Samsung: Redefining a Brand

1) Why has the Samsung brand increased in value more quickly than other consumer electronics brand, such as Toshiba, Hitachi, JVC, RCA or LG?

There are several contributing factors that make Samsung brand value increased quickly that other competitive consumer electronics brand such as Toshiba, Hitachi, JVC, RCA or LG. The success was basically happened due to their product innovation, being agile and responsive to new technology, successful in repositioning their brand and implementation of brilliant marketing strategies.

Firstly, they are being agile and responsive towards new technology happening in the current market situation at that time. The conscious effort by Samsung's senior management has contributed the success where they focus to capitalize on the shift towards digital technology. The dedication on the research and development help Samsung to develop the remarkable technology product advancement compare to their competitors. The company also brings together a broad range of leading-edge technical expertise that can be combined in unique ways, all with the goal of providing customers with a 'gee whiz' experience that is not only 'cool' but also provides real superior customers value. Despite, Samsung has capture the opportunities that created by the evolution of customers electronic products preference by being a leader in digital technology.

Secondly, they have successfully developed a product innovation in order to create more value to its electronics product. For instance, Samsung has an expertise in both wireless hand phone and LCD screen (Liquid Crystal Display), allowing it to deliver high-end mobile phones whose color screen help them stand out relative to the competition. Similarly, Samsung expertise in DLP (Digital Light Processor) design and manufacturing allows the company to come out with leading-edge HDTV sets months before its competitors can.

Thirdly, they are successful in repositioning their brand. Samsung has transformed itself from an unremarkable producer of low - to mid market consumer electronics and computer components into a legitimate rival to established industry giant from Japan. Repositioning Samsung brand as a provider of stylish, leading-edge consumer electronics has been supported not only by aggressive advertising campaign spending, but also the launch of a number of high-end, 'marquee' products, and a concerted effort to shift the company's distribution away from discount retailers toward more up-market outlets. For Samsung, it is clear that brand repositioning will require changes to more than just its advertising. The company seeks to become a lifestyle brand for the high-tech crowd, so it's must leverage all marketing 4ps, capture consumers' imagination and stand out from the crowd

Lastly, Samsung brilliant marketing strategies likely contributed to the value. The four dimension of marketing mix adopted by Samsung would be the product, channels, pricing and promotion. For instance, the most strong of Samsung products appear to be their large-screen digital light projection HDTVs and its feature-rich mobile phones. Despite, Samsung has shifted the distribution channels from discounted store like Wall-Mart and Zeller into mid-market such as Future Shop, London Drugs, Sear and The Bay. In term of pricing, at the moment, the company uses a premium pricing strategy for the high-end products on which it is building its reputation, and parity or discount pricing for its remaining offerings. Samsung also already spends $15 million per year on advertising and promotion in Canada. Thus all this factor of marketing mix has contribute toward the successful in creating more value of Samsung brand.

2) Why has Sony been such a successful brand? Can Samsung realistically expect to compete with Sony?

Sony is a well establish company which establish a strong brand name for approximately 25 years