had a growth 7 % since January 2013.

Google Android ranked as the top smart phone platform with 52 % market share, while Apple’s

IOS share increased 1.4 percentage points to 39.2 percent. BlackBerry RIM ranked third with 5.1

percent share, followed by Microsoft (3%) and Symbian (0.5%).

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2.3 Competitor Analysis

Apple ranked as the top OEM with 38.9 %of U.S. smart phone subscribers (up 3.9% points from

Nov 2012 to Feb 2013). Samsung ranked second with 21.3 %t market share (up 1.0 % points

same period), followed by HTC with 9.3% dropping 1.7%, Motorola with 8.4 % dropping 1.1%

and LG with 6.8% dropping 0.02% (Graph 1.1).

Samsung mobile smart phones consist of two main supplier elements which are the hardware and

software. Hardware equipment’s used to manufacture Samsung mobile device s are in house

supplied and the software is from a outside supplier (Google android and windows OS) Samsung

uses more than 90% of android platform for their devices and it is a 42% usage of Android

platform over other competitors using android in USA. Samsung is highly dependent from

android platform. Therefore, supplier’s power is low in hardware and very high in software

(Graph 1.4 and 1.7).In the US market the strength of mobile carrier networks are very much

strong since they offer contract basis Smartphone plans which again has a supplier side of

demand. When we consider the contract mobile network criteria consumers are given selectivity

to choose Smartphone for contract basis which opens up a window for high valued products to

enter an easy payment scheme dependent market. Samsung and apple compete to the throne of

supplying high end brands on contract basis to famous mobile network providers. Verizon stands

at the top with 35% up 1.1% from 2012 Feb to 2013 Feb followed by AT&T 26.7 dropping 3.7%

same period but has total market share of 61.7 which makes them the giants of cellular networks

which has the largest Smartphone share (Graph 1.2) and it does not have rapid change of

customers as such in the Smartphone category (Graph 2.9).considering the prepaid smartphone

category sale Q1 of 2013 Samsung has a huge strength of 32% which the competing rival Apple

has only 8% from the total market but the total market of prepaid is 21% in Q1 2012 and 32% to

Q1 2013 whereas the postpaid is still in leading but decreasing 79% Q1 2012 ton 68% Q1 2013.

Threat of substitutes are weak since laptops and tablets offer direct threat to mobile smart phones

but lacks easy mobility and usage opportunities and high research and development is put to

evolve as a product.

Threat of new entrance is low since 2 major sellers (Samsung and apple) take 61% of market and

the startup cost is very high for new comers especially for the Northern American countries and

fro the Europe.

USA market is dominated by top 5 main firms (Apple, Samsung, HTC, BlackBerry, LG) which

is 76% mobile manufacturers and it contains niche markets which changes aggressively as the

technology advances therefore rivalry is very high (Graph 1.5).

Buyer’s power is moderate to low since switching cost is very high (direct factory unlocked). But

with carrier contract the buyer power is high since the initial costs are low.

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3.0 Purpose for the Brand Audit

Since Samsung is the second largest smart phone vendor for the USA market and has a market

share of 22% and has a growth of 1% between 6 months .The market leader Apple is at a

level of 40% and a growth of 4% which is comparatively high and sustaining.

Thus the total market of smart phones in USA has a growth of 40% (yoy) the growth of Samsung

is prominently low which open up a gate way to expand its measures and numbers. Secondly

Samsung as a brand has a high dependency on Android (>97%) by which they will face a threat.

from a suppliers point of view Thirdly Samsung although is the second market leader in its

numbers it has a very low profile of resonance as a brand image and a social reflection and

luxury.

This study evaluates the pros and cons of Samsung which will find out a way of coming out from

this situation by utilizing its strengths and opportunities.

4.0 Data Review

There was no primary data taken since the market selected for the audit was outside the country

.only secondary data was taken with charts from reputed survey organizations such as Neilsen,

CIRP, Forbes, Yankee Group, Com Score MobiLense, Brand Finance, Business Choice,

CHITIKA insights, J.D Power and associates, IDC and official websites of Samsung. Some of

the written data was taken from other online sources such as Gigaom, BGR, Business insider and

etc.

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5.0 Understanding the brand

5.1 Audit Modelers

5.1.1 Keller’s Identity and Positioning Prism (Model No 1)

Who the target consumers?

For consumers who seek stimulations for their mental requirements through all in one device for

an affordable cost.

Who the main Competitors?

All Mobile digital media devices that provides mental satisfactions

How the brand similar to these competitors?

Similar hardware and software that has same primary and secondary features

How the brand is different to them?

Various models with Humanized sensors which supports consumers in their day to day life needs

by giving them freedom and efficiency

5.1.2 Kapferer’s Identity and Positioning (Model No 2)

Brand for what?

Brand against whom? Brand for Why?

Brand for whom?

Samsung

Mobile Devices which

acquires mind space through

its hardware and software at

an affordable cost

High performing processors

and humanized sensors with

quick responses which save

time and money and energy

and offers freedom

Consumers who seek

stimulations to their mental

requirements through all in

one mobile device at an

affordable cost.

All mobile digital media

devices that provides mental

satisfactions

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5.1.3 POD’s and POP’S (Model No 3)

7P’s POD POP

Product

Humanized Sensory features, different hardware features tailor made for

consumer requirement from same smart phone models, fully android

dependent >97%

And hardware manufacturer for other mobile phone companies

Complete touch, Based on Applications, camera ,operating system, sound, Internal

memory ,Smart phone Category

Price Price based on the TG

Place Distributors and sub distributors

Promotion ATL ,BTL and Carrier Contract

People Well trained work force

Process FAB Sync and CIP implementation

Physical

Evidence

All the main 5 competitors contain unique

logos ,colors and ringtone

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5.1.4 Samsung Brand Value Chain (Model No 4)

Marketing

Program

Investment

Customer

Mindset

Market

Performance

Shareholders

Samsung

Digital Product

Launch

Seminars,

Sponsoring

Olympic events

and football

events,

sponsoring

WCG (World

Cyber Games)

online video

advertisements

, Social Media

(FB,

TWITTER) ,

NYC Billboard

promotions

High

Awareness

Value for

money,

Young, Fun

and Fancy

Devices

High tech

humanized

features

Android

smartphones

tailor made

for different

usage

situations

Low price

models to

high prices

models

High elasticity

High stock

value

Moderately

profitable

Stock Price at

636.50 USD up

2.00 at 0.32%

Est. PEG Ratio

0.6050 Market

Cap (M USD)

186,922.86

Shares

Outstanding (M)

294.60 30 Day

Average Volume

57,912

Dividend

Indicated Gross

Yield 0.07% Cash

Dividend (USD)

0.1551 Last

Dividend

06/26/2013 5 Year

Dividend Growth

-0.93%

MARKET

Place

Conditions

Investor

Sentiment

Program

Quality

Clarity

Relevance

Distinctiveness

Consistency

Maximum

Coverage

(Distributors, Sub

Distributors) Only

competition from

Apple and HTC,

Consumer Demand

and Choice High

Brand is No 1 in the

portfolio, Chinese

economy growth

High Market Growth

Dynamic Market

with high risk profile

Multiplier

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5.1.5 Customer Base Brand Equity Pyramid (Model No 5)

High Level of Fun,

security and excitement.

Low level of Social

Approval since there is

variety of models

available. Low Level of

self-respect for the

consumer all models looks

in the same design.

High level of brand

consideration and

credibility. Low level of

brand superiority and

quality.

IMAGARY

JUDGEMENT

RESO NANCE

PERFO RMANCE

FEELINGS

SALIENCE

Moderate level of Repeat

purchase and Recommendation.

Low level of personal attachment.

Low level of social reflection

High Performance

stylish designed

mobile phones with

options and features

at an affordable

cost Low level of

reliability and

durability

Wide range of Mobile phones for

different needs with android capability

and with features unparallel to a

Smartphone in the same price category.

Depth of brand awareness as ANDROID

Phone and breadth as wide range of

products with unparallel features for an

affordable price.

High level of

Fancy, Fun and

Stylish young

unisex Image.

What about you and

me?

Dependable

Concerning

Understanding

What about you?

Rapid Modifier of

features

Mind reader

Trend Setter

What are you?

Technology advancer

(New opportunity

openings from older

ones)

Market reader

Global thinker

Who Are You?

A digital leader who

understands and

fulfills consumer

untouched needs and

wants.

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5.1.6 Brand Mapping Matrix (Model No 6)

5.1.7 Five Dimension Brand Model (Model No 7)

Korean

Big

Display

Android

Vibrant

Colors

Galaxy

Series

Fantasy

Motion

Sensors

Touch

Mobile

Phone

Fancy

Samsung

Sound

Taste

Smell

Sight

Touch

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5.1.8 Brand Positioning Bulls Eye Model (Model No 8)

Humanized Sensory features,

different hardware features tailor

made for consumer requirement

from same smart phone models,

fully android dependent >97%

and hardware manufacturer for

other mobile phone companies

FAB Sync and CIP implementation

FAB Sync and CIP implementation

Complete touch,

Based on

Applications,

camera operating

system, sound,

internal memory

Smart phone

Category Price

based on the TG.

Distributors and

sub distributors

ATL ,BTL and

Carrier Contract

Well trained work

force All the main

5 competitors

contain unique

logos and colors

Everybody’s invited

R&D facilities worldwide

In house build

motherboards, processors,

and memory chips,

creative boxes to bring up

imaginative knowledge out

from employees, software

development funding for

universities.

Brand

Mantra

Samsung Jingle,

Samsung Logo, Color

Blue, Ring tone

Understanding, Open

Minded, Sharing,

Freedom, Life

Companion

POD

POP

Values/Personalities/Character

Executional Properties/Value

Identities

Consumer

Need State:

desire for

smart phones

with different

user situations

and feature

experience at

an affordable

cost

Competitive

Product Set:

organizations

offer mental

satisfaction

through

digital media

devices

Consumer

Target:

Discreming

Smartphone

user

Consumer

Insight:

tailor made

options

which caters

different

user

situations is

often

unsatisfying

Consumer

Takeaway:

Samsung gives me

a wide range of

smartphones

selections with

unmatched features

for an affordable

cost.

Substantiates

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5.1.9 Brand Pyramid Model (Brand essence) (Model No 9)

Brand Attributes

Benefits

Emotional

Rewards

Values

Personality

Traits Understanding, Open

Minded

Sharing, Freedom

Life Companion

User friendly

Design and features

(hardware and

software)

Humanized

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5.1.10 Brand Code – 4D Branding (Model No 10)

5.1.11 Brand Asset Value Model (Model No 11)

Functional Dimension:

Energy efficient Smart

phones tailor made for

different user requirement

supported by humanized

sensors

Social Dimension

Value for money

Mental Dimension

Everyone’s invited

Brand Mind Space

SAMSUNG

Spiritual Dimension

Samsung Citizenship

Program

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5.2 Audit Analysis

5.2.1 Demographical and Physiographical Analysis

Samsung smart phone is a successful brand which has an image of a Google introduced android

featured Smartphone with unmatched features to Smartphone in the same price range in US

market. Samsung faces a huge threat from the US based innovative brand Apple which has very

high brand image and has a high reliability score of 3.47 where Samsung stands in 1.21 and

Nokia at 0.68 (Graph 2.26).Samsung differentiate its brand mostly with model and options

suitable for different needs and requirement 35% and secondly ease of purchase 22% thirdly

20% for affordable price and it has very less likability for being innovative 5% and 18% for

cutting edge technology and design features among people (Graph 2.27).

According to an article based on the CIRP survey which states that Samsung and Apple gets their

customers by first timers and the so called ―feature phone ―users. Samsung draws more first

timers than apple (37% to 26%) but has a very low retention rate in them where apple took away

33% and Samsung 11% respectively. Samsung also gets their customers by other android mobile

phone users 43% which makes them the ultimate android phone choice among other android

based smart phones but not with Apple (Graph 2.3). Demographically Samsung versus apple

again has much more competition compared to other smart phone brands people who have a

salary level o below 25000$ per annum tend to go for Samsung brand 11% where as apple is in

9% and people who have a salary level between 25000-50000$ again prefers Samsung as their

brand 34% and Samsung 22% and the major breakthroughs comes from the people who earn

more than 50000$ per annum which is 69% for Apple and 55% for Samsung (Graph 2.6).When

it comes to the age of buyers consumers between 18-24 tend to go for apple 25% and Samsung in

22% at the age between 25-34 age group 44% people prefer apple to 43% of Samsung ,people

between the age group of 35-44 prefer Samsung 28% and 20% for Apple there not much

preferential age group for both the product. When we consider about buyer’s education levels as

a selectivity tool high school students and some college with associates students prefer Samsung

over Apple (69% to 51%) but college degree students, master degree students prefer Apple to

Samsung (43% to 29%) ratio (Graph2.8).

According to Yankee group study in 2013 people who own a phone and people who are planning

to buy a phone Samsung remains below the line of losing share 20% to 18% respectively but the

market leader Apple stands at above the line of losing share at 31% to 40% respectively.

Whereas the remaining brand are far more behind compared with Samsung (Graph 1.6).

USA smartphone penetration by ethnicity is 42.7% with Hispanic 55.3% with whites, 45.6%

with African Americans finally 32.7 with Asian pacific islanders where there is a huge potential

of converting non smart phone uses in to smart phone users (Graph 2.13).

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Considering the fact of generations who uses Smartphone brands are mainly the generation ―Y‖

which is 72% secondly generation ―Z‖ at 64% also the younger boomers have huge potential of

using a smartphone since they stand in 39% mobile phone uses in that category is 92% .older

boomers and golden generations uses less smartphones 28% and 16% but use 85% of mobile

phones each which opens up a huge market. When Samsung is considered against apple

generation ―Y‖ uses more apple than Samsung 29% to 20% whereas ‖X‖ generation and ―Z‖

generation uses 22% and 24% each (Graph 2.22).

5.2.2 Brand Association Analysis

A survey based on 1188 US adults to see what kind of applications and the frequency they used

apps in a smartphone. It was categorized to three segments one is use at least a week, use at least

a month, and final is used in the past three months Cleary showed that people upgrading from a

basic phone to a smart phone are less advance and do not use hi-tech features of a smartphone

which the operating system provide, the basic features they use day today is internet, personal

mails, social networking, work mail weather apps, downloads and the apps they rarely use is

TV/Video, shopping, barcode reader ,finance (Graph2.14).and when a consumer considers the

factors before purchasing a smartphone they really go for network quality, operating system,

apps, overall monthly service cost, data plan cost, music and video capability, brand name of the

service provider and finally price of phone which clearly shows that people are more likable to

the basic smart phone properties rather than advanced features but they will definitely prefer and

high tech advancement to ease their usage of the properties in day today life within their

consideration area (Graph 2.15).

Samsung introduces different models with different features with what the user request from the

market but apple as only introduced 7 models of Smartphones so far whereas Samsun has over

100 models with different sizes to satisfy customer needs which means that they are towards

segmentation of products but with Apple it’s a narrow product focus to a mass market (Graph

2.25).According to the freeform dynamics people who supported the online survey mainly

commented and responded from Samsung and apple smartphones 350 out of 1122 responded on

Samsung and 320 out of 1122 responded on Apple whereas HTC stands at 220 out of 1122. The

satisfaction level ―Very Happy‖ towards Samsung is more than Apple 62% to 59% and ―Very

Unhappy‖ level towards Apple is more than Samsung 4% to 2% also when people responded

that reconsideration of buying the same brand more than 80% to 75% said yes to Samsung and

Apple respectively and 15% to 3% said ―No‖ to Apple and Samsung respectively (Graph 2.17,

2.18, 2.19).

A wireless smartphone satisfaction study done by J.D Power and Associates in 2013 people rate

Apple as the most satisfied brand (amongst the best) with a score of 855 whereas Samsung

stands third in 793 which the study averages at 796 (Graph 2.20). Samsung brand has a strong

advocacy towards the brand awareness to purchase, consideration to purchase, purchase to

loyalty 77%, 89%, and 100% respectively. Conversation and identity helps out by 85% to 57% in

Student ID: MSC-13- 01-293 - Page 18

awareness to consideration towards buying a Samsung, affiliation at 55% helps out the

consideration to purchase a Samsung and finally utility at 86% in a Samsung wins the race of

purchase to Loyalty (Graph 2.23 & 2.24).

According to the CIRP data reviews Samsung has differentiation factors amongst consumers

rating in 5 ways such as ease of purchase (22%), cutting edge technology and design (18%)

,affordable price (20%), innovative ( 5%) and models and options suitable for different needs

(35%) also brand association chart has highest rating >50% for young look, fun, fancy, unisex,

excitement, reliable, ruggedness, relevance, credibility , rating =50% for durability, efficiency,

service effectiveness and finally rating<50% for satisfaction, value, superiority, social approval,

self-respect for the brand (graph 2.27 & 2.28).Apple and Samsung has a popularity amongst

owners , mobile gamers and paying mobile gamers according to the CIRP study done with 225

Million online consumers aged (10-65) and they prefer 25% to 26% , 35% to 25% and 45% to

22% respectively with the category and brand (Graph 2.28).

5.2.2 Brand Profits, Growth, Value Share Marketing Cost, Manufacturing

Process Analysis

According to the brand finance global 500 in 2013 Apple was named no 1 with a brand value of

87.3 (US$ bn) and previous year with 70.6 (US$ bn) a change of 24% and Samsung was second

with 58.5 (US$ bn) in 2013 previously 38.2 (US$ bn) a change of 54 % this might have been

because of the 401$ M advertising cost in 2012 which Samsung has spent on television, print,

billboards, and internet where as in 2011 it was only 78$ M which is a huge leap of expenditure

over the previous year and comparatively high to the competitors whereas apple in 2011 spent

253$ M to 333$ M in 2013 not much of a leap but taking advantage over the brand value they

persist (Graph 3.3,3.4,3.7.3.8,3.10).Compared with Apple Samsung has a very low operating

profit with online paid applications which drives their business with a concept of the mobile

ecosystem which provide not only the mobile device but millions of applications which supports

that device to a nominal fee, in that case Samsung fails to do so since they are dependent >90%

from android and the application fees are directly to the supplier itself Apples operating profit

stands in 6 bn US$ whereas Samsung is stagnated at 1.5 bn US$ this is a big drawback with

Samsung (Graph 3.6).according to IDC Samsung has its revenue growing from mainstream entry

products which is 75.5% whereas its high end products create 16-9.8 % YTY(Graph 3.1).

When considering the process of manufacturing Samsung uses three types of processing system

one for management of manufacturing and two for the manufacturing Which are the traditional

and integrated system which makes the effect system and the FAB sync and CIP implementation

which makes them a far more ahead in manufacturing their hardware parts and equipment’s in

successful manner and in cost effective manner.

Student ID: MSC-13- 01-293 - Page 19

6.0 Conclusion

According to the research data Samsung has an impression of a Smartphone which exaggerates

android, value for money, all in one device. Its identity and position focuses on target consumers,

such as people who seek for above requirement by satisfying segment of consumers who seek

mental satisfaction through a mobile device which can acquire their mind space through all in

one device at an affordable cost.it competes with all the mobile digital media that offers

consumers mental satisfaction through its different characteristics, with its high performing

processors and humanized feature Samsung offers unmatchable productivity values such as

saving time, money and energy and giving freedom (Keller’s identity and positioning and

Kapferer’s identity and positioning).

Samsung has its characteristics with humanized sensory features such as 5 different motion

sensors, hardware and software features unmatchable to other competitor brands and also its

>90% android platform dependent whereas other brands offer platforms of their own and

windows platforms with android platform, also it is the mobile microprocessor manufacturer for

almost all the famous smartphone companies worldwide which gives them a huge competitive

advantage over the manufacturing cost in total. The implementation of FAB sync and CIP

systems and its integrated management process differentiate its manufacturing process over other

mobile manufactures.

Everybody’s invited is Samsung utmost brand mantra and that is very much differentiated and

elaborated with its jingle, color, advertising and logo. Considering Samsung’s marketing

programs and investments in USA it has the highest expenditure over other competitive brands.

It spends 104 M US$ more than its arch rival Apple to stay ahead in the race and to compete.

Samsung’s marketing and advertising includes digital product launches, winter Olympic promos,

New York City billboard promotions, and World cyber games promotions, online advertising

etc. focusing on the brand awareness, value for money, young, fun and fancy, humanized

features and tailor-made smartphones for different usage situations in a consumers mind set.

With these values passed by to consumers Samsung gains a huge market share and makes it more

dynamic an elastic and competitive to competitors due to its product features and marketing

strategies Samsung benefits its shareholders with a consistent stock value and deviance.by

delivering its products through carries contracts and stores around USA it has a wide distribution

channel with selectivity to its customers (brand value chain).

With its vision statement for Samsung mobile ―A digital leader, a global thinker‖ it elaborates

the idea of technology ideator that understands global requirement and fulfills them at an

affordable cost and as they exaggerates them self as a trend setter ,mind reader, rapid feature

modifier which makes the consumer think that ―you want features ,selectivity with android think

Samsung‖. But it fails to make a feeling at consumers mindset ―when you carry a Samsung you

get recognized, self-respect‖ and it gives a young, fancy, fun, excitement unisex image towards

users not an image of a luxurious product .the reason to its failure is its advantage of different

Student ID: MSC-13- 01-293 - Page 20

models to suite different needs and for different price category this will drive Samsung profit but

not fame as in Apple. People tend to ask ―what is the model you are carrying‖ but with apple

people can clearly understand that it’s Apple and it’s an expensive product and luxury which will

resonate consumer’s personality and ideology (CBBE Keller).

The essence that makes Samsung consumers feel that it is more humanized product by its

hardware and software which benefits them as ‖user friendly‖ and give them out an emotional

benefit of life Companion which they can share and feel free which elaborates out as

understanding, open minded product in their hands. Samsung has a very big brand strength with

its market share but lacks in its stature where as Apple has a huge market share and stature thus

making it a high resonating product amongst consumers in the USA (BAV model & Brand

Essence).

.

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7.0 Recommendation

Samsung overall does not have a big threat from HTC, Nokia, BlackBerry, or Sony its main

threat in the USA market is Apple.to overcome this state of competition Samsung needs to come

up with a new strategy to introduce a new line of product while retaining its earlier product folio

which runs on Android and windows. The operating system ―TIZEN‖ is its new born child to its

operating systems after the failure of ―BADA‖ the previous version of its operation system ,also

Samsung needs to build up its eco system as Apple introduces I cloud and iTunes and Apple app

store which will draw more business after the resale of their smartphone plus apple has a concept

of paying a higher share to their app designers, anybody who’s willing to make a profitable app

for Apple gets paid 30% straight away once the app is downloaded by a consumer to an Apple

IPhone. This will continuously bring profits as well as recognition amongst people who design

applications and community will be built around Samsung brands as in Apple. Once it gets

popular among the community Samsung needs to focus on a product segment and develop its

operating system to a luxury highly resonating image to run in it. So that people who own that

category will also be benefited with the operating system as well a luxury high end mobile phone

with 100% Samsung support so in future they can run their own phones with their own operating

system thus bringing down the threat of suppliers side for the operating system platform.

The second strategy they can implement is that making their smartphones to run on two different

platforms (Android and Windows) at a touch of button already Samsung has introduced a tablet

segment called ―ATIV‖ with multiple platform availability with a touch of a button. This will

draw consumers who seek for products with both the platforms.

Thirdly Samsung can draw customers who are in need for compatibility by introducing Smart

gadgets which can be used with all models of smart phones and also they can introduce

smartphones with a bonus of the gadget to a nominal price e.g.: Samsung Note 3 came up with a

smart watch that is compatible with other phones but it’s given a lower price along with the

smartphone. Also Samsung can come up with smartphone accessories such as Apple provides

with covers, keyboards, adopters, which is in high quality and price range comparatively to third

quality accessories introduced with Chinese sellers at online stores.

These are all hardware and feature advancements which will stimulate untouched needs of

customers to draw towards Samsung brand and retain in it. The marketing should be planned as

such to highlight its performance and features comparatively to competitors which will make

Samsung the independent luxury brand in USA and worldwide.

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