Samsung: Building a Great Brand

Samsung structure a Great Brand Presented By Michael Baccus, Marcial De Castro, Judith Dupin, Monica ONeil, and Jose Santillan Marketing Management- bodge 3023-P80 October 5, 2011 Samsung grew its soft touch equity by 186 percent in just fivesome years from 2000 to 2005. Brand equity is the value of the mug name, its worth as an asset to the lucky. (Marketing Principles, 2011, staff 6 p. 1). When new management came into the S let outh Korean based firm, it scraped the all the various grime names that the company was change low end electronics under, and consolidated by branding all of the companys results as Samsung. Ten years later,Samsung is a force to be reckoned with to its competitors and a global brand name. However, the decision to only use the brand name Samsung is not the censorious divulge to its success. Samsung has cogitate on intro and product form to build its brand equity and it is working. Samsung go acrossed various innovative charges to inspire and deliver great designs. The former head hired hundreds of new designers, implemented usability laboratories, and opened design centers around the world. The enthronization in product design, the progressive culture, and Samsungs ability to step outdoor(a) the box has all been invaluable in uilding a great brand. The critical activity in the process of Samsungs transformation into a world- walloping developer of new cell phone handset designs and other product report designs was its innovation with investment in product design and quality. Samsung built its brand into a superior brand by thinking and acting outside of the box. Instead of focusing on textbook product development funnels, it focused on more cutting edge methods such as the carrying into action design centers staffed with highly trained, creative, and skilled young designers and no bureaucratism to choose in the way of design and innovation.According to Roll (2011), Samsung has created a strong brand around in novation, cutting edge technology and world class design. (para. 1). Samsung chair Lee Kun Hee concluded that great design and innovation would be the way to build Samsung into a great global brand, and he was correct (Marketing Principles, Module 6, p. 1). Instead of forming panels and hiring managers or more marketers to come up with new gimmicks, he hired hundreds of designers. The designers were from prestigious colleges of design and had an average age of just 33. The design force at Samsung multiplied y oer 400% to over 400 designers in 10 years. This out of the take on product development allowed Samsung to transform its product line into world class. Competitors such as Sony have also chaseed in Samsungs footsteps. According to Kunkel With nearly 250 industrial designers graphic, packaging, and logotype designers user- interface specialists and Web designers working in offices from Tokyo to San Francisco to Cologne, the Sony soma Center is responsible for nearly 2,000 ne w products, concepts, packaging schemes and design strategies all year, driving sales of products nd services totaling nearly $50 billion per year ( yield Description, para. 2). Although Sony also employs a lot of designers, Samsung still leads the industry in allowing their designs to inspire innovation. Samsungs progressive culture of effective, efficient, and dissolute implementation is part of its advantage over competitors. According to the dynamic theory of competition presented in Marketing Principles (2011) Suppliers with an insatiable improvement drive argon more competitive. Suppliers who implement effectively, efficiently, and faster are more competitive. (Module 1 p. 6).Samsung changes its product line lead times as fast as its competition such as Motorola. Samsung has shown agility, check to Marketing Principles (2011) i. e. the ability to implement change to change processes to hive away new technologies, new skills into the organization very quickly and effec tively (Module 1 p. 7). Change is managed very well at Samsung and they have lower manufacturing court on top of their time to market being faster than that of competitors. Samsung avoids bureaucracy at its 24/7 design centers. externaliseers can work through with(predicate) problems without being delayed by non-productive orporate presentations and politics. Samsung has a constant focus on improvement and being faster and implementing the next innovation before the completion. Fackler (2006) explained, Our TVs are better, Nobuyuki Oneda, Sonys chief financial officer, said in an interview earlier this year. entirely Samsungs cash flow is amazing. It is hard to invest in and develop products at the same pace as Samsung. (para. 23). Samsungs use of usability laboratories have been key in its market orientation skills and understanding the user interface. Samsung does not follow the textbook best- radiation pattern of product development, which is idely now considered yesterdays best practice in product development. According to Marketing Principles, Samsung uses concurrent engineering and fast prototyping in an around the clock glide path to problem solving (Module 6 Case 2 p. 1). The traditional best practice only produces a success rate of 50 percent in product development. This out dated way of thinking is burdened with gates. These gates are where bureaucracy in an organization can delay forward work of the product design. Samsung has decentralized and broke away from this way of development.It is actually criticized in the case study with the example of the use of Samsungs design centers. Product development is free to develop in a creative surround without lawyers or other hold ups. Samsung has taken its out of the box approach and its investment in design and turned it into profits. As Marketing Principles explains, according to the current CEO of Samsung we still have a lot of things to do before we are a great company. (Module 6 Case 2 p. 2) Wi th that approach and its constant drive to beat itself, The Samsung brand equity is in all probability to continue to grow. ReferencesMarketing Principles. (2011). Portsmouth, NH Backbone Press Frackler, M. (2006). Electronics company aims to create break-out product. The spic-and-span York Times, p. C. 1. Kunkel, P. (1999, September 4). Product Description Review of the book Digital Dreams The Work of the Sony Design Center. Amaonz. com. Retrieved from http//www. amazon. com/Digital-Dreams-Work-Design-Center/dp/0789302624 Roll, M. (2011). Samsung Building brand equity through brand community. act Republic. Retrieved from http//www. venturerepublic. com/resources/Samsung_Building_brand_equity_through_brand_community. asp