BRAND MANAGEMENT

Project On
Brand Positioning of

Submitted by

ArjunPrakash S (28004)

DivyaBala (28076)

Hariharan D (28083)

Judah Jebadas (28085)

Krithika S (28092)

Naveen M (28099)

Prreethi E (28100)

Ramesh V M (28102)

ShanmugaSundaram A (28108)

Suganprabhu R (28114)
PRODUCT CATEGORIES

The product categories of Samsung are as follows

 Mobile phones
 Tablets
 TV/Audio/Video
 Camera
 Home Appliances
 PC/Peripherals
 Memory cards

Market
Product Category Market Share size(units)
Mobile phones 21% 86.6 million
Tablets 9.90% 4.4 million
TV/Audio/Video 30% 39 million
Camera 15% 129 million
1.7 million+7
Home Appliances 24% lakh
PC/Peripherals 8% 1.9 million
Memory cards 42.40%

ROLE OF SAMSUNG IN EACH PRODUCT CATEGORY

Mobile

In the mobile phone category, Samsung has made sure to have a lengthy extension of its
products starting from basic phones to the most advanced smartphones. In India the brand equity of
Samsung is very high. About a decade back what was once dominated by the Nokia and Motorola
have now been captured by Samsung. The brand ambassador for the company is Aamir Khan –
known for his integrity in the Bollywood industry. Amir Khan mainly promoted the “hero” series of
mid-range phones.

Later in 2009 Samsung launched its “corby” series which was believed to take the mobile
phone market to a whole new level. Affordable cost multimedia combined with the mobile internet
made customers go crazy after the product. The positioning of the “corby” series was perfectly made
by targeting the youth segment of the country, which constituted more than half of the target group
in the mobile phone segment. Instant updates on facebook and affordable touch screen phones
added further value to the phones.

In 2010 Samsung further raised the bar by introducing the “galaxy” series which took
Samsung to higher end segment – which was enjoyed only by “APPLE”. Ads were made targeting the
customers of Apple. Most of the ads implicitly instigated customers to move from apple to Samsung.
Samsung promised better feature at a lower cost.
Television

In 2009, Samsung sold around 31 million flat-panel televisions, enabling to maintain the
world's largest market share for a fourth consecutive year. In early 2010, the company had set the
year's sales goal at 39 million units (including 10 million LED televisions). In March 2009, Samsung
launched the "Finger-Slim" super-slim LED television. In 2009, the product sold around two million
units. The company has led the flat-panel television market for the past five years with the 2006
introduction of its "Bordeaux" line, followed by the 2007 Bordeaux model, the 2008 "Crystal Rose"
line, and the "Finger-Slim" in 2009. The company retained the leading position by successfully selling
more than 1 million 3D televisions as of August 2010. Samsung launched its first full HD 3D LED
television March 2010. Samsung had showcased the product at the 2010 International Consumer
Electronics Show (CES 2010) held in Las Vegas.

Samsung sold more than one million 3D televisions within six months of its launch. This is
the figure close to what many market researchers forecast for the year's worldwide 3D television
sales (1.23 million units). It also debuted the 3D Home Theater (HT-C6950W) that allows the user to
enjoy 3D image and surround sound at the same time. With the launch of 3D Home Theater,
Samsung became the first company in the industry to have the full line of 3D offerings, including 3D
television, 3D Blu-ray play, 3D content, and 3D glasses.

Smart televisions

In 2007, Samsung introduced the Internet TV, enabling the viewer to receive information
from the Internet while at the same time watching conventional television programming. Samsung
later developed "Smart LED TV", (now renamed to "Samsung Smart TV") which additionally supports
downloaded apps. In 2008, the company launched the Power Infolink service, followed in 2009 by a
whole new Internet@TV. In 2010, it started marketing the 3D television while unveiling the
upgraded Internet@TV 2010, which offers free (or for-fee) download of applications from its
Samsung Apps store, in addition to existing services such as news, weather, stock market, YouTube
videos, and movies. Samsung Apps offers for-fee premium services in a few countries including
Korea and the United States. The services will be custom-tailored for each region. Samsung plans to
offer family-oriented applications such as health care programs and digital picture frames as well as
games.

Camera

After having successfully captured the mobile phone industry in India, Samsung’s next big
plan is to become the market leader in the camera segment. The market was valued at Rs 17.5
billion during the fiscal year 2010 and is expected to attain a CAGR of 43% to reach Rs 104.6 billion
by 2015. There prevails a cut throat competition between the major players which includes Sony,
Nikon, Kodak, Canon and more recently Samsung. The strategies followed in marketing the cameras
sound similar to the strategies followed by Samsung in the mobile industry about a decade back.
They have entered the industry by releasing 12 new digital cameras at the lower end which starts at
Rs. 5000. They have understood the fact that 80% of the sales come from under Rs 10,000 segment.
The high feature rich and affordable pricing makes Samsung products desirable. With the brand
loyalty created by home appliances and mobile phones, Samsung was able to efficiently leverage on
its secondary associations. Samsung took enough measures to understand the brand feelings among
the customers. They efficiently differentiated its brand association between its lower end segment
and the higher end segment. The lower end segment cameras were positioned among the middle
class and upper middle class families. The emotion in the families was captured in the ads. On the
other hand the higher end SLR cameras were positioned among the professionals and youth
segment.

Laptop/PC

Samsung’s entry into PC segment began by launching monitors. This was a huge success and
even today many people prefer having a Samsung LCD monitor. But their entry into laptop segment
was a bit late. Moreover their market share is also less. This clearly shows that Samsung has
identified its key strength and decided to concentrate only on those rather than focussing in every
segment.

Tablet

Samsung with the launch of Galaxy Tab series of tablets compete against the much stronger
Apple’s I pad. But Samsung’s tablets run on Android platform and the prices are also quite low when
compared to its competitors. Samsung would definitely come up with further new innovations in this
field as Microsoft has also entered the market with its launch of tablets which would further
increase the rivalry.

Home Appliances

Samsung is also a leading manufacturer of many home appliances. Among them it leads in
the microwave segment where there are no stiff competitions. Refrigerators and Washing machines
are manufactured by Samsung.

RESEARCH METHODOLOGY

A questionnaire was created and was circulated to collect the responses. Apart from the
questionnaire, the focus group discussions had during class was also used to collect responses to
frame the key insight.

Sample Size: 30

Male: 21; Female: 9

Age wise details

13%

<25
25-35
27%
60% >35
DATA COLLECTION

Differentiating factor
cutting edge technology
23%
33% Pushing through the
dealers
Affordable price

3%
Innovative design
40%

Average satisfaction level: 3.7/5

BRAND ASSOCIATIONS
MENTAL MAPPING

POINTS OF PARITY AND POINTS OF DIFFERENTIATION

Samsung electronics produces consumer electronics in five categories , they are

TV’s and video /audio players , mobile phones, computers , cameras , home
appliances . we have discussed the points of parity and points of differentiation
of Samsung with its competitors in the following pages

TV/Video/audio players – Samsung has become the company with the highest
sales of TV’s . They were the first to introduce 3D Led tv’s .They have always
had a head to head competition with sony in the TV segment. In the past few
years Samsung has managed to become the leading producers of TV. Their
possession of Samsung chip has also enabled them to come up with innovative
products like the smart tv in response to sony’s internet tv . They have been
successful in integrating technology with electronics thus becoming the market
leaders . they also have the advantage of manufacturing their TV’S in their own
factory while sony outsources the manufacturing

Points of parity –Both sony and Samsung give importance to innovation and
picture quality . both had a tough competition introducing slim/ultraslim Tv’s
.sony introduced internet TV , while Samsung introduced smart TV . Samsung
also introduced 3D LED tv

Points of differentiation-samsung has 3 points of differentiation .First one was

it tried to create an emotional connect with the Indian families. They wanted
to project the TV as a member of family through advertisements that spoke
about naming the TV . This campaign was specially developed for Indian
audience because TV was considered to be integral part of every Indian middle
class family.Another point of differentiation was providing more value for the
money they pay . The third point of differentiation was design . their ad
campaigns had tag lines like “design that performs “, “dikhayiye acha , dikhiye
aur bhi acha”

Overall positioning:- better quality and design , innovative features value for
money , integral part of family

Home appliances:- Samsung has a variety of products under home appliances

category . They include air conditioners, microwave oven , refridgerators
,washing machine , vacuum cleaners , etc . In india Samsung has tough
competition from another south Korean company LG.

Points of parity:- There are a lot of pop’s between Samsung and LG . Both
concentrated on innovation and brought new technologies. LG bought
innovation in the form of side by side door fridge , automatic doors for fridge
,health guard in AC , tallest cooler in fridge .while Samsung imtroduced
innovation like s series compressor in AC,Digital inverted compressor that
keeps food fresh for 7 days ,uniform cooling , FRUNCH – new sound of
freshness , bubble generator in washing machine ,biosleep :-ac sets temperature
according to body temperature.Both concentrated on healthy lifestyle.LG ‘s tag
line itself is life’s good . while Samsung concentrates on keeping food fresh ,
pure air from ac , protection of soft clothes and other product benefits .

Points of differentiation:-samsung has a brand ambassador for its home

appliances segment whereas LG doesn’t have a brand ambassador . samsung’s
brand ambassador is priyanka chopra . having such a popular personality as
a brand ambassador helps in keeping the brand in people’s memory .samsung
also develops appliances specifically for Indian market . they have AC’S
designed specifically for Indian summer .washing machine that protects soft
clothes like Indian cotton ,silk etc and also removes toughest of stains
.microwave oven’s campaign says way to his heart is through his stomach .The
most important differentiation is that samsung’s appliances are energy
efficient and runs on less power hence gives 20% percent savings in
electricity bill . This is specifically for india where Indian middle class segment
is very much concerned about growing electricity bills .

Overall positioning:- healthy living , innovative product features , energy

efficient hence cost saving

Cameras:-Samsung is not a very big player in cameras segment buut still its a
popular brand . it has got tough competition from canon and sony. Cameras
segment include handy cam , digital cameras .

Points of parity:- Product features and innovation like super zoom , 270 degree
wide angle shots in sony . better picture quality in canon . dual view and multi
view cameras from Samsung

Points of differentiation:- There is not many pod’s in this segment . all the
companys are focused only on increasing the product features and innovation
and samsung too does the same

Mobile phones:-samsung is one of the highest sellers of smart phones .it has a
tough competition with apple . There is a tough competition between apple’s
iphone and samsung’s galaxy . In india Samsung has tough competition with
nokia . it has also raced ahead of nokia .They used the possession of their own
chip to their advantage and bought about lot of innovation

Points of parity:- product features and innovation is a major point of

parity.Nokia focuses on features like music player. And also on emotional
connect with family , which Samsung does it with the guru phone . while apple
focuses on innovation which Samsung does it with corby and galaxy phone
Points of differentiation:-samsung’s main point of differentiation is more
features and better features for the money that you pay . they have the tag
line “sab kuch behtar hai “ for Samsung guru .they have aamir khan as their
brand ambassador because his personality and image of a reliable superstar who
can perform a variety of roles to perfection matches samsung’s personality and
positioning. Samsung guru was introduced as a competition to nokia’s 1100. It
positions itself having better features than other lower end phones . they also
used innovation as a point of differentiation , they were the first movers in
smart phone segment in india by introducing corby and galaxy .

Overall positioning:- better and innovative product features , value for money
, affordable luxury

Laptops:- Samsung is an emerging player in laptops . Though it has its own

chip , it uses intel chip in its laptop to be on par with the competitors . it has
competition from dell and hp

Points of parity :- The major points of parity is performance and style .

Points of difference :- samsung laptops focus more on some basic needs of

customer like light weightedness , longer battery life , safety in the form of spill
proof keyboard , brighter screen

Overall positioning :- samsung laptops have a better version of the consumers

basic expectations from a laptop

Overall brand positioning of samsung

 All samsung products focus a lot on product benefits and features .

They want to provide a variety of benefits and features from a single
product
 Most important feature is the integration and use of technology in
delivering the necessary value
 Innovation is also a key criteria .
 All samsung products focus on value for money . one of their positioning
is that of getting more than what you pay for .
  They also position themselves as better providers of the points of
parity than their competitors

POSITIONING STATEMENT OF SAMSUNG

For every person who wants to get the maximum value for the price that
they pay .
The samsung electronics is an electronics firm that provides electronic
goods that satisfy all your explicit and implicit needs more than your
expectations .
Unlike other electronic firms , our products are innovative , at the same
time provides maximum value . on the whole its affordable luxury .

KEY INSIGHT – Innovation with value

Analysing the brand associations collated, it was observed that most of the consumer insights were
touching upon the following dimensions of the brand: innovation, market leadership, design,
performance, reliability and affordability. After many deliberations the group arrived at Innovation
with Value as the key insight. The “value” factor adds significance to the innovation by creating
solutions for the consumer and sales and revenue for the company. The key insight is validated even
when tested with Brand Key elements as it goes hand in hand with the Brand Essence.

1. Competitive Environment
2. Target
3. Consumer Insights
4. Benefits
5. Values and Personality
6. Reasons to believe
7. Discriminator
8. Brand essence

Also when looked from the Brand Dynamics Pyramid perspective, the key insight seats Samsung at
the highest pedestal of “Bonded”

Brand Dynamics Pyramid

1. Awareness
2. Relevance
3. Performance
4. Advantage
5. Bonded
 From the Brand Pyramid perspective

Also the key insight with the use of “with value (to consumers)” addresses the top of the “Brand
Pyramid”:- Relationships

On doing a mental mapping within the group and by placing brand associations from the survey,
Samsung comes across as a soft, simple and rational and also sophisticated, exaggerated and
contemporary.

ANNEXURE

SURVEY QUESTIONNAIRE

1. Gender – Male, Female

2. Age - <25, 25-35, >35
3. Do u have any of the following manufactured by Samsung – Mobile, Tablet, TV, Camera,
Home apps, PC, Memory card
4. Are you satisfied with the product – Yes, No
5. Please describe the brand Samsung in one word
6. What do you think is the differentiating factor of Samsung compared with its competitors –
Affordable Price, Innovative design, cutting edge technology, Applications
7. Will you be ready to buy a Samsung product just because of its brand name
8. Do you believe Samsung could become the market leader in majority of their product
categories
9. Do you feel purchasing a Samsung product to be worth – Yes, No

The majority of the respondents were students of PGP 2. Apart from them survey was also
done with people outside BIM. Most of them were young professionals in various organizations. The
survey was clearly done only with the respondents who had prior exposure to products of Samsung
in order to avoid getting any guesses.