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Ethan Bowers
University of Maryland Global Campus
October 31, 2022
Pro640
Executive Summary
Slate Incorporate is reviewing its method of branding to establish the best choice to manage the brand in the competitive industry involving smartphones. A brand analysis of Slate’s main competitors, Apple and Samsung, will give information to the company’s decision-makers. Additionally, it would give information about strategies, customer buying habits, and competitive advantages.
According to Forbes author, Samuel Thimothy, retaining customers could be easier than attracting new ones, (Thimothy, 2021). Apple and Samsung are two of the most popular brands that create loyalty and work on their brands. Both Apple and Samsung both used branding and marketing to develop their brands, (HIS, 2020). They both have been able to retain customers, (HIS, 2020).
If slate wishes to build a brand and compete with Apple and Samsung, it would need to measure and examine customer equity and ensure they have a targeted customer group that could balance costs. Additionally, the company needs to create a philosophy to examine the success of its new products, branding methods, many other aspects.
Background and Theory of Brand Analyses
In Shakespeare’s Romeo and Juliet, the character Juliet asks in her soliloquy, “What’s in a name? That which we call a rose by any other name would smell just as sweet.” The character argues that the names Capulet or Montague have very little value or significance in the value of that person. In business, branding is everything. Authors He and Calder (2020) argue that it is better to think of brands as assets, (He, 2020). In this way, it is possible then to argue that investments in brand strength are choices made in the entire company’s profitability, even though these ‘assets’ are not tangible or reflected in the balance sheets, (He, 2020). They argue that the difference between being profitable and not often lies in the willingness to put resources into brand-strengthening activities, (He, 2020).
The same authors note that “brand strength determines how much sales is due to the brand,” (He,
2020). Brand strength is relative to the performance of other brands or companies, (He, 2020). The brand value, however, is the actual contribution to revenue, (He, 2020). Therefore, the stronger the brand, the stronger the sales performance. A strong brand is a major contribution to the nominal price of a product. However, if a brand is considered weak, the buyer will typically base their decision on factors like the availability of the product and price, rather than the name or origin of the product. The difference between strength and weakness is best understood as in the concept of ‘brand equity.’
Managing brands across multiple markets
Both Apple and Samsung have managed to become established and recognizable brands across several markets. In the most recent Best Global Brands report, global brand consultancy firm
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Interbrand warns that the world is thinking very differently about brands. In 2020 the world was not a happy place. Along with multiple environmental and injustice challenges, everyone was locked down in place because of the pandemic. The loss of life was overbearing. So, people thought differently about how they consume. The authors note that “some of the rising brands in our study are actively expanding possibilities, by driving decisive innovation, developing kinder,
more viable business models, making hard choices and taking uncompromising stances.” Author Miranda Herbert Ferrara acknowledged that although horizontal expansion across the globe provides increased revenue and greater profitability possibilities as long as marketers pay attention to local challenges, cultural disparities, regulatory challenges, and the like, (Ferrara, 2013). He notes, By identifying the nature of those challenges and through rigorous planning and
preparation, however, a way forward can be delineated and diligently traversed, to the benefit of the brand and the company as a whole,” (Ferrara, 2013). The Interbrand report suggests that being seen as a solution to current problems is becoming an important aspect of a global strategy.
In the report, Apple was the most desirable brand for the ninth year in a row. The company achieved that through increased diversification into entertainment, data-storage, and music, as well as its iPhone, Mac, and Apple products. Staying close to customers with online and physical
store retail solutions also assisted in their 26% increase in brand value for the year. The Samsung
brand value growth for the year was 20%. Interbrand attributed their 5th place position to technical innovation.
Best Global Brands Report, Interbrand, 2021
Comparison: Apple vs Samsung
Interbrand, 2021
Strong vs Weak brands - what are the metrics?
Professor Rajagopal reminds us, “Consumers often anthropomorphize brands by endowing them with personality traits, and marketers often create or reinforce these perceptions by their brand positioning.” Therefore, it is important the marketers track brand performance across multiple metrics or elements to identify areas for improvement. Although brand audits are very specific to
the product and industry, brand equity can be measured by profiling a brand and its competitors against “a set of indicators and attributes.”
In their study of Jordanian companies, Muhammad S. Alnsour and Muath Labib Subbah identified a wide range of brand elements being tracked and evaluated to establish a brand’s equity. The stronger the brand, the more sophisticated the elements being tracked. However, most studies involve evaluating “trademarkable devices that identify and differentiate the brand.”
An inIn an introductory study of the competing brands of Apple and Samsung in the mobile phone market, it is important to evaluate their gth and weaknesses with respect to the brand elements of personality, image, identity, differentiation, positioning, communication, loyalty, and
equity.
Brand Analysis Report on Samsung and Apple
Although there are more complex ways of evaluating brands, most analysts highlight the following as among the most important elements to consider:
Brand Personality
Stanford researcher Jennifer L. Aaker notes that consumers can think of brands as having personality traits, (Aaker, 2000). For example, hip and cool, (Aaker, 2000). However, it is always important to note that the consumer wishes to see themselves in the brand, (Aaker, 2000).
In forming perceptions of human personality traits, the person relies on cultural norms and real demographic information, (Aaker, 2000). In the ‘brand personality,’ it is often important to consider what the consumer thinks of a product’s utility and its symbolism. In her study of consumer reactions to 37 brands, she identified five distinct dimensions to consider in
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considering the brand personality: Sincerity, Excitement, Competence, Sophistication, and Ruggedness, (Aaker, 2000).
Apple Inc.
Gracia Kadim suggests the main goal of the marketing and branding promotions at Apple Incorporate has always been to connect consumers to their visions and ideas, (Kadim, 2019). Kadim suggests Apple always targets their promotions to be about their customers as opposed to the products, (Kadim, 2019). Apple’s main brand method focuses on how the customers feel about their products, (Kadim, 2019). Additionally, Apple focuses on its customers’ lifestyles, mindsets, hopes, and aspirations through its technology, (Kadim, 2019). This would allow customers to anticipate excitedly for new products, (Kadim, 2019).
Samsung
According to the Martin Roll article, Samsung – The Global Asian Brand, Samsung can understand success and profitability and relate it to their innovation, superior technology, and designs, (Marketing, 2017). Gracia Kadim suggests Samsung has become one of the leaders in the industry and earns a larger part of the market as a result of its determined marketing and branding plans, (Kadim, 2019). The company sticks out because of its competitive prices and high-end abilities and creative features across a wide array of electronics, (Kadim, 2019). They made themselves more appealing to customers searching for electronics with customizations, (Kadim, 2019). Samsung has efficiently marketing the functional benefits of its brand and connected it with new technology, new look designs, and enhanced features across its product
line, (Marketing, 2017). It is safe to say that Samsung has something that would satisfy the needs
of for everyone.
Brand Image
Forbes contributor Solomon Thimothy reminds his audience that in recent years brand image has
become more than the logo by which a business, product, or service is identified, (Thimothy, 2016). “Today, Today, it is a mix of the associations consumers make based on every interaction they have with your business,” (Thimothy, 2016). Business owners often mistakenly regard brand image expenses as unnecessary and superficial, (Thimothy, 2016). In his experience, the small details matter. He, for example, spends much time on business cards because he remembers what an impression such a small item can have on customers, (Thimothy, 2016). The brand image conveys the promise and the service expectations to the customer, (Thimothy, 2016).
Apple Inc.
According to Above Avalon, Apple Inc sells and designs its products to enrich the lives of its customers, (Apple, 2020). This would help them learn, innovate, assist in their tasks, share with friends and relatives, and improve their health, (Apple, 2020). Above Avalon suggests that Apple
does not need to be a leader in innovation, but rather be the first to create something new in the marketplace, (Apple, 2020). To the company, innovation is a new product that would improve and enhance the lives of customers, (Apple, 2020). Above Avalon argues that Apple constantly prioritizes software and hardware that focus on features and quality as opposed to quantity, (Apple, 2020).
According to Roberta Greenspan, Apple Incorporate makes sure it’s sustainable by taking advantage of a premium brand and a marketing strategy that focuses on the 4Ps which include: Product, Place, Promotion, and Price (Greenspan, 2019). Jay Leonard suggests that Apple creates
a secret surrounding the release of its product, (Leonard, 2022). This mystery creates a sense of wonder, attracts attention, ends up increasing sales because it excites the customer to pursue the newest, products, (Leonard, 2022). Apple prices its products to align the brand and the customer’s perception and connects the item with a high value and quality, (Greenspan, 2019). Apple could illustrate the true value of the true meaning of an Apple product by increasing the price of its iPhones, (Leonard, 2022).
Samsung
The mission at Samsung is “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society,” (Darbinyan, 2020). Their vision statement is “to 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,” (Darbinyan, 2020). According to the Samsung Newsroom, Samsung created a plan to produce and create products that fit the needs of the customers’ lifestyles, (Samsung, 2022). Additionally, they create products more efficiently and reduce their impact on the environment, (Samsung, 2022). They created their campaign, “Together for tomorrow,” to encourage their audience to make a positive change and address the biggest challenges the world faces, (Samsung, 2020). Samsung aims to improve society and the world by encouraging camaraderie, (Samsung, 2022).
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’
Song, 2020
According to the Martin Roll article, Samsung – The Global Asian Brand, Samsung boosts its image through its product line, (Marketing, 2017). Mher Darbinyan suggests Samsung offers quality products with fair pricing to increase the brand’s trustworthiness, (Darbinyan, 2020). Samsung has won numerous awards for its quality products, creations in technology, and sleek designs, (Darbinyan, 2020). According to Ryan Haines, Samsung is known for its electronics that include premium models, (Haines, 2022). According to Darbinyan Perch, Samsung’s image stems from an appeal to creativity and innovation, (Perch, 2021). Samsung’s marketing and branding focus on two groups, (Perch, 2021). Young consumers who are looking for new information, challenges, and new methods of living make up the first group, (Perch, 2021). This group is known as Conscious Progressives, who see the products as high-quality with a good price, (Perch, 2021). The second group is known as the Actualizers, the ones who view Samsung as a quality brand that can stay up-to-date with the current trend, (Perch, 2021).
Brand identity
Another Forbes contributor Hannah Trivette recommends paying attention to brand identity and general branding, (Trivette, 2021). While branding includes the ways in which a company is visually represented in the public space (e.g., the logo, color scheme, font), brand identity “ is more about the intention behind your communications, not just how they look,” (Trivette, 2021). Elements like the tone of social media posting and the use of reusable packaging provide customers with insights about your company’s value system, (Trivette, 2021). A strong brand identity conveys to the customer the degree to which their values are important to the manufacturer of the product,
(Trivette, 2021).
Apple Inc
For Sylvia Song, the Apple brand demonstrates the importance of the visual identity of any brand, (Song, 2020). She notes, the company pays close attention to all its physical brand assets, including the uniforms of the staff, (Song, 2020). The monochrome color scheme of storefronts gives the impression of simplicity and professionalism, (Song, 2020). Every aspect of the design is carefully curated to leave the customer with a pleasing experience, (Song, 2020). Samsung
Samsung’s brand image is the English spelling of the company name, (Samsung, 2021). According to the company they started using the “sleet lettermark logo” in 2005 to convey “a contemporary look and feel, (Samsung, 2021).” The lettermark is supposed to be always clean with no distracting images or letters, (Samsung, 2021). The Samsung company has expanded vertically into a range of products in healthcare, fashion, lifestyle, recreation, and others, associated for their target market consumers at the same time while it is expanding horizontally across the world, (Samsung, 2021). Brand differentiation
Successful brands like Coca-Cola have often used product differentiation strategies to solidify their influence on their target markets in each country they operate in. The company sells a range
of soft drinks, waters, and wines to a range of retailers who realize that this product is reliable and a consistent earner for them. Sujan and Bettman defines the brand positioning or differentiation strategy as the marketing approach to ensure a brand is viewed as superior to its
competitors, (Sujan, 1989). Once the marketers choose a particular attribute to focus on, the next step is to find the best possible way to communicate that benefit to the customer, (Sujan, 1989).
Apple Inc
It has to be noted that the Apple brand is associated with a number of differentiated products and sub-brands. Most important are: iPhone, iPad, Macs, AirPods, and so on. Jay Leonard suggests Apple makes itself identifiable from its competition through its marketing and branding techniques create an appearance around its products and contribute to its success, (Leonard, 2022). There are many areas that distinguish Apple. First, the company researches many ways to appeal to its customers, (Leonard, 2022). The time they spend to grasp what the customers desire
strengthens their brand, (Leonard, 2022). Second, the company creates a secret around its products, (Leonard, 2022). This excites the customers, (Leonard, 2022). Third, Apple introduced a unique buying channel when they introduced the Apple Stores, (Leonard, 2022). Apple Stores are walk-in stores that allow customers to receive hands-on experience and test Apple products, (Leonard, 2022). The fourth way is Apple’s ability to focus on creating marketing techniques to reduce the amount of time focusing on its competition’s prices, (Leonard, 2022). Finally, Apple balances products on pre-sale and makes it seem that the supply is low, (Leonard, 2022). Samsung
The Martin Roll article, Samsung – The Global Asian Brand suggests Samsung has become the leader in innovation, created high-end technology, kept up with current trends, and promoted itself, (Marketing, 2017). Mher Darbinyan suggests Samsung differentiates itself in many ways, (Darbinyan, 2020). The first is their marketing using the “regular guy” method by connecting
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people and societal goals and creating, (Darbinyan, 2020). Samsung also creates products in a wide array of ranges and prices to help customers have a sense of belonging, (Darbinyan, 2020). Darbinyan suggested Samsung allocated over $16 on R&D, (Darbinyan, 2020). In 2020, their network included 14 Centers across 12 nations, (Darbinyan, 2020).
Brand positioning
Marketing firm, Qualtricks defines brand positioning as “
owning a unique position in the mind of the target consumer, and it is an articulation of what you want your brand to be to consumers,”
(Qualtricks
). Brand positioning often have the following goals: Premium product, good value, market leader or challenger, safe or reliable pair of hands, and an emotionally favorable brand, (Qualtricks
).
Apple Inc
Apple relied heavily on a “pull” product and market strategy according to Above Avalon, (Apple, 2020). This centered their attempts on creating new products relevant and personal, (Apple, 2020). Additionally, it left certain products struggling to compete in the market, (Apple, 2022). In 2017, Apple began using the push strategy to boost technological updates across their products, (Apple, 2020). When they shifted their attention to creating relevant and personal technological products, Apple created a user-friendly group of tools that customers were willing to pay for, (Apple, 2020). According to Above Avalon, it took 10 years to reach one billion Apple users, (Apple, 2020). The company is optimistic about customers will purchase multiple devices, (Apple, 2020). Apple forecasts that one billion Apple users are less likely to use any devices that their competition produces, (Apple, 2020).
Samsung
According to the Martin Roll article, Samsung – The Global Asian Brand, Samsung has positioned itself as a digital leader, (Marketing, 2017). This is due to its leading technology in communication, screens, and memory chips, (Marketing, 2017). Samsung created its brand philosophy based on five main pillars, innovation, cutting-edge technology, world-class designs, recruiting the world’s best talents, and internal branding, (Marketing, 2017). Samsung’s pursuit of innovation results from intense research and development to create the newest technology, (Marketing, 2017). In 2016, the European Union R&D Investment ranked Samsung as the largest
spender of technology and the second highest spender in marketing, (Marketing, 2017). Today, the company’s commitment to R&D includes 9% of its revenue and has over 50,0000 employees
across 42 facilities, (Marketing, 2017).
Brand communication
Hitesh Bhasin defines “Brand Communication” as “an important part and tool of brand management by which the companies inform, persuade, enlighten, teach, remind, and enrich the knowledge of their stakeholders about the brand, its strengths, values, fundamentals, and its offerings of products and services,” (Bhasin, 2021). It influences the stakeholders of a company by strengthening their relationship, (Bhasin, 2021). Additionally, it influences customers about the brand, company, and offerings, (Bhasin, 2021).
Apple Inc.
Roberta Greenspan suggests Apple’s competitors are aggressive in their branding, marketing, and creativity, (Greenspan, 2019). Therefore, Apple has created a marketing and branding
strategy to compete (Greenspan, 2019). Their communication strategy includes targeting, personal selling, promoting their products, and public relations, (Greenspan, 2019). The simplicity of Apple devices entices customers, (Greenspan, 2019). Gracia Kadim suggests Apple
does not hesitate to describe the advantages of its products, (Kadim, 2019). Apple uses television
commercials and offline advertising to market its products, (Kadim, 2019).
Samsung
The Martin Roll article, Samsung – The Global Asian Brand, illustrates Samsung is focused on two objectives, (Marketing, 2017). First, it wants to identify itself as a premium brand with high quality, trustworthiness, and design, (Marketing, 2017). Gracia Kadim suggests that part of Samsung’s communication methods involves many avenues such as mass media, global public relations, event sponsorship, sports, sponsorship, and product placements, (Kadim, 2019). Samsung wants to express team spirit like its sponsorship of events such as the Olympic Games, (Marketing, 2017). I 2013, Samsung introduced the “Design Your Life” campaign to illustrate the personal connectivity to the newest products, (Marketing, 2017). Brand loyalty
Jason Gordon defines “Brand Loyalty” as “the consumers special attachment to a certain product,” (Gordon, 2021). It is illustrated through how frequently a customer purchases a product from a company, (Gordon, 2021). It helps build a strong customer base, (Gordon, 2021). Apple Inc.
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Above Avalon suggests Apple has been able to provide a focus on customer experience, (Apple, 2020). According to Jay Leonard, the customers would use the Apple system for two reasons, (Leonard, 2022). The first is because Apple created a create a process to produce a positive event, (Leonard, 2022). The second is because Apple has proven its quality control, interoperability of its products, and user-friendly features, (Leonard, 2022). Once a customer is captivated by Apple, they will remain loyal, (Leonard, 2022). Samsung
According to IHS Technology Press Releases, Samsung has worked for years to create a brand has been able to isolate itself from its competition, (IHS, 2020). Samsung has benefited with 23% of its returning customers, (IHS, 2020). 27% of the loyal customers highlighted the hardware and advanced technology, (IHS, 2020). On the other hand, Samsung influenced 24% of
its customers through their prices, (IHS, 2020).
Brand equity According to Qualtrics, “Brand Equity” is the “additional value that a recognizable brand name adds to a product offering,” (Qualtrics). It could help develop a bigger market share, (Qualtrics). Additionally, a company could charge a premium price, grow the product line, and increase impact, (Qualtrics).
Apple Inc.
According to Colin Finkle, over one-third of Apple’s value comes from its brands, (Finkle, 2020). Currently, Apple has an estimated value of US$703.4 Billion, with its brand accounting
for 30%, (Finkle, 2020). Roberta Greenspan suggests Apple’s pricing and branding methods has been a factor in maximizing profit margins, (Greenspan, 2019).
Samsung
According to Samsung Newsroom, Samsung has been growing since 2000 when they were 43
rd
on the Interbrand’s Top 100 Best Global Brand listing, (Samsung, 2020) In 2020, it reached number 5, (Samsung, 2020). Samsung’s increase in brand value can be linked to the creating of new technology and initiatives, (Samsung, 2020).
Conclusion
Bloomberg opinion writer, Tae Kim, recently announced that he was “Snubbing the New iPhone for an Android Galaxy.” (Kim, 2021) He made the announcement ahead of the September launch
of iPhone which was extraordinary. After months in isolation and quarantine during the pandemic, Kim did not feel like the next big thing approach of Apple. Already in 2015 authors Yoo and Kim (2015) already noted that Samsung was becoming a “Design Powerhouse” that is growing closer to the needs of customers. The mobile phone division, in particular, was staffed with young designers who were more influential than the older business executives. At the time they warned competitors that “the design group should include people who understood social science, enthnography, engineering, and management.” Although the brand value for Samsung is
still significantly smaller than Apple, that remains an important takeaway for an emerging brand.
However, the Apple brand with its advances in customer service also provide newcomers with important information about finding practical ways of serving customers, regardless the retail establishment they use.
Recommendation
Samuel Thimothy suggests maintaining a customer base would cost less than attracting new ones
which is the reason for Apple and Samsung are able to thrive and create customer loyalty, (Thimothy, 2021). For Slate to create a competitive brand that would thrive in the market, it would need to be able to observe and evaluate consumer equity. This would help the company guarantee a consumer base that would help its Fixed Costs. Additionally, Slate would need to manage the way consumers perceive its products and use them to improve its products. Slate’s consumers will value its brand and will pay extra for its products if the company creates a strong brand image. Slate’s trustworthiness is a factor in the way its customers’ decision-making process.
Additionally, Slate needs to focus on creating its business based on trustworthiness. Therefore, they should hire workers who know the industry from the inside out and who could develop consumer equity and a strong brand marketing strategy. It is important for the company to create high-quality products because it would maintain customer equity. The company’s market share will grow as long as it advertises effectively. This would shape Slate’s communication method and guarantees the customers’ satisfaction. Slate needs to effectively investigate the demographics of its customer base and their buying habits.
Slate would give customers an opportunity to switch brands by offering first-class customer service. Slate consumers will have many solutions for a variety of channels if it delivers exquisite service. Customers will choose Slate over its competitors if they feel the company can provide something the others do not. Slate would need to be able to differentiate itself from others. The growth of consumer equity and the ability to judge success of the release of its
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products, branding methods, customer rententian, and methods it serves the customer will ensure the success.
Appendix
Brand Element Comparison – Apple and Samsung
Branding Elements
Samsung
Apple Inc.
Brand Personality
Fits customers of all ages
Stands out with competitive prices and high-end capabilities
High-end innovative features across a wide array of electronics
Connecting customers with brand visions
Brand Image
Has won and consistently wins awards for their quality products
Driven by product brands and offers products with fair prices for many customer types
Designs and sells their products to enriched the lives of customers helping with learning
Enables customer to create and assist with tasks
Ability to share
with friends and family
Helps customer improve health
Brand Identity
Creative devices, products
Premium priced luxury
Designs products to enrich the lives of customers
Creates new ways to inspire their customers
Provides excitement for the launch of new products
Brand Differentiation
Regular Guy’ archetype
R&D Spending
Focused marketing
Branding efforts
Performs in-depth research on customers
Delivers unique channels through Apple Stores
Brand Positioning
five pillars
Innovation
Cutting-edge technology
World-class designs
Acquiring the best its brand to create an emotional connection with its customers through exceptional experiences is an excellent approach, especially in this competitive industry
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talents
Internal branding
Brand Communication
Uses mass media
Advertising
Public relations
Event sponsorship
Ect
Uses target advertising
Personal selling
Product promotion
Minimal social media interaction
Brand Loyalty
Dropped 11% since 2019.
Main concerns are privacy and value
Commity loves cutting edge technology
Brand Equity (Including Financial Equity)
$62.3 billion.
Brand consistently growing
Valued at US$703.5 billion
Brand value 30%
Premium pricing and premium branding strategy incresed profit margins
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