Samsung: Building a Great Brand Introduced By: Michael Baccus, Marcial De Castro, Judith Dupin, Monica O’Neil, and Jose Santillan Advertising Administration- MAR 3023-P80 October 5, 2011 Samsung grew its model fairness by 186 % in simply 5 years from 2000 to 2005. “Brand fairness is the worth of the model title, its price as an asset to the corporate. ” (Advertising Rules, 2011, Module 6 p. 1). When new administration got here into the South Korean based mostly agency, it scraped the all the varied model names that the corporate was promoting low finish electronics below, and consolidated by branding all the firm’s merchandise as Samsung. Ten years later,
Samsung is a pressure to be reckoned with to its rivals and a world model title. Nonetheless, the choice to solely use the model title Samsung just isn’t the crucial key to its success. Samsung has targeted on innovation and product design to construct its model fairness and it’s working. Samsung applied totally different modern methods to encourage and ship nice designs. The previous chairman employed a whole lot of recent designers, applied usability laboratories, and opened design facilities world wide. The funding in product design, the progressive tradition, and Samsung’s potential to step outdoors the field has all been invaluable in uilding a nice model. The crucial exercise within the technique of Samsung’s transformation into a world- beating developer of recent cellular phone handset designs and different product line designs was its innovation with funding in product design and high quality. Samsung constructed its model into a superior model by considering and appearing outdoors of the field. As a substitute of specializing in textbook product improvement funnels, it targeted on extra leading edge strategies such because the implementation design facilities staffed with extremely educated, inventive, and expert younger designers and no forms to get in the best way of design and innovation.
In accordance with Roll (2011), “Samsung has created a robust model round innovation, leading edge expertise and world class design. ” (para. 1). Samsung Chairman Lee Kun Hee concluded that “nice design and innovation can be the best way to construct Samsung into a nice world model,” and he was appropriate (Advertising Rules, Module 6, p. 1). As a substitute of forming panels and hiring managers or extra entrepreneurs to provide you with new gimmicks, he employed a whole lot of designers. The designers had been from prestigious faculties of design and had a median age of simply 33. The design pressure at Samsung multiplied y over 400% to over 400 designers in 10 years. This out of the tackle product improvement allowed Samsung to remodel its product line into world class. Rivals comparable to Sony have additionally adopted in Samsung’s footsteps. In accordance with Kunkel: “With practically 250 industrial designers; graphic, packaging, and logotype designers; user- interface specialists and Net designers working in workplaces from Tokyo to San Francisco to Cologne, the Sony Design Middle is answerable for practically 2,000 new merchandise, ideas, packaging schemes and design methods yearly, driving gross sales of merchandise nd providers totaling practically $50 billion per 12 months” (Product Description, para. 2). Though Sony additionally employs a lot of designers, Samsung nonetheless leads the trade in permitting their designs to encourage innovation. Samsung’s progressive tradition of efficient, environment friendly, and quick implementation is a part of its benefit over rivals. In accordance with the dynamic principle of competitors offered in Advertising Rules (2011): “Suppliers with an insatiable enchancment drive are extra aggressive. ” “Suppliers who implement successfully, effectively, and quicker are extra aggressive. ” (Module 1 p. 6).
Samsung modifications its product line 3 times as quick as its competitors comparable to Motorola. Samsung has proven agility, based on Advertising Rules (2011) “… i. e. the power to implement change to alter processes to introduce new applied sciences, new abilities into the group in a short time and successfully” (Module 1 p. 7). Change is managed very properly at Samsung they usually have decrease manufacturing value on prime of their time to market being quicker than that of rivals. Samsung avoids forms at its 24/7 design facilities. Designers can work via issues with out being delayed by non-productive orporate displays and politics. Samsung has a fixed concentrate on enchancment and being quicker and implementing the following innovation earlier than the completion. Fackler (2006) defined, “”Our TVs are higher,” Nobuyuki Oneda, Sony’s chief monetary officer, mentioned in an interview earlier this 12 months. ”However Samsung’s money circulate is wonderful. It’s exhausting to put money into and develop merchandise” on the similar tempo as Samsung. ” (para. 23). Samsung’s use of usability laboratories have been key in its market orientation abilities and understanding the person interface. Samsung doesn’t comply with the textbook best-practice of product improvement, which is idely now thought of “yesterday’s greatest observe” in product improvement. In accordance with Advertising Rules, Samsung makes use of concurrent engineering and quick prototyping in an across the clock strategy to downside fixing (Module 6 Case 2 p. 1). The normal greatest observe solely produces a success fee of 50 % in product improvement. This out dated mind-set is burdened with “gates”. These gates are the place forms in a company can delay ahead motion of the product design. Samsung has “decentralized” and broke away from this fashion of improvement.
It’s truly criticized within the case research with the instance of using Samsung’s design facilities. Product improvement is free to develop in a inventive surroundings with out legal professionals or different maintain ups. Samsung has taken its out of the field strategy and its funding in design and turned it into income. As Advertising Rules explains, based on the present CEO of Samsung “we nonetheless have a lot of issues to do earlier than we’re a nice firm. ” (Module 6 Case 2 p. 2) With that strategy and its fixed drive to beat itself, The Samsung model fairness is more likely to proceed to develop. References:
Advertising Rules. (2011). Portsmouth, NH: Spine Press Frackler, M. (2006). Electronics firm goals to create break-out product. The New York Instances, p. C. 1. Kunkel, P. (1999, September four). Product Description [Review of the book Digital Dreams: The Work of the Sony Design Center]. Amaonz. com. Retrieved from http://www. amazon. com/Digital-Goals-Work-Design-Middle/dp/0789302624 Roll, M. (2011). Samsung: Building model fairness via model group. Enterprise Republic. Retrieved from http://www. venturerepublic. com/assets/Samsung_Building_brand_equity_through_brand_community. asp
