Final report samsung brand management in vietnam

MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY FALCULTY OF BUSINESS AND MANAGEMENT FINAL REPORT SAMSUNG BRAND MANAGEMENT IN VIETNAM Class ID : MK401DE02 3 0300 Group : Group 10

MINISTRY OF EDUCATION AND TRAINING

HOA SEN UNIVERSITY FALCULTY OF BUSINESS AND MANAGEMENT

FINAL REPORT SAMSUNG BRAND MANAGEMENT IN

VIETNAM

June 2021

TABLE OF PERFORMANCE EVALUATION

completion

1 Nguyßn Quÿnh Thÿy Tiên

Write the report

- SWOT, Target Customer, Competition;

- Branding and Marketing activities, method, channels;

- Brand challenges and opportunities; and

- Brand Equity

100%

2 Lê Minh Qußc Tu¿n

Write the report

- Brand Positioning, Resonance, Value Chain;

- Brand Elements, Associations, Mantra; and

- The growth of the brand

100%

3 Hoàng Thß Kim Y¿n

Design the slide for presentation

Write the report

- Value Chain;

- Conclusion

100%

4 Nguyßn Thß Liên Anh Proofread the report

Write the report (Introduction) 100%

TABLE OF CONTENTS

TABLE OF PERFORMANCE EVALUATION i

TABLE OF CONTENTS ii

LIST OF FIGURES iv

LIST OF TABLES vi

INTRODUCTION 1

1 History 1

2 Brand Architecture 3

3 Product and Price 3

4 Brand Performance and Achievement 6

5 Recent news 9

FINDINGS AND INTERPRETINGS 11

1 Overall analysis 11

1.1 SWOT Analysis 11

1.2 Target Customer 11

1.3 Competitor Analysis 11

2 Branding and Marketing 13

3 Channels 14

4 Brand Challenges and Opportunities 16

4.1 Challenges 16

4.2 Opportunities 17

5 Company Brand Equity 17

6 Brand Positioning 18

7 Brand Elements 19

8 Brand Associations 20

9 Brand Resonance 22

10 Brand Value Chain 23

10.1 Stage 1: Marketing Program Investment 23

10.2 Program Quality Multiplier 24

10.3 Stage 2: Customer Mindset 24

10.4 Market Condition Multiplier 26

10.5 Stage 3: Marketing Performance 28

10.6 Investor Sentiment Multiplier 31

10.7 Stage 4: Shareholder Value 32

11 Brand Mantra 34

12 Brand Growth 34

CONCLUSION 37

1 Comments and suggestions 37

1.1 Too many product lines 37

1.2 Inefficient and customer-unreachable marketing 37

1.3 Scandals 38

1.4 Easy-to-copy design 39

1.5 Inappropriate promotion 39

1.6 Vietnamese customers9 opinions 40

2 Conclusion 40

REFERENCES viii

LIST OF FIGURES

Figure 2.1 3 Samsung Brand Architecture 3

Figure 4.1 3 Samsung Electronics Vietnam9s revenue from 2011 to 2020 6

Figure 4.2 3 Smartphones market share in Vietnam from November 2019 to November 20206 Figure 4.3 3 Korean doctors conducting surgery for patients in Thai Nguyen 7

Figure 4.4 3 Volunteers of Samsung repairing computers for students in Thai Nguyen 7

Figure 4.5 3 Samsung Electronics Vietnam and Lego Education co-operated seminar <Creating the Future throught STEM Education= 8

Figure 4.6 3 Demo construction design of the school built to give to teachers and students in Tri Le 8

Figure 5.1 3 Samsung Galaxy S21 5G 9

Figure 5.2 3 Samsung Forecast to displace Intel for top spot in semiconductor sales in 2021 10 Figure 1.3.1 3 Mobile Vendor market share in Vietnam 3 May 2021 11

Figure 1.3.2 - Mobile Vendor market share in Vietnam from May 2020 to May 2021 12

Figure 3.1 3 Samsung Galaxy A51 promotional clip 14

Figure 3.2 3 Samsung Plaza in Cau Giay, Hanoi 15

Figure 3.3 3 Samsung Vietnam running ads on Facebook 15

Figure 3.4 3 Samsung Vietnam website 16

Figure 6.1 3 Samsung Brand perceptual map 19

Figure 7.1 3 Samsung Brand name 19

Figure 7.2 3 Samsung Logo 20

Figure 8.1 3 Samsung brand associations 20

Figure 10.1.1 3 Samsung edition of Marvel9s Avengers Age of Ultron 23

Figure 10.2.1 3 Samsung Galaxy S10+ - Park Hwang-Seo products as a gift for Vietnam9s football achievements 24

Figure 10.3.1 3 Most popular smartphone brands in Vietnam in 2020 25

Figure 10.3.2 3 Smartphone vendors9 market share in Vietnam in Q4 2020 25

Figure 10.4.1 3 Top 10 smartphones by revenue share and volume share in Q1 2021 27

Figure 10.4.2 3 Global top 10 smartphones in Q3 2020 27

Figure 10.5.1 3 iPhone 6S and Samsung Galaxy 6 comparison 28

Figure 10.5.2 3 Demand curve of Samsung Note 3 29

Figure 10.5.3 3 Samsung Profits Recover 30

Figure 10.6.1 3 Worldwide Smartphone Forecast Q4 2020 31

Figure 10.7.1 3 Samsung stock price 33

Figure 11.1 3 Samsung Mental map 34

Figure 12.1 3 Samsung Galaxy Tab 35

Figure 12.2 3 Samsung Galaxy S2 35

Figure 12.3 3 Samsung virtual device 36

Figure 12.4 3 Apple iPhone 12 PLED display panels supplied by Samsung and LG 36

Figure 1.2.1 3 Press conference launching Galaxy A52 and Galaxy A72 38

Figure 1.3.1 3 Exploding Samsung Galaxy S7 38

Figure 1.3.2 3 Samsung Group Vice Chairman Lee Jae-yong indicted on charges of embezzlement and bribery 39

Figure 1.5.1 3 Price of Samsung smartphones at Cellphone 40

LIST OF TABLES

Table 1.1 3 Samsung History 2

Table 3.1 3 Samsung smartphones and prices 5

Table 1.1.1 3 Samsung SWOT matrix 11

Table 10.5.1 3 Samsung profitability 30

Table 11.1 3 Samsung Brand mantra 34

in semiconductor manufacturing

1980 3 1989

During the late 1970s and 1980s, Samsung Electronics' core technological businesses diversified and globalized Samsung Electronics' increased focus on technology resulted

in the establishment of two research and development (R&D) institutions that enabled the company to expand its reach even further into electronics, semiconductors, optical telecommunications, and new technology innovation fields from nanotechnology to advanced network architecture

During the time starting from 1987, Samsung Electronics set out to reorganize old businesses and established new ones

in order to become one of the top five electronics corporations

in the world

1990 3 1993

In the early 1990s, high-tech business faced a hardship of huge challenges as competition and coalition were gradually growing At this time, companies had to audit their technology and service offerings Samsung Electronics was not an outlier

in this case Samsung Electronics concentrated on their business strategies and responded better to the market demands

1994 3 1996

In the middle of 1990s, Samsung dedicated to completely change its business by putting quality as its top priority Its dedication during this time was to make world-class products,

deliver satisfaction to customer, and be seen as a responsible citizen-oriented corporate

17 products including semiconductors, computer monitors, TFT-LCD screens, color picture tubes made it to the top five products market share all over the globe On top of that, 12 others gained their own places in the areas of their markets as well

Furthermore, Samsung also fulfilled its corporate social responsibility in social general healthcare, conserving the environment, cultural and sports events, especially in sports marketing As a result, its chairman, Mr Kun-hee Lee, was chosen to join the International Olympic Committee (IOC) in

1996 This further improved the image of a world-athletic contributor

1997 3 1999

Owing to the financial crisis in 1997, nearly all Korean businesses in Korea struggled with the damages of its However, few companies continued growing including Samsung Electronics The reasons were because of leading in digital and network technologies in their area of business and focusing on electronics, finances and related services

2000 3 2004

Digital era has been a revolution changing the market and offer opportunities for companies all over the globe Even so, Samsung maintain its leading place in the market by competing through non-stop innovation

2005 3 Present

Samsung made it to top 10 brand in Best Global Brand The success of Samsung is undeniable as it has been seen as an industry leader and recognized all over the world

Table 1.1 3 Samsung History

2 Brand Architecture

Figure 2.1 3 Samsung Brand Architecture

(Source: Thai Quang Anh) Samsung brand architecture is built according to branded-house type, and includes following sub brands:

- Samsung Electronics: LCD and LED panels, smartphones, memory chips, NAND flash, solid-state drives, televisions, digital cinema screen, and laptops

- Samsung Card: credit cards

- Samsung Construction: construction and civil engineering

- Samsung Life Insurance: life insurance, health insurance, annuities

- Samsung Heavy Industries: ships, offshore platforms, wind power, electric power and control systems, engineering and infrastructure

3 Product and Price

Galaxy A02s

3.190.000 VND

- 3.590.000 VND

Table 3.1 3 Samsung smartphones and prices

4 Brand Performance and Achievement

Revenue

Figure 4.1 3 Samsung Electronics Vietnam9s revenue from 2011 to 2020

(Source: Samsung financial report) Samsung Electronics Vietnam9s revenue was raising every year in the period from 2011 to

2018, but tended to decrease from 2019 to 2020

Market share

Figure 4.2 3 Smartphones market share in Vietnam from November 2019 to November 2020

(Source: GfK) However, the company9s smartphone market share in Vietnam owned the leading position

in 2020

Remarkable achievement in CSR

In 2016, Samsung organizes a volunteer campaign to take care of community health and support facilities for students in Thai Nguyen and Ho Chi Minh City

Figure 4.3 3 Korean doctors conducting surgery for patients in Thai Nguyen

(Source: Vietnam Government Portal)

Figure 4.4 3 Volunteers of Samsung repairing computers for students in Thai Nguyen

(Source: Vietnam Government Portal)

In 2018, Samsung Electronics Vietnam hold a seminar "Creating the Future through STEM Education"

Figure 4.5 3 Samsung Electronics Vietnam and Lego Education co-operated seminar

<Creating the Future throught STEM Education=

(Source: Samsung Vietnam)

In 2019, Samsung Electronics operated "Mat troi mo uoc" project, co-operated by Samsung with the WeDo program

According to Forbes Vietnam, Samsung is one of the ten companies that have been leading

in CSR activities contributing to the sociaty in Vietnam

Figure 4.6 3 Demo construction design of the school built to give to teachers and students in

Tri Le

(Source: Samsung Vietnam)

at the second place in the market with the rate of 19 percent, decreased with the rate of 22 percent in the same period last year Samsung smartphone sales increased 20 percent in the four markets, but their market share decreased due to the increasing growth of Chinese smartphone companies

Semiconductor

According to a report from IC Insights, Samsung Electronics will surpass Intel in sales in the second quarter of 2021 While Intel's sales are declining, Samsung's sales have been steadily increasing in the past few years

Figure 5.2 3 Samsung Forecast to displace Intel for top spot in semiconductor sales in 2021

(Source: Company reports, IC Insights) The two largest semiconductor processing factories in the world today are located in Asia: TSMC of Taiwan and Samsung Electronics of Korea Even so, a report from Bank of America published in December 2020 said that Intel's manufacturing process is still behind TSMC and Samsung TSMC and Samsung has been leading in the semiconductor manufacturing operations, but both are still significantly dependent on equipment and machinery from the US, Europe and Japan The field in which South Korea is being left behind is chip manufacturing, which is the strength of TSMC (Taiwan) The US and China has also spent hundreds of billions

of dollars to develop its chip manufacturing industry, in order to reduce their significant dependence on Western-designed chip architectures Hence, both Samsung Electronics and SK Hynix have been putting effort into penetrating this field (Bao Nhi, 2021)

According to Nikkei Asian Review, semiconductor manufacturing equipment is an indispensable element for the Korean company's advanced products Samsung lost to its competitor 3 TSMC, in the field of advanced semiconductors Samsung is having difficulties

in mass producing advanced products and lose market share in contract manufacturing This weakness in advanced products would possibly lessen the competitiveness of other core products such as semiconductor memory and smartphones

Smartphones and memory chips account for 60 percent of Samsung's total sales If Samsung keeps being left behind in the technology race for advanced semiconductors, that could lead to

a decline in Samsung's overall profits (Minh Duy, 2021)

FINDINGS AND INTERPRETINGS

1 Overall analysis

1.1 SWOT Analysis

- Low production costs

- Spend a lot of money on R&D (4,37

- Few potential competitors

- Low dependent on supplier

- 5G technology

- The middle class is growing; this

increases the market share of

electronic devices (Euromonitor

Figure 1.3.2 - Mobile Vendor market share in Vietnam from May 2020 to May 2021

(Source: StatCounter)

In the past, whenever Apple was mentioned, people would immediately think of Samsung because these two giants competed fiercely in each market However, in recent years Samsung has not only faced Apple, but it also has to fight Chinese brands with the ability to use price as

a weapon Above is Apple, below is Xiaomi, Huawei and Oppo, this competition somewhat makes Samsung short of breath

Apple9s iPhone is without doubt the number 1 Samsung competitor when we talk about high end smartphones Almost every year, there are 3 smartphones that are sure to be launched One would be an iPhone, another a Samsung Note and the third Samsung galaxy or Samsung galaxy edge iPhone was one of the first phones to come out in the market with multi touch features Although in Vietnam Apple is still leading, Samsung has a competitive advantage that regularly launches new products to meet the diverse needs of the market Technology is easy

to change and get boring Understanding that mentality, Samsung has been doing better than Apple at launching new technology regularly Concrete proof is Samsung release about 8 new phone models in 2020, especially Galaxy Z Fold 2 and Galaxy Z Flip but Apple only launched iPhone 12 series

2 Branding and Marketing

Past branding activities

Samsung's strategy is to make something similar to competitors' products, but with better quality and cheaper prices Once involved, Samsung quickly flooded the market with many product models, many prices, suitable for many segments, constantly updated with small improvements and at a speed that opponents are difficult to keep up with This brand has been looked down upon for its cheap price, and imitations of other brands

Current branding activities

After the lawsuit with Apple, SS changed its strategy, they realized, <Copying and upgrading wisely is no longer fashionable To hope to win the competition Samsung must become the pioneer, although risks always await those who pave the way.= They have improved their brand:

Forming the ultra-premium segment and consideration for the lower segment

In order to compete with Apple, Samsung has launched a high-end segment with higher prices than Apple in the Note series and Galaxy Z flip, Galaxy Fold

Improvements in design and customer service

Samsung is famous for its extremely good customer service

Putting the customer at the heart of its business, Samsung has designed a series of customer services based on experience and feedback from customers over the years This service network includes the brand's Omni channel approach such as a service center, 24/7 care line, showroom, live chat, MySamsung app, and Smart Care Package - providing personalized support to serve customers with different needs

Besides, Samsung became increasingly aware of the importance of being the best in product design The latest, trendiest, and coolest designs, backed by innovation and cutting-edge technology, have uniquely positioned Samsung in both the market and the minds of consumers With fierce competition, the visual appeal of Samsung's products has been a significant differentiator from its competitors

Samsung hires contractors in China to produce ODM smartphones

Most Samsung phones designed and manufactured by Chinese ODM contractors are in the Galaxy A series - Samsung's lowest line, such as the Galaxy A6S phone

These low-cost phones are sold mainly in Southeast Asian and Latin American markets, where Samsung is trying to gain market share of Huawei phones - the Chinese corporation is struggling because of US sanctions, and must remove Google services from its new phone models

3 Channels

Just like other smartphone brands, the marketing strategy of Samsung also follows channel marketing as the distribution medium for its products Samsung has tie-ups with small to giant retailers in Vietnam like CellphoneS, The Gioi Di Dong, Dien May Xanh, etc that handle the sales of Samsung

Figure 3.1 3 Samsung Galaxy A51 promotional clip

(Source: Samsung Vietnam YouTube channel) Apart from these retail distributors, Samsung also has their own sole distributors where they only sell Samsung products Samsung Vietnam shakes hands with Samnec International JSC

to open Samsung Plaza in Cau Giay, Hanoi and nearly 10 Samsung Experience Store - SES in Viet Nam Besides, Samsung also released Samsung Showcase in Bitexco - is the global standard showcase In terms of scale, Bitexco Showcase is the 4th largest in the world, behind showcases in Korea, Dubai and Italy where everyone can enjoy Samsung's advanced technologies

Figure 3.2 3 Samsung Plaza in Cau Giay, Hanoi

(Source: Samsung Plaza Vietnam website) The group also promotes the D2C (Direct to Customer) sales method, with the advantage of

a large Samsung user ecosystem Currently, Samsung Vietnam is promoting sales ads on Facebook, the link leads directly to the website of Samsung Vietnam

Figure 3.3 3 Samsung Vietnam running ads on Facebook

(Source Facebook)

Website

Figure 3.4 3 Samsung Vietnam website

(Source: Samsung Vietnam website)

4 Brand Challenges and Opportunities

4.1 Challenges

COVID-19 pandemic

As well as the impact of consumers with the Covid-19 pandemic, the economy's decline, consumers have difficulty in earning, leading to a decrease in the consumption of high-value technology products Samsung's component supply chain is facing difficulties in Vietnam due

to the impact of the Covid-19 epidemic Existing factories are producing below capacity due

to the spread of the new outbreak

Samsung9s new products

Despite being one of the first companies to dive into 5G and pioneer the development of foldable devices, Samsung has not really reaped success from these efforts While consumers

in many countries don't have enough reasons to buy a 5G phone, Samsung's folding devices are too expensive to sell in bulk

Brand loyalty

Brand loyalty is not that evident 3 As mentioned earlier, the purchasing decision for mobile devices usually begins with a choice between the Apple operating system and Android In the Android space, Samsung is undoubtedly the top-in-mind choice, given its exceptional track record for performance and quality However, in the event that an Android competitor, say LG,

releases a product that is better than Samsung, there is nothing that stops the buyer from choosing LG over Samsung because of the absence of switching costs

For instance, LG rollable smartphone launched and attracted consumers, but unfortunately this product has not been launched by LG anymore, but in the future, it is not known what competition will be left

Imitable Points-of-Difference

The key factors that differentiate Samsung (innovation, design, and quality) from its competitors are imitable and difficult to sustain, especially in an industry known for its cutthroat competition

Expanding research and development (R&D) and production activities in Vietnam

The vice chairman of Samsung Group acknowledged that Vietnam is one of the few countries that both effectively fight the epidemic and develop socio-economically, "Every time

I come to Vietnam, I see more new buildings popping up, more roads newly built, good hotels= Vietnam has well controlled the COVID-19 epidemic, is the only country in ASEAN with positive growth this year and can rank 4th in ASEAN in terms of economic size

With cheap labor costs, high talent in Vietnam, besides being educated by training programs

of Samsung to create opportunities, bring into full play the talents of each employee, especially the employees research and development force Samsung's largest R&D center in Southeast Asia is gradually taking shape in Hanoi Samsung said that Vietnam will be a potential country, bringing new breakthroughs Besides, this is also a great opportunity for Vietnam

5 Company Brand Equity

Brand Equity: Metrics of Knowledge

Samsung has a high level of brand awareness When it comes to consumer electronics brands, particularly in the mobile space, Samsung is a name that everyone knows, regardless

of age, race, gender, or other factors Furthermore, in this digital age, Samsung is second only

to Apple in terms of top-of-mind unaided recall However, when it comes to brand awareness

in terms of brand awareness is its slogan/tagline: consumers have difficulty recalling what Samsung's slogan is Even with aided recall, consumers struggle to identify which of Samsung's slogans is the most recent

Apart from brand awareness, Samsung has elicited a plethora of brand associations over the years Durable, stylish, easy to use, innovation, quality, smart, up-to-date, and efficient, sleek, sexy, and classy are some of its functional brand associations Emotional brand associations,

on the other hand, include: cool, dependable, trustworthy, reliable

Brand Equity: Metrics of preference

Samsung clearly does not have a problem with familiarity The same can be said for consideration: up to this point, Samsung has a significant advantage over its competitors When

it comes to mobile devices in general, the battle is mostly between operating systems (Apple iOS vs Android), not so much between brands

Once the consumer has decided to go with Android, Samsung's advantage over other players

in the Android market (LG, Sony, HTC, and so on) becomes much clearer: Samsung is the first brand that is considered Samsung, on the other hand, has a problem with Purchase, Usage, and Loyalty Leadership in the Android mobile space is difficult to maintain due to fierce competition and the introduction of peer reviews For example, even if Samsung has developed cutting-edge technology for its release this year, another brand may have done an even better job, and as a result, consumers will flock to that said brand, and Samsung's position as market leader is challenged

6 Brand Positioning

Points of Parity (POP)

Samsung smartphones feature a touchscreen with many functions just like other brands Customers can use their smartphone as a MP3 player or a video player since it can connect to Wi-Fi and stream all of the latest videos Moreover, it can also be a e-newspaper and people can bring it anywhere conveniently

Points of Differentiation (POD)

Samsung9s product strength is innovative, the functions and features that the brand renders for their customers are better than the money that they paid for their phones Example, Samsung Galaxy A72 features 4 cameras with significant specifications Moreover, Samsung targets everybody, they have various Galaxy series from cheap to expensive Each and every phone tier, Samsung once again always puts the best features in their phone so that it is worth every penny

Overall positioning: Quality comes with the price, innovative, affordable and luxurious

Brand perceptual map