Samsung Successful Branding Strategy: Samsung approach is holistic reaching the world customer
Dr. Tanvir Orakzai
May 11, 2006
Interbrand, the world?s leading brand consultant has ranked Samsung as the fastest growing brand in the world. Within three years time Samsung?s brand value has more than doubled from US$5.2 billion in 2001 to its current $10.8 billion. The interbrand survey of 100 global brand ranks Samsung as worlds 25 largest brand, which is a move forward from 34th in 2002. The reason for this success is Samsung?s holistic approach to develop several strategies for different regions, but guided by one unified Samsung brand image building strategy. The branding strategy started in 1996 by its Chairman Kun Lee, whose aim was to launch a coordinated global program to make Samsung an international brand. Over the last one decade Samsung has been busy in executing its comprehensive brand building strategy. Samsung annual investment in branding and marketing is about US$3 billion, which has been spent to increase its brand awareness around the world.
For any new company, when it enters the market, there are two options to stimulate the growth; intensive advertising campaign, and offer products with unique functions. Samsung opted for both, but tilted more towards advertising and brand making strategy-creating awareness of its name by investing enormously in million-dollar brand making campaigns. For example in order to create its brand awareness, Samsung in India signed seven cricket celebrities and in doing this it aimed to cash on the popularity of cricket in India. Instead of just adds featuring cricketers; Samsung launched its ?Team Samsung India? campaign all over India. The focus of this concept was to create patriotism through cricketers but under Samsung brand name as the banner read ?'With Team Samsung, It's India First.?? The campaign was a success and it enabled Samsung to effectively leverage cricket craze but increasing awareness of its brand. As a result in December 2002, Samsung sales reached about 30 billion rupees (US$1.25 billion) increasing its growth by 20 percent in India. Samsung hugely invested in sports, as it knew that sports have crowds. In Athens 2004 Olympic games, it was named as Worldwide Wireless Communications Partner of the Olympic games, but not without a cost. Samsung provided 14000 mobile phones and also supported equipment during the games. They also presented themselves in the Olympic Torch Relay, which took place in 27 countries. They also showcased their products for 17 days to the visitors at Olympic eve and also allowed 30,000 minutes of free calling grabbing the audience to its brand.
Samsung has also been sponsoring Dubai Marathon for the last three years (between 2001 to 2004). The campaign has been effective to rise above other brands in the Middle East. Samsung was also involved in Nation?s Cup; they also created Samsung Super League in 2003. They are also founder of World Cyber Games; they flew about 600 qualifiers from 59 countries and paid 420,000-competition prize to the winner. Samsung also sponsored Texas motors speedway.
One problem with older companies is that they often portray their product as commodity and normally sell their products only on the basis of brand without improving their quality and lowering their price. Samsung worked on all directions, it not only invested hugely in brand creation campaigns worldwide ($3billion marketing budget per year), while it also remained ahead of the market by introducing innovation. In order to create a different image, Samsung decided to position itself by developing innovative products and become leader rather than a follower.
Samsung also increased the number of patents from 400 to 1600 during the mid 1990s and allied it self in strategic alliances with mature leaders, such as Dell, Apple and Sprint PCS. Samsung focused more on creating an image innovative in technology. One such example was Samsung camera phone, which was an instant, hit. Even though Nokia had established market share of mobile phone, but the myth was broken by Samsung innovative ideas. At that time Nokia was still selling its normal mobile phone at higher price, consumer could buy a latest model Samsung camera phone with additional feature, it was natural for consumers to forsake older companies and try Samsung products, which offered additional features yet more affordable.
The secret of Samsung success is it?s being ahead of the competition. Its philosophy is to reduce the lead-time as being late in business means business is over, which happened in the case of Sony and other competitors.. For example the most advanced mobile phone has only two-mega pixel camera, but Samsung offered 5 mg phone last year; yet in the market there is no rival for this model. Sony had this belief that consumer will buy no matter what they offer and whatever price they charge, which is not longer working. Samsung is offering new products at 20 to 25 percent lesser than market price, yet retaining it standard and quality. However part of this success was also Samsung openness; the company opened up and recruited employee from a global pool of talent bringing in talent from various countries making these people work together at one table designing the best product. This trend boosted company perception and made it a global brand among the consumers. The strategy paid off and in past five years, it has achieved the biggest gain among major brands, even surpassing Sony, which stands at 28, while Samsung is at 20
Samsung the approach is holistic reaching the world customer. It created its branding in multiple ways, ranging from traditional adds to billboards, racing, Olympics games, cricket matches, marathons, in short wherever it saw the crowd, it communicated Samsung message by presenting itself as a leader of innovation with affordable price.
Successful branding is all about establishing a long-term vision and crafting the company?s operations to meet that objective. It was this sort of huge investment where millions saw Samsung message. Their brand remained in forefront of millions of people giving them an edge over its competitors. Samsung holistic approach to global brand communications has been effective and paid off by its dramtic growth of 186 percent in the past five years In 2005 Samsung brand image stood at $14.9, this postion was once held by Sony, but Samsung brand bulding stategy overtook Sony in less time than expected.
For any new company, when it enters the market, there are two options to stimulate the growth; intensive advertising campaign, and offer products with unique functions. Samsung opted for both, but tilted more towards advertising and brand making strategy-creating awareness of its name by investing enormously in million-dollar brand making campaigns. For example in order to create its brand awareness, Samsung in India signed seven cricket celebrities and in doing this it aimed to cash on the popularity of cricket in India. Instead of just adds featuring cricketers; Samsung launched its ?Team Samsung India? campaign all over India. The focus of this concept was to create patriotism through cricketers but under Samsung brand name as the banner read ?'With Team Samsung, It's India First.?? The campaign was a success and it enabled Samsung to effectively leverage cricket craze but increasing awareness of its brand. As a result in December 2002, Samsung sales reached about 30 billion rupees (US$1.25 billion) increasing its growth by 20 percent in India. Samsung hugely invested in sports, as it knew that sports have crowds. In Athens 2004 Olympic games, it was named as Worldwide Wireless Communications Partner of the Olympic games, but not without a cost. Samsung provided 14000 mobile phones and also supported equipment during the games. They also presented themselves in the Olympic Torch Relay, which took place in 27 countries. They also showcased their products for 17 days to the visitors at Olympic eve and also allowed 30,000 minutes of free calling grabbing the audience to its brand.
Samsung has also been sponsoring Dubai Marathon for the last three years (between 2001 to 2004). The campaign has been effective to rise above other brands in the Middle East. Samsung was also involved in Nation?s Cup; they also created Samsung Super League in 2003. They are also founder of World Cyber Games; they flew about 600 qualifiers from 59 countries and paid 420,000-competition prize to the winner. Samsung also sponsored Texas motors speedway.
One problem with older companies is that they often portray their product as commodity and normally sell their products only on the basis of brand without improving their quality and lowering their price. Samsung worked on all directions, it not only invested hugely in brand creation campaigns worldwide ($3billion marketing budget per year), while it also remained ahead of the market by introducing innovation. In order to create a different image, Samsung decided to position itself by developing innovative products and become leader rather than a follower.
Samsung also increased the number of patents from 400 to 1600 during the mid 1990s and allied it self in strategic alliances with mature leaders, such as Dell, Apple and Sprint PCS. Samsung focused more on creating an image innovative in technology. One such example was Samsung camera phone, which was an instant, hit. Even though Nokia had established market share of mobile phone, but the myth was broken by Samsung innovative ideas. At that time Nokia was still selling its normal mobile phone at higher price, consumer could buy a latest model Samsung camera phone with additional feature, it was natural for consumers to forsake older companies and try Samsung products, which offered additional features yet more affordable.
The secret of Samsung success is it?s being ahead of the competition. Its philosophy is to reduce the lead-time as being late in business means business is over, which happened in the case of Sony and other competitors.. For example the most advanced mobile phone has only two-mega pixel camera, but Samsung offered 5 mg phone last year; yet in the market there is no rival for this model. Sony had this belief that consumer will buy no matter what they offer and whatever price they charge, which is not longer working. Samsung is offering new products at 20 to 25 percent lesser than market price, yet retaining it standard and quality. However part of this success was also Samsung openness; the company opened up and recruited employee from a global pool of talent bringing in talent from various countries making these people work together at one table designing the best product. This trend boosted company perception and made it a global brand among the consumers. The strategy paid off and in past five years, it has achieved the biggest gain among major brands, even surpassing Sony, which stands at 28, while Samsung is at 20
Samsung the approach is holistic reaching the world customer. It created its branding in multiple ways, ranging from traditional adds to billboards, racing, Olympics games, cricket matches, marathons, in short wherever it saw the crowd, it communicated Samsung message by presenting itself as a leader of innovation with affordable price.
Successful branding is all about establishing a long-term vision and crafting the company?s operations to meet that objective. It was this sort of huge investment where millions saw Samsung message. Their brand remained in forefront of millions of people giving them an edge over its competitors. Samsung holistic approach to global brand communications has been effective and paid off by its dramtic growth of 186 percent in the past five years In 2005 Samsung brand image stood at $14.9, this postion was once held by Sony, but Samsung brand bulding stategy overtook Sony in less time than expected.