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Brand audit samsung 2013 seeking luxury independently

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samsung brand audit for usa

samsung brand audit for usa

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  • 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 1
  • 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 Student ID: MSC-13- 01-293 - Page 2
  • 3. 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. Student ID: MSC-13- 01-293 - Page 3
  • 4. 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. Student ID: MSC-13- 01-293 - Page 4
  • 5. 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%). Student ID: MSC-13- 01-293 - Page 5
  • 6. 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. Student ID: MSC-13- 01-293 - Page 6
  • 7. 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. Student ID: MSC-13- 01-293 - Page 7
  • 8. 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 for whom? Mobile Devices which acquires mind space through its hardware and software at an affordable cost Consumers who seek stimulations to their mental requirements through all in one mobile device at an affordable cost. Samsung Brand for Why? Brand against whom? High performing processors and humanized sensors with quick responses which save time and money and energy and offers freedom Student ID: MSC-13- 01-293 All mobile digital media devices that provides mental satisfactions - Page 8
  • 9. 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 Student ID: MSC-13- 01-293 All the main 5 competitors contain unique logos ,colors and ringtone - Page 9
  • 10. 5.1.4 Samsung Brand Value Chain (Model No 4) Marketing Program Investment Customer Mindset High Awareness 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 Market Performance Low price models to high prices models Value for money, Stock Price at 636.50 USD up 2.00 at 0.32% Est. PEG Ratio 0.6050 Market Cap (M USD) 186,922.86 High elasticity Young, Fun and Fancy Devices High stock value High tech humanized features Shares Outstanding (M) 294.60 30 Day Moderately profitable 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% Android smartphones tailor made for different usage situations promotions MARKET Place Conditions Program Quality Multiplier Shareholders Clarity Maximum Coverage (Distributors, Sub Distributors) Only competition from Apple and HTC, Consumer Demand and Choice High Relevance Distinctiveness Consistency Student ID: MSC-13- 01-293 - Investor Sentiment Brand is No 1 in the portfolio, Chinese economy growth High Market Growth Dynamic Market with high risk profile Page 10
  • 11. 5.1.5 Customer Base Brand Equity Pyramid (Model No 5) What about you and me? Moderate level of Repeat purchase and Recommendation. Low level of personal attachment. Low level of social reflection Dependable Concerning Understanding What about you? 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. Rapid Modifier of features RESO NANCE Mind reader Trend Setter What are you? JUDGEMENT FEELINGS High level of Fancy, Fun and Stylish young unisex Image. PERFO RMANCE IMAGARY Technology advancer (New opportunity openings from older ones) Market reader SALIENCE Global thinker Who Are You? 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. Student ID: MSC-13- 01-293 - High Performance stylish designed mobile phones with options and features at an affordable cost Low level of reliability and durability A digital leader who understands and fulfills consumer untouched needs and wants. High level of brand consideration and credibility. Low level of brand superiority and quality. Page 11
  • 12. 5.1.6 Brand Mapping Matrix (Model No 6) Galaxy Series Mobile Phone Korean Big Display Samsung Vibrant Colors Android Motion Sensors Fantasy Touch Fancy 5.1.7 Five Dimension Brand Model (Model No 7) Touch Sound Taste Sight Smell Student ID: MSC-13- 01-293 - Page 12
  • 13. 5.1.8 Brand Positioning Bulls Eye Model (Model No 8) Consumer Target: Discreming Smartphone user Understanding, Open Minded, Sharing, Freedom, Life Companion Consumer Insight: tailor made options which caters different user situations is often unsatisfying Consumer Need State: desire for smart phones with different user situations and feature experience at an affordable cost 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. Values/Personalities/Character Substantiates POP 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 Brand Mantra POD Executional Properties/Value Identities Competitive Product Set: organizations offer mental satisfaction through digital media devices Everybody’s invited Samsung Jingle, Samsung Logo, Color Blue, Ring tone Student ID: MSC-13- 01-293 Consumer Takeaway: Samsung gives me a wide range of smartphones selections with unmatched features for an affordable cost. 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 - Page 13 FAB Sync and CIP implementation
  • 14. 5.1.9 Brand Pyramid Model (Brand essence) (Model No 9) Understanding, Open Minded Sharing, Freedom Personality Traits Values Life Companion Emotional Rewards User friendly Benefits Design and features (hardware and software) Brand Attributes Humanized Student ID: MSC-13- 01-293 - Page 14
  • 15. 5.1.10 Brand Code – 4D Branding (Model No 10) Functional Dimension: Energy efficient Smart phones tailor made for different user requirement supported by humanized sensors Mental Dimension Everyone’s invited Brand Mind Space SAMSUNG Spiritual Dimension Social Dimension Samsung Citizenship Program Value for money 5.1.11 Brand Asset Value Model (Model No 11) Student ID: MSC-13- 01-293 - Page 15
  • 16. 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). Student ID: MSC-13- 01-293 - Page 16
  • 17. 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 17
  • 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 18
  • 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 19
  • 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). . Student ID: MSC-13- 01-293 - Page 20
  • 21. 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. Student ID: MSC-13- 01-293 - Page 21
  • 22. 8.0 References ComScore Reports April 2013 U.S. Smartphone Subscriber Market Share - comScore, Inc. 2013. comScore Reports April 2013 U.S. Smartphone Subscriber Market Share - comScore, Inc. [ONLINE] Available at: http://www.comscore.com/Insights/Press_Releases/2013/6/comScore_Reports_April_2013_U.S. _Smartphone_Subscriber_Market_Share. [Accessed 19 September 2013]. Who's Winning the U.S. Smartphone Market? . 2013. Who's Winning the U.S. Smartphone Market? . [ONLINE] Available at: http://www.nielsen.com/us/en/newswire/2013/whos-winningthe-u-s-smartphone- market-.html. [Accessed 19 September 2013]. Mobile subscriber growth in the U.S. slows to a standstill — Tech News and Analysis . 2013. Mobile subscriber growth in the U.S. slows to a standstill — Tech News and Analysis . [ONLINE] Available at: http://gigaom.com/2013/08/13/mobile-subscriber-growth- in-the-u-sslows-to-a-standstill/. [Accessed 20 September 2013]. US Smartphone Market Share Q2 2013: Apple increases lead, Android up | BGR. 2013. US Smartphone Market Share Q2 2013: Apple increases lead, Android up | BGR. [ONLINE] Available at: http://bgr.com/2013/08/06/us-smartphone- market-share-q2-2013-nielsen/. [Accessed 20 September 2013]. Survey New U.S. Smartphone Growth by Age and Income . 2013. Survey New U.S. Smartphone Growth by Age and Income . [ONLINE] Available at: http://www.nielsen.com/us/en/newswire/2012/survey- new- u-s-smartphone- growth-by-age-andincome.html. [Accessed 20 September 2013]. US Smartphone Market - Business Insider. 2013. US Smartphone Market - Business Insider. [ONLINE] Available at: http://www.businessinsider.com/us-smartphone- market-2012-9. [Accessed 20 September 2013]. US smartphone sales and share by OS and carriers - February 2013. 2013. US smartphone sales and share by OS and carriers - February 2013. [ONLINE] Available at: http://www.androidauthority.com/android-us-smartphone-sales-early-2013-182182/. [Accessed 22 September 2013]. With 51.7% Smartphone Market Share Google Inc’s Android Is Prominent In The U.S Market.. 2013. With 51.7% Smartphone Market Share Google Inc’s Android Is Prominent In The U.S Market.. [ONLINE] Available at: http://www.dazeinfo.com/2013/06/03/with-51-7-smartphonemarket-share-google- incs-android- is-prominent- in-the-u-s-market/. [Accessed 22 September 2013]. Nielsen Survey: Apple Slips In Desire Stakes To Android — paidContent . 2013. Nielsen Survey: Apple Slips In Desire Stakes To Android — paidContent . [ONLINE] Available at: Student ID: MSC-13- 01-293 - Page 22
  • 23. http://paidcontent.org/2011/04/26/419-nielsen-survey-apple-slips- in-desire-stakes-to-android/. [Accessed 22 September 2013]. . 2013. . [ONLINE] Available at: http://heidicohen.com/wp-content/uploads/U.S.-SmartphoneBattle-Heats-Up_-Which- is-the-%E2%80%9CMost-Desired%E2%80%9D-Operating-SystemNielsen-Wire1.png. [Accessed 22 September 2013]. Freeform Dynamics - Published Content. 2013. Freeform Dynamics - Published Content. [ONLINE] Available at: http://www.freeformdynamics.com/fullarticle.asp?aid=1617. [Accessed 25 September 2013]. Motorola, Samsung top smart phone reparability ranking | Mobile - CNET News. 2013. Motorola, Samsung top smart phone repair ability ranking | Mobile - CNET News. [ONLINE] Available at: http://news.cnet.com/801-1035_3-57604761-94/motorola-samsung-topsmartphone-repairability-ranking/. [Accessed 27 September 2013]. Vernacular. 2013. Vernacular. [ONLINE] Available at: http://www.samsung.com/in/languages/. [Accessed 27 September 2013]. About Samsung - Samsung. 2013. About Samsung - Samsung. [ONLINE] Available at: http://www.samsung.com/in/aboutsamsung/. [Accessed 27 September 2013]. Citizenship - About Samsung - Samsung. 2013. Citizenship - About Samsung - Samsung. [ONLINE] Available at: http://www.samsung.com/in/aboutsamsung/citizenship/index.html. [Accessed 27 September 2013]. Samsung’s Latest Numbers Are In! - Samsung Blog - Samsung Village. 2013. Samsung’s Latest Numbers Are In! - Samsung Blog - Samsung Village. [ONLINE] Available at: http://www.samsungvillage.com/blog/2013/08/samsungs-latest-numbers-are- in.html. [Accessed 27 September 2013]. Manufacturing Overview | Samsung Semiconductor Global Website. 2013. Manufacturing Overview | Samsung Semiconductor Global Website. [ONLINE] Available at: http://www.samsung.com/global/business/semiconductor/foundry/manufacturing/overview. [Accessed 27 September 2013]. Apple predicted to gain additional U.S. smartphone share over Samsung in 2013. 2013. Apple predicted to gain additional U.S. smartphone share over Samsung in 2013. [ONLINE] Available at: http://forums.appleinsider.com/t/156556/apple-predicted-to-gain-additional-u-s-smartphoneshare-over-samsung- in-2013. [Accessed 30 September 2013]. SMSN:London Intl Stock Quote - Samsung Electronics Co Ltd - Bloomberg. 2013. SMSN:London Intl Stock Quote - Samsung Electronics Co Ltd - Bloomberg. [ONLINE] Available at: http://www.bloomberg.com/quote/SMSN:LI. [Accessed 30 September 2013]. Student ID: MSC-13- 01-293 - Page 23
  • 24. Student ID: MSC-13- 01-293 - Page 24