Transcript of "Brand study on 'samsung electronics'"
BRAND MANAGEMENT Project OnBrand Positioning of Submitted by ArjunPrakash S (28004) DivyaBala (28076) Hariharan D (28083) Judah Jebadas (28085) Krithika S (28092) Naveen M (28099) Prreethi E (28100) Ramesh V M (28102) ShanmugaSundaram A (28108) Suganprabhu R (28114)
PRODUCT CATEGORIES The product categories of Samsung are as follows Mobile phones Tablets TV/Audio/Video Camera Home Appliances PC/Peripherals Memory cards Market Product Category Market Share size(units) Mobile phones 21% 86.6 million Tablets 9.90% 4.4 million TV/Audio/Video 30% 39 million Camera 15% 129 million 1.7 million+7 Home Appliances 24% lakh PC/Peripherals 8% 1.9 million Memory cards 42.40%ROLE OF SAMSUNG IN EACH PRODUCT CATEGORYMobile In the mobile phone category, Samsung has made sure to have a lengthy extension of itsproducts starting from basic phones to the most advanced smartphones. In India the brand equity ofSamsung is very high. About a decade back what was once dominated by the Nokia and Motorolahave now been captured by Samsung. The brand ambassador for the company is Aamir Khan –known for his integrity in the Bollywood industry. Amir Khan mainly promoted the “hero” series ofmid-range phones. Later in 2009 Samsung launched its “corby” series which was believed to take the mobilephone market to a whole new level. Affordable cost multimedia combined with the mobile internetmade customers go crazy after the product. The positioning of the “corby” series was perfectly madeby targeting the youth segment of the country, which constituted more than half of the target groupin the mobile phone segment. Instant updates on facebook and affordable touch screen phonesadded further value to the phones. In 2010 Samsung further raised the bar by introducing the “galaxy” series which tookSamsung to higher end segment – which was enjoyed only by “APPLE”. Ads were made targeting thecustomers of Apple. Most of the ads implicitly instigated customers to move from apple to Samsung.Samsung promised better feature at a lower cost.
Television In 2009, Samsung sold around 31 million flat-panel televisions, enabling to maintain theworlds largest market share for a fourth consecutive year. In early 2010, the company had set theyears sales goal at 39 million units (including 10 million LED televisions). In March 2009, Samsunglaunched the "Finger-Slim" super-slim LED television. In 2009, the product sold around two millionunits. The company has led the flat-panel television market for the past five years with the 2006introduction of its "Bordeaux" line, followed by the 2007 Bordeaux model, the 2008 "Crystal Rose"line, and the "Finger-Slim" in 2009. The company retained the leading position by successfully sellingmore than 1 million 3D televisions as of August 2010. Samsung launched its first full HD 3D LEDtelevision March 2010. Samsung had showcased the product at the 2010 International ConsumerElectronics Show (CES 2010) held in Las Vegas. Samsung sold more than one million 3D televisions within six months of its launch. This isthe figure close to what many market researchers forecast for the years worldwide 3D televisionsales (1.23 million units). It also debuted the 3D Home Theater (HT-C6950W) that allows the user toenjoy 3D image and surround sound at the same time. With the launch of 3D Home Theater,Samsung became the first company in the industry to have the full line of 3D offerings, including 3Dtelevision, 3D Blu-ray play, 3D content, and 3D glasses.Smart televisions In 2007, Samsung introduced the Internet TV, enabling the viewer to receive informationfrom the Internet while at the same time watching conventional television programming. Samsunglater developed "Smart LED TV", (now renamed to "Samsung Smart TV") which additionally supportsdownloaded apps. In 2008, the company launched the Power Infolink service, followed in 2009 by awhole new Internet@TV. In 2010, it started marketing the 3D television while unveiling theupgraded Internet@TV 2010, which offers free (or for-fee) download of applications from itsSamsung Apps store, in addition to existing services such as news, weather, stock market, YouTubevideos, and movies. Samsung Apps offers for-fee premium services in a few countries includingKorea and the United States. The services will be custom-tailored for each region. Samsung plans tooffer family-oriented applications such as health care programs and digital picture frames as well asgames.Camera After having successfully captured the mobile phone industry in India, Samsung’s next bigplan is to become the market leader in the camera segment. The market was valued at Rs 17.5billion during the fiscal year 2010 and is expected to attain a CAGR of 43% to reach Rs 104.6 billionby 2015. There prevails a cut throat competition between the major players which includes Sony,Nikon, Kodak, Canon and more recently Samsung. The strategies followed in marketing the camerassound similar to the strategies followed by Samsung in the mobile industry about a decade back.They have entered the industry by releasing 12 new digital cameras at the lower end which starts atRs. 5000. They have understood the fact that 80% of the sales come from under Rs 10,000 segment.The high feature rich and affordable pricing makes Samsung products desirable. With the brandloyalty created by home appliances and mobile phones, Samsung was able to efficiently leverage onits secondary associations. Samsung took enough measures to understand the brand feelings among
the customers. They efficiently differentiated its brand association between its lower end segmentand the higher end segment. The lower end segment cameras were positioned among the middleclass and upper middle class families. The emotion in the families was captured in the ads. On theother hand the higher end SLR cameras were positioned among the professionals and youthsegment.Laptop/PC Samsung’s entry into PC segment began by launching monitors. This was a huge success andeven today many people prefer having a Samsung LCD monitor. But their entry into laptop segmentwas a bit late. Moreover their market share is also less. This clearly shows that Samsung hasidentified its key strength and decided to concentrate only on those rather than focussing in everysegment.Tablet Samsung with the launch of Galaxy Tab series of tablets compete against the much strongerApple’s I pad. But Samsung’s tablets run on Android platform and the prices are also quite low whencompared to its competitors. Samsung would definitely come up with further new innovations in thisfield as Microsoft has also entered the market with its launch of tablets which would furtherincrease the rivalry.Home Appliances Samsung is also a leading manufacturer of many home appliances. Among them it leads inthe microwave segment where there are no stiff competitions. Refrigerators and Washing machinesare manufactured by Samsung.RESEARCH METHODOLOGY A questionnaire was created and was circulated to collect the responses. Apart from thequestionnaire, the focus group discussions had during class was also used to collect responses toframe the key insight.Sample Size: 30Male: 21; Female: 9 Age wise details 13% <25 25-35 27% 60% >35
DATA COLLECTION Differentiating factor cutting edge technology 23% 33% Pushing through the dealers Affordable price 3% Innovative design 40%Average satisfaction level: 3.7/5BRAND ASSOCIATIONS
MENTAL MAPPING POINTS OF PARITY AND POINTS OF DIFFERENTIATIONSamsung electronics produces consumer electronics in five categories , they areTV‟s and video /audio players , mobile phones, computers , cameras , homeappliances . we have discussed the points of parity and points of differentiationof Samsung with its competitors in the following pagesTV/Video/audio players – Samsung has become the company with the highestsales of TV‟s . They were the first to introduce 3D Led tv‟s .They have alwayshad a head to head competition with sony in the TV segment. In the past fewyears Samsung has managed to become the leading producers of TV. Theirpossession of Samsung chip has also enabled them to come up with innovativeproducts like the smart tv in response to sony‟s internet tv . They have beensuccessful in integrating technology with electronics thus becoming the marketleaders . they also have the advantage of manufacturing their TV‟S in their ownfactory while sony outsources the manufacturingPoints of parity –Both sony and Samsung give importance to innovation andpicture quality . both had a tough competition introducing slim/ultraslim Tv‟s
.sony introduced internet TV , while Samsung introduced smart TV . Samsungalso introduced 3D LED tvPoints of differentiation-samsung has 3 points of differentiation .First one wasit tried to create an emotional connect with the Indian families. They wantedto project the TV as a member of family through advertisements that spokeabout naming the TV . This campaign was specially developed for Indianaudience because TV was considered to be integral part of every Indian middleclass family.Another point of differentiation was providing more value for themoney they pay . The third point of differentiation was design . their adcampaigns had tag lines like “design that performs “, “dikhayiye acha , dikhiyeaur bhi acha”Overall positioning:- better quality and design , innovative features value formoney , integral part of familyHome appliances:- Samsung has a variety of products under home appliancescategory . They include air conditioners, microwave oven , refridgerators,washing machine , vacuum cleaners , etc . In india Samsung has toughcompetition from another south Korean company LG.Points of parity:- There are a lot of pop‟s between Samsung and LG . Bothconcentrated on innovation and brought new technologies. LG boughtinnovation in the form of side by side door fridge , automatic doors for fridge,health guard in AC , tallest cooler in fridge .while Samsung imtroducedinnovation like s series compressor in AC,Digital inverted compressor thatkeeps food fresh for 7 days ,uniform cooling , FRUNCH – new sound offreshness , bubble generator in washing machine ,biosleep :-ac sets temperatureaccording to body temperature.Both concentrated on healthy lifestyle.LG „s tagline itself is life‟s good . while Samsung concentrates on keeping food fresh ,pure air from ac , protection of soft clothes and other product benefits .Points of differentiation:-samsung has a brand ambassador for its homeappliances segment whereas LG doesn‟t have a brand ambassador . samsung‟sbrand ambassador is priyanka chopra . having such a popular personality as
a brand ambassador helps in keeping the brand in people‟s memory .samsungalso develops appliances specifically for Indian market . they have AC‟Sdesigned specifically for Indian summer .washing machine that protects softclothes like Indian cotton ,silk etc and also removes toughest of stains.microwave oven‟s campaign says way to his heart is through his stomach .Themost important differentiation is that samsung’s appliances are energyefficient and runs on less power hence gives 20% percent savings inelectricity bill . This is specifically for india where Indian middle class segmentis very much concerned about growing electricity bills .Overall positioning:- healthy living , innovative product features , energyefficient hence cost savingCameras:-Samsung is not a very big player in cameras segment buut still its apopular brand . it has got tough competition from canon and sony. Camerassegment include handy cam , digital cameras .Points of parity:- Product features and innovation like super zoom , 270 degreewide angle shots in sony . better picture quality in canon . dual view and multiview cameras from SamsungPoints of differentiation:- There is not many pod‟s in this segment . all thecompanys are focused only on increasing the product features and innovationand samsung too does the sameMobile phones:-samsung is one of the highest sellers of smart phones .it has atough competition with apple . There is a tough competition between apple‟siphone and samsung‟s galaxy . In india Samsung has tough competition withnokia . it has also raced ahead of nokia .They used the possession of their ownchip to their advantage and bought about lot of innovationPoints of parity:- product features and innovation is a major point ofparity.Nokia focuses on features like music player. And also on emotionalconnect with family , which Samsung does it with the guru phone . while applefocuses on innovation which Samsung does it with corby and galaxy phone
Points of differentiation:-samsung‟s main point of differentiation is morefeatures and better features for the money that you pay . they have the tagline “sab kuch behtar hai “ for Samsung guru .they have aamir khan as theirbrand ambassador because his personality and image of a reliable superstar whocan perform a variety of roles to perfection matches samsung‟s personality andpositioning. Samsung guru was introduced as a competition to nokia‟s 1100. Itpositions itself having better features than other lower end phones . they alsoused innovation as a point of differentiation , they were the first movers insmart phone segment in india by introducing corby and galaxy .Overall positioning:- better and innovative product features , value for money, affordable luxuryLaptops:- Samsung is an emerging player in laptops . Though it has its ownchip , it uses intel chip in its laptop to be on par with the competitors . it hascompetition from dell and hpPoints of parity :- The major points of parity is performance and style .Points of difference :- samsung laptops focus more on some basic needs ofcustomer like light weightedness , longer battery life , safety in the form of spillproof keyboard , brighter screenOverall positioning :- samsung laptops have a better version of the consumersbasic expectations from a laptopOverall brand positioning of samsung All samsung products focus a lot on product benefits and features . They want to provide a variety of benefits and features from a single product Most important feature is the integration and use of technology in delivering the necessary value Innovation is also a key criteria . All samsung products focus on value for money . one of their positioning is that of getting more than what you pay for .
They also position themselves as better providers of the points of parity than their competitors POSITIONING STATEMENT OF SAMSUNG For every person who wants to get the maximum value for the price that they pay . The samsung electronics is an electronics firm that provides electronic goods that satisfy all your explicit and implicit needs more than your expectations . Unlike other electronic firms , our products are innovative , at the same time provides maximum value . on the whole its affordable luxury .KEY INSIGHT – Innovation with valueAnalysing the brand associations collated, it was observed that most of the consumer insights weretouching upon the following dimensions of the brand: innovation, market leadership, design,performance, reliability and affordability. After many deliberations the group arrived at Innovationwith Value as the key insight. The “value” factor adds significance to the innovation by creatingsolutions for the consumer and sales and revenue for the company. The key insight is validated evenwhen tested with Brand Key elements as it goes hand in hand with the Brand Essence. 1. Competitive Environment 2. Target 3. Consumer Insights 4. Benefits 5. Values and Personality 6. Reasons to believe 7. Discriminator 8. Brand essenceAlso when looked from the Brand Dynamics Pyramid perspective, the key insight seats Samsung atthe highest pedestal of “Bonded”Brand Dynamics Pyramid 1. Awareness 2. Relevance 3. Performance 4. Advantage 5. Bonded
From the Brand Pyramid perspective Also the key insight with the use of “with value (to consumers)” addresses the top of the “Brand Pyramid”:- Relationships On doing a mental mapping within the group and by placing brand associations from the survey, Samsung comes across as a soft, simple and rational and also sophisticated, exaggerated and contemporary. ANNEXURESURVEY QUESTIONNAIRE 1. Gender – Male, Female 2. Age - <25, 25-35, >35 3. Do u have any of the following manufactured by Samsung – Mobile, Tablet, TV, Camera, Home apps, PC, Memory card 4. Are you satisfied with the product – Yes, No 5. Please describe the brand Samsung in one word 6. What do you think is the differentiating factor of Samsung compared with its competitors – Affordable Price, Innovative design, cutting edge technology, Applications 7. Will you be ready to buy a Samsung product just because of its brand name 8. Do you believe Samsung could become the market leader in majority of their product categories 9. Do you feel purchasing a Samsung product to be worth – Yes, No The majority of the respondents were students of PGP 2. Apart from them survey was alsodone with people outside BIM. Most of them were young professionals in various organizations. Thesurvey was clearly done only with the respondents who had prior exposure to products of Samsungin order to avoid getting any guesses.