Group Report

Comparative Analysis between Brands of Apple & Samsung

Prepared for

Mr. Mustaque Ahmed

Course Instructor Brand Strategy (M602)

Prepared by

Institute of Business Administration, University of Dhaka

January 11, 2019

Comparative Brand Study and Analysis between Two Global Tech Giants:
APPLE INC VERSUS SAMSUNG
EXECUTIVE SUMMARY

The purpose of the report is to evaluate the brand creation, building, sustainability of two global
tech giants Apple INC and Samsung that led the companies in the position of top 10 global brand
as per inter brand global ranking 2018. We have conducted the study based on secondary data
available on the internet.

We have conducted the comparative study on brand promises, brand positioning, wow factors,
core identity of two companies Apple Inc. and Samsung; their brand building strategy through
integrated marketing communication and holistic selling proposition, their brand sustainability,
renewal strategy to determine which company is leading in terms of brand equity, brand strategy
and execution.
Table of Contents
1. Introduction......................................................1
1.1 Origin of the Report:...........................................1
1.2 Background of the Report:...........................................1
1.3 Objective of the Study..............................................1
1.4 Scope of the Study................................................1
1.5 Methodology of the Study...........................................1
1.6 Limitations of the Study.............................................1
2 Company Overview.................................................2
2.1 Company Overview and Brief History of Apple Inc...........................2
2.2 Mission of Apple Inc...............................................3
2.3 Vision of Apple Inc................................................3
2.4 Company Overview and Brief History of Samsung...........................4
2.5 Mission of Samsung Inc.............................................5
2.6 Vision of Samsung Inc..............................................5
3.0 Brand Promises and Wow Factors of Two Brands: Apple versus Samsung............6
3.1 The Brand Promise to “Think Different”..................................6
3.2 Apple: Wowing Customers with Innovation and Superior Experience...............6
3.3 Brand Promise of Samsung:..........................................8
3.4 The Wow factor of Samsung..........................................9
3.5 Comparison of Samsung and Apple on Delivering Wow Factors..................9
4.0 Positioning of the Two Brands Globally: Apple versus Samsung.................12
4.1 Blue Ocean Strategy of Apple:.......................................12
4.1.1 Product Strategy of Apple:................................................................................................................12
4.1.2 Pricing Strategy of Apple:.................................................................................................................14
4.3 Blue Ocean Strategy of Samsung:.....................................14

List of Tables

Table 1: Year wise Research & Development Expenditure.........10

Table 2: Number of Utility Patents............................11

List of Figures

Figure 1: Blue Ocean of Apple.................................12

 1. Introduction

1.1 Origin of the Report:

Under the EMBA program of IBA, University of Dhaka this report is prepared for Professor
Mustaque Ahmed as a course requirement for Brand Strategy.

1.2 Background of the Report:

1.3 Objective of the Study

The primary objective of the qualitative, comparative study is to find out some in depth
perspective of the factors and strategy undertaken by the two tech giants Apple Inc. and Samsung
to become and remain in the top 10 global brands.

1.4 Scope of the Study

The scope of the study is the comparative analysis of the brand strategy of the two companies
Apple Inc. and Samsung as well as infers some conclusive statements based on facts and
qualitative study.

1.5 Methodology of the Study

Data Collection
The main source of the data was from secondary sources found on the internet.

1.6 Limitations of the Study

The collected data are mainly found from the secondary sources
2 Company Overview

2.1 Company Overview and Brief History of Apple Inc.

Apple Inc. is an American multinational technology company headquartered in Cupertino,

California, that designs, develops, and sells consumer electronics, computer software, and online
services. Apple Inc. is considered as one of the big four tech companies around the globe and has
successfully built a brand that offers a brand equity value of $ 214,480 million and has grown at
16% in 2018, thus becoming the number 1 global brand.

Apple Inc. was cofounded on April 1, 1976, by Steve Jobs and Steve Wozniak in Los Altos,
California. There was a third cofounder, too, named Ronald Wayne. Jobs brought Wayne on board
to provide business guidance for the two young cofounders, but he ended up leaving the company
before it was even officially incorporated. Wayne took an $800 check for his shares in the company.
Here is a short snapshot of 35 years of Apple history till 2010.

The company has always been in a path of tremendous growth through perpertual innovation
after Steve Jobs return and the momentum somehow slowed after his death on 2011. The
company has turned to a new leader in the form of current CEO Tim Cook. Apple has expanded
its horizons through other means. The company has launched several charitable ventures that
arguably might not have occurred under Jobs’ reign. Apple’s products throughout this decade
have since primarily undergone upgrades rather than the introduction of any new product
designs.

2.2 Mission of Apple Inc.

Apple is commited to bringing the best personal computing experience to students, educators,
creative professionals and consumers around the world through its innovative hardware, software
and internet offerings.

The mission statement is as follows: “Apple designs Macs, the best personal computers in the
world, along with OS X, iLife, iWork and professional software. Apple leads the digital music
revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its
revolutionary iPhone and App store, and is defining the future of mobile media and computing
devices with iPad.”

2.3 Vision of Apple Inc.

Apple Inc.’s corporate vision influences strategic management in terms of the decisions that the
company’s managers make to reach a future of leadership in the various industries where the
business operates. Apple introduced a new vision statement under the leadership of Tim Cook,
who stated the following:

We believe that we are on the face of the earth to make great products and that’s not changing.
We are constantly focusing on innovating. We believe in the simple not the complex. We believe
that we need to own and control the primary technologies behind the products that we make, and
participate only in markets where we can make a significant contribution. We believe in saying
no to thousands of projects, so that we can really focus on the few that are truly important and
meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which
allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less
than excellence in every group in the company, and we have the self-honesty to admit when
we’re wrong and the courage to change. And I think regardless of who is in what job those
values are so embedded in this company that Apple will do extremely well.

2.4 Company Overview and Brief History of Samsung

Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul.

It comprises numerous affiliated businesses; most of them united under the Samsung brand, and
is the largest South Korean business conglomerate .Samsung was founded by Lee Byung-chul in
1938 as a trading company. Over the next three decades, the group diversified into areas
including food processing, textiles, insurance, securities, and retail. Samsung entered the
electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-
1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung
was separated into four business groups – Samsung Group, Shinsegae Group, CJ Group and
Hansol Group. Since 1990, Samsung has increasingly globalised its activities and electronics; in
particular, its mobile phones and semiconductors have become its most important source of
income. As of 2018, Samsung has the 6th highest global brand value totalling $ 59,890 million
and 6% growth.
2.5 Mission of Samsung Inc.

Inspire the world with our innovative technologies, products and design that enrich people's lives
and contribute to social prosperity by creating a new future.

Mission statement: “At Samsung, we follow a simple business philosophy: to devote our talent
and technology to creating superior products and services that contribute to a better global
society.”

2.6 Vision of Samsung Inc.

Inspire the World, create the future.

The Vision 2020 is at the core of our commitment to create a better world full of richer digital
experiences, through innovative technology and products. The goal of the vision is to become a
beloved brand, an innovative company, and an admired company. For this, we dedicate our
efforts to creativity and innovation, shared value with our partners, and our great people. We
have delivered world best products and services through passion for innovation and optimal
operation. We look forward to exploring new business areas such as healthcare and automotive
electronics, and continue our journey through history of innovation. Samsung Electronics will
welcome new challenges and opportunities with joy.
 3.0 Brand Promises and Wow Factors of Two Brands: Apple versus Samsung

3.1 The Brand Promise to “Think Different”

Apple’s iconic branding strategy is centered on emotions; it focused on building a community of

dedicated fans rather than just making sales. The secrecy around its new launches, the much
hyped reveal presentation by the CEO, the conversations and buzzes around each release; makes
it different. The customer does not think of buying Apple iPhone because they merely need a
phone with great specs, they want to buy the Apple iPhone. From the creation of hype, to focus
on aesthetics and experience to association with exclusivity and luxury, all led by innovation
which brings something different to the market always; makes the promise “Think Different”
effective. It thinks in a different way than other players and inspires its customers to think
differently as well with its new innovations and experience which are like no other.

3.2 Apple: Wowing Customers with Innovation and Superior Experience

(a) Innovation

Since the beginning of its journey, Apple walked a different path. Innovation is in the brand’s
DNA which helped it bring in the WOW factor. Apple markets its product based on what it can
do, not on raw specifications. They always strive to bring in something different which the world
did not even think of yet or only dreamt of till now. The journey began in 1977 with Apple II. It
was the first PC to support color graphics and have a floppy drive which was much more
affordable than competition’s product. It also launched the world’s first electronic spreadsheet,
VisiCalc. Apply continued its journey of firsts and innovation through licensing graphical user
interface (GUI) in 1983, introducing “the Macintosh”, supercomputers such as Power Mac G4,
OS X and the iPod, iPhone, iPad, MacBook Air etc. Each was an event that caused much media
hype among the tech lovers and presses alike. The incredibly charismatic leader Steve jobs’
forward thinking and presentations set Apple truly apart from competition. They brought in
devices which gave user a different experience; something they had not encountered before.
Therefore, innovation has been on the forefront of Apple’s journey to become one of the most
revered global brands in present day.
(b) Delightful customer experience

Apple practices empathy as one of its three pillars of business philosophy. Apple’s understanding
of its core customer base is light years ahead of its competitors like Samsung, Huawei, or even
Google. The competition may understand what it takes but may not invest in the same manner as
Apple does. One does not have to go farther than its retail stores. From its speckless layout of
store designs to uniform dress codes to exemplary services, the people orientation aspect of
Apple is clear. The same cannot be said for companies such as Huawei, Samsung etc. who
competes more on product feature, technology, product portfolio etc. It takes decade long
analysis; investments to become a people focused company such as Apple. They do not see their
products as mere devices but as individual pieces in the much larger pattern of customers’ and
their close one’s life and work. Apple has a story which is still lacking in powerhouses such as
Samsung. The iOS is unremarkably similar in every generation and every device. The same
experience carries through its entire product lineup from iPods, iPads, Macintosh to iPhone and
to Apple TV and watches. From purchasing to post sales, the entire experience is consistent.
Apple also built an ecosystem encompassing iTunes store, iMessage, Facetime, iCloud etc.
which makes sure customer and their friends and family stay close together.

(c) Ease of use and exclusivity:

Simplicity and ease of use has been an essential factor for Apple. It’s easier to use for a wide
range of people such as older generation, busy business people, non-techy, teens, people who
prefer easy purchase and excellent customer service. This comes at a price though, the iPhone X
is priced at upwards of $1200. However, the experience that Apple offers along with its strong
eco system, customer focus and exclusivity make it worthwhile for its customer base which is
gradually expanding. As of 2016, over 700m used iPhones and there are over 1 Billion active
users of Apple devices in the world. It has a premiumness attached to the brand and keeps its
customer base hooked with its unique experience and products. To a lot of people, it is an
aspirational brand, owning an iPhone is a matter of prestige and sign of affluence. Therefore,
despite practicing minimalism in marketing efforts, they have been able to create that pull among
consumers.

3.3 Brand Promise of Samsung:

Samsung is committed to complying with local laws and regulations as well as applying a strict
global code of conduct to all employees. It believes that ethical management is not only a tool for
responding to the rapid changes in the global business environment, but also a vehicle for
building trust with its various stakeholders including customers, shareholders, employees,
business partners and local communities. With an aim to become one of the most ethical
companies in the world, Samsung continues to train its employees and operate monitoring
systems, while practicing fair and transparent corporate management.

The brand promise of Samsung is people first; create the future; greener future together.

The values that define Samsung’s spirit

Samsung believes that living by strong values is the key to good business. That’s why these core
values, along with a rigorous code of conduct, are at the heart of every decision the company
makes.

People

Quite simply, a company is its people. Ay Samsung, we're dedicated to giving our people a
wealth of opportunities to reach their full potential.

Excellence

Everything we do at Samsung is driven by an unyielding passion for excellence and an

unfaltering commitment to develop the best products and services on the market.

Change
As we have done since our foundation, we set our sights on the future, anticipating market needs
and demands so we can steer our company toward long-term success.

Integrity

Operating in an ethical way is the foundation of our business. Everything we do is guided by a

moral compass that ensures fairness, respect for all stakeholders and complete transparency.

Co-prosperity

Samsung is committed to becoming a socially and environmentally responsible corporate citizen

in all of its communities worldwide.

3.4 The Wow factor of Samsung

Innovation and lead, every year, Samsung invests heavily on Research and Development
(R&D) globally. In 2014, Samsung spent $13.4 billion, over $14 billion in 2015, and $13 billion
in 2016.

Samsung offers the wide range of options for the consumers according to their choices. If anyone
wants a cheap phone, then Samsung has cheaper phones. If one wants a midrange phone,
Samsung has that too. If one wants a top of the range, Samsung has that too. If one wants to be
able to write with a pen on the phone, as well as draw, then Samsung has the note series. If one
just wants a fast, durable phone, Samsung S series is very good. Now, if anyone were to not
receive more updates, can install a custom ROM (basically another version of Android) which
means anyone can install Android X on a phone that could only get Android P.

3.5 Comparison of Samsung and Apple on Delivering Wow Factors

 The target audiences of Apple are professionals, managers, executives and students that are high
earners and belong to upper class and upper middle class who are aspirer, explorer and succeder.
Apple appeals to its customers and potential customer by taking the lead. The Mantra “Customer
is always right” is not a priority to Apple. To customers, Apple is always right. Apple dictates
the lead. Customers don’t always know what they want, they want to be directed. So Apple
upgrades with innovation that wows the market and hence deliver its brand promise of “Think
Different” by delivering novelty value through perpetual innovation and perpetual marketing
consistently.
.
The target customer of Samsung, on the other hand, can be broken down in two segments. The
primary target segments are: upper middle class Professionals and large businesses; whereas
secondary target market includes Young trendy people, high school & college graduates,
Common Cellphone users, Institutional sales for colleges, Services to public safety, government,
utility and manufacturing enterprises. Samsung has a brand promise of being an ethical company
to all of its stakeholders but its main wow factor is Innovate and Lead. So Samsung also focuses
on perpetual innovation and marketing.

Table 1: Year wise Research & Development Expenditure

Company (Billion $ ) Chang As a % of (Billion Change from 2014 As a % of
2014 e from revenues (2014) $) revenues(2015)
2013 2015
Samsung 13.4 28% 6.4% 14.1 5% 7.2%
Electronics
Apple 6 32% 2.6% 8.1 35% 3.4%
Microsoft 10.4 6% 13.4% 11.4 9% 13.1%
Intel 10.6 5% 20.1% 11.5 9% 20.6%
Amazon.com - - - 9.3 41% 10.4%
LG Electronics 2.3 9% 3.9% 2.1 -1% 3.8%
Sony 4.5 -10% 6.9% 3.9 0% 6%

From the table 1 above, it is seen that Samsung has invested a lot in research and development
over the years compared to Apple. Also Samsung has higher patents from 2013 to 2015
compared to Apple as shown in table 2 on next page.
 Table 2: Number of Utility Patents
Company 2013 2014 2015

Samsung Electronics 4652 4936 5059

Apple 1775 2003 1937

Microsoft 2659 2829 2408

Intel 1454 1573 2046

Amazon.com 530 741 1136

LG Electronics 1945 2119 2241

Sony 3073 3214 2448

4.0 Positioning of the Two Brands Globally: Apple versus Samsung

 4.1 Blue Ocean Strategy of Apple:

Apple has successfully created Blue Ocean with its value innovation and perpetual innovation on
continuous basis by attracting and targeting customers that are missed by the traditional MP3
player industry, mobile phone industry music industry on individual basis. The figure below can
give a broad and visual understanding of the blue ocean created by Apple.

Figure 1: Blue Ocean of Apple

4.1.1 Product Strategy of Apple:

The Apple product strategy is a combination of value innovation. The products are simple, sleek,
elegant, innovative but easy to use. Apple has successfully used the 4 Actions Framework for
each of its product and also has focused on the 7 parameters: performance, features, conformance
quality, durability, serviceability, reliability and style and design.

(a) iTunes
 Strategic thinking: Apple saw untapped demand for legal channels of digital music with wide
selection at a price that appeals to the mass of potential buyers.
Eliminate Raise
 Piracy concern  Music quality
 Complex pricing method  Music selection
 Simplicity & ease of use

Reduce Create
 Restricting in using purchased music  Pay per song
 30 seconds free sampling
 Automatic sync with iTunes (Easy file
management & transfer to a mp3 player)

Result: By 2010, Apple has sold more than 297 million iPods & maintained over 70% Global
market share

(b) iPhone

Strategic thinking: PC like phones

Eliminate Raise
 Variety of Models  Mobile internet
 Style & Entertainment
 Ease of use & Simplicity

Reduce Create
 Number of physical buttons  Freedom to customize through App store
 Embedded business applications (from 2008)
 PC-like performance (through higher
operating system)

(c) iPad
Strategic thinking: a new product that provides breakthroughs in value for PC users
 Eliminate Raise
 Hardware features  Ease of viewing
 Ease of use, intuitive navigation,
portability
 Non PC function such as hand held gaming
and e-book reading

Reduce Create
 
Technical specs (storage capacity, speed, Style and fun
etc.)  Hardware add on
 Functions (embedded 
software Customization through app
applications)

4.1.2 Pricing Strategy of Apple:

Apple provides all these innovations to its target audience at a premium price compared to other
products of competitors in the market. High priced products give image of quality and
durability but how Apple continues to work with customers after purchase is what
justifies price for most consumers. So Apple believes it focuses on value based pricing
for its target audience.

4.2 Unique Selling Proposition of Apple:

Apple has focused on creating a lifestyle for its customer instead of focusing on product
attributes as compared to other functional brands. “We provide a lifestyle with our products” is
the unique selling proposition.

4.3 Blue Ocean Strategy of Samsung:

4.3.1 Product Strategy of Samsung:

4.3.2 Pricing Strategy of Samsung:

4.4 Unique Selling Proposition of Samsung

4.5 Comparison of Apple and Samsung on Positioning Strategy and Unique selling
Proposition:

5.0 Positioning of the Two Brands Globally: Apple versus Samsung

5.1 Multiple Brand Identity:

Apple is a corporate brand and it is rarely that anybody states that he or she bought an Apple, it
is always an iPhone, iPod or iPad that is mentioned, similarly a customer purchasing a Samsung
smart phone will not refer to the purchase as a Samsung, but instead would say I bought a
Samsung Galaxy S8 or Samsung Galaxy Note-7.
Apple has been successful over Samsung in earning superior profits by embarking on multiple
brand identities. Samsung’s multiple brand strategy would be short termed, sighting that
Samsung is profitable due to the space it enjoys as No. 2 brand to iPhone which is more
profitable than Samsung. Despite these views both brands continue to enjoy the attention of the
consumer through their respective brand identities backed by consistent innovation in terms of
functional capabilities and technological advancements.
Apple has been successful in retaining its core identity and creating multiple brand identities
such as iPhone, iPod and iPad. Even within these brands Apple has created sub brands such as
Safari, iTunes, iBooks etc., thereby enabling it to successfully differentiate from Samsung and
other competitors.

5.2 Brand Personality:

Brand personality defined as “the set of human characteristics associated with a brand” by
David Aaker could be viewed through strong affiliations a brand may have to a single person
such as the founder or brand ambassador, as in case of Apple whose corporate brand personality
was defined by its founder, Steve Job’s personal characteristics such as vitality, imagination and
passion was associated with Apple and whenever Jobs was present at a product launch there was
tremendous hype and anticipation and when his health deteriorated and took him away from
leading Apple, the companies’ stocks plummeted . Samsung is protected from exposure towards
fallibilities associated to a single personality, as; although Samsung was founded by a Korean by
the name of Lee Byung- Chul in 1938 his association with the Samsung brand is little known

Apple has successfully built a sense of genuineness and feelings of energy to the personality of
their brand, whereas Samsung has an edge over it sense of ruggedness through its functional
dimensions. With functionalities such as replaceable batteries and free mobile apps the brands
Samsung is more appealing to a certain segment of consumers who are risk takers and do not
believe in paying for software. As such the Samsung brand is to a compelling functional benefit
whenever possible and generates deep consumer insight in the construct of their brand

5.3 Brand Self Image:

Brand self-image is also an internalized facet of the brand identity prism. According to Kapferer,
Brand self-image has been found as the target’s own internal mirror when s/he interacts with the
brand. It has said that consumers wish to acquire the characteristics of a brand by using them, for
e.g. User of an iPhone is associated to eliteness although actually he may not belong to the elite
class ( Ponnam, 2007) , and the same image cannot be drawn by Samsung as it is not perceived
to be identified in that position. The strength of the iPhone’s self- image is illustrated by a study
conducted where it was revealed that “Apple's iPhone remains the smartphone with the greatest
appeal for shoppers in North America”

5.4 Brand Physique:

The physical appearance of the iPhone has contributed immensely towards establishing its brand
personality in comparison to Samsung, the software (iOS 8) of the iPhone 6 has been optimized
to enhance the physical design iOS swipe gestures have been designed to flow seamlessly
making it easy to navigate with one hand thus linking traits of human characteristics to physical
design.

Apple targeted towards the high end customers although it was widely expected that Apple
would introduce a cheaper lower-end product with the 5C model to capture the emerging
markets, the pricing did not reflect this expectation and iPhones remains to be identified and
reflected with the affluent class. This view is illustrated by Reis (2014) who is of the opinion
that “Getting an iPhone, for instance, is a symbol of moving up in the world, a status symbol. In
many countries, including the U.S, an iPhone is a symbol of wealth.

Conversely, Samsung’s Galaxy range has targeted their brand to the mass market with a phone
to fit any customer’s budget. iPhones are sold mainly through their branded stores or authorized
 resellers, in 2003 Apple spent $293 million to open 73 retail stores to create excitement for the
brand , the logic behind this investment is to allow more customers to touch and feel the Apple
product. Comparatively Samsung is distributed freely and is available readily in most markets. In
essence, iPhone is reflected to be identified with the affluent and limited in availability thus
earning superior profits which no doubt enhances brand equity , the way Samsung is positioned
and reflected it is a revenue driver and is associated with affordability , and value for money but
includes high-end product options as well. When it comes to “understanding competitors” both
Apple and Samsung have been equally successful, Apples success though is limited to a niche
high-end market, whilst Samsung has a deep understanding of the mass market.

5.5 Brand Logo:

5.5 Brand Slogan:

 Mac Mini: “It’s Mini in a massive way

 Mac Book: “The note book you love”
 iTunes: “You have never been so easily entertained”
 iPhones: “Bigger than Better” “Progress is a beautiful thing.”
 iPad: “What will your verse be?”
 Mac OS X: “Every bit as powerful as it looks”
 App Store: “There’s an app for that”
 Apple TV: “ All Things entertaining”
 Apple Watch: “ Our most personal device yet”
 Apple Pay: “Your Wallet. Without the wallet”
 iTunes Radio: “Hear where your music takes you.”
 iPod Touch: “Engineered for maximum funness”
 iPod Shuffle: “Small but big on Music”
 iPod Nano: “Tap play. Then go play.”

5.6 Packaging as an Element of Differentiation between Brands:

Apple’s packaging strategy is based on simplicity that features the product and easy use of
products

6.0 Positioning of the Two Brands Globally: Apple versus Samsung

6. 1 Integrated Marketing Communication of Apple:

 Trade Shows: In earlier days, Apple used to perform trade shows.

Apple uses Television and Online marketing as a medium for its marketing communications.
 Advertisements with Celebrity Endorsements: Over the years, Apple has relied heavily on
catchy TV commercials and viral marketing campaigns. They often use songs that are trendy,
catchy and hip hop. Apple has solidified its position with simplistic yet powerful ads in
collaboration with numerous celebrities alike. Celebrity endorsements help to communicate their
brand position. Some of the award winning commercials are mentioned below:

 “1984 Super Bowl Commercial”: The 1984 Super Bowl commercial was Apple’s introduction of
Macintosh personal computer based off the eponymous dystopian George Orwell novel. It was
successful in introducing the philosophy of empowerment and today is considered as the most
well-known advertising in history. Apple advertising and marketing campaigns have continued
to be successful and won many awards.

 “Think Different”: When Steve Jobs left Apple Inc. for a short period of time the company was
not successful in keeping their brand image, they focused more on price and features of the
product. Jobs rejoined the company and in 1997 launched ‘Think different” campaign, which
again helped the company restore its brand image in the customer’s mind. This campaign was a
major turning point of company’s history. The commercials featured many greats who have
made a change in the world including martin Luther king Jr., Albert Einstein, John Lennon,
Thomas Edison, Muhammad Ali and Pablo Picasso.

 “Switch”: Apple is in fact a company that does think different, for their campaigns. Apple did
not advertise in the regular computer magazines, instead chose popular magazines and
magazines related to fashion. Something that other company never thought of doing before. In
2002, Apple launched a new campaign ‘Switch’ in which it featured “real people” who had
switched from Microsoft Windows platform to a Mac. Again this campaign featured famous
personalities such as Tony Hawks and Will Ferrell.

 “Get a Mac”: The “Get a Mac” campaign was launched in 2006 which was a form of negative
advertisement where the company talks bad about the competitors. The purpose of the campaign
was to target users of the competitors rather than concentrating on the hardware superiority. The
campaign featured a cool young guy who personified the Mac is for young and trendy whereas
PC is history. The positive point of the campaign was that Apple took advantage of the problems
 faced by the operating system launched by Microsoft during that time and it pointed out the
weakness and failures through these ads. In 2007 ‘Get a Mac’ campaign won the most successful
Marketing Campaign by Effie Awards.

 Product Placement: Apple tries to place their products into movies and TV Shows such as
Transformer 4 and Captain America: The Winter Soldier. Apple uses their logo in product
placement.

 Press Conferences: Apple often calls for press releases and introductory meeting to announce
their new product and show them off to the world. This creates anticipation and excitement
among customers and potential customers.

 Buzz Marketing: Apple uses this technique a lot in marketing their products. They heavily
relied on buzz marketing when they promoted their “siri” product and they used celebrity like
Zooey Deschanel and Samuel L Jackson to do it.

 Online Marketing via Apple Website: Apple make sure that traffic is driven to their website
via search engine marketing. When customers visit the websites, they find it is simple and easy
to navigate. The iPhone website has clean, clear and witty interface. The iPhone advertisement is
similar to white background of website that is alluring to customer. The website gives the
consumer information on all the Apple products, so that customer can make informed decisions
before they purchase the Apple products. Apple can spread information about their products
before they put it on TV.

 Infomercials (Direct Marketing): When a consumer installs a new app from App Store or
update, Apple sometimes slips in infomercials that show the consumers how to use the new
updates or new products. This promotes the image of simplicity while providing information to
the customers. Apple promotes by limiting music/media to be available by iTunes purchases only
to attract customers.

 Integration tools:
(i) Apple iD- requiring registered information to download apps/media, use products and update
apps /iOS are a way for Apple to understand who is using their products and what uses they are
using them for.

(ii) Software updates and App Stores allow Apple to have an idea of who is still using the products
and who utilizes the importance of simplifying and fixing bugs.

(iii) The iCloud is a tool for consumers to simply use multiple apple products, but also gives Apple
an idea of who is loyal to the brand, and what different products are being used.

6. 2 Integrated Marketing Communication of Samsung:

6.3 Comparison of Apple & Samsung’s IMC Based on Related Factors:

Factors Apple Samsung Winner

Innovation & Leading Innovator Follower for a long time. Became Apple
Technology major competitor after launch of
Galaxy S4
Social Media Minimalist presence on Visible on social media channels Samsung
Presence Social Media like YouTube, Twitter, Facebook,
connected with major apps and
platforms and launched digital
campaign #SamsungCares
Advertising Focuses on online Samsung is giving importance on Apple &
advertisement advertisement of Galaxy S. It Samsung
 campaigns. The iPhone promotes mobile phones- bringing a
website has clean, clear dark blue interface in contrast to the
and witty interface. The white background brought by Apple.
iPhone advertisement is Galaxy S is promoted as somewhat
similar to white vibrant, fast and thinnest mobile
background of website phone and the advantages embraced
that is alluring to are explained clearly.
customer.
Customer Apple launched ‘Your Apple &
Samsung launched its own
Engagement Verse’ campaign to Samsung
campaign, ‘Incredible Art Piece’ to
highlight how different promote Galaxy Note pen style. This
people use ipad to do campaign itself became a Guinness
things incredibly and in World Book entry with the record of
their own way in 2014. maximum number of artists working
(Lifestyle brand) on a single art work.
(Functional brand)
Public Apple is using publicity Samsung uses Social Media such as Apple
Relations & for free and yet Facebook to market its product and
Publicity powerful way to interact has less visibility on public relations
with customers. More compared to Apple
users are buying Apple
due to halo effect.
Viral Video In 2012, Samsung launched Samsung
Making campaign, “The Next Big Thing is
Already Here” to promote new
smart phone series Galaxy SII
teasing Apple with taglines ““Why
don’t you guys just get 4G
phones?” and similar campaign
Samsung’s Grad Pool Party ad on
May 2013 to promote Galaxy S4
Entertainment Apple also generated the Samsung believes in its value and Samsung
buzz among the music adores the power of a celebrity.
industry for Samsung made sure its product was
procuring ‘Beats’ by Dr. front and center at the Oscars.
Dre but it felt to be a The brand partnered with famous
little late music icon JayZ for his ‘Magna
Carta Holy Grail’ album, and
teamed up with Usher for product
placements in his ‘Looking for
Myself’ music video.
Brand Equity Apple

7.0 Survival and Sustainability of the Two Brands: Apple versus Samsung

Last Decade Scenario of Apple’s success:

Apple’s major competitive advantage is its technological advancement & visionary thinking
which made it most desirable brand in the world. Telling someone you own an Android doesn’t
have the same effect as telling someone you own an iPhone. It’s the name which makes the
difference.

Apple understood that their products are of high price so it will only be possible for youngsters
with hefty income or backed by rich parents to purchase their product while middle class who
forms the majority of the world population will not be able to purchase the same so they tied up
with telecom service provider in various developed/developing nations to sell it on EMI basis
with 2-3 years of unlimited calling /data usage. These strategies of Apple have been successful
so far in various nations.

Vertical integration has given Apple competitive advantage, as it owns chip manufacturers,
controls manufacturing, follows extremely strict software standards, and operates in a nearly
closed ecosystem of proprietary 400+ worldwide retail stores. With these advantages, the
company has more control of its value chain and, more importantly, its component costs.

Brand equity – Apple is one of the top most companies of the world for its brand equity. From
the days of McIntosh computers, Apple is known to be a brand with promise.

Tag of innovation – Besides the brand equity, the tag of innovation has always been applied to
Apple. From Ipod to Iphone and Ipad, Apple has been responsible for many tech revolutions.
Apple has always been known for its innovation & out of box ideas like “SIRI”, a personal
assistant having features of speech control and interactivity, user-friendly software platform.

Consumer loyalty – An Apple loyal customer will proudly proclaim in front of the whole world
that he is an APPLE guy. The brand loyalty of Apple iphone can be compared with the Harley
Davidson brand loyalists. Just like the HOGS are known to be furious Harley enthusiasts, so are
the iphone owners.

Amazing software and OS – The IOS which is the operating system of Apple iphone is a
respected mobile platform because of its flexibility and speed. The user interface is fantastic, and
one you use an iPhone, you get addicted to its ease of use.

Wide developer support / control in the hands of users –Google play came long after the
Apple developer network. Before Google play, or android even started, Apple had millions of
applications and games made through its developer network. And the Apple developer
community is one of the strongest online communities till date.
Design consistency – iphone has delivered hit after hit due to its design consistency. Apple
Iphone is very much similar in looks, and design wise there are not many changes. But it is what
is present inside the machine that Apple Iphone sells.

What are the challenges for Apple’s sustainability?

High price – With such brand equity, you are bound to target the A grade segment itself. But
even then, the Apple Iphone is costlier as compared to Samsung phones which offer similar
features.
Restrictions on the phone – There are unnecessary restrictions on the Apple Iphone out of the
box. There is no Bluetooth, expandable memory is absent, and battery is non-removable battery.
With such a high priced phone you expect more features from the phone.
No variety – Apple Iphone design is very consistent which a plus point is. But at the same time,
there is a large population which continuously changes phones. They don’t get the variety that
they expect from Apple Iphone. This can be a reason that customers switch to other brands. The
variety and features offered are very high in a brand like Samsung, Huawei, MI etc.
No Steve jobs anymore – Many of Apple followers were staunch Steve jobs fan. And with no
Steve jobs anymore, Apple has lost some of its charisma.
Lack of Innovation on Artificial Intelligence and for Market place: Mobile phone market is
now completely going based on the market place and their applications. IOS is not opening not
many spaces for the open source application which causing trouble for its users. Apple is telling
they are investing on artificial intelligence but truth is for last 3 years no one can see that much
up gradation to their new apple product and phone as well. This industry is changing rapidly and
statistics is showing new innovations are coming within 6-8 months but apple is not adopting
those rapidly which is a big concern for sustainability and those who are apple haters,
competitors they are getting a tool to say negative word of mouth for apple.
What Apple needs to do for sustainability?
Market potential of smart phones – Smart phones are the rage now a days and the market is
not going to get smaller. Thus the large market of potential customers is there for the taking for a
brand like Apple.
Continued technological advancement – Apple has delivered hits every decade or even every 5
years. So people have started expecting more unique products from a company like Apple. And
products which are technologically advanced can take the company to even higher levels.
More dependency on digitization – People are becoming more and more addicted to internet
and apps. So much so that nowadays hardly anyone is seen without a smart phone. As people
become more digitalized, and as spending power increases amongst consumers, smart phones
like Iphone Will see a boom in the industry.
Strategy for Market Place & Artificial Intelligence: One of the main competitive advantage
of android operated phone like Samsung is it’s market place which is known as google play store
. Google is a huge back up for android for market place and we can see that the market place is
the present and future of mobile phone. Though IOS has a market place which competing with
Google play store but still android based phone are winning due to it’s easy going nature. SO
apple has to make serious strategy for it otherwise they will not continued as a market leader and
it will count as threat for sustainability. And regarding the artificial intelligence they have
already developed ‘SIRI’ but it has no match with google AI. So if they want to give something
better to it’s users then they have to think seriously.
Success Reason of Samsung:
Samsung reads the markets: Samsung figures out where the world is heading in terms of
mass-market consumer electronics products, sees what is selling well and what is growing and
moves into that space with a better product than the original offering.”
Samsung is the classic fast follower: they’re attuned to what competitors are doing and what
other people are bringing to market first. They watch like a hawk as others gain traction and then
very rapidly come up with their own version. This emphasis on speed usually pays off, but it can
also backfire – as the problems with the Galaxy Note 7 highlight.
Lessons from the world’s best-known fast-follower: Samsung
Samsung didn’t invent the mobile phone – that honour goes to Motorola – but it took a
transformative new technology and ran with it. Even when Samsung is in the news for the wrong
reasons – the company has recalled the Galaxy Note 7 smart phones on safety grounds after
some of the devices caught fire – its fortunes are expected to recover.

Using innovation technologies:

 Fast-follower approach to innovation still requires enormous creativity and skill. Samsung
invests heavily in training its engineers to systematically innovate. Samsung is a company with a
vast amount of technological expertise. They make about 50% of the world’s microprocessors in
some sections of the market. They’re one of Apple’s biggest suppliers, providing memory chips,
touch screen glass and other components. The reason they’re able to move so fast is because they
already have so many other general-purpose technologies that underlie consumer electronics. So
moving quickly is about bundling together new and existing technologies.

What are the challenges for Samsung regarding sustainability?

High Price: Compare to other android phones Samsung is selling their product in a higher price
which is now considered as disadvantage for Samsung.

Dependency on Google android: Though Samsung has been successful for years by using
Google android but they need to focus on their own OS and application processors for
differentiating from other.

Need of New Technology: The market is in need of a new technology to disruptive the current
situation. With 5G, Samsung is currently in the lead among companies which can be game
changer and market leaders to a new wave of technological innovation. In order to become the
market leader in the emerging 5G technology, Samsung needs to take a more proactive view
which can propel the company to be the “first entrant” into the new market and get
competitiveness.

What Samsung needs to do for sustainability?

1. Develop their own OS, application processors

2. Decrease dependency on Google android
3. Keeping brand loyalty in high end products
4. File patent more aggressively on 5G technology on 2020.
5. Align R&D plans of SISA, DTL, SERI, and BST centers to support 5G development
6. Invest to hire and train related researchers for the centers
7. Participate with OS providers and third-party companies to develop applications

In this sector it is hard to say who is going to survive for next 10 years. Once Nokia was the
market leader of this sector. One has to make right decision and right research and development
regarding user’s demand otherwise in it is difficult to sustain in this sector. From this point of
view Apple has risk issue regarding sustainability comparing to Samsung.

8.0 Survival and Sustainability of the Two Brands: Apple versus Samsung

6. Who is winning the war?

There’s no end in sight to the war between Apple and Samsung. In all likelihood, competition
between the two will be healthier every year. But even though neither company is teetering on
the brink, Apple is most definitely winning the current battle. Apple are widening the gap where
it matters the most.

Why Apple s winning the current battle?

1. Capturing market share:

Apple has significantly increased its lead over Samsung in the premium smart phone market
($400+) since the launch of the iPhone 7. Over the summer, Apple was selling just over 50% of
the global premium smartphones, and Samsung was selling just under 25%. By December 2016,
those numbers had grown to 70% and 17%, respectively.

2. Higher Profit Margin:

Although premium smart phones make up a minority of global smartphone sales by volume, they
provide the bulk of the profit. The reason why Apple makes so much money off smartphones is
because each iPhone it makes costs somewhere around $200 to make, and is sold for over $600.
The profit margins are far better for premium smartphones than nearly any other segment of
electronics, so Apple ends up making more money on a $600 iPhone

3. Competitors still facing challenges:

That’s why it’s so significant that Apple is widening the gap on Samsung with premium
smartphones. For the past five years, Samsung has been the only other smartphone company to
give Apple real competition in the premium smartphone market. Other Android manufacturers
have made great flagships, but they haven’t sold well, and sales of $300 smartphones haven’t
been enough to support HTC, Sony or Motorola.The only thing that separates Samsung
Electronics from the laundry list of failed smartphone companies is the premium devices.
Samsung can’t get by selling the S6 Mini for $250 unlocked to a bunch of teenagers. It needs
people buying the Galaxy S8 and the Galaxy Note 8 instead of the iPhone 8, or the profits will
wither and die. According to Counterpoint, it’s really a battle for survival between Samsung and
Apple. Their respective shares of premium smartphone sales are a “zero-sum game;” when one
company loses its share of the profitable smartphone sales, the other gains.

4. Brand Loyalty:

Brand loyalty is very important to any manufacturer but is extremely important in the
smartphone market due to the quick replacement cycles. Apple has a bit higher retention rate at
42% vs. 38% for Samsung. Apple does a better job of switching Samsung customers at 19% vs.
Samsung only converting 7% of its users from Apple.Both Apple, at 79%, and Samsung, at 75%,
users tend to keep their phones between one and three years with Apple turning them over
slightly sooner than Samsung owners.

5. Apple’s own ecosystem:

Apple could be in a better position since it seems to be retaining a higher percentage of its users
and doing a better job of getting Android users to convert to iOS. While I don’t expect Samsung
to falter anytime soon, if the Android market becomes extremely price competitive and it is not
able to make inroads in Apple’s install base Samsung’s profitability could be negatively
impacted. Samsung will need to be at the leading edge of functionality and develop its own
ecosystem.

6. Strategy of Apple:

This culture and strategy difference also is manifested in the innovation happening within the
brand’s sales and marketing departments. It starts with customer data. You can’t use the iPhone
without having an account with Apple, which means that Apple knows a lot about you. In
Samsung’s case, it has yielded the customer data benefit to Google, though the benefits of that
decision probably outweigh the detriments.The operating system excuse doesn’t let Samsung off
the hook. Apple is continuously improving its internal sales and marketing capabilities because it
has a straightforward management structure. Therefore, it can experiment as rapidly here as it
does with its products (and probably faster). Apple is applying AI and other novel concepts in its
operations. Apple was the first among the two to experiment with proximity in its sales
operations, and its CRM system is state-of-the-art.

Based on all this comparison we can say apple is leading the market but as the technology,
innovation is changing and all those competitors are making progress it is hard to say who is
winning as winning is the word of future itself. Market trend always shows the path for market
leader. But in this sector Nokia was the winner, but now Apple is.