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Samsung Galaxy Brand
Extension Analysis
Introduction
Parent Company
 Samsung Galaxy phones are a series of android powered mobile devices designed,
manufactured and marketed by Samsung Electronics
1938 Founded by Byung Chull Lee, Korea
1970s Market leader of black & white televisions and micro ovens
1980s Color TVs, Air conditioners, Personal Computers
1991 First mobile handset
1999 First wireless equipped phone-smartphones
2009 Galaxy
Brand Extension
Samsung
Electronics
Category
Extension
Mobile Phones
Line extension
Samsung
Galaxy
Brand Extension Analysis
Brand Equity
 Samsung wanted consumers to think of Quality and specifications and build up the
brand up to the lifestyle and features differentiating from other manufacturers
Brand Logo & Brand Name
 Graphic element of galaxy to the visual of brand logo so that
a) consumers remember easily
b) Persisting brand name so that brand familiarity exists
Tagline
 Galaxy in your hands states whole world in your hands, implying:
a) stay connected to most important people and receive updates from them
b) user can use it to the core and benefit out of it the most
Brand Extension Analysis
 Target customers:
a) 18-30 old users
b) Young and social addict
c) Value based
d) Health emphasized
 Points of parity: operating system, product features, innovation
 Points of difference: more features at low cost, constant innovation, first
mover advantage in smart phone category
Brand Extension Analysis
Low repeat
purchase &personal
attachment
High brand consideration
and credibility, low
quality and all models
look alike
Performance:durability,reliability
Imagery: Stylish,techy,fun,young
Salience: Depth-awareness an ANDROID phone
Breadth-wide range features at affordable prices
Market share
 Samsung galaxy achieved NO.1 ranking in sales revenue and market share in the
mobile phone market
2014 2013 2014/2013
growth
rate
2012
25.2% 32.3% -3.9% 26.9%
2014 2013
Samsung 25.2% 32.3%
Apple 11.9% 13.0%
Huawei 06.9% 04.3%
Manufacturers Revenue in Billion US dollars
2013 2012 2011
216.71 190.57 154.05
Market analysis
 Samsungs official Q1 2015 reports convey operating profit $5.63 billion and
revenue of $44 billion
 These numbers represent a drop in operating profits year-over-year, down
from $7.8 billion in Q1 2014
 Taking mobile sales into account, Samsung reports an operating profit of $2.5
billion on revenues of $24.1 billion
 Reasons:
 lowered tablet and feature phone sales
 increased smartphone market competition
 strong competitive pricing at the lower half of the portfolio

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  • 2. Introduction Parent Company Samsung Galaxy phones are a series of android powered mobile devices designed, manufactured and marketed by Samsung Electronics 1938 Founded by Byung Chull Lee, Korea 1970s Market leader of black & white televisions and micro ovens 1980s Color TVs, Air conditioners, Personal Computers 1991 First mobile handset 1999 First wireless equipped phone-smartphones 2009 Galaxy
  • 4. Brand Extension Analysis Brand Equity Samsung wanted consumers to think of Quality and specifications and build up the brand up to the lifestyle and features differentiating from other manufacturers Brand Logo & Brand Name Graphic element of galaxy to the visual of brand logo so that a) consumers remember easily b) Persisting brand name so that brand familiarity exists Tagline Galaxy in your hands states whole world in your hands, implying: a) stay connected to most important people and receive updates from them b) user can use it to the core and benefit out of it the most
  • 5. Brand Extension Analysis Target customers: a) 18-30 old users b) Young and social addict c) Value based d) Health emphasized Points of parity: operating system, product features, innovation Points of difference: more features at low cost, constant innovation, first mover advantage in smart phone category
  • 6. Brand Extension Analysis Low repeat purchase &personal attachment High brand consideration and credibility, low quality and all models look alike Performance:durability,reliability Imagery: Stylish,techy,fun,young Salience: Depth-awareness an ANDROID phone Breadth-wide range features at affordable prices
  • 7. Market share Samsung galaxy achieved NO.1 ranking in sales revenue and market share in the mobile phone market 2014 2013 2014/2013 growth rate 2012 25.2% 32.3% -3.9% 26.9% 2014 2013 Samsung 25.2% 32.3% Apple 11.9% 13.0% Huawei 06.9% 04.3% Manufacturers Revenue in Billion US dollars 2013 2012 2011 216.71 190.57 154.05
  • 8. Market analysis Samsungs official Q1 2015 reports convey operating profit $5.63 billion and revenue of $44 billion These numbers represent a drop in operating profits year-over-year, down from $7.8 billion in Q1 2014 Taking mobile sales into account, Samsung reports an operating profit of $2.5 billion on revenues of $24.1 billion Reasons: lowered tablet and feature phone sales increased smartphone market competition strong competitive pricing at the lower half of the portfolio