Samsung Brand Strategy

Author: Yang Yan
Publisher:
Publish Date: 2005-05-01
Features: Sixty years ago, newly established Samsung was just a small shop; thirty years ago, Samsung worked for Japanese companies just to survive; ten years ago, Samsung products were still considered cheap "mass-market" goods in consumers' minds. However, today's Samsung is the fastest-growing company in terms of global brand value, a world-class first-tier brand, and regarded as a top competitor to the renowned electronics giant Sony. Samsung has long understood that mastering technology patents is crucial for a company to capture the market. Therefore, for technologies it couldn't develop on its own, Samsung used capital to acquire them. The result is that many of Samsung's products have become world leaders, its patent applications have ranked among the top 10 globally for many years, and it has dominated many industry standards. Since implementing the TOP program as an Olympic top-tier sponsor in 1996, Samsung has boldly launched global brand asset management plans, allocating $2 billion annually (with about 20% dedicated to sports marketing) as its marketing budget, and positioning the Olympic TOP sponsorship as its highest sports marketing strategy. In advertising, Samsung positions its products in the premium market rather than as cheap "mass-market" goods. To change the perception of Samsung products as low-quality and inexpensive, Samsung Electronics has alsoly withdrawn its products from chain stores like Walmart.