Samsung Galaxy brand extension analysis

1. SAMSUNG GALAXY
BRAND EXTENSION
ANALYSIS
Sowmya Godise, PGP30108
IIM Lucknow

2. Parent Brand: Samsung
Electronics
Manufacturer: Samsung
Electronics

3. PARENT COMPANY SAMSUNG
ELECTRONICS
1938 Founded by Byung Chull Lee, Korea
1970s Market leader of black & white televisions and micro ovens
1980s Color TVs, Air conditioners, Personal Computers
1991 First mobile handset
1999 First wireless equipped phone-smartphones
2009 Galaxy

4. BRAND EXTENSION ANALYSIS
Brand Equity
 Samsung wanted consumers to think of Quality and specifications and build up the brand
up to the lifestyle and features differentiating from other manufacturers
Brand Logo & Brand Name
 Graphic element of galaxy to the visual of brand logo so that
a) consumers remember easily
b) Persisting brand name so that brand familiarity exists
Tagline
 “Galaxy in your hands” states whole world in your hands, implying:
a) stay connected to most important people and receive updates from them
b) user can use it to the core and benefit out of it the most

5. MARKET SHARE
 Samsung galaxy achieved NO.1 ranking in sales revenue and market share in
the mobile phone market
2014 2013 2014/2013
growth
rate
2012
25.2% 32.3% -3.9% 26.9%
2014 2013
Samsung 25.2% 32.3%
Apple 11.9% 13.0%
Huawei 06.9% 04.3%
Manufacturer’s Revenue in Billion US dollars
2013 2012 2011
216.71 190.57 154.05

6. MARKET ANALYSIS
 Samsung’s official Q1 2015 reports convey operating profit $5.63 billion and
revenue of $44 billion
 These numbers represent a drop in operating profits year-over-year, down from
$7.8 billion in Q1 2014
 Taking mobile sales into account, Samsung reports an operating profit of $2.5 billion
on revenues of $24.1 billion
 Reasons:
 lowered tablet and feature phone sales
 increased smartphone market competition
 “strong competitive pricing” at the lower half of the portfolio

7. MARKET SEGMENTATION
 Geographic Segmentation:
Europe, US, South Asia
 Psychographic Segmentation:
People who are Android friendly & who do not prefer iPhone, tech savvy (latest),
social addicts
 Demographic Segmentation:
IT working class, students, 18-35 age group
Target customers:
a)18-30 year old users
b)Young and social addict
c)Value based
d)App necessity driven

8. Galaxy S Series
Samsung Galaxy
Note
Samsung Tab series
Galaxy Grand Series

9. ALTERNATE PRODUCTS

10. Apple iphone
Lava
Perceptual
map High Quality
Low Quality
High Price
Low Price
XX’
Y
Y’

11. FRAME OF REFERENCE FOR SMART PHONES
I. Price & Quality
II. Features like OS, display, camera, speed, storage etc
III. Latest applications support like whatsapp, Instagram,
facebook, twitter, etc
IV. Connectivity support like 3G/4G
V. Look & feel
VI. Innovation
VII. Long lasting battery time
VIII. Fast performance

12. POINTS OF PARITY FOR SMART PHONES
Features like fixed storage, camera,OS,
battery life, display, etc
Support latest technologies
Look & feel
innovation

13. POINTS OF DIFFERENCE FOR SAMSUNG GALAXY
Where does
Samsung
Galaxy stand
out?
 More features at a low cost like better
camera, wireless charge, display, screen size, higher technology
support, high storage, better resolution, etc
 Constant inevitable innovation
 Posh look & feel at a low cost
 First mover advantage which lead to
the trust and credibility
 https://www.youtube.com/watch?v=O-msXJ4TsZM

14. PRODUCTS
Best quality manufacturers of tablets and high end smart
phones
Largest manufacturer of Android driven devices
By end of 2014 sold over 600 million cellular devices
Samsung comes with new model every month

15. PRODUCTS
•Business
efficiency
•Security
Samsung
Galaxy S5
•Professional
lifestyle
Galaxy
Note 10.1
•Ease of
tasks
Galaxy
note PRO

16. CHANNEL MARKETING
CHANNEL MARKETING
Samsung retail: sells products through supermarkets to expand their in-store
share
Sales and service dealers: involved in corporate sales or own exclusive
Samsung show room
Modern Retail: Viveks, Vijay Sales, Hypercity, Croma-exclusively prefer
Samsung
Distributors: Scheme of single distributor in single city Eg: SSK distributor in
Mumbai for all products in the city

17. PROMOTION
Newspapers and the electronic media help in promoting new launches as well as in
informing about Samsung products and its goals
Celebrities are invited for the launch of a new product
Often-famed celebrities like Amir Khan and Priyanka Chopra are made its brand
ambassadors
Hoardings and posters are put up in the major cities
Samsung’s strategy is to use almost 5% of revenue generated from sales in promotion
Public relations, putting out new releases, writing articles for trade publications etc. are
usually the part of promotional schemes.

18. PRICE
 Skimming Price technique:
 Samsung gets a high value for a commodity before the competition sets in the
market.
 Once the product becomes old or faces a clash by other such products,
Samsung reduces its price
 competitive pricing schemes:
 Samsung doesn’t have the reputation of entering late in the market.
 Doesn’t have to produce products at a lower price in order to catch up.
 Instead, other companies have to price their products lower in order to compete
with Samsung.

19.  Samsung Electronics category extension is Samsung Mobiles
 In Samsung mobiles, line extension is Samsung Galaxy which is No.1 in market share in
mobile phone market
 Samsung wanted consumers to think of Quality and specifications
 Built up the brand up to the lifestyle and features differentiating from other
manufacturers
 Competitors are Apple iphone, HTC majorly. Recently even newer phones joined the list
 Points of parity: operating system, product features, innovation
 Points of difference: more features at low cost, constant innovation, first mover
advantage in smart phone category

20. REFERENCES
 http://www.portal.euromonitor.com/portal/analysis/tab
 http://www.marketing91.com/marketing-mix-samsung-galaxy/
 http://www.portal.euromonitor.com/portal/analysis/tab
 http://www.in.techradar.com/news/phone-and-communications/mobile-
phones/Samsung-Galaxy-S4-vs-iPhone-5S/articleshow/38596123.cms
 http://www.business-standard.com/article/management/samsung-goes-for-
galaxy-shower-113070400966_1.html
 http://www.digitaltrends.com/mobile/history-of-samsungs-galaxy-phones-and-
tablets/
 http://www.gartner.com/newsroom/id/3061917
 http://www.samsung.com/us/aboutsamsung/corporateprofile/history06.html
Gartner reports