Samsung Brand Design

Executive Summary

This report provides an analysis of Samsung’s brand strategy and design. In essence, design is considered central by Samsung group of companies. This report also analysis the reason behind Samsung’s focus on new design identity. Further, this report also explores the reasons why Samsung changed to new non-EOM provider as part of attracting customers to its products. Further, this report analyses the importance of engaging the brand community for purposes of improve innovations and design. In particular, this report explores the importance of involving the youth in innovations and design contests. On the other hand, this report also examines the challenges faced by Samsung in relation to creating a global brand. Finally, this report also provides recommendation for purposes of improving Samsung’s brand image.

Contents
1. Introduction
2. Analysis of the selected question
3. Discussion of the details
3.1 New direction
3.2 Developing efficient and effective brand strategy and design
3.3 Sponsorship as a brand strategy
3.4 Samsung as a new non-OEM global brand
3.5 Evaluation by Interbrand Incorporation
3.6 The brand community
3.7 Challenges
4. Recommendations and Conclusion

1. Introduction

Since its inception in 1969, Samsung has emerged to become a leader in electronics manufacture. The Samsung brand is composed of various internationally affiliated businesses. This includes Samsung Heavy Industries, Samsung C&T and Samsung electronics considered to be the World’s leading Electronics Company. In essence, the three multinationals forms the core establishment of the Samsung group. Design is considered central in all of Samsung’s products. Further, design not only reflects on the look and feel, design also emphasizes on how the products are built. In essence, this report explores the question, what branding strategy and design does Samsung focus on in terms of establishing the company as a global leader in the electronics industry. 2. Analysis of the selected question

For any corporation across the globe, success revolve around developing a branding strategy, that is efficient in term of establishing a global brand. Samsung has recognized this essence, and is applying various branding techniques to improve its brand standing in the electronics global market.

3. Discussion

Accordingly, the approach employed by Samsung in terms of brand and design involves a process that evolves with time (Kim & Chung, 1997). In recent times, Samsung continues to engage in developing new design identity. The new design identity is central in terms of reinventing Samsung as a brand and developing products that target the future. As a result of Chairman Lee’s initiative in 1996, the company has been prompted into major refreshment in terms of style, brand and design. In this regard, the company engages in, “formative design” (Hsieh, 2002).

This approach involves a product-centered philosophy. As a result, products are designed in thinner and lightweight forms. Further, development and design moved away from functional design to distinctive aesthetic values, which embraces a balance between functional and emotional appeal. Embracing a new design identity also aims at establishing a Samsung brand that is more consistent with regard to Samsung’s product lines (Hsieh, 2002).

3.1 New direction

As a result of embracing a new direction in terms of design, Samsung engages itself on a systematic process in relation to consumer needs and trends. The company focuses on user considerations as part of driving design thinking and development of successful product designs. The user considerations involve intrigue, delight and desire (History-Corporate Profile, 2011). On the other hand, “make it meaningful” as Samsung’s latest design, focuses on placing importance on happiness and value that design brings to people. Samsung has realized that happiness and value are essential rather than just raw functionality or external beauty. In recent times, design at Samsung, is considered as a pre-requisite with regard to product planning (Truman, 2007). In essence, design contributes in terms of product development and a cutting-edge technology for purposes of application. Samsung engages in design concepts which are pioneered earlier within the process, instead of retrofitting later. In this sense, designers act as essential interpreters with regard to crucial value facilitators for the product development process and user needs (Morrow, 2011).

3.2 Developing efficient and effective brand strategy and design In the modern day and time, success in business is determined not only by the product quality, but also efficiency and effectiveness in terms of the product value. In this regard, as part of its branding, Samsung focuses on developing itself both operationally and financially. For purposes of improving product value, Samsung engages in branding strategy which provides the company an edge over competitors (Chadamas, 2005).

Among the branding strategies adopted by Samsung include research and development, creating an identity on the product, feedbacks on reactions from competitors or opponents and adoption of efficient techniques with regard to costing. In terms of cost efficiency, Samsung discards rules considered as “cost prohibitive”. Further, the company engages in acceptable dividends that results in a “focused hard works”. Also, the company maintains proper channels connections and as a result, the sales of Samsung are relatively high. In addition, incremental sale result in strong return. Other measures adopted by Samsung in terms of branding are geared at making Samsung felt across the globe (Chadamas, 2005).

3.3 Sponsorship as a branding strategy

In recent times, Samsung has adopted a number of measures for purpose of branding itself and establishing a global image. In terms of sponsorship, Samsung endeavored in sponsoring the 1998 Seoul Olympics. The anticipation in this sense is that, as a result of sponsoring global events and embracing various marketing techniques and investments, this would improve the company’s product value. In this regard, as a result of the venture, the product value of Samsung escalated to about 200 %( Elkin, 2000). Further, the company embraces a holistic approach which is guided by a unitary strategy for building Samsung brand image. The branding strategy that Samsung is focusing on in this sense, involves a coordinated worldwide program which targets to make Samsung an international brand. Currently, Samsung’s yearly investment in branding amounts to $3billion which, is geared at creating brand awareness across the world.

As part of attaining long-term positioning, Samsung continues to sponsor numerous events across the world and as a result, attracting customers to the brand (Keller, 2003). Samsung’s massive investment in sports is as a result of the ability of various sports to attract large crowds. Samsung is currently sponsoring world class soccer teams such as Chelsea which has a whopping fun base all around the globe (Hsieh, 2002). This enhances Samsung’s brand identity across the globe. In Athens Olympics, Samsung took advantage of brand marketing opportunity by showcasing its brand for 17 days to visitors who attended the Olympic Games.

3.4 Samsung as a new non-OEM global brand

Samsung as a new non-OEM global brand recognizes the need for an intensive brand promotion to enhance its growth globally. In India alone, as part of creating brand awareness, Samsung signed a number of cricket celebrities (Marina, 2003). This provides Samsung with leverage in terms of cashing in on the huge popularity of cricket considered as a religion in the country. Further, as part of creating brand awareness in India, Samsung launched “Team Samsung India”. This involves carrying out campaigns on the brand all over India.

The concept of this campaign involves creating patriotism among cricketers under the brand name, Samsung. Such awareness creates impressive image which, result in impressive growth for Samsung brand. Further, Samsung new non-OEM brand permitted 30,000 minutes in the form of free calling, and grabbing immense number of the audience to its brand (Johansson, Jonny & Ilkka, 2005). In essence, the Company obtained $1.7billion net profit in the years 2002 and 2003, as a result of new-OEM branding (Pesola, 2005).

3.5 Evaluation by Interbrand Incorporation

With regard to evaluation from Interbrand Incorporation, it is noticeable that the various measures adopted by Samsung results in the company being listed as one of the topmost products. At the moment, Samsung is recognized among the leading electronics firms across the globe. In essence, the company endeavors in the production of state of the art electronic gadgets that conquers the global market in terms of products such as mobile phones (Holt, 2004). The branding strategy adopted by Samsung revolves around continuously changing for purposes of meeting the demands of every individual. For decades, Samsung as an electronic powerhouse is gaining huge market share and more revenue as a result of its distribution strategy and core competencies resulting from design and speed-to-market.

3.6 The brand community

Samsung as a company engages in design competition for purposes of exciting customers. In this sense, the company often unveils the upcoming electronic gadgets to the brand’s community (Kitae, 2007). The company as part of its branding also engages the young crowd as part of boosting its brand hip image. In this regard, the company provides an opportunity to the youth to offer their concepts in improving Samsung’s design. Such an idea resonates among the youth and contributes towards the company’s continuous development of product designs (West, 2006).

By engaging such an activity, the company manages to reinforce a strong connection with the brand community as a result of hooking the youth to the brand thus, creating brand excitement (Learmonth, 2012). Further, the activity also places Samsung at the forefront in terms of design and innovation. In a cutting edge market related to branded consumer electronics, creative marketing innovations that engage brand community provides a greater leverage. As a result, Samsung is able to maintain long-term brand equity (Deagon, 2010).

3.7 Challenges

Over the decades, Samsung as an electronic powerhouse is successful in terms of gaining market share and huge revenue. This results from a distribution strategy and core competency that involves design and speed- to- market. However, despite the financial success, the company brand is still relatively undefined among global consumers. In this regard, Samsung branding requires marketing communications in terms of making the brand easily defined within the marketplace (Murphy, 2006). There is need for the establishment of simple words to describe the company’s brand mission or authentic character. Most importantly, Samsung as a brand does not articulate key consumer conflict.

There is a lack of compelling brand marketing. Within a fast commoditizing industry, differentiating brand marketing is significant in terms of sustaining margins, appeal to consumers with numerous choices and retain customers. Further, consistency and core brand identity as part of Samsung’s retail presence is not effectively defined (Salwyn, 2005). In essence, the company lacks a formidable format strategy capable of guiding a continued growth within the existing and new markets. If a format strategy is established, it would entail a retail identity that enhances distinct and clear expression in terms of brand positioning (Sim Bak Heng, 2006).

4. Recommendations and Conclusion

The solutions to minimizing shortfalls with regard to Samsung branding require a number of measures. Among the measures include undertaking widespread research that involve significant geographies which include consumers, external experts, partners and the executives for purposes of coming up with strategies that can create an efficient brand image for the company. This process would also involve extracting learning from the company’s past anecdotes. Regarding the history of Samsung’s branding, it seems the company maintains a deep seated belief in terms of being able to accomplish any venture that they undertake. As a result, there is unwavering optimism regarding the possibilities for the future. This is an idea that is shared by the global audience in terms of anxiety that is created as a result of a fast evolving technology landscape.

Such a perception creates a situation where the company feels obligated to adapt to the dramatic changes and still thrive as a result of its brand appeal. In this sense, the company needs to develop a global tagline that is capable of sitting in every region and product category. The tagline in essence would enable Samsung as a brand to unite all entities under a single banner and in which consumers can relate to or identify. More also need to be done in terms of establishing brand communications including promotions and product-level advertising. Other measures that the company also needs to improve on with regard to branding include carrying out store audits existing in multiple markets. This would provide the company with information regarding its retail condition.

In addition, store audits forms the basis of analyzing the global trends with regard to consumer electronics. To achieve this milestone, the audit process would involve management interviews, review of business strategies and carrying out a quantitative research for purposes of gathering consumer insight. In essence, the findings from an audit process aids in establishing a rationale with regard to Samsung global shop strategy. In conclusion, a concept for a global store design entails bringing into life the brand platform at retail. In essence, there is need for a versatile approach in terms of product merchandizing. Flexibility in terms of design is also crucial as a result of the existence of varied store footprint and establishment of a brand in any given retail environment (Wolf, 2005).

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