Executive Summary
This study aims to decide the best course of action to manage and preserve a new brand in the fiercely competitive business; Slate Corporation is researching branding strategies. Slate will base the choice of its strategy on a thorough brand research of its two main rivals, Apple and Samsung. This in-depth research will consider customer behavior, brand initiatives, and the strategic edge that comes with substantial brand equity. Because keeping an existing client base is less affordable than acquiring new ones, businesses like Samsung and Apple consciously cultivate brand loyalty. Company heavyweights Samsung and Apple have successfully leveraged branding and promotion to build unmatched brand equity while keeping a sustainable balance between attracting new clients and spending on keeping existing ones. Slate will need to quantify the projected customer’s contribution toward paying the company’s fixed costs over that customer’s estimated life to develop a brand that can compete with companies like Samsung and Apple.
Introduction
A successful business will eventually have to choose between staying small or growing. There are several reasons a business can expand by entering new markets. A few reasons for expansion are making the most of a company’s strengths, reducing risk through diversity, bolstering branding, and obtaining economies of scale (Roe, 2021). A small number of businesses have succeeded internationally after experiencing significant national or regional success for those looking to launch products or services in the worldwide market or those currently active in global marketing, studying the successes of firms like Samsung and Apple, for example, as a beneficial market analysis. Marketing professionals can and should explore these company histories as success case studies. In addition to becoming prosperous, Samsung and Apple have also built a devoted consumer base by strategically placing their brands (Kadimi, 2019). The competition between Samsung and Apple over the past ten years to win people’s minds and hearts has fueled innovation and produced two of the most profitable world marketing efforts. Although both businesses have centered their promotion strategies on knowledge and technology, highlighting ground-breaking designs and cutting-edge applications, their product marketing campaigns are invariably about the customer rather than the product (Kadim, 2019). Therefore, this essay will analyze the branding components of these two companies (SAMSUNG and APPLE), their subbrands and extensions, factors leading to their strengths and weakness, global performance, and consumer perception.
Brand element for SAMSUNG Company
One of the most popular businesses ever is Samsung. For those who are passionate about marketing, it has many facets that are worth exploring. Investigating this brand in-depth to discover its success’s secret is fascinating. Samsung had to overcome early consumer impressions that it was only a manufacturer of inexpensive devices (Marketing, 2017). In 1993, Samsung employed a forceful branding approach that helped the company become one of the most well-known brands on the planet. All of the world’s major markets, including Europe, the Americas, and Asia, are big consumers of the brand (Darbinyan, 2020).
Brand Personality
A strategic plan to “make a better future full of better dynamic content through new products and technology has been made public by the corporation, whose mission is to “inspire the world, create the future.” Samsung claims that its objective is to maintain its pioneering heritage while becoming a “valued brand.” Samsung was among the first companies to recognize that profitable innovation required continual support from the most incredible designs and technologies (Marketing, 2017). With an aggressive strategy for advertising and branding, Samsung has risen to the top of the sector and gained a larger market share. Samsung stands apart with reasonable pricing, top-tier capabilities, and cutting-edge features across consumer products. By offering a variety of modifications and available data products, Samsung has increased its appeal to techies (Kadim, 2019). In all of its product levels, Samsung has successfully advertised the functional advantages of its brand and combined them with cutting-edge innovation, stylish aesthetics, and intriguing features (Marketing, 2017). Everybody can find something on Samsung.
Brand Image
Samsung’s image is heavily influenced by the brands of its products, which results in a strong brand image. To win customers’ trust, they provide high-quality goods at competitive prices. Samsung routinely takes home honors regarding high-quality goods, technological advancements, and cutting-edge layouts (Darbinyan, 2020). Samsung is renowned for having a wide selection of consumer electronics, from simple everyday devices to high-end models that can compete with premium brands (Banerjee, 2021). A significant portion of Samsung’s reputation stems from an appeal to the ability to innovate or produce valuable things (Darbinyan, 2021). Samsung’s branding and marketing aim to appeal to two different audiences in this way. The conscious progressives come first; they are youthful, intelligent people open to new ideas and challenges. Progressives aware of the issues regard Samsung as a high-quality brand with an affordable price. Moreover, Samsung seeks out ambitious, prosperous customers. Actualizers frequently consider Samsung a premium brand that can keep them current with the hottest trends worldwide (Darbinyan, 2021).
Brand Identity
Samsung aspires to dominate the consumer technology market. Samsung puts much thought and works into every product they produce, as evidenced by its goal statement, “We will devote our people capabilities and innovation to generate excellent products and services, thus contributing to enrich the global community .”Samsung’s purpose and vision statements work together to address the creative needs and demands of its customers. The purpose of Samsung is to “inspire the world with our emerging solutions, products, and configurations that enrich people’s lives and boost social prosperity by establishing a new future.” (Darbinyan, 2020).
Samsung recently unveiled its goals to create a future that is more ecological, personalized, and connected through goods and projects that are lifestyle-focused and have a low impact on the environment (Samsung, 2022). The new “Together for Tomorrow” initiative aims to inspire and motivate everyone to effect change and work together to address the world’s most urgent issues. With personalized experiences that consider consumers’ changing lives and innovations that signal development for society and the environment, Samsung hopes to usher in an era of togetherness. Samsung’s brand recognition has increased due to its environmental measures, and it was named ninth among the Best 30 Tech and Telecom companies on the EPA’s 2016 Green Power Partner list (Samsung, 2022).
Brand Differentiation
Samsung is aware that to be successful, its products must have the best design. They have positioned themselves in the markets and users’ minds in a distinctive way by adopting technologies, cutting-edge technology, and the newest and trendiest designs (Marketing, 2017). Samsung uses a variety of strategies to set its brand apart. In the beginning, Samsung’s branding and marketing approach used the “Regular Guy” persona by appearing to connect people and societal aims and to produce commonsense qualities that fit in effortlessly. Samsung successfully differentiates itself from other luxury brands by offering a selection of items at various price points to give customers a sense of connection and ownership. Another feature that sets Samsung apart is spending practically endless amounts of money on research and development. Samsung committed and spent $16.4 billion on research and development just in 2019. (Darbinyan, 2020).
Branding Positioning
Samsung aimed to establish itself as a pioneer in digital convergence thanks to its cutting-edge technology in wireless transmission, memory chips, and plasma panels (Marketing, 2017). Samsung’s branding strategy is centered on five primary pillars: internal brand, cutting-edge tech, innovations, world-class designs, and hiring the most remarkable workforce worldwide. Samsung’s commitment to innovation is accompanied by a significant investment in research and development to create the newest technology (Marketing, 2017). The European Union R&d Expenditures Scoreboard recognized Samsung as the top technology spender in 2016 and the second-highest global outlay, with USD 13 billion invested. The business has committed to funding R&D with at least 9% sales income (Marketing, 2017).
Brand Communication
Samsung’s communication plan comprises two primary goals. Start by redefining Samsung as an elite, global brand that offers quality, trustworthiness, and design. Second, Samsung communicates to be understood and regarded on par with its rivals (Marketing, 2017). In order to promote its brand and personality, Samsung purposefully employs as many communication channels as possible, including media advertising, media affairs, event sponsorship, sports partnerships, branded content, the Samsung experience portfolio, and Samsung experienced retail outlets. To market current and pertinent social marketing, Samsung also directly manages numerous social pages for Samsung TV, Samsung Mobile, Samsung USA, and other brands (Kadim, 2019). Samsung sponsored the Olympics and sporting activities as a part of the campaign to promote teamwork and a sense of global interconnectedness. In 1999, Samsung changed the focus of its advertising campaign to “DigitAll: Everyone is Invited” and reaffirmed its preeminence in the digital era (Marketing, 2017). Samsung again changed course in 2013 and launched the global campaign “Design Your Life” to showcase the personal connectivity of its most recent line of devices. It is clear from these ads that Samsung wants to keep leading the sector by utilizing new marketing and communication platforms, methods, and platforms (Marketing, 2017).
Brand Loyalty
Samsung has put much effort into establishing its brand over the years and, by most accounts, has successfully separated itself from most rivals. Improvement sales helped Samsung during most of its growth, with 23% of returning customers citing upgrades as the reason they kept doing business with Samsung (HIS, 2020). Hardware and technical advancements were highlighted by 27% of devoted customers, while pricing points convinced 24% of them. The major motivators are cost savings and privacy worries, with 26% of users willing to switch (Mahipal, 2021). Even more alarming for Samsung is that 53% of customers who want to switch brands have said they will buy Apple products next (Mahipal, 2021).
Brand Equity
Among the essential brands today and the most lucrative tech business is Samsung. Since 2000, when Samsung was ranked number 43 on Interbrand’s ranking of the Top 100 Best Global Brands, its brand equity has steadily increased. According to Samsung (2020), it climbed to position five on the same ranking in 2020 as its brand value was obtained by 2% from the previous year to $62.3 billion. The company’s commitment to sustainable development, its essential product releases, and its continual investment in development and research that results in the creation of new technologies are all factors that have contributed to Samsung’s brand equity growth (Samsung, 2020).
Brand Element analysis for APPLE company
Brand analysis is required to calculate marketability. It is also employed to establish a brand’s reputation. Assessment of the external and internal factors that impact a brand is necessary for practical brand analysis. An effective brand analysis must take into account industry forces and competition. Determining the strength of the competitive forces that influence a brand’s place in the market is essential. When doing brand analysis, keeping a close eye on economic factors, such as sales volume, distribution routes, customer base size, and competition count, is crucial. Apple has become one of the most successful companies in the past decade due to its excellent promotion approach (Rampton, 2019).
Brand personality
Users have a sense of brand loyalty to Apple since of its aesthetically attractive features and cutting-edge technology. Users’ concern over data collecting occasionally overshadows this obligation to simplicity. Individuals with positive perceptions relate Spock and Dory to the Apple brand personality. The persistent objective of Apple’s branding and marketing initiatives has been to personalize its products and emphasize the emotional nature of relationships and people’s dreams and ambitions (Kadim, 2019). Users find Apple’s UI to be enlightening and practical. Through flawless innovation and integration, users are reminded of Spock’s ability to recall and use knowledge easily. Others refer to Dory as the Apple brand’s personality; beauty and originality, in their opinion, are evocative of Dory’s eccentric attitude. These features foster brand loyalty and inspire buyers to buy more Apple products to incorporate into their life. Alternately, consumers contend that certain facets of the Apple brand personality, such as Ursula, have a manipulative bent. Many people consider Apple’s iconic products essential to their life and technology usage, despite some concerns about how the company uses their personal information. Most people think that Apple’s gadgets’ usability and interface far transcend their concerns and deliver the impression they are promised (Kadim, 2019).
Brand Image
Apple sells goods intended to improve its customers’ lives by enabling them to learn, empowering them to create, supporting them with their jobs, breaking up their routines with play, sharing with family and friends, and maintaining their health (Apple, 2020). Being the first to do anything or create something novel is not necessary for Apple. Instead, Apple views innovation as a product that will improve customers’ lives. Innovation does not, according to Apple, mean being among the first to try something new. Apple instead characterizes innovation as a process that will improve customers’ lives. Apple frequently prefers software and hardware releases that concentrate on application features and quality rather than quantity, which illustrates this (Apple, 2020).
Brand Identity
The aggregate effort of all a brand’s user-facing elements to influence the customer’s viewpoint is referred to as brand identity. An organization’s logo, color scheme, and font selection should be carefully considered to convey its product or service to customers. Apple created a marketing strategy based on the 4P factors (Place, Product, Promotion, and Price) that emphasizes luxury branding. Apple leverages the premium brand by ensuring that each of the 4P components contributes to the brand’s sustainability (Greenspan, 2019). There may not be a better brand to examine than Apple when discussing what constitutes a successful brand identity.
Going against the grain and providing customers with something unique from the other well-known brands in their sector is frequently how companies like Apple generate a distinctive brand identity. To do this, Apple occasionally placed its brand image against that of Microsoft and other well-known IT companies. They had a more inventive, youthful, and combative brand identity than its competitors. While Apple is now a well-known tech business and a fixture in our lives, there was a time when they were a newbie to the industry and needed to establish its place by providing a unique, engaging, and distinguishing brand identity (Greenspan, 2019).
Apple is clear about its objectives and brand message. Every time Apple participates in mass discourse, the message sent is relevant to the company image and the goals it has set for the future. Apple has created an adaptable brand recognition that can be applied to industries such as streaming apps, Apple TV, desktops, and smartphones (Bissette, 2022).
Apple has established itself as a highly recognizable brand; its logo is distinctive, and its core values are indelible in the annals of popular culture. They are now one of the most easily recognized brands, thanks to years of improving their brand image and teaching users about who they are and what they do (Bissette, 2022). This is something that Apple has mastered to the point where people view their keynotes in the same way they do the Playoff Game. If Apple did not link itself with some significant development in the tech industry, it would still be a remarkable year. Every component of Apple’s communication aims to give clients a single impression of the company. Users are given the same message across the whole brand experience, from the first marketing materials to the package in which the product is delivered, ensuring seamless brand interaction and reducing the possibility of confusion. Apple has maintained the same objectives and advertising since its founding in the 1970s (Bissette, 2022). While the firm’s visuals and logo may have evolved, it’s brand identity as a young, innovative, and creative software corporation has stayed constant and prominent across all of its networks.
Apple, therefore, does the best job of product promotion in the business. As a result of the fact that new features virtually usually come as a revelation, buyers are eager to get their hands on the newest goods and are engaged in their development. The mystery generates interest in Apple, creates a buzz about it, and ultimately boosts sales dramatically (Rampton, 2019).
Brand Differentiation
Year after year, Apple stands out from its rivals because of its laser-focused branding and marketing initiatives, which have created a halo around its goods and greatly aided its overall success. This intense concentration has made Apple stand out and given writers a road map for how to say and what to say it, guaranteeing that their messages are clear (Rampton, 2019). Apple invests a lot of time and money into research to determine the best ways to attract customers. The endless hours and dollars invested in learning what customers want to pay off in a message that strengthens their brand and helps them sell more of their goods. Apple is infamous for cloaking its projects and products in obscurity. Although this technique has received considerable news attention, its attractiveness has generated interest in everything they do (Rampton, 2019).
With the launch of Apple Stores, the company provided a distinctive buying channel. Customers may interact with Apple products firsthand and learn how to use them in Apple Stores, where they are urged to make sizable purchases. It has stayed out of price wars. This conscious decision has allowed Apple to devote more resources to various marketing and branding initiatives while spending less time trying to undercut competitors’ costs. Apple presents its products as being hard to come by. by putting things up for pre-sale and giving the impression that there is a shortage compared to anticipated demand. Customers feel more pressure to act quickly because of the suggested scarcity and worry about missing out (Rampton, 2019).
Brand Positioning
Apple’s ability to provide cutting-edge and rival companies, services, and technology at the appropriate moment to the appropriate consumers is crucial for the company to maintain its leadership position in the market (Apple Inc., 2021). A few years ago, Apple mainly depended on a “pull” approach to its products and marketing. This “pull” technique concentrated their efforts on those things that appeared to make tech relevant and personalized, leaving more stand-alone commodities battling for attention and struggling to stay afloat. Beginning around 2017, Apple began using a “push” strategy to simultaneously deploy technology and feature updates across all products. By focused on making all items more technologically applicable and individualized, Apple has established a dynamic and flexible ecosystem of tools that people are willing to pay for (Apple, 2020). According to the Apple (2020), ecosphere is expanding, meaning that one billion people now own and use at least one Apple device, a feat that only took ten years to accomplish. Apple is continuously developing its strategy for integrating more customers into its ecosystem. Apple hopes that within a few years, the percentage of customers who only own one Apple product will drop to 30% as the company makes buying and using several devices simpler, even though it is projected that about 50% of Apple Users only own one Apple product (Apple, 2020).
Brand Communication
Competitors of Apple are aggressive in their innovation and marketing. As a result, Apple employs a marketing mix that includes a variety of approaches that complement those of its competitors. Advertising, sales promotion, personal selling, and public relations are the main methods utilized for customer engagement as part of this strategy. Apple’s communication mix of promotion, place, and product also plays a role (Greenspan, 2019). The only major social media platforms where Apple is officially present are YouTube and possibly Facebook. Additionally, although Apple may not be particularly active on many social media platforms, they bravely and aggressively capitalize on TV commercials and other physical advertising. Apple also controls the market by using publicity as a cost-effective yet effective method of engaging with customers (Kadim, 2019).
Brand Loyalty
Apple has established a user base. Once a person enters Apple’s ecosystem, they will stay because of its leading-edge innovation and purposeful attention to the complete customer experience (Apple, 2020). For purposes, consumers’ passion for design and the complete Apple experience has cultivated a devoted following. Apple, as a whole, has purposefully designed the method to trigger a profound emotional event. Apple aims to create a memorable experience for customers, starting when they enter an Apple Store and ending when they finally open their new product. Additionally, once a customer becomes smitten with Apple, they will continually buy new Apple goods over time because of how significant the product quality and simplicity of interoperability are (Rampton, 2019).
Brand Equity
Apple’s brands account for more than a third of their ValueValue. Apple is currently valued at $703.5 billion, of which 30% comes from its brand value (Finkly, 2020). Apple’s value products and branding approach have increased sales and profits. Apple uses a freemium pricing plan in combination with its strategy of premium pricing. With this novel technique, Apple provides a variety of items for free, but customers must pay a charge to access premium, advanced, or better features (Greenspan, 2019).
Findings
Contributing Strengths and Weaknesses
Samsung Strength – The technology industry is one where innovation is essential for success. One of the most extensive copyright portfolios among technology corporations is the result of very high research and development (R&D) spending. From 2014 to 2016, Samsung’s significant R&D expenditures produced 15,499 patents, giving it the greatest patent portfolio among its main competitors. The amount of money Samsung invests in R&D and the number of patents it has are two indicators of how competitively strong Samsung is in the markets where it competes (Jurevicius, 2021b).
Samsung Weakness – Budget smartphone sales constitute a significant portion of Samsung’s revenue. Current revelations have influenced this sector of the market more than the high-end smartphone group, leading to Samsung’s fall from 71 million revenue growth and 19.1% share price in Q1 2019 to 55 million smartphone sales and 18.5% share price in Q1 2020 (SWOT, 2020).
Apple Strengths – Apple Inc.’s ability to create and build its own software, hardware, apps, and processes enables it to provide original, inventive, and user-friendly solutions and products to its customers. Users choose to buy and utilize Apple’s premium brands since they are unique, imaginative, and easy-to-use services and items that incorporate smoothly into one Apple ecosystem. To put it differently, it gives it a competitive advantage that no other company can match. Apple’s capacity to create a wide range of incorporated hardware encryption, applications, software, and operations led to the creation of its ecosystem (Jurevicius, 2021a).
Apple Weakness – Items with Expensive Prices Apple products can be regarded as a luxury due to their costly prices. The goods are affordable to buyers with middle- and upper-income levels. Low-income customers cannot readily purchase Apple products. Due to their exorbitant pricing, only those with high or moderate salaries can purchase their items. Problems with Software Compatibility When clients purchase an Apple product, they enter the Apple universe. Because Apple products do not allow extra software or innovation, they are incompatible with other products. Users must only purchase Apple software or accessories to continue utilizing Apple devices (SWOT, 2022).
Global Performance
One of the most well-known brands on the planet is Apple. Their broad product ecosystem supports their brand recognition. The ability of Apple to produce premium-quality products, give exceptional customer service, and succeed at producing eye-catching marketing campaigns has allowed the business to establish the most potent brand in the realm (Jurevicius, 2021a). The second-largest technological company in the world by turnover is Samsung Electronics Co., Ltd, a unit of the Samsung Group. The business is the world’s leading supplier of mobile phones and smartphones. As per Lawler (2021), the business just said it reached 73.98 trillion won, or around $63 billion, during the same period in 2021, setting another record. Samsung reports that despite an increase in revenue of roughly 10%, company profits rise by 26% from the preceding year to $15.82 trillion from $13 billion.
Perception of consumers to their brands
Samsung has received regular praise for being a pioneer in promoting eco-innovations since 2009. The business was given the ENERGY STAR Affiliate of the Year – Sustained Excellence Award by the Environmental Protection Agency for the fifth year running (Jurevicius, 2021b). Also, Samsung was placed No. 9 on the EPA’s 2016 Green Power Partner list of the Top 30 Tech and Telecom firms for significant investments in renewable energy. It has won more accolades than most other firms for its innovative and environmentally friendly product designs. This improves the business’s reputation, raising brand recognition and revenue (Jurevicius, 2021b).
Apple is known for creating incredibly inventive goods, beautifully designed and effectively functioning. They are also known for providing excellent customer service and having solid financial results. It has also been acknowledged that the corporation is committed to reducing its greenhouse gas emissions and creating sustainable products (Jurevicius, 2021a).
Sub Brands and extensions
Samsung – Regarding television sets, cellphones, and appliance goods, Samsung has established a firm name in the technology industry and is a top choice. The corporation produces consumer electronics, semiconductors, telecommunications gear, and household appliances. As per Jurevicius (2021b), Samsung has three commercial divisions: IT and mobile communications – Mobile Communications Business and Device solutions – Memory Business and LED Business; Consumer electronics – Printing Solutions Business, Visual Display Business, Digital Appliances Business, Health & Medical Equipment Equipment Business.
Apple – Apple offers a vast selection of technology goods. Despite not having Apple in their names, these Apple-branded products benefit the parent firm. Although Apple is not a brand in and of itself, each sub-brand capitalizes on Apple’s perceived ValueValue by introducing unique goods to cater to different market niches (Williams, 2021). Over 54% of Apple’s entire revenue comes from the iPhone. IPad and Mac’s goods bring in more than 18% of all income for Apple, making them its second and third biggest revenue producers. Apple Pay, Wearables, and Apple News+, among other things, provide the company with the remaining revenue (Jurevicius, 2021a).
Recommendations
I suggest the following for businesses to build their brand and compete with companies like Samsung and Apple.
- Prioritize investments in the highest-value customers because putting the customer’s requirements first entails understanding and influencing those needs, developing unique ValueValue for clients, and cultivating long-lasting client relationships.
- Redefining product management as customer services by rewarding staff members who go above and beyond for customers and encouraging them to be customer-centric.
- Include cross-selling and add-on sales to build customer equity, which will enhance customer happiness and raise Customer Lifetime Value in B2B enterprises by integrating more thoroughly into a customer’s operation.
- Track changes in consumer equity concerning marketing and branding campaigns, then connect customer equity to brand equity.
- Create concurrent marketing strategies, and each centered on customer acquisition and retention initiatives.
Thus, adopting a concept that measures the effectiveness of new efforts in customer service, new systems, and new products by their capacity to increase consumer equity, the debut of Slate will be fruitful and long-lasting (Thimothy, 2021).
Comparison between Samsung vs. Apple
Apple | Samsung |
Brand Personality
Personify their products and emphasize the sentimental side of relationships and the client’s hopes and values. |
Brand Personality
Distinguishes itself by offering affordable prices, top-notch capabilities, and cutting-edge features across a range of consumer devices. Across all its product levels, functional benefit combines cutting-edge technology, modern designs, and unique features. |
Brand Identity
High-end luxury brands are sometimes veiled in mystery and anticipation of the release of new products. |
Brand Identity
Creating a new future through innovative technology, goods, and design that improves clients’ lives and promotes social prosperity aims to satisfy consumer desire for inspiration. |
Brand Image
Creates and markets products that aim to improve users’ quality of life by promoting learning, innovation, work, play, sharing, and health. |
Brand Image
Routinely earns recognition for its high-quality goods, innovative technologies, and cutting-edge designs. Inspired by its product names and providing high-quality goods at reasonable prices for various clients. |
Brand positioning
increased emphasis on making all products more individualized and relevant to technology. Created an ecosystem of flexible and dynamic tools that customers are ready to pay for. |
Brand positioning
Innovativeness, cutting-edge technology, top-notch designs, hiring the most incredible items, and internal branding make up the branding ideology. |
Brand communication
implements a marketing mix that includes several techniques and approaches similar to those used by their competitors. Limited use of social media. Monopolized the market by using publicity as a cost-free but effective means of engaging with customers |
Brand communication
To promote its brand and personality, Samsung purposefully employs as many communication channels as possible, including television ads, public relations, promotional events, sports sponsorship, product endorsements, the Samsung expertise gallery, and retail outlets. |
Brand loyalty
a class of users who are completely fascinated with the Apple ecosystem, cutting-edge technology, and innovation. User interaction has been produced. |
Brand loyalty
Two main issues mentioned are ValueValue for money, privacy, and security. |
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