It is no doubt that branding plays an integral in the success of any company especially those that depend on good reputation to make sales. The success story of Samsung Electronics Corporation is a manifestation of the important role that branding plays in the development and growth of any company of reputable stature. This report analyzes the different forms of branding that Samsung engages in and the impact they have on the company. Moreover, the report reviews the historical development of such branding strategies by analyzing the evolution of the company’s logo and slogan. Ultimately, the report is aimed at informing other business leaders into the best branding strategies as well as the impact of each on a company’s development.
Samsung was founded in 1983 as a traditional company but diversified later to meet the needs of the international market. Although the name is of Korean origin, it has been modified to have an English appeal and thus suit the international market in terms of branding. By 1969, the company had become the leading electronic manufacturer ion South Korea and catered for the needs of the international market. The association of the company with high tech electronics products helps in the development of its brand as a company with high quality products for the international market (Chang, 2011, pp 46). Ideally, the powerful branding strategies have propelled the company to be the leading company partly for its venture into LCDs in 1993. In part, the company’s growth can be attributed to its logo which has a blue background with the word Samsung written in white as well as its slogan, “turn on tomorrow”.
The methodology of the research was based on available information from literature review. As thus, most of the data was sourced from secondary sources and involved the review of available books and published journals. Collected data was then thoroughly analyzed to answer the research questions and provide insights into the inferences made. After data analysis, the findings were tested for their reliability and validity using a number of tests. For instance, validity was ensured through the use of only published material in the course of the research. The choice of Samsung as a company is driven by the continued growth and stability in an ever dynamic industry. Currently, the company is the leading manufacturer of mobile phones and tablets making it an ideal field of research. In addition, the availability of data relating to the research of the company was another reason why I chose the company for the research.
The branding strategy of the company was set up by the Chairman Kun Lee in 1996 when he planned to originate the operations of the company into universal programs. Ideally, the company aimed to increase its international brand by making investments worth US$ 3 billion towards marketing and branding (Michell, 2010, pp 61). Samsung is a testimony of the power of branding as traced from way back in 1998. Samsung Electronics Corporation with headquarters in South Korea entered into an agreement with the International Olympic Association to sponsor the 1998 Seoul Olympics. The events leading to the decision are recorded in history as having established the company as an international brand. Indeed, the company used the power it had in sponsoring the games while introducing itself to the world as an international brand through the success of the strategy.
The association with the Olympics increased the visibility of the company as well as its brand among consumers in the entire world. Although the Olympics was integral in the advancement of the company’s brand, it was only one among many events that the company sponsored in a bid to enhance its brand awareness. The company has spent billions of dollars in sports to improve its brand image and especially through sponsoring the Olympics game in different years. In 2000, the company sponsored the games in Sydney and did the same in 2004 during the Athens Olympic Games. Sports is identified as one of the integral ways in which the company intends to improve its international brand as seen through its continuous sponsorship of Chelsea football club. In the agreement, the players don shirts bearing the company’s logo therefore helping in marketing and branding of the company products. In addition, the players of the club are used to advertise the company’s brands including televisions and mobile gadgets.
Brand imaging is a pivotal tactic in a company’s consumer behavior research and marketing plan (Finskud, 2009, pp 37). One of the ways through which the company brands itself is through its logo which began in 1993. Over the years, the logo has evolved into the current logo after numerous alterations in both the design and message conveyed. The change from basic black bold type letters of the word Samsung with red star signs at the side into a blue background with the word Samsung written in white has driven a new corporate identity. The shape of the logo has an elliptical bearing which portrays an impression of modernization and advancement in both design and technology. In addition, the company’s slogan is effective in the advancement of the company’s brand. The “Turn on tomorrow” slogan informs a desire for a better tomorrow and manifests the company as a partner of choice for most consumers in the world.
The company targets the high end target market that is concerned about the quality of the products. As thus, the company spends a lot of money in promotions in the niche market to offset competition from rivals such as Sony. Ideally, the target market affects the company’s brand image as one that focuses on high class value to the consumers while certifying higher margins and efficiency. The identification of a good brand strategy is a key influence to the consumers and helps in improving the company’s value both directly and indirectly. The chairman of the company is directly involved in the development of the organization’s brand therefore ensuring efficient delivery from the steering committee. In the future, the company intends to shape its brand to focus on cheaper products for the low end market. In so doing, the company intends to push affordable products as the leading brands in low priced markets such as in the developing countries.
The development of a powerful brand is instrumental to the success that Samsung Electronics Corporation has enjoyed over its years of operations. The brand value has increased from US$ 5.2 billion to US$ 10.8 billion in the ten years preceding 2010 (Michell, 2010, pp 57). This improvement of more than 200% has been sparked by intensive marketing efforts that the company has continuously embarked on. In 2007, the company emerged as the twenty fifth in the list of the top 100 brands beating other electronics giants such as Sony and Panasonic.
In fact, the continued branding of the company was pivotal in raising the company to become the fastest growing brand in the world and the only Asian company outside Japan to be featured in the rankings. This is reflected in the ranking of the company’s products in 2015 where most of the smart phones were listed as the most popular in the world. Samsung galaxy note 4 leads in popularity at 9.8% followed by another product from Samsung, the Samsung galaxy S5.
Samsung has for a long time identified the need for marketing and brand development in achieving its business goals. Indeed, the company has created a lot of customer attraction in the past years through its unique marketing and branding strategies. The management of the organization has been effective in pushing the company’s brand image in the international market. These efforts have been realized through the achievements of the company in world rankings where it continuously features among other giant corporations. Ultimately, the company’s story is one of success where an organizations brand image is important in pushing the interest of the organization.
CHANG, S.-J. (2011). Sony vs Samsung the Inside Story of the Electronics Giants’ Battle For Global Supremacy. Hoboken, John Wiley & Sons. http://www.myilibrary.com?id=317523.
MICHELL, T. (2010). Samsung Electronics and the struggle for leadership of the electronics industry. Singapore, Wiley. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=405485.
FINSKUD, L. (2009). Developing winning brand strategies. [New York, N.Y.] (222 East 46th Street, New York, NY 10017), Business Expert Press. http://portal.igpublish.com/iglibrary/search/BEPB0000012.html.
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