Samsung's Brand and Portfolio (Research Paper Sample)

Samsung's Brand and Portfolio

The Brand
Introduction
Marketing communication and analysis are crucial concepts in all organisations since they enhance their brand and improve overall performance. Marketing analysis entails the evaluation of the attractiveness of a specific market or industry. On the other hand, marketing communication entails using various strategies to increase awareness and improve sales levels among existing and new customer segments. Some of the strategies employed in marketing communication include advertising, sales promotion, online marketing, and branding.
Due to the importance of the two concepts, many organisations today have invested in marketing communication and analysis to improve their performance in both the local and international markets. This research focuses on Samsung's communication strategies and comparative analysis covering other companies in the technology industry. The paper covers Samsung's brand portfolio and route to persuasion and compares the marketing communication mix of the company with two competitors. The research also highlights the company's effectiveness concerning customer communication and persuasion and gives relevant recommendations.
1.1 Samsung
Samsung Group is one of the key players in the electronic industry that provides various products and services to customers worldwide. The company was founded in 1969 by Lee-Bhung Chull in Japanese Korea (Samsung, 2021a). The brand name Samsung, which means three stars, was derived from the founder’s vision for the company. Lee-Byung Chull expected the company to shine bright like stars for several years to come. When its inception, Samsung operated as a local business providing home appliances such as television, radio, and fridge in the Japanese-Korean market. However, the company's need to grow made it explore other avenues for selling its products. In the 1970s, Samsung became an international provider of home appliances, including black–and–white television, thanks to its mass production strategy (Samsung, 2021a). During this era, the company used the three stars as its brand logo.
However, over the years, Samsung focused on innovation and established its first research and innovation center in the 1980s to match the market trends and changing customer needs (Samsung, 2021a). Additionally, the company also changed its logo to create a new and comprehensive brand identity. Since then, Samsung Group has grown in brand portfolio, market share, and profitability. Currently, the brand details of Samsung Group are as follows:
* Brand name: Samsung Group Ltd
* Logo: The Company's logo includes its name 'Samsung,' with spacing between the letters and a watermark for clear visibility (Samsung, 2021b). Depending on the product line or market, the logo can be found in black, white, and blue letters and backgrounds. The inclusion of a watermark and precise and consistent spacing between the letters is meant to improve visibility and brand identity among customers.
* Slogan: Has several slogans, including ‘Do what you can’t’ and ‘designed for humans’ (Samsung, 2021b).
* URL Like many international businesses, Samsung Group has different URLs for different countries to enable easy access to regional stores and offices.
Brand Portfolio
Samsung products. Retrieved from Samsung newsroom
Samsung Group limited has a broad product portfolio that increases its market coverage in the international market (Samsung, 2021a). In organisations, a product portfolio refers to all the products that belong to a single brand and are offered in specific or diverse markets. In the case of Samsung Group, the company's product portfolio has various sub-items that fall within the same category. One of the product lines available at Samsung Group is mobile phones and mobile accessories. The company is one of the key players in the technology that produces smartphones for diverse clients. Moreover, due to the increased use of technology and the growth of the digital world, the mobile phone and accessories segment covers a large portion of the international market, hence making a significant contribution to the company's revenues (Samsung, 2021a). The mobile phone and mobile accessories division include smartphones, tablets, smartwatches, computers, monitors, memory and storage, cables, and screen replacements.
The second component of Samsung’s brand portfolio is electronics, including televisions and fridges (Samsung, 2021a). The items in this category also have different designs and features to meet the diverse needs of customers. For example, the company offers curved, LCD, and Plasma television to cater to the differences in customers' tastes and preferences. Similarly, the fridges also vary in size and capacity, hence suitable for different family sizes. Additionally, these products have different prices for different markets and customer groups.
Apart from electronics, Samsung also produces kitchen and home appliances such as microwaves, ovens, grills, and vacuum cleaners (Samsung, 2021a). The kitchen appliances can be used for both commercial and personal purposes. The electronics, home appliances, and kitchen appliances also appeal to customers from different social statuses and targets all households and commercial entities. As a result, these divisions also attract a significantly large market share. Moreover, loyal customers may use Samsung brands for their needs, including telecommunication, cooking, and home maintenance.
Another area that Samsung Group has invested in is the automotive industry (Samsung, 2021a). The company produces semiconductors used in smart driving, thanks to its investment in research and innovation. The semiconductors are useful in improving in-vehicle 5G connectivity and the performance of infotainment systems. The semiconductors are suitable for motorists who want to enhance their driving experience. The company also produces advanced driver assistance that improves safety and convenience while driving (Samsung, 2021a). Therefore, most customers who purchase these products are from wealthy and middle-class households (Samsung, 2021a). As a result, the market size for semiconductors is smaller compared to the other product lines.
Route to Persuasion
Persuasion is one of the components that many companies use to convince customers to purchase their products or services. There are two primary routes to persuasion that an organisation can use (Daiku et al., 2020). The first one is the central route to persuasion, which involves using facts or informing customers about the product/service features worth trying or buying. The second is the peripheral route to persuasion, which refers to social cues that many people identify with, such as positive emotions and beautiful designs, to attract customers.
(Williams, 2006)
The Samsung group employs central and peripheral routes to reach out to customers and improve their sales volumes. Concerning the central route, the company includes its product features and capabilities, such as a clear camera for iPhones and other internal apps that meet the various needs of consumers. As a result, consumers who purchase these products are sure that their needs will be met. Additionally, the customers choose to purchase the items based on their features to perform specific tasks. The peripheral route to persuasion includes attractive designs, colours, and trending features that resonate with a specific market segment.
The Market
Competitive Landscape
Samsung Group operates in a competitive market with many players working on attracting the same buyers' attention. Operating on a global landscape further increases competition as other countries also offer similar products and services. One of Samsung's competitors is Apple Inc., which produces smartphones and other digital devices available in Samsung stores. Due to its diverse portfolio, Samsung competes with automotive, electronics, technology, and home apparel markets. Apart from Apple Inc., the company's other competitors include Nokia, Huawei, Google, LG, Philips, and Panasonic (Samsung Electronics Co. Ltd, 2020).
2.1.1 Market Share
Although Samsung began as a local business with a minimal product portfolio, it has grown to acquire a large market share relative to its competitors (Samsung Electronics Co. Ltd, 2020). Moreover, the technology industry's growth, including the increasing demand for smartphones and digital devices, has further contributed to the production of and sale of Samsung's products. For example, in 2019, 210 million UHD TVs were sold in the electronics market. The sales volume represented 99% of the market share, indicating that consumers know the latest trends and technologies used in the production process (Samsung Electronics Co. Ltd, 2020). Among the top companies in the TV division, Samsung has maintained market leadership due to its innovation and partnership with renowned artists and galleries that have resulted in quality and aesthetic products.
Regarding mobile phones, Samsung has seen tremendous growth in the sale of various designs of these gadgets. However, the growth in sales volume has also been affected by fluctuations in the overall market demand for mobile phones. Additionally, Samsung has also maintained market leadership in the mobile phone industry. For instance, in the first quarter of 2020, Samsung’s mobile phones market share was 21. 1%. On the other hand, the closest competitors like Huawei, Apple, and Xiaomi had a market share of 17.8%, 13.3%, and 10.7%, respectively (Statista, 2021). The increase in Samsung's market share ...